Türkiye offers 20-year tax breaks to attract investors leaving Gulf
Erdogan unveils sweeping incentives targeting foreign capital amid regional instability and shifting investment flows
ISTANBUL, Türkiye (MNTV) — Türkiye has announced a broad package of long-term tax incentives aimed at attracting foreign investors, as Ankara seeks to position itself as a major destination for global capital amid ongoing instability in the Gulf region.
President Recep Tayyip Erdoğan said investors relocating to Türkiye could benefit from a 20-year exemption on taxes related to foreign-sourced income and capital gains, provided they have not been tax residents in the country for the past three years.
The proposal, unveiled during an investment program event in Istanbul, is part of a wider effort by Turkish authorities to draw high-net-worth individuals and businesses reassessing their presence in the Gulf following the recent Middle East conflict.
Under the plan, only income generated within Türkiye would be subject to taxation, while inheritance and gift taxes for eligible investors would be reduced to just one percent. The government is expected to submit the measures to parliament in the coming period.
Officials say the initiative is designed to strengthen Türkiye’s appeal as a global investment hub. Erdoğan described the country as more than a geographical bridge, arguing it has become a central base for regional energy and trade corridors in an increasingly multipolar world.
The incentives package also includes significant reductions in corporate tax. Manufacturing exporters could see rates fall from 25 percent to 9 percent, while other exporting firms would be taxed at 14 percent.
Additional measures aim to eliminate taxes on transit trade profits within the Istanbul Financial Centre, with similar relief extended to firms operating outside the hub.
Authorities are also planning to allow Turkish individuals and companies to repatriate overseas assets at reduced tax rates, further encouraging capital inflows.
The push comes as Türkiye seeks to compete with established financial centers such as Dubai and London. However, analysts caution that concerns over economic stability and confidence in legal institutions may remain key challenges in attracting sustained foreign investment.
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