Turkey offers a range of attractive incentives to encourage both local and foreign investors. Whether you are interested in real estate, manufacturing, or technology, Turkey provides tax benefits, grants, and free zones to make investments more profitable. Here’s a breakdown of the top government incentives available for investors.
1. Tax Exemptions & Reductions
- Corporate Tax Reductions: Companies in priority sectors and investment zones benefit from reduced corporate tax rates.
- VAT & Customs Duty Exemptions: Machinery and equipment purchases for investment projects are often VAT and customs duty-free.
- Income Tax Withholding Support: For eligible investments, reduced income tax obligations are applied.
2. Free Trade & Industrial Zones
- Technology Development Zones (TDZs): Ideal for tech startups and R&D companies, offering tax exemptions on corporate income and employee salaries.
- Organized Industrial Zones (OIZs): Provide ready infrastructure, utilities, and tax benefits for manufacturing industries.
- Free Zones: Located near ports for easy trade, offering corporate tax exemptions and reduced bureaucratic processes.
3. R&D and Innovation Support
- TÜBİTAK Grants: The Scientific and Technological Research Council of Turkey provides financial support for research-intensive businesses.
- Techno-Investment Incentives: Encourages technology transfer and innovation projects through grants and funding programs.
- University Collaboration Programs: Investors in tech sectors can partner with universities for additional research funding.
4. Investment Incentive Programs
Turkey offers four different incentive schemes based on investment type and region:
a. General Investment Incentive Scheme
- VAT & Customs Duty Exemptions
- Social security premium support for employers
b. Regional Investment Incentive Scheme
- Incentives vary by region, offering increased support for investments in less-developed areas.
- Corporate tax reductions, interest rate support, and land allocation
c. Strategic Investment Incentive Scheme
- For large-scale investments that reduce import dependency.
- Higher tax reductions, insurance premium support, and additional funding opportunities
d. Project-Based Incentive Scheme
- Tailor-made support for strategic and high-tech industries
- Government-backed loans, tax exemptions, and infrastructure support
5. Real Estate & Infrastructure Investment Support
- Reduced VAT for property investments: Encourages real estate development and foreign ownership.
- Urban Transformation Projects: Government-supported redevelopment projects with investment incentives.
- Public-Private Partnership (PPP) Opportunities: Investors can participate in major infrastructure projects like airports, highways, and hospitals.
6. Green Energy & Sustainability Incentives
- Renewable Energy Investment Support: Tax reductions and financial incentives for solar, wind, and hydroelectric projects.
- Energy Efficiency Grants: Funding for businesses that adopt sustainable energy solutions.
How to Apply for Investment Incentives in Turkey
- Identify the relevant incentive program based on your industry and investment type.
- Prepare a business plan detailing your project and funding requirements.
- Submit an application to the Ministry of Industry and Technology or relevant agencies.
- Obtain necessary approvals and start benefiting from the incentives.
Final Thoughts
Turkey’s government incentives make it a highly attractive destination for investors. Whether you are launching a startup, investing in manufacturing, or exploring green energy, there are financial and tax benefits to support your venture.
Ready to take advantage of Turkey’s investment incentives? Stay informed with the latest updates on InTurkeyHub.com.