Investment Incentives and Strategic Grants in Turkey

Turkey offers a robust and competitive investment incentive scheme designed to accelerate capital contributions, encourage high-tech manufacturing, and boost exports. At Atlas Global Audit & Accounting, we provide end-to-end consultancy to help you obtain your Investment Incentive Certificate and maximize the benefits available under Turkish law.

Why Invest in Turkey?

• Strategic Hub:A natural transit bridge between East and West, providing access to global markets.
• Demographic Advantage:A young, dynamic, and highly consumer-oriented population.
• Qualified Labor:A competitive and well-trained workforce across diverse industries.
• EU Customs Union:Seamless trade integration with European markets.
• Investor-Friendly Climate:Simplified business setup procedures and liberal investment regulations.

Key Incentives Under the Incentive Scheme

Companies holding an Investment Incentive Certificate can benefit from the following supports:

• VAT Exemption:No VAT is paid for machinery and equipment purchased domestically or imported.
• Customs Duty Exemption:Exemption from customs duties for imported machinery and equipment.
• Tax Reduction:Corporate tax is calculated at reduced rates until the total tax saving reaches a specific percentage of the investment amount (Investment Contribution Rate).
• Social Security Premium Support (Employer & Employee Share):For additional employment created by the investment, the government covers the social security premiums (calculated on the minimum wage) for a specified period.
• Income Tax Withholding Allowance:Exemption from income tax withholding for employees hired specifically for the new investment.
• Interest Payment Support:For investment loans with a term of at least one year, the government covers a portion of the interest or profit share (up to 70% of the fixed investment amount).
• Land Allocation:Potential allocation of government-owned land for large-scale investments in designated areas.
• VAT Refund:For strategic investments exceeding 500 million TRY, VAT collected on construction expenses is eligible for a rebate.

Research & Development (R&D) and Design Supports

Turkey heavily incentivizes innovation. The R&D Law provides significant benefits for R&D centers (typically requiring a minimum of 15 or 30 researchers depending on the sector). Current incentives, effective until December 31, 2028, include:

• 100% Tax Deduction:All R&D expenditures are deductible from the corporate tax base.
• Income Tax Withholding Exemption:Significant exemptions for R&D and support personnel.
• SSK Premium Support:50% exemption of the employer’s share of social security premiums for five years.
• Stamp Duty Exemption:Applicable to all R&D-related documents and contracts.
• Customs Exemption:For materials and equipment imported specifically for R&D projects.

Maximize your return on investment with the right incentives. Contact Atlas Global Audit & Accounting for expert guidance on Turkish government grants.