Turkish President Recep Tayyip Erdogan has signed a new law introducing extensive tax incentives aimed at attracting wealthy foreign residents and boosting investment in the country’s economy.

According to the legislation, approved on June 3 and published in Turkey’s official legal database, foreigners who relocate to Turkiye for permanent residence will be exempt from paying Turkish income tax on earnings generated abroad for 20 years, the Fergana News Agency reported.

The tax benefit applies only to individuals who have not been Turkish tax residents during the previous three years. Income earned within Turkiye will continue to be taxed under existing national legislation.

The new measures also extend to Turkish citizens who have lived abroad for extended periods and choose to return to the country. Authorities hope the incentives will encourage affluent individuals to relocate, purchase real estate, and invest in the Turkish economy.

The law further introduces a capital repatriation program allowing individuals and companies to transfer funds, gold, and securities to Turkiye while paying a preferential tax rate of no more than 5%.

In addition, assets declared under the program and funds deposited in Turkish bank accounts will be exempt from tax inspections and audits.

Businesses are also set to benefit from the reforms. Companies operating within the Istanbul Financial Center will receive a 20-year exemption from corporate income tax, while exporters will be eligible for a reduced corporate tax rate of 9%, compared to the current rate of 25%.

Turkish authorities say the package is designed to attract foreign capital, accelerate the development of high-tech industries, and strengthen the country’s position in the global economy.

Analysts note that similar tax incentive programs exist in countries such as Italy, Portugal, and Greece. However, those schemes typically last between 10 and 15 years and often require beneficiaries to pay an annual fixed tax.

By contrast, the Turkish program does not impose such obligations, making it one of the most generous tax incentive packages currently available to international investors and high-net-worth migrants, according to experts.