Investment Incentive Mechanism in Turkey (State Aids)

Turkey’s new investment incentive system is published in June 2012 with “Council of Minister’s Decree No. 2012/3305 on Government Subsidies for Investments”. The Regulation No. 2012/1 defines procedures and principles for the implementation of the Decree as well.

The new Investment Incentive Program which is important for Turkey on reaching 2023 vision aims to:

  • Creating high value added investments,
  • Increase production and employment,
  • Encourage big scale investments to fall into international competitiveness,
  • Increase foreign direct investments (FDI),
  • Reduce regional development differences,

The investment incentive legislation is updated regularly by the Council of Minister’s to respond investor’s expectations. As a result, average 600 companies obtain investment incentives per month.


  • Real persons, ordinary partnerships, stock corporations, cooperatives, joint ventures;
  • Public institutions and agencies,
  • Public professional organizations,
  • Associations and foundations,
  • Turkish branches of foreign based companies

can benefit from supports extended under the Investment Incentives Program of Turkey provided that they satisfy all criteria set for each scheme.

As per Law No. 4875 on Foreign Direct Investments, foreign persons and/or companies may benefit from investment incentives as well.


  1. Value Added Tax (VAT) Exemption
  2. Customs Duty Exemption
  3. Corporate/Income Tax Deduction
  4. Social Security Premium (SSP) Support for Employer’s Share
  5. Income Tax Withholding Support
  6. SSP Support (Employee’s Share)
  7. Interest Rate Support
  8. Land Allocation
  9. VAT Refund
  10. RUSF Exemption
  11. Stamp Tax Exemption
  12. Real Estate Tax Exemption
  13. Municipality Fees Exemption

As shown above, there are 13 main incentive elements that are mentioned in related legislations. The important issue is to determine whether an investment may benefit from the abovementioned incentive elements or not.

If you have further queries on this issue, please feel free to contact us.

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