On April 24, 2026, President Recep Tayyip Erdoğan presented a comprehensive tax package in Istanbul. One of the most notable measures: anyone who newly settles in Turkey and has not been tax resident there in the past three years is to pay no Turkish taxes on their foreign income for 20 years. Only income actually generated in Turkey remains taxable. A flat inheritance and gift tax rate of one percent was also announced. The legislative package still needs to pass parliament.
What is actually new
Many foreign income streams are already taxed in the country of origin. If you receive rental income from Germany or dividends from Austria, you generally pay tax there. Turkey has also concluded double taxation agreements (DTAs) with numerous countries, which determine which country holds the right to tax which income. In many cases, Turkey would not have had access to such income anyway. A portion of the announced tax exemption therefore already exists for many people today, even without the new regulation.
The real value of the new regulation
The real value lies in three areas.
Legal certainty for 20 years. Previously, much depended on case-by-case interpretation: which DTA applies, how income is classified, how the Turkish tax authority decides. The new regulation enshrines the tax exemption on foreign income into law for 20 years, without individual review.
Income that is tax-free in the country of origin. Not all foreign income is taxed where it arises. Capital gains from certain transactions, crypto profits, or licensing income are often untaxed in the country of origin, even though Turkey as the country of residence could previously have taxed them.
One percent inheritance and gift tax. This advantage has nothing to do with double taxation agreements. Particularly with larger wealth transfers, the difference compared to standard inheritance tax rates can be substantial.
A brief social perspective
Those who have lived, worked, and paid taxes in Turkey for years will naturally view this regulation differently. The impression that newcomers are being systematically favoured is understandable. From an economic policy perspective, however, the model is not unusual: countries like Portugal and Malta have used similar incentives for years. The logic is not arbitrary unequal treatment, but a deliberate instrument in the international competition for capital and investment. New residents may pay less tax on foreign income, but they consume and invest locally. Whether this calculation pays off will become clear in practice.
What matters for your own tax structure
Turkey is merely the latest example of a broader reality: international income is taxed very differently depending on place of residence, corporate structure, and applicable agreements. Many internationally active individuals have never systematically reviewed their situation. A GmbH still registered in Germany, even though the owner moved abroad long ago. A holding structure left unquestioned for years. A German pension, or a portfolio held in the wrong country. Each detail on its own is manageable; together, or over the years, they can add up to a significant excess tax burden.
International tax planning means using legal instruments such as double taxation agreements, holding structures, and residency planning proactively, as part of a considered overall strategy rather than a reaction after the fact. Turkey simply provides a fresh occasion to revisit the question.
The 20-year regulation sends a clear signal in international tax competition. Many details are still open, and implementation will show what concretely comes of it. Who it is truly relevant for depends on individual circumstances. The decisive question is rarely where you live, but whether your own tax structure still matches your reality.
Frequently asked questions about the Germany–Turkey 20-year tax rule
What is the 20-year tax rule between Germany and Turkey?
It refers to the Turkish tax package announced on April 24, 2026: anyone who was not tax resident in Turkey during the three years before moving there is to pay no tax on foreign income for 20 years, with a flat one percent inheritance and gift tax rate in addition. The package still has to pass parliament. Despite the common shorthand, it is a Turkish rule for new residents, not a provision of the Germany–Turkey tax treaty itself.
How many years do you need to work in Germany for tax exemption?
This is a common misunderstanding. The “20 years” refers to the duration of the Turkish exemption after you move, not to a required number of working years in Germany. No German working or qualifying period is a condition. What matters is solely that you were not tax resident in Turkey during the three preceding years.
How BAŞKAN supports you
This forward-looking coordination of your international tax structure is the strength of BAŞKAN tax consultancy in Germany. As tax advisors for German-Turkish and internationally active clients, we have specialised in this field for over three decades and advise in German, Turkish and English, following developments in both countries closely. In an initial conversation we review your current setup and assess whether it still matches today’s reality and what the announced regulation could specifically mean for you.
You can find more on our dedicated page: 20 years tax-free — find out more. If you would like to know what this means for you, we are available for an initial conversation.
This article provides general information and does not replace individual advice in a specific case.
