Foreign Investor Incentives in Turkey
Turkey offers great opportunities for foreign investors who want to invest. A better and healthier environment is provided by providing state incentives to support foreign investment. Let’s talk about the most useful government incentives options for foreign investors in Turkey;
• Tax Discounts
• Customs Tax Exemption
• Social Security Premium Support
• Income Tax Withholding Deductions
• VAT Exemption
• VAT Refund
• R&D Incentives
• Interest Rate Support
• Land Allocation
Investment Incentive Zones
Regions to Invest and Incentives Applied
There are many types of incentives in the incentive systems that took effect on January 1, 2012. These types of incentives differ for each investment region in Turkey.
These incentives are as follows;
• Large-Scale Investment Incentives
• Regional Investment Incentives
• General Investment Incentives
• Strategic Investment Incentives
Turkey Incentive System
These incentives we mentioned cover 6 different regions. For investors who want to invest, the incentive for the relevant region to invest may differ. There are 6 different regions in these incentive applications. The types of incentives vary according to the region to be invested in.
General Investment Incentives
It is one of the incentive opportunities available for foreign or domestic investors who will invest 500 thousand or 1 million TL, regardless of the region where the investment is desired.
Customs Duty Exemption
Foreign and domestic investors in Turkey will not pay customs duty for the machinery they import into the country.
It is one of the incentive opportunities available for foreign or domestic investors who will invest 500 thousand or 1 million TL, regardless of the region where the investment is desired.
Customs VAT Exemption
Foreign and domestic investors will not pay 18% VAT (Value Added Tax) for the equipment and machinery they bring to the country from abroad.
Regional Investment Incentives
Various incentive opportunities are offered for foreign and domestic investors to invest in Turkey, for 6 different regions where investment is desired. Investors who want to be active in any desired investment region are exempted from paying VAT and Customs Duty.
One of the regional investment incentives is social insurance premium support for employers and workers. Better incentives are offered to those who invest in areas where investment is most needed in terms of development in the country, especially in Region 6. For example, with investments made in these regions, investors are provided with a 10-year income tax withholding deduction and 90% tax deduction.
However, some of the areas that can be supported and encouraged in the 5th Region, where investments will be made regardless of the region, are as follows;
Automotive investments, mining investments, defense and space defense industry investments, turbine or generator manufacturing investment for energy production, education investments,
In addition, the 4th Region investment incentive areas that can be invested are as follows;
It includes food and tobacco machinery manufacturing investment, chemical fertilizer manufacturing investment, plastic, rubber raw material manufacturing investment, agriculture and forestry machinery manufacturing investment.
Large-Scale Investment Incentives
In Turkey, large-scale incentives are provided for investments that will increase technology capacity and increase its effectiveness in the international market in the field of R&D.
Strategic Investment Incentives
• Investments to be made min. 50 Million TL and 40% added value,
• The amount of production to be made with the investment is less than the import,
• It is one of the required conditions for strategic government incentives.
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