What the exemption does not solve

The three usual problems

Citizenship-based taxation, which affects Americans wherever they live. Exit taxes, which several countries charge on unrealised gains when a resident leaves. And residence tests at home that look at where your family, your home and your centre of interests are rather than where you sleep.

Any of the three can make a move cost money rather than save it.

Treaties do not do what people think

A treaty allocates taxing rights between two countries. It does not create an exemption, and where one country has already exempted income there may be no foreign tax to credit anywhere. Running a treaty analysis on an exempt stream sometimes produces a worse answer than expected.

The ring-fence again

Because exempt income stays off the Turkish return, foreign tax paid on it cannot be credited in Turkey. If your home country still taxes that income, Turkey's exemption does not shelter it, and you are taxed once rather than not at all.

The order to do this in

Get advice where you are now, before you move, and get it in writing. Turkey's side is comparatively simple. The expensive surprises are almost always behind you rather than ahead.