Investment Incentives and Special Economic Zones in Turkey
Turkey offers a broad range of investment incentives to attract foreign capital, including tax reductions, customs exemptions, social security premium support and dedicated special economic zones. For foreign companies, understanding which incentive scheme applies can significantly reduce the effective cost of investment and ongoing operations.
Note: incentive rates, thresholds and zone benefits are revised regularly by the Turkish authorities. Always confirm the current terms with your accountant or advisor before making investment decisions.
What investment incentive schemes exist in Turkey?
Turkey’s incentive system is built around several programs administered mainly by the Ministry of Industry and Technology. The main categories are the general investment incentive scheme, the regional incentive scheme, the priority investment scheme and the strategic investment scheme. Each provides a different combination of benefits depending on the sector, the investment amount and the region.
| Incentive scheme | Typical benefits |
|---|---|
| General scheme | VAT exemption and customs duty exemption on machinery and equipment |
| Regional scheme | Corporate tax reduction, social security premium support, land allocation |
| Priority investments | Higher regional benefits regardless of where the investment is located |
| Strategic investments | VAT refund on construction, interest support and the most extensive benefits |
What are special economic zones in Turkey?
Turkey operates several types of special economic zones designed to encourage export-oriented production, technology development and logistics. The three main zone types are special industrial-export zones (customs-privileged production zones), technology development zones (technoparks) and organized industrial zones.
- Special export zones (customs-privileged zones): areas where companies benefit from customs and certain tax exemptions on goods intended for export and re-export.
- Technology development zones (technoparks): zones offering corporate and income tax exemptions on qualifying software and R&D income.
- Organized industrial zones (OIZ): planned industrial areas providing infrastructure advantages and reduced local taxes.
What tax benefits apply in technology development zones?
Companies operating in technology development zones can benefit from an exemption on profits derived from qualifying software, design and R&D activities, as well as income tax withholding support for R&D personnel. These benefits are time-limited and tied to specific qualifying activities, so eligibility should be assessed case by case.
How do foreign companies apply for incentives?
- Determine the applicable scheme based on sector, region and investment size.
- Prepare the investment plan and supporting financial documentation.
- Apply for an investment incentive certificate through the relevant ministry’s electronic system.
- Implement the investment in line with the certificate terms.
- Complete the certificate after investment completion to lock in the benefits.
Frequently Asked Questions
Are investment incentives available to 100% foreign-owned companies?
Yes. Turkey applies the principle of equal treatment, so companies established in Turkey by foreign investors can access the same incentive schemes as domestic companies.
Do special economic zones offer corporate tax advantages?
Certain zones, such as technology development zones and customs-privileged export zones, offer corporate tax and customs benefits for qualifying activities, subject to conditions and time limits.
Can incentives reduce ongoing operating costs?
Yes. Beyond upfront capital benefits, schemes such as social security premium support and corporate tax reduction can lower ongoing operating costs over several years.
Related Guides
- How to Set Up a Company in Turkey as a Foreigner
- Corporate Tax in Turkey: A 2026 Guide
- VAT Registration in Turkey for Non-Resident Companies
Considering an investment in Turkey and want to know which incentives apply to your project? Contact our team to discuss your investment plan and explore the available schemes.