REGIONAL INCENTIVE SYSTEM

Regional Incentive Practices aim to reduce developmental disparities between provinces and enhance the production and export potential of regions, with aid intensities differentiated based on the development levels of the provinces. In this context, sectors to be supported are determined by taking into account the potential and economic scale of the provinces. Under the Regional Incentive Practice, Turkey has been divided into 6 regions, followed by the implementation of a district-based incentive system.

Within the scope of Regional Incentive Practices, sectors specified by province in the annex of the "Decree on State Aids in Investments" can benefit from the following supports, provided that they meet the minimum capacity or investment amount requirements.

Support Elements

  • ● Investment Location Allocation
  • ● VAT Exemption
  • ● VAT Refund
  • ● Social Security Premium Support
  • ● Interest Support
  • ● Customs Duty Exemption
  • ● Tax Reduction

Support Elements by Region

Support Elements Region I Region II Region III Region IV Region V Region VI
VAT Exemption / Customs Exemption Yes Yes Yes Yes Yes Yes
Tax Reduction (Contribution Rate %) Outside OIZ 15 20 25 30 40 50
Inside OIZ 20 25 30 40 50 55

List of Regions for Investment Incentive Practices

Region I Region II Region III Region IV Region V Region VI
Ankara, Antalya, Bursa, Eskişehir, Istanbul, Izmir, Kocaeli, Muğla, Tekirdağ Aydın, Balıkesir, Bilecik, Bolu, Çanakkale, Denizli, Edirne, Isparta, Karabük, Kayseri, Kırklareli, Konya, Manisa, Sakarya, Yalova Adana, Burdur, Düzce, Gaziantep, Karaman, Kırıkkale, Kütahya, Mersin, Samsun, Trabzon, Rize, Uşak, Zonguldak Afyon, Aksaray, Amasya, Artvin, Bartın, Çorum, Elazığ, Erzincan, Hatay, Kastamonu, Kırşehir, Malatya, Nevşehir, Sivas Bayburt, Çankırı, Erzurum, Giresun, Gümüşhane, K.Maraş, Kilis, Niğde, Ordu, Osmaniye, Sinop, Tokat, Tunceli, Yozgat Adıyaman, Ağrı, Ardahan, Batman, Bingöl, Bitlis, Diyarbakır, Hakkari, Iğdır, Kars, Mardin, Muş, Siirt, Şanlıurfa, Şırnak, Van, Bozcaada-Gökçeada

Sub-Region Supports

Investments in products within the medium-high technology industry class, according to the OECD technology intensity definition, benefit from the regional supports applied in Region IV if carried out in Regions I, II, and III (excluding Istanbul).

Province Districts Under Support Coverage
Adana Yumurtalık, İmamoğlu, Karataş, Karaisalı, Tufanbeyli, Aladağ, Feke, Saimbeyli
Ankara Çamlıdere, Bala, Evren, Güdül, Kalecik, Haymana
Bursa Harmancık, Keles, Orhaneli, Büyükorhan