Turkey just opened the widest tax door of any Mediterranean country in a generation. On 24 April 2026 the Turkish government announced a 20-year zero-percent income tax on foreign-source income for new residents, plus a 1 percent inheritance and gift tax rate, locked through 2047. The measure was filed in the Grand National Assembly on 5 May 2026. For anyone weighing Turkey residency, Turkey citizenship by investment, or a coastal property purchase, the maths just changed.

The 20-year tax holiday for new residents

A new resident who has not been a Turkish tax resident in any of the 3 calendar years before relocation pays 0 percent income tax on foreign-source income for 20 years. Only Turkish-source income gets taxed. Inheritance and gift tax for that individual drops to 1 percent, against a standard rate that climbs to 10 percent on larger estates. The clock starts at relocation, so the holiday applies only once residence begins.

Turkey residency and citizenship by investment

Turkey runs two parallel programs. The residence permit needs a minimum $200,000 in property, gives a 2-year renewable permit, and opens the path to citizenship after 5 years of continuous legal residence. The Citizenship by Investment route needs $400,000 in property and delivers a Turkish passport in 6 to 8 months, with visa-free or visa-on-arrival access to more than 110 countries and eligibility for the United States E-2 Investor Visa. Both routes trigger the tax holiday once residence begins.

Turkish Riviera property at one-third the price

The Turkish coast runs more than 1,000 kilometres along the Aegean and Mediterranean, the same sea as the French Cote d'Azur and the Spanish Costa del Sol. Luxury seafront villas in Bodrum, Kalkan, Kas, and Fethiye sell from roughly 400,000 euros. The comparable villa in southern France or Spain costs upwards of 1.3 million euros. Across the coast, lifestyle property runs about one-third of the equivalent in France, Italy, or Spain, and a couple lives in Kalkan on $1,500 a month, all-in.

The 5-year rule and the currency entry

Property held 5 years or more and sold by a non-resident pays zero capital-gains tax in Turkey. A free Turkish tax identification number, obtained online in minutes, unlocks banking, property, and residency filings. The lira sat at 45.36 to $1 on 29 April 2026, with a further 11 percent depreciation forecast by year-end, so $1 buys more Turkish property than at any point in the last decade.

The complete IR-008 report breaks down every residency and citizenship pathway, the banking route in, the double-tax treaties for US, UK, Australian, and Canadian holders, and the risks no broker mentions. Read the full Turkey country analysis.