Best Free Zones in Turkey for Foreign Companies (2026): Tax Exemptions After the 2025–2026 Changes
Which Turkish free zone fits a foreign manufacturer, exporter or trading company — and what is still tax-free after Law No. 7524 and Law No. 7577? Free zones compared by a licensed Turkish CPA.
- Turkish free zones are governed by Free Zones Law No. 3218; goods in a zone are outside the Turkish customs territory, so customs duty and import VAT do not apply while goods stay in the zone.
- The corporate tax exemption for manufacturers (Provisional Art. 3) now covers only sales abroad (Law No. 7524, from 1 January 2025) and, from 1 January 2026, sales within the same or another free zone (Law No. 7577). Sales into Turkey are taxable.
- Trading, storage and service income in a zone is generally taxed at ordinary rates — the zone is not a blanket tax haven.
- Manufacturers that export a large share of production can also benefit from a wage income tax exemption for employees under Law No. 3218.
- Well-known zones include the Ege Free Zone (Izmir), Istanbul Atatürk Airport, Istanbul Industry and Trade (Tuzla), Kocaeli, Trakya, Bursa, Mersin, Antalya, Kayseri and Gaziantep free zones.
Considering a Turkish free zone? Tell us whether you manufacture, trade or provide services, and where you sell. A licensed CPA replies personally with which income would be exempt and which would not.
WhatsApp a CPARequest a free zone assessmentKey facts: free zones in Turkey 2026
| Item | 2026 rule | Legal basis |
|---|---|---|
| Customs and import VAT | Not applied while goods stay in the zone | Free Zones Law No. 3218 |
| Manufacturer corporate tax exemption | Sales abroad, and sales to the same or other free zones; not sales into Turkey | Law No. 3218 Provisional Art. 3; Law No. 7524; Law No. 7577 (Official Gazette 17 Apr 2026) |
| Trading and service income | Generally taxed at ordinary rates | Law No. 3218; Corporate Tax Law No. 5520 |
| Employee wage tax | Exemption for qualifying export-oriented manufacturers | Law No. 3218 Provisional Art. 3 |
| Operating licence | Activity licence from the Ministry of Trade | Law No. 3218 |
| Mixed sales | Profit must be split between exempt and taxable sales | Corporate Tax Law No. 5520 |
Which is the best free zone in Turkey for a foreign company?
Answer: The best Turkish free zone depends on what you do and where you sell. Export-oriented manufacturers often choose the Ege Free Zone (Izmir), Kocaeli, Trakya or Bursa free zones near industrial clusters; logistics and trading firms look at Istanbul and Mersin. After Law No. 7524 and Law No. 7577, the corporate tax exemption applies only to manufacturers’ sales abroad or to other free zones — so the tax case must be modelled before choosing.
Model the tax first, then pick the zone
Free zone brochures still describe the old, wider exemption. We model your actual sales mix under the 2025–2026 rules.
- Exempt vs taxable sales split: sales abroad and to free zones vs sales into Turkey.
- Profit allocation method for mixed sales that will stand up in a tax audit.
- Wage tax exemption eligibility for your workforce.
- Free zone vs onshore company with investment incentives — which leaves more after tax.
- A licensed CPA keeps the free zone books. Evren Özmen, CPA, TÜRMOB Reg. No. 35675.
Free zones in Turkey compared
| Free zone | Region | Typical fit |
|---|---|---|
| Ege Free Zone | Izmir | Export manufacturing, electronics, automotive parts |
| Istanbul Atatürk Airport Free Zone | Istanbul | Air logistics, high-value goods |
| Istanbul Industry and Trade Free Zone | Istanbul (Tuzla) | Manufacturing and trade near Istanbul |
| Kocaeli Free Zone | Kocaeli | Industrial manufacturing, port access |
| Trakya Free Zone | Thrace | EU-oriented manufacturing |
| Bursa Free Zone | Bursa | Automotive and textile supply chains |
| Mersin Free Zone | Mersin | Port logistics, Middle East trade |
| Antalya Free Zone | Antalya | Yacht building, light manufacturing |
| Kayseri Free Zone | Kayseri | Furniture and industrial manufacturing |
| Gaziantep Free Zone | Gaziantep | Manufacturing for Middle East markets |
Market examples, not yet CPA-verified listings; order is not a ranking.
