04.06.2026 09:50
Minister of Treasury and Finance Mehmet Şimşek announced Turkey's new economic roadmap and massive incentive package at the Nomura Investment Forum Asia 2026. Stating that inflation will end the year in the mid-20s, Şimşek unveiled a 20-year tax exemption for multinational corporations, a full exemption for service exporters, and a 20-year tax-advantaged 'non-dom' residency regime designed to attract foreign capital.
Minister of Treasury and Finance Mehmet Şimşek addressed global investors in the session titled 'Turkey's New Route to Financial Stability' held within the scope of the Nomura Investment Forum Asia 2026. Emphasizing that no concessions will be made from the direction of the economic program despite global and regional shocks, Şimşek detailed for the first time the massive incentive package that will transform Turkey into a global investment hub.
'WE HAVE NO EXCHANGE RATE TARGET, INFLATION WILL FALL TO THE MID-20S'
Underscoring their strong commitment to the disinflation program, Minister Şimşek stated that despite major global shocks, inflation will continue its downward trend and they expect it to close 2026 in the mid-20s.
Stating that they do not target a specific exchange rate level for the Turkish lira, Şimşek expressed that confidence in the TL has increased significantly thanks to tight monetary policy, macroprudential steps, and strengthening foreign exchange reserves.
SIGNALS OF IMPROVEMENT IN BUDGET DEFICIT AND CURRENT ACCOUNT BALANCE
Noting that while high energy prices have the potential to increase the current account deficit, this effect will remain manageable, Şimşek emphasized that resilience in exports and a slowdown in domestic demand are providing balance. The current account deficit is expected to remain below its long-term average, at 3% of GDP.
Addressing budget performance, Şimşek noted that the budget deficit, which was 5.1% in 2023, was reduced to 2.9% in 2025 through tight expenditure control and combating informality, and will be kept below 3% in 2026 and beyond.
MASSIVE INCENTIVES TO POUR FOREIGN CAPITAL INTO TURKEY
The most striking part of Minister Şimşek's presentation was the comprehensive incentive package prepared to attract direct foreign investments and qualified workforce to the country:
- Corporate tax for manufacturing companies will be reduced to 12.5%.
- Companies exporting services such as software, video games, health tourism, education, engineering, and design will be granted full tax exemption.
- No corporate tax will be levied on transit trade.
According to the new system aimed at making Turkey a base for multinational companies:
- Giant companies establishing regional headquarters will be offered a 20-year corporate tax exemption and income tax exemption up to a certain salary for their employees.
- A 20-year 'Non-Dom' (Tax-advantaged residency) regime will be launched for international investors. In this system, foreign-source income will not be taxed, inheritance tax will be only 1%, and only Turkey-source income will be taxed.
'TERMINAL ISTANBUL' ENTREPRENEURSHIP CENTER TO BE ESTABLISHED
Şimşek announced that a giant entrepreneurship center named 'Terminal Istanbul' will be established at Atatürk Airport to grow the technology and entrepreneurship ecosystem. Company registration, tax, land, and incentive procedures will be carried out digitally and quickly through a 'One-Stop Shop' to be established under the Presidency.
Additionally, a new 'asset repatriation' framework fully compliant with FATF (Financial Action Task Force) standards will be implemented to bring cash, gold, and securities into the Turkish economy.