Archives: Glossary

Spain’s impatriate regime: flat 24% on employment income up to €600k and foreign passive income exempt, for six years. Largely closed to owner-operators of their own foreign companies.

The US system: citizens are taxed on worldwide income wherever they live. Moving to a zero-tax regime changes the local layer, never the US one.

Limited tax liability: non-resident status where only Turkish-source income is taxed. Prior limited liability does NOT disqualify you from Law 7582.

A residence permit for remote workers employed abroad. Spain’s (Ley 14/2013, extended 2022) is the reference example. A permit is not a tax regime.

Settling in a country in the legal sense — home and life moved there. In Türkiye it can trigger tax residency from arrival, with no day counting.

A bilateral agreement allocating taxing rights between two countries: reduced withholding rates, relief mechanisms, and tiebreaker rules for dual residents.

FinCEN Form 114: the US report of foreign financial accounts when their aggregate value exceeds $10,000 at any point in the year. Filed regardless of tax owed.

The US Foreign Earned Income Exclusion (Form 2555): excludes roughly $130,000 of foreign earned income for Americans meeting the residence tests. Earned income only.

A credit for income tax paid abroad against home-country tax on the same income (US: Form 1116). Law 7582 pointedly denies it on exempt income.

Income derived outside a country — foreign salary, business profits, dividends, rents, and capital gains. What Law 7582 exempts for twenty years.

The FATCA Statement of Specified Foreign Financial Assets — filed with the US return above thresholds that vary by residence and filing status.

Gelir Vergisi Kanunu — Türkiye’s Income Tax Law (Law No. 193 of 1960): the statute governing personal income tax, including the residency rules and the Law 7582 exemption.

Uygulama tebliği: the ministry regulation that operationalizes a Turkish law — proof standards, procedures, definitions. Law 7582’s is still pending.

Under Law 7582: the three full calendar years immediately before your first residency year — all must be free of Turkish domicile and disqualifying tax liability.

The Spanish form electing the impatriate (Beckham) regime — due within six months of social security registration, with no extensions.

The SWIFT message type behind a standard international wire — the payment’s fingerprint. If your transfer is stuck, the MT103 and its UETR are what trace it.

The article Law 7582 inserted into Turkey’s Income Tax Law: a 20-year exemption from Turkish income tax on foreign-source income for qualifying new residents.

A taxable business presence in a country — a fixed place, a dependent agent, or in practice the owner working from a local desk. How companies get pulled into local tax nets.

Taxing residents on foreign income only when it’s brought into the country — the classic UK non-dom design. Law 7582 goes further: exempt income stays exempt even if remitted.

Türkiye’s Official Gazette: laws enter into force through publication here. Turkish only — no official English translations exist.

The US treaty clause preserving America’s right to tax its own citizens as if the treaty didn’t exist — why treaty benefits rarely shield US citizens abroad.

The US 15.3% Social Security and Medicare levy on self-employment profits — it follows US citizens abroad unless a totalization agreement provides an exit.

GVK Article 4: continuous presence in Türkiye of more than six months within one calendar year creates tax residency; temporary absences don’t break the count.

The messaging network banks use to instruct cross-border payments. SWIFT moves messages, not money — funds settle through correspondent accounts.

Full tax liability: the status of a Turkish tax resident, whose worldwide income falls within the Turkish tax net. What the Law 7582 lookback screens for.

The status that lets a country tax your worldwide income — determined by each country’s own tests: days present, domicile, or center of interests.

The treaty cascade resolving dual residency: permanent home, center of vital interests, habitual abode, then nationality — in that order.

A bilateral social security treaty preventing double contributions and coordinating benefit credits. The US has about 30 — Türkiye is not among them.

Income arising in Türkiye — local salary, business profits, rents, gains on Turkish assets. Fully taxable under normal rules regardless of Law 7582.

Unique End-to-End Transaction Reference: the tracking ID on modern SWIFT payments (gpi), letting banks trace exactly where a wire currently sits.

Türkiye’s inheritance and transfer tax: progressive 1%–10% on inheritances by tranche. Law 7582 beneficiaries pay a flat 1% during the exemption window.

Tax retained by the paying country on dividends, interest, or royalties before the money reaches you. Under Law 7582 it becomes a final, uncreditable cost.