Law No. 7582: Turkish Foreign Investment, Qualified Service Centers, and Tax Reforms

Enacted by the Grand National Assembly of Türkiye (TBMM) on May 21, 2026, Law No. 7582 (formerly Draft Bill No. 2/3669) marks a milestone reform package. It introduces massive tax exemptions, startup funding vehicles, and corporate tax cuts designed to attract high-value multinational headquarters, direct investors, and technology founders. Below, we examine the primary structural provisions of the enacted law.

1. Qualified Service Centers (QSCs) & Landmark Tax Holidays

To incentivize the relocation of regional headquarters and shared service centers to Türkiye, the law creates a brand-new statutory category:

• Definition: Capital corporations established in Türkiye to provide management services (such as financial consulting, strategic management, legal advice, HR, R&D, or tech consulting) to associated multinational entities operating actively in at least three different countries, and generating at least 80% of their gross annual revenue from abroad, will be tescil-certified as "Qualified Service Centers".
• 95% to 100% Tax Deduction: Qualified Service Centers will enjoy a 95% corporate tax deduction on their earnings (rising to a **100% tax holiday** if the entity operates within the Istanbul Financial Center (IFC) zone).
• Qualified Salaries Waiver: The monthly salaries of qualified service personnel employed in these centers will be **exempt from income and stamp taxes** up to 3 times the gross monthly minimum wage (up to 5 times for centers active inside the IFC).

2. Broad Corporate Tax Reductions for Manufacturers & Exporters

To boost export capacity, the standard 25% corporate tax rate is lowered on eligible foreign revenues:

• Manufacturing Exporters: Eligible corporate earnings derived directly from the export of self-manufactured goods will qualify for a 16-point rate reduction, resulting in an effective corporate tax rate of **9%** (down from 25%).
• General Exporters: Corporate earnings exclusively derived from general export operations will qualify for an 11-point reduction, resulting in an effective rate of **14%**. This benefit extends to manufacturers executing exports via licensed Foreign Trade Capital Companies (Dış Ticaret Sermaye Şirketleri).

3. Transit Trade Profits Tax Deductions

The corporate tax deduction rate for earnings generated from transit trade (buying goods from abroad and selling them directly to third countries without entering Turkish customs) is raised to **95%** (and **100%** for participants licensed inside the Istanbul Financial Center). The deduction requires profits to be transferred to Türkiye prior to the corporate tax filing date.

4. 20-Year Foreign Income Tax Exemption for Non-Residents

To attract high-net-worth investors, family offices, and cross-border executives, the law introduces a highly competitive tax residency package:

• 20-Year Tax Holiday: Real persons who establish tax residency in Türkiye, provided they had no domicile or tax liability in Türkiye during the last three calendar years preceding their arrival, will have their foreign-sourced earnings and investments **exempt from income tax for 20 years**.
• Inheritance Tax Holiday: Assets inherited by or transferred to such individuals during this 20-year window will be subject to a symbolic **1% inheritance tax rate**.

5. Disruptive Structural Incentives for Tech Startups & VC Funding

The law introduces progressive legal instruments to secure Türkiye's status as a global technology hub:

• Employee Stock Option Exemption: The annual income tax exemption cap for shares or options granted to employees of certified technology startups (Teknogirişim) is doubled from 1 to **2 times the gross annual salary**, and vesting hold periods are shortened to facilitate faster liquidity (ranging between 2 to 6 years).
• Paya Dönüştürülebilir Borç (Convertible Debt Contracts): Non-public startups awarded an official *"Techno-startup Badge"* by the Ministry of Industry and Technology will be able to raise seed and venture capital via convertible debt instruments under a simplified conditional capital increase framework, bypassing strict Turkish Commercial Code (TTK) restrictions.

Disclaimer: The law has been formally approved by parliament and is subject to active administrative implementation rules. To analyze the impact of this historic reform on your corporate structure, relocation plans, or investment incentives, schedule a structured Initial Review with our managing partner.