Investment Incentive System: Objectives and Support Elements

Turkey's investment incentive system is a comprehensive state support model designed to accelerate technological transformation, reduce the current account deficit, and minimize regional development disparities.

Core Objectives

  • 🚀 Technological Transformation: High and mid-high tech investments.
  • 📉 Reducing Current Account Deficit: Localization of import-dependent intermediate goods.
  • 🏗️ Clustering: Supporting sectoral cluster activities.
  • 📍 Regional Balance: Increasing support for less developed regions.
  • 🎯 Efficiency: Making support elements more effective for investors.
  • 🌍 Development: Bridging inter-regional economic gaps.

Regional Classification and Investment Limits

Turkey's investment incentive map is divided into 6 regions. Region 1 is the most developed, while Region 6 offers the most intensive incentives.

Investment Type Region I & II Region III, IV, V & VI
General Incentive System 3,000,000 TL 1,500,000 TL
Strategic Investments Fixed for All Regions: 50,000,000 TL
Regional Incentives Starts from 1,500,000 TL based on sector and province.

Supports under the Incentive Certificate

💎 Tax and Customs Exemptions

VAT Exemption: No VAT on machinery, equipment, and software purchases.
Customs Exemption: Customs duties waived for imported machinery.
Tax Reduction: Reduced corporate/income tax until the contribution target is reached.

💰 Financial and Employment Supports

Interest Support: A portion of investment loan interest is covered by the Ministry.
Social Security Support: Employer's share for additional employment is paid by the Ministry.
Investment Site: Land allocation provided via National Real Estate for eligible projects.

Important Notes:
  • VAT Refund is possible for construction expenditures in Strategic Investments above 500 Million TL.
  • VAT exemption for building-construction expenditures in manufacturing and tourism is valid until 31/12/2025.
  • Some imported machinery (EK-8 list) is excluded from customs duty exemption.

* The investment incentive system can reduce your operational costs by up to 50% with the right region and sector matching. Contact our consultancy unit for project feasibility and incentive certificate management.