Türkiye’de Yatırım Teşvik Belgesi

How to Benefit from Incentives?

Turkey continues to attract foreign investors with its strategic location between Europe and the Middle East and its rapidly growing economy. The government aims to encourage investment and support economic growth through various incentives. In this context, the Investment Incentive Certificate stands out as an important tool for foreign investors.

The Turkish Government announced a new reform commitment in November 2023, which aims to attract more investment by tripling support for foreign investors. President Erdoğan stated that Turkey has entered a new economic era and that reforms to support foreign investors will be prioritized in the new year.

In the first 11 months of 2023, Turkey received 12.9 billion dollars of foreign investment, of which 9.8 billion dollars went to the services sector, 21 billion dollars to the industrial sector and 9 million dollars to the agricultural sector. The largest investing countries include the United States, the United Kingdom, Italy, the Netherlands, Luxembourg, Germany, Ireland and Norway.

How Does the Investment Incentive Process Work?

The country offers investors low operating costs compared to many economies in Europe. In addition, by producing quality university graduates every year, Turkey benefits from lower labor costs than its European neighbors. local suppliers are also known for providing high quality products and services at low cost.

Low Cost of Doing Business: Local suppliers are also known for providing high quality products and services at low cost.

Strong Consumer Spending:Turkey has strong consumer spending. The working and young population, who generally follow trends and regularly buy new branded products and services, account for a large share of this spending. This presents an opportunity for foreign businesses with a well-planned local strategy to reach the Turkish consumer base and generate new revenues/profits.

Domestic Production: Turkey, with its local production capacity, is in a position to support foreign businesses to distribute domestically or offer their products in international markets. Turkish manufacturers are generally able to fulfill orders on a smaller scale. This presents a unique opportunity to provide support to medium-sized or smaller foreign businesses in Turkey.

Are Subsidies Permanent or Temporary?

The income generated by producers operating in free zones is exempt from income or corporate tax until the end of the tax year that includes the date Turkey becomes a full member of the EU.

Workers employed by enterprises that produce in these zones and realize at least 85% of exports are also exempt from income tax. However, this rate may be reduced up to 50 percent by the Council of Ministers. Stamp duty and fees for transactions and documents in free zones are also exempt.

Export access from Turkey to the European Union

The Customs Union Agreement between Turkey and the EU gives foreign businesses producing here access to Turkey’s advantageous markets.

Turkey is the second largest trading partner of the European Union, especially since 2022. Turkey’s exports to the EU are dominated by equipment, textiles, food and machinery.

This makes Turkey an ideal place for foreign companies to set up EU-focused export operations in Turkey due to its unique location and access to the EU market.

What are the Government Incentives in Turkey?

The Turkish government is focusing on reducing investment-related costs and creating a more favorable environment to encourage foreign investment. Foreign investors who obtain a Turkish Investment Incentive Certificate (IIC) can benefit from various supports;

These include VAT and customs duty exemption, tax reduction, social security premium support, low interest rates, land allocation, VAT refund and income tax withholding support.

With a young population, Turkey offers many opportunities for foreign investors.

Is it Difficult to Obtain an Incentive Certificate?

Receiving Investment Incentive Certificates in Turkey is a strategic move for both domestic and foreign investors. The wide range of benefits offered by this certificate, from tax advantages to personalized incentives, not only supports economic growth, but also increases the competitiveness of businesses in the global market.

As Turkey continues to position itself as an attractive investment destination with its dynamic market and strategic location, obtaining an Investment Incentive Certificate is becoming an important step in unlocking the full potential of investment opportunities. In dealing with the complexities of the business environment, this certification serves as a valuable tool that paves the way for sustainable development, innovation and prosperity. After all, the decision to obtain an Investment Incentive Certificate is not just a bureaucratic formality, but a strategic investment in the future success and longevity of businesses in the dynamic and promising Turkish market.

If you need support in obtaining an investment incentive certificate in Turkey, you can contact us via the contact form below.

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Frequently Asked Questions About Investment Incentive Certificate in Turkey

Investment incentive certificate in Turkey encourages investing in Turkey and offers various advantages to businesses. These advantages include economic incentives such as tax reductions, customs exemptions, energy support and infrastructure facilities. This document provides financial comfort to investors, contributes to the local economy and increases the competitiveness of businesses.

Investment incentive certificate in Turkey is a document issued to local or foreign real or legal persons who want to invest in Turkey. This document may vary depending on the type, size and location of the investment and may offer tax benefits, incentives and support.

The transfer, sale, export or rental of machinery and equipment within the scope of the incentive certificate for which an investment completion visa has been issued in Turkey is allowed, provided that five years have passed following the procurement of the investment goods in question.

The original duration of the investment incentive certificate in Turkey is 3 years. If the investment is not completed within 3 years, you are entitled to an additional period of half the duration of the investment incentive certificate + 1.5 years.

The cost of obtaining an investment incentive certificate in Turkey may vary depending on the type and size of the investment. It is generally affected by factors such as application fees, document preparation and consultancy costs. The cost varies depending on the investor’s needs and preferences.