Free zone vs onshore company in Turkey
| Criterion | Free zone company | Onshore company |
|---|---|---|
| Customs and import VAT | Not applied while goods stay in the zone | Applied on import (with incentive certificates possible) |
| Corporate tax on manufacturing sales abroad | Exempt | Taxable (export and production rate reductions may apply) |
| Sales into Turkey | Taxable; goods are imported into Turkey | Normal domestic sale |
| Trading and services | Generally taxable | Taxable |
| Best for | Export-oriented manufacturers | Companies selling mainly in Turkey |
What drives the cost of operating in a Turkish free zone?
| Cost driver | Why it matters |
|---|---|
| Land or building lease | Set by the zone operator |
| Operator service fees | Often linked to trade volume |
| Licence and permits | Ministry of Trade activity licence |
| Accounting for mixed sales | Exempt/taxable profit split needs careful records |
| Logistics to customers | Distance to ports, airports and markets |
Case analysis: the exemption that shrank
Facts (anonymised, illustrative of a typical engagement): A foreign manufacturer in a Turkish free zone sold about 40% of its output to customers in Turkey and assumed all profit remained exempt.
The obvious answer: “We are in a free zone, so we pay no corporate tax.”
Why it failed: from 2025 the exemption covered only sales abroad; sales into Turkey were taxable, and the company had no method to split profit.
Structure adopted: a documented allocation of revenue, direct costs and shared expenses between exempt and taxable sales, a corrected provisional-tax position, and a review of whether 2026 sales to other free zones qualified under Law No. 7577.
What happens if…
What happens if my free zone company sells into Turkey?
Those sales are outside the manufacturer exemption and taxable; the goods are also imported into Turkey with customs and VAT consequences.
What happens if I only trade (buy and sell) in a free zone?
Trading income is generally taxed at ordinary corporate tax rates; the manufacturer exemption does not apply.
What happens if I cannot split exempt and taxable profit?
The tax office may challenge the exemption. Keep sale-by-sale records and a documented allocation of shared costs.
What happens to sales to another free zone in 2026?
From 1 January 2026, Law No. 7577 extends the manufacturer exemption to sales within the same free zone and to other free zones.
Turkish free zones vs free zones elsewhere
| Country | Free zone tax position |
|---|---|
| Turkey | Manufacturer exemption on sales abroad and to free zones; other income taxable |
| UAE | 0% on qualifying income for qualifying free zone persons; 9% otherwise |
| Poland | Polish Investment Zone — income tax relief tied to investment decisions |
| Bulgaria | Flat 10% corporate tax rather than free-zone exemption |
How to get listed as a CPA-verified free zone operator in Turkey
Answer: Providers are added to this list only after a verification review by SYSTEMS CPA, a licensed Turkish CPA firm. Placement and order cannot be bought. Providers that meet the criteria below are listed with a “CPA-verified” mark and a review date, and are re-checked every twelve months.
Verification criteria
| # | Criterion | How we check it |
|---|---|---|
| 1 | Free zone established under Law No. 3218 | Ministry of Trade free zone list |
| 2 | Operator company registered and in good standing | Trade registry and tax records |
| 3 | Published licensing process and timeline for foreign investors | Written process |
| 4 | English-language investor support | Contact test and documentation |
| 5 | Transparent lease and service fee structure | Written fee schedule |
| 6 | Up-to-date guidance reflecting Law No. 7524 and Law No. 7577 | Investor materials review |
Process
- Apply by email with the details below.
- Submit evidence for each criterion (registry extracts, licences, client references).
- Verification review by a licensed CPA — carried out as a professional engagement.
- Listing with a “CPA-verified” mark and review date; re-verified annually. Providers that no longer meet the criteria are removed.
Apply to be listedAsk a question on WhatsApp
CPA-verified providers
| Provider | Verified | Review date |
|---|---|---|
| Applications open — the first verified providers will be published here after review. | ||
SYSTEMS CPA does not accept payment for ranking or order. Verification fees cover only the review work; verification is not an endorsement of commercial terms.
Frequently asked questions
Are Turkish free zones still tax-free in 2026?
Only partly. Manufacturers’ profits from sales abroad and to free zones remain exempt; sales into Turkey, trading and service income are generally taxable.
Which free zone in Turkey is best for export manufacturing?
Zones near industrial clusters and ports — such as the Ege Free Zone (Izmir), Kocaeli, Trakya and Bursa — are common choices. Model the tax position before choosing.
Can a foreign company own 100% of a free zone company in Turkey?
Yes. Foreign investors can operate in Turkish free zones with an activity licence from the Ministry of Trade.
Do free zone employees pay income tax?
Employees of qualifying export-oriented manufacturers can benefit from a wage income tax exemption; other free zone employees are taxed normally.
Evren Özmen’s view from practice
Many foreign investors still hear the pre-2025 version of the free zone story. Today the exemption is a manufacturer’s export incentive, not a general tax haven. If more than a small share of your sales goes into Turkey, compare the free zone against an onshore company with investment incentives before you sign a lease.
Primary sources
- Free Zones Law No. 3218 — mevzuat.gov.tr
- Corporate Tax Law No. 5520 — mevzuat.gov.tr
- Official Gazette — Law No. 7524 and Law No. 7577 (17 Apr 2026) — resmigazete.gov.tr
- Revenue Administration (GİB) — gib.gov.tr
- Ministry of Trade — Free Zones
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