Turkey Asset Declaration Law 2026 & Wealth Amnesty

Introduction: This document provides a detailed and practical explanation of the Asset Declaration Law (Varlık Barışı) under Law No. 7582 published in Official Gazette No. 33270 on June 4, 2026. The law outlines the framework for declaring liquid assets, gold, foreign currencies, and unregistered securities until July 31, 2027, in exchange for a graduated tax and protection from audits and penalties. Real estate is explicitly excluded. It also includes a 20-year foreign income exemption for new residents and the possibility of directing funds to a YUVAM account for citizenship application.

Direct Answer

Under Law No. 7582 published in Official Gazette No. 33270 on June 4, 2026, the declaration of funds, gold, currencies, and securities until July 31, 2027, is allowed with a graduated tax of 5→0% and protection from audits and penalties. Legal guidance and procedures are provided by GARS Consulting.

1. Regulatory Conditions 2026

• Legal Basis: Law No. 7582, Official Gazette No. 33270, published on June 4, 2026.
• Scope of Assets: Cash, deposits, gold, foreign currencies, and unregistered securities (domestic or foreign). Real estate is explicitly excluded.
• Declaration Deadline: Until July 31, 2027.
• Tax Implications: A graduated declaration tax starting at 5% and gradually decreasing to 0% depending on the duration of funds in eligible Turkish financial instruments.
• Legal Protection: Properly declared assets are protected from tax audits and penalties related to previous periods, provided full disclosure and compliance with the Turkish Revenue Administration (GİB) instructions.
• Foreign Income Exemption: A 20-year foreign income exemption for new residents (residency and tax transition conditions must be met).
• YUVAM Program Option: Declared funds can be directed to a YUVAM account to support a citizenship application via a bank deposit of $500,000, subject to YUVAM conditions and receiving bank regulations.

2. Comparison Table and Costs

3. Application and Follow-up Steps (Detailed Model Procedure)

• Initial Assessment: Compile a complete list of declarable assets (cash, deposits, gold, currencies, unregistered securities) with documentation of ownership source.
• Legal and Tax Consultation: Review compliance through a legal/tax advisor (such as GARS Consulting) to determine the best declaration structure (individual or corporate) and the impact of tax residency change.
• Open Banking Reporting Channels: Contact an authorized bank to receive declared amounts according to executive instructions issued by GİB; banks accept declarations and forward information to the tax authority.
• Fill Declaration at Bank/GİB: Complete bank forms and/or designated disclosure forms at the Turkish Revenue Administration (GİB) according to the law's executive format.
• Deposit/Direct Funds: Transfer declared funds to a specified bank account or to a YUVAM account if the goal is citizenship application (deposits according to YUVAM conditions: typically $500,000).
• Pay Tax According to Bracket: Pay the resulting tax (directly or according to a plan) at a rate of 5% or less depending on the agreed duration for keeping funds in eligible Turkish financial instruments.
• Receive Protection Documents: Obtain a notice/certificate from the competent authority (GİB or bank) proving the registration of the declaration and the legal protection of assets from audits and penalties.
• Follow-up Compliance: Adhere to subsequent conditions (keeping funds in eligible instruments if applicable, submitting periodic reports if requested) and benefit from foreign income exemptions if residency conditions apply.

Practical Notes: Keep copies of all documents, document the source of funds, and collaborate with a tax advisor to prevent risks of rejection or later appeals.

4. Legal Protection and Risks

Legal Protection:

• Guaranteeing Authority: Turkish Revenue Administration (GİB) according to execution mechanisms.
• Scope of Protection: Exemption from penalties and tax audits related to previous reports for declared assets, provided full compliance with procedures and instructions.

Potential Risks:

• Incomplete or Incorrect Declaration: May void protection and expose the declarant to criminal or civil liability.
• International Compliance Risks: Anti-money laundering laws and tax information exchange requirements may impose consequences on the declarant in other countries.
• Banking Evaluation and Restrictions: Receiving banks may impose additional verification requirements or refuse transfers from high-risk entities.
• Exchange Rate Fluctuations: Conversion of foreign funds or gold may be affected by value at the time of conversion and deposits.
• Procedural Gaps: Delays in issuing protection certificates from GİB or interpretative differences in executive regulations.

Tips to Mitigate Risks: Document the source, collaborate with a reliable bank and legal tax advisory office, and strictly adhere to GİB forms and guidelines.

5. Role of GARS Consulting

• Compliance Analysis: Comprehensive assessment of assets, origin, and classification within the framework of Law No. 7582.
• Document Preparation: Drafting financial and tax declarations, and preparing support files required by banks and GİB.
• Coordination with Banks and GİB: Guiding procedural operations, following up on declaration submissions, and claiming protection certificates.
• Citizenship and Investment Strategies: Guidance on directing funds to a YUVAM account to support a citizenship application considering the $500,000 requirement and YUVAM program provisions.
• Risk Management and Subsequent Audit: Providing precautionary mechanisms for internal review and responding to any subsequent inquiries or appeals.

Note: GARS Consulting offers specialized legal and tax advisory services ensuring precise compliance with the law's texts and executive details.

FAQs

Q1: Are real estate assets included in the declaration?

No. Real estate is explicitly excluded from Law 7582; the declaration is designated for liquid funds, gold, currencies, and unregistered securities.

Q2: Does the declaration affect the application for Turkish citizenship?

Yes. Declared funds can be directed to a YUVAM account to support a citizenship application via bank deposit ($500,000), with adherence to YUVAM conditions and banking regulations.