Turkey just made transit trading nearly tax-free!
Here’s what that actually means:
A Turkish company buys goods from a supplier in China. Sells them to a buyer in Germany. The goods never touch Turkish soil. The Turkish company earns a margin.
Under the new law, 95% of that margin is deducted from the corporate tax base.
The maths: 25% corporate tax rate × 5% of income = 1.25% effective tax rate.
If you’re operating from the Istanbul Finance Centre, the deduction hits 100%. Effective tax rate: zero.
This isn’t a loophole. It’s the law – passed 21 May 2026, in force 4 June 2026.
For context, this puts Turkey in direct competition with Hong Kong, Singapore, and UAE free zones for cross-border trading structures. Without the offshore stigma. With a serious DTA network. And, uniquely, with a citizenship by investment programme sitting alongside it.