Investment Incentive Certificate in Turkey: 2026 Guide

Investment Incentive Certificate: The Key to Investing in Turkey

Turkey implements a comprehensive investment incentive system designed to attract both domestic and foreign investors. At the core of this system lies the investment incentive certificate. This official document provides investors with significant benefits including VAT exemption, customs duty exemption, tax reduction and social security premium support.

This guide examines the investment incentive certificate system as of 2026, the application process, regional incentives and the various forms of support available to investors. Learn more about our investment advisory services.

What Is an Investment Incentive Certificate?

An investment incentive certificate is an official document issued by the Ministry of Industry and Technology that entitles investors to various forms of government support. This certificate provides specific tax and financial advantages during and after the realization of the investment.

Investors wishing to obtain an incentive certificate must ensure their investment meets the minimum fixed investment threshold and operates in sectors covered by the incentive scheme.

Who Can Apply?

• Natural persons (individual investors)
• Capital companies (joint-stock, limited liability companies)
• Cooperatives
• Foreign-capitalized companies
• Public institutions and organizations
• International organizations

Incentive Categories and Types

Turkey's investment incentive system operates under four main categories:

1. General Incentive Scheme

These are general support mechanisms applied to investments that do not fall under the regional incentive scope. The minimum fixed investment amount is TRY 3 million in Zones 1 and 2, and TRY 1.5 million in other zones.

• VAT exemption
• Customs duty exemption

2. Regional Incentive Scheme

These incentives are designed to reduce development disparities between regions. Turkey is divided into 6 zones, with incentive rates varying from zone to zone.

3. Priority Investment Incentives

These incentives apply to investments in specific sectors of strategic importance to the national economy. Investments under this category benefit from Zone 5 level support regardless of their actual location.

4. Strategic Investment Incentives

This is the most comprehensive incentive package, designed for investments targeting the production of intermediate goods and products with high import dependency.

Regional Classification: Zone 1 through Zone 6

Turkey is divided into 6 zones based on socio-economic development levels. As the zone number increases, so do the incentive rates:

Zone 1 (Most Developed)

Provinces with advanced industry and service sectors including Ankara, Istanbul, Izmir, Bursa and Kocaeli. Incentive rates are relatively lower.

Zone 2

Provinces with upper-middle development levels including Antalya, Tekirdağ, Denizli and Eskişehir.

Zone 3

Provinces with middle development levels including Trabzon, Konya, Kayseri and Samsun.

Zone 4

Developing provinces including Erzurum, Malatya and Elazığ.

Zone 5

Provinces with lower development levels including Van, Diyarbakır and Şanlıurfa.

Zone 6 (Least Developed)

Priority development provinces including Ağrı, Hakkari, Muş and Şırnak. The highest incentive rates apply to this zone.

Benefits Provided Through the Incentive Certificate

1. VAT Exemption

VAT exemption applies to the procurement of goods and services related to investment expenditures under the incentive certificate. This exemption covers machinery and equipment purchases and significantly reduces investment costs.

2. Customs Duty Exemption

Customs duty exemption applies to investment goods (machinery and equipment) imported under the incentive certificate. This exemption provides substantial cost advantages, particularly in sectors requiring advanced technology.

3. Tax Reduction (Corporate Tax)

A reduced corporate tax rate applies to earnings derived from investments under the incentive certificate until the investment contribution amount is reached. Reduction rates vary by zone:

• Zone 1: Investment contribution rate 15%, tax reduction rate 50%
• Zone 2: Investment contribution rate 20%, tax reduction rate 55%
• Zone 3: Investment contribution rate 25%, tax reduction rate 60%
• Zone 4: Investment contribution rate 30%, tax reduction rate 70%
• Zone 5: Investment contribution rate 40%, tax reduction rate 80%
• Zone 6: Investment contribution rate 50%, tax reduction rate 90%

4. Social Security Premium Support (Employer Share)

A specified portion of the employer's social security premium contribution for personnel employed under the incentive certificate is covered by the state. The support duration ranges from 2 to 12 years depending on the zone.

5. Interest or Profit Share Support

Under the regional incentive scheme, a portion of the interest or profit share on investment loans is covered by the state.

6. Land Allocation

Treasury-owned real estate may be allocated to investors for investments under the incentive certificate.

7. Income Tax Withholding Support (Zone 6)

For investments made in Zone 6, employee income tax withholding is exempted for a period of 10 years.

Application Process

Pre-Application Preparation

1. Preparation of a detailed feasibility report for the investment project
2. Determination of the appropriate incentive category for the investment
3. Verification that the minimum fixed investment threshold is met
4. Obtaining required environmental impact assessments and permits

Application Stage

Applications are submitted online through the E-TUYS (Electronic Incentive Implementation and Foreign Capital Information System):

1. Registration and user account creation in the E-TUYS system
2. Entry of investment project details into the system
3. Upload of required documents
4. Evaluation by the Ministry of Industry and Technology
5. Issuance of the incentive certificate for approved applications

Required Documents

• Investor information form
• Company articles of association and trade registry record
• Signature circular
• Investment information form and detailed project report
• Environmental impact assessment (where required)
• Land allocation document or lease agreement
• Capacity report (for existing facilities)
• Financing plan

Strategic Investments

The strategic investment incentive applies to investments meeting the following conditions:

• Domestic production capacity for the product to be manufactured is below imports
• Minimum fixed investment amount exceeds TRY 50 million
• Value added of the product to be manufactured is at least 40%
• Total imports in the preceding year exceed USD 50 million

Additional Support for Strategic Investments

• VAT refund (including building and construction expenditures)
• Zone 6 level tax reduction (regardless of location)
• Qualified personnel support
• Energy support

R&D and Technology Investment Incentives

Turkey offers specialized incentives for R&D and innovation investments:

• Law No. 5746 on R&D: Tax deductions, SSI premium support and income tax withholding incentives for R&D and design activities
• Technology Development Zones (Technoparks): Corporate tax exemption on income from software, R&D and design activities
• TÜBİTAK grants: Non-repayable grants and support for R&D projects
• KOSGEB support: Technology and innovation support for SMEs

Conclusion and Professional Advisory

Investment incentive certificates offer significant financial advantages for companies investing in Turkey. However, identifying the correct incentive category, executing the application process completely and maintaining compliance with incentive conditions are matters requiring professional expertise.

Emir Law & Consulting provides professional advisory services throughout all processes, from incentive certificate applications to monitoring compliance with incentive conditions. Contact us to identify the most appropriate incentive programme for your investment plans.