Investment incentives

How the 2025 system is built

Since 30 May 2025, investment incentives are governed by Presidential Decision No. 9903 on State Aid in Investments. It replaced the 2012 system. Applications follow Communiqué 2025/1 and are filed on E-TUYS, the electronic incentive system of the Ministry of Industry and Technology. The decision has three layers:

• Türkiye Century Development Initiative (Türkiye Yüzyılı Kalkınma Hamlesi), with three programmes: the Technology Initiative, the Local Development Initiative and the Strategic Initiative.
• Sectoral support for Priority and Target investments.
• Regional support across six regions, mainly employer social security premium support, with additional premium support in region 6.

A minimum fixed investment amount applies. It is higher in regions 1 and 2 and is revalued every year, so we confirm the current figure for your project. Until 31 December 2026, two groups are treated as region 6: investments in listed earthquake-affected districts, and manufacturing investments in organised industrial zones and industrial zones of the former attraction-centre provinces.

What a certificate can give you

Depending on the programme and region, a certificate can bring a customs duty exemption on imported machinery, a VAT exemption on machinery and software, a reduced corporate tax rate, interest or profit-share support, machinery support and land allocation.

The reduced corporate tax rate is easy to misread, so here is how it works. The tax saving is capped at a contribution amount, a percentage of the eligible investment set by the programme. Until that cap is used up, corporate tax is charged at a rate reduced by 60%, for at most ten accounting periods. The reduced rate also works alongside the 10% domestic minimum corporate tax, which new companies do not pay for their first three accounting periods. We include both in the review.

Large groups: incentives and the 15% global minimum tax

If your group’s consolidated revenue exceeded €750 million in at least two of the four preceding years, Türkiye’s global minimum tax rules apply. A reduced rate under a certificate, and from 2027 the 12.5% manufacturing rate, can bring the Turkish effective tax rate below 15%. In that case Türkiye collects the top-up first, through its own domestic top-up tax. The OECD’s Side-by-Side package of 5 January 2026 includes a safe harbour for substance-based incentives, but we have not seen Turkish legislation adopting it as of 16 October 2026.

For a large group, the real value of an incentive is what remains after this test. Related notification forms: global minimum tax notification and CbCR notification. Background: global minimum tax for Chinese and Hong Kong groups.

Other measures to know in 2026

• 12.5% manufacturing rate. From 2027, manufacturing profits of companies holding an industrial registry certificate are taxed at 12.5%. These profits cannot also use the 5-point export reduction.
• Qualified service centres. Under Law 7582, a Turkish capital company that serves related group companies active in at least three countries, and earns at least 80% of its annual revenue from related companies abroad, can deduct 95% of the foreign earnings from these services for 20 accounting periods. The earnings must be brought to Türkiye by the annual return deadline. The Ministry of Industry and Technology still has to set the detailed procedures; we had not seen them in the Official Gazette by 16 October 2026. See Türkiye as a regional hub.
• Project-based support for very large projects, now also open to Turkish subsidiaries wholly owned by the foreign investor (see the questions below).

More detail for factory investors: investment incentives in 2026 for manufacturers. If you do not have a Turkish company yet, start with company formation; the certificate is then reflected in your bookkeeping and tax returns.