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The “Century of Türkiye Strong Hub for Investment Programme”, announced on 24 April 2026, represents a comprehensive reform agenda aimed at strengthening Türkiye’s position as a regional hub for international investment, finance, services and management activities. The Programme is built upon strategic objectives including attracting qualified human capital, promoting high value-added activities, encouraging the localisation of international capital and enhancing the overall investment environment.
A substantial part of the measures envisaged under the Programme has been incorporated into the legislative framework through Law No. 7582, published in the Official Gazette dated 4 June 2026. The key changes introduced by the Law are summarised below.
I.What Changed with Law No. 7582?
• The concept of "Qualified Service Hub" has been redefined, establishing a legal framework for multinational groups to locate service, management and support functions in Türkiye.
• Wages paid to qualified service hub personnel are exempt from income tax up to three times the gross minimum wage; the President may increase this threshold to five times in designated regions.
• Qualifying individuals relocating to Türkiye are granted a twenty-year income tax exemption on their foreign-source income.
• A reduced 1% inheritance and transfer tax rate has been introduced for estates passing by succession to such qualifying individuals.
• Corporate tax deduction rates for international trade and service income have been significantly increased, reaching 95% for certain activities and 100% in designated regions.
• Comprehensive amendments have also been introduced to legislation governing foreign direct investment, the Istanbul Finance Centre, R&D incentives and public receivables.
II. Qualified Service Hubs
One of the principal innovations introduced by Law No. 7582 is the redefinition of Qualified Service Hubs. The new framework aims to encourage multinational groups to establish service, management and support functions in Türkiye while generating a substantial portion of their revenues from international operations.
The concept serves as a common basis for several tax incentives introduced by the legislation, including wage exemptions, corporate tax incentives and benefits applicable to qualified personnel. Accordingly, Qualified Service Hubs constitute one of the key elements of the new incentive framework.
III. Income Tax Exemption For Qualified Service Personnel
The amendment introduced to Article 23 of the Income Tax Law provides an income tax exemption for a portion of the wages paid to personnel employed by qualified service hubs.
Under the new regime, the portion of wages corresponding to up to three times the gross minimum wage is exempt from income tax. The President is authorised to increase this threshold up to five times the gross minimum wage for designated regions.
The exemption applies to qualified service personnel employed by entities holding qualified service hub status.
IV. Special Tax Regime for Individuals Relocating to Türkiye
Supplementary Article 20/D of the Income Tax Law introduces a long-term income tax exemption for certain foreign-source income earned by qualifying individuals relocating to Türkiye.
The regime may be particularly relevant for investors, entrepreneurs, fund managers, senior executives and professionals engaged in international business activities. The twenty-year exemption period provides a predictable tax framework for individuals considering long-term residence and investment in Türkiye.
The reduced 1% inheritance and transfer tax rate applicable to estates passing by succession to qualifying individuals further complements this regime.
V. Corporate Tax Incentives for International Trade and Services
The amendments introduced to Article 10 of the Corporate Tax Law significantly increase the deduction rates applicable to income derived from foreign trade and international service activities.
Deduction rates may reach 95%, and in designated regions up to 100%, depending on the nature of the activities performed.
These measures are intended to support the establishment of regional trade and service hubs in Türkiye and to encourage the use of Turkish entities in international business operations.
VI. Conclusion
The amendments introduced by Law No. 7582 constitute an important step in reflecting the policy objectives of the Century of Türkiye Strong Hub for Investment Programme within the tax and investment framework. Taken together, the amendments to income tax, corporate tax, foreign direct investment, the Istanbul Finance Centre and public receivables legislation establish an integrated framework aimed at encouraging international investment and service activities.
In particular, the regulations concerning qualified service hubs, the income tax exemption for qualified personnel, the corporate tax incentives applicable to foreign trade and service income, and the special tax regime introduced for individuals relocating to Türkiye constitute the principal elements of the new incentive framework. The scope and practical application of these measures are expected to be further clarified through secondary legislation.
It is anticipated that many practical issues will be resolved following the finalisation of the draft communiqués issued by the Revenue Administration. In this context, it may be advisable to assess existing or planned investment and organisational structures in light of the new rules and to review the potential availability of the relevant incentives and exemptions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
