BosphorasPrivate Office · Turkey

International tax · New residents

Turkey non-dom regime: tax treatment for new residents and foreign income

Turkey is preparing a tax measure that could change its international positioning. For some investors, entrepreneurs, expatriates and wealth families, it may become a serious alternative to the jurisdictions usually considered for private or wealth residence.

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01

Why the non-dom concept matters to investors

The non-dom concept is well known in international wealth planning. It is often considered by entrepreneurs, investors, international families, mobile executives and private banking clients. The general idea is that a person may live in a country while receiving specific tax treatment on certain income generated abroad. If Turkey confirms a long-term exemption for foreign income, it could become much more visible for profiles comparing tax, lifestyle, banking, real estate, healthcare, family needs and international access.

02

A non-dom-like regime, but to be handled carefully

Non-dom may not be the official legal term used in Turkey. It is mainly a practical way to describe the economic logic of the announced framework: attracting people living abroad by offering favorable treatment on certain foreign-source income. This distinction matters. Such a regime does not mean every type of income is exempt, and it does not allow someone to ignore the rules of the former country of residence. Eligibility, income type, treaties and real relocation evidence all matter.

03

What Turkey is trying to build

Turkey wants to attract more capital, talent, entrepreneurs, executives and international families. The future regime is part of a wider strategy: strengthening Istanbul as a financial hub, attracting service centers, encouraging exported services, developing strategic industries and bringing in high-value individuals. For an investor, the question is not only tax. The real question is whether Turkey can become a base for life, management, banking, wealth, family and business.

04

Who may be concerned?

Several profiles may be concerned. An international entrepreneur may live in Turkey while keeping a foreign company, dividends, international clients or an investment portfolio abroad. A wealth family may consider Istanbul, Bodrum or Antalya as a private base, with residence, real estate, health insurance, succession and family organization. A consultant, executive or digital nomad may want to work from Turkey for clients located in Europe, the Gulf, Central Asia or Africa.

05

The key condition: your Turkish tax history

Before anything else, the tax history must be reviewed. The announced regime appears to target people who have not been Turkish tax residents or Turkish taxpayers during the three calendar years before relocation. This may exclude certain profiles already installed or already linked to Turkey for tax purposes. You should review whether you recently lived in Turkey, declared income, owned rental property, created a local company, had a tax registration or spent significant time in the country.

06

Foreign income must be reviewed category by category

The heart of the regime is foreign income. But foreign income can take many forms. Dividends, capital gains, interest, rental income, pensions, professional income, holding distributions, life insurance, trusts or company sale proceeds must be reviewed separately. Each category may be taxed in the source country, be subject to withholding tax or be governed by a treaty.

07

Foreign dividends: a classic case for entrepreneurs

An entrepreneur may receive dividends from a company located outside Turkey. The review must identify where the company is located, where it generates profits, where it is effectively managed, whether withholding tax applies, which treaty is relevant and whether the distribution occurs before or after relocation. For a shareholder, the date of tax residence and dividend calendar can be decisive.

08

Foreign capital gains: asset sales should be prepared

An investor may sell foreign shares, company interests, a financial portfolio, property outside Turkey or a holding participation. The sale date, the country where the asset is located, the custodian, acquisition price, treaties and tax residence at the time of the transaction must be documented. A change of tax residence without planning can create unexpected consequences.

09

Consultants, executives and foreign professional income

A consultant, freelancer, executive or digital nomad may work from Turkey for foreign clients. This situation requires close review. The client may be foreign, but is the activity actually performed from Turkey? Where is the company located? Where are contracts signed? Where is effective management located? Where is the bank account? These points help separate foreign income from activity potentially connected to Turkey.

10

What should not be confused with the non-dom regime

The regime should not be understood as a total exemption. Foreign income, Turkish income, mixed income, activity performed from Turkey, income of a foreign company managed from Turkey, foreign real estate income and Turkish real estate income must be separated. Salary paid by a Turkish company, rent from Turkish property, fees billed to a Turkish client or dividends from a Turkish company may remain taxable in Turkey.

11

Comparing Turkey with Dubai, Italy, Portugal or Monaco

Turkey should not be presented as automatically better. Dubai remains strong for international image, banking and taxation. Italy is known for its new-resident regime. Monaco remains an ultra-premium reference. Portugal long attracted expats and retirees. Turkey may differentiate itself through a combination of residence, family life, real estate, healthcare, cost of living, regional business and potentially competitive taxation. The right choice depends on the real profile.

12

Mistakes to avoid

The first mistake would be believing that a non-dom regime automatically means paying tax nowhere. The second would be assuming that leaving a country is enough to lose tax residence there. The third would be moving residence, bank accounts or companies too quickly without a review. The fourth would be looking only at tax, while a successful relocation also includes banking, health insurance, real estate, family, residence, compliance, school, succession and lifestyle.

13

How Bosphoras can help

Bosphoras acts as a private coordination desk. The goal is not to replace a tax lawyer or promise a tax result. The goal is to organize a complete file before the decision: residence analysis, personal file preparation, coordination with tax advisors and lawyers, banking search, family relocation, real estate, health insurance, possible company formation and accounting coordination.

Comparing a tax regime is not enough: your real situation must be reviewed

Before choosing Turkey as a new private or tax base, Bosphoras can organize a personalized review of your residence, foreign income, companies, assets, banking, family and relocation calendar.

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Frequently asked questions

Does a Turkey non-dom regime officially exist?

Non-dom is mainly a practical way to describe the logic of the announced regime. Final texts and implementation rules must confirm the exact conditions.

Could Turkey really exempt foreign income for 20 years?

That is the announced objective for certain new residents, subject to conditions. The final version and implementation by the competent authorities must be confirmed.

Would Turkish income be exempt?

No. Available information distinguishes foreign income from Turkish-source income. Income generated in Turkey must be reviewed under Turkish tax rules.

Can an entrepreneur live in Turkey with a foreign company?

Potentially, but effective management, clients, substance, dividends, tax treaties and the risk of activity being considered performed from Turkey must be reviewed.

Can a foreign resident use this regime to leave their home country?

Not automatically. Former tax residence, home, companies, property, income, days of presence and applicable treaties must be reviewed.

Is this comparable to Dubai?

A comparison is possible, but it depends on the profile. Dubai remains strong for tax and image. Turkey may be attractive for family life, regional access, real estate, healthcare, business and potentially competitive taxation.

Does Bosphoras provide tax advice?

No. Bosphoras coordinates the private review, prepares the file and connects clients with suitable tax advisors, lawyers, banks, accountants and relocation partners.