Only VAT and Custom Duty exemptions are applicable in this type of incentive.
There are two requirements to benefit from this incentive mechanism in Istanbul, which are “the investment topic must not be listed among ‘not to be supported’ section” and “the minimum fixed investment amount must exceed TRY1 million level.”

Vat Exemption, Customs Duty Exemption, Tax Reduction, Social Security Premium Support, and Land Allocation are available in Regional Investment Incentive Scheme. The regional system aims to eliminate inter-regional imbalances by means of encouraging pre-determined sectors. Therefore, investment topics to be supported have been identified by taking into consideration the economic potentials of each province and economies of scale. Through the new regime, 81 provinces of Turkey are classified under 6 investment regions. Istanbul, which is the most developed region of Turkey, is classified in the 1st-degree regional list.

Sectors below are able to benefit from Vat Exemption, Customs Duty Exemption, Tax Reduction, Social Security Premium Support and Land Allocation.

In addition, investments in the following sectors will be treated as if they are realized in a 5th-degree region regardless of its actual destination. 

• Mining Investments
• Railroad and maritime transportation investments
• Test facilities, wind tunnel, and similar investments
• Tourism investments in Cultural and Touristic Preservation and Development Regions
• International fairground investments with a minimum covered area of 50.000 m2
• Primary, Middle and High School investments by the private sector
• Specific medical investments and Defence Industry investments with a minimum investment amount of 20 Million TL
• Investments made to produce products developed by an R&D Project which is supported by the Ministry of Industry and Technology

Vat Exemption, Customs Duty Exemption, Tax Reduction, Social Security Premium Support, and Land Allocation are available in Regional Investment Incentive Scheme. The goals of this scheme are to improve technological and R&D capacity of regions and to provide a competitive advantage in the global arena. The listed investment topics that exceed the designated minimum amounts are eligible in Istanbul.

The following sectors are granted incentive-certificates with the conditions shown below:

There are two main goals of the strategic investment incentive scheme, which are to support the production of intermediate and final products with high import dependence with a view to reduce current account deficit and to encourage high-tech and high value-added investments with a potential of strengthening Turkey’s international competitiveness. Investments meeting four criteria below are supported within the frame of the Strategic Investment Incentive Scheme.

• Minimum Investment Amount of TRY50 million
• Domestic Production of the Related Product must be less than the Importation of that Product
• Value Added through the Investment must be at least 40%
• Related product’s last year’s importation must exceed US $50 million level.

The main objectives of Technological Development Zones (TDZs), aka Technoparks, in Turkey are to produce and commercialize technological knowhow, to develop innovations in products and production methods and to create investment opportunities in high-tech industries. These zones are usually located in or around college campuses in order to boost academy-industry cooperation. Istanbul has 7 TDZs, which are Ari Teknokent of Istanbul Technical University, Yildiz Teknopark of Yildiz Technical University, Istanbul Teknokent of Istanbul University, Bosphorus Teknopark of Bosphorus University, Teknopark Istanbul of Istanbul Commerce University, Istanbul Finans Teknopark of Boğaziçi University and Marmara Teknopark of Marmara University.

Why to launch your business in TDZs?

• Revenues from R&D and software activities of R&D companies are exempt from corporate tax and income tax
• Wages of researchers, software developers and R&D personnel working in the zone related to R&D projects are exempt from income taxes
• 50% discount on Social Security Premium of Employees
• Sales of application software produced in TDZs are exempt from VAT

Industrial infrastructure is at the top of Turkey’s economic development agenda. Turkish Government has taken a promoting and organizing role in industrialization instead of making industrial investments directly; and undertook investments in infrastructure and put great emphasis on energy, transportation and communication. In this context, Organized Industrial Zones (OIZs) are designed in a way that allow companies which provide goods and services to operate within approved boundaries with the necessary infrastructure, technoparks and social facilities. Basic objectives of OIZs are to allow more rational production for industrial firms that complement each other and encourage others’ production, working together under a certain program aligned with environmental regulations, to enable the relations among industries to grow easily and to establish a sound, inexpensive and reliable infrastructure and common social facilities.

There are 2 OIZs in the European Side of Istanbul, which are Beylikdüzü OIZ and İkitelli OIZ; 6 OIZs in the Asian Side, which are Dudullu OIZ, Tuzla OIZ, Birlik OIZ, Leather OIZ, Anatolian Side OIZ and Tuzla Chemical Industrialists OIZ.

Why to launch your business in OIZs?

• VAT exemption for land acquisitions
• Exemption from real estate duty for 5 years starting after the construction of the plant
• Exemption from municipality tax for construction and usage of plant
• Lower costs on utilities

Turkish Free Trade Zones (FTZs) are the areas specified by the Council of Ministers of Turkey within the political borders of Turkey but considered outside the customs borders, where all types of industrial, commercial and certain types of service activities are encouraged through certain tax exemptions and incentives. The objectives of FTZs are to increase export-oriented investment and production, to accelerate the inflow of foreign capital and technology, to procure the inputs of the economy in an economic and orderly fashion, and to increase the utilization of external finance and trade possibilities. There are 3 FTZs in Istanbul; 2 in European Side (Thrace FTZ and Ataturk Airport FTZ) and 1 in Asian Side (Industry & Trade FTZ).

• Profit/capital transfer option without any tax to 3rd parties & countries
• Exemption from customs duties & other related duties
• Exemption from corporate income tax for manufacturing companies
• Exemption from income tax on employees’ salaries
• Exemption from VAT and special consumption tax
• Goods can remain in free zones for an unlimited period