Investment IncentiveAdvisory
Achieve maximum benefit from incentives with properly structured application and monitoring processes that comply with investment incentive legislation.
Investment Incentive
System
A comprehensive incentive mechanism for investments that support production, employment, supply security, green-digital transformation and regional development in line with development goals.
What Is Investment Incentive Advisory?
It covers the support of investments aimed at increasing production and employment, meeting critical needs, reducing external dependency, enhancing international competitiveness, accelerating green and digital transformation, and reducing regional development disparities, all in line with the goals set out in development plans.
Within this scope, the aim is to reduce the obligations arising from the investment for investors and producers and to enable them to benefit from exemptions.
Legislation and System
The Legislation Underlying the Investment Incentive System
Investment incentive legislation is supported within the framework of the Council of Ministers Decree and its implementation communiqués. It is applied under the 'Decree on State Aid for Investments' numbered 2025/9903.
Incentive certificate applications submitted until 31/12/2030 will be evaluated under the new incentive system.
Priority Product List and Regional Approach
Under the Technology Initiative Program, investments targeting products or technologies on the priority product list may be supported. The list is determined by criteria such as foreign trade data, demand development and competitive intensity, and is updated annually by the Ministry.
In the sectoral and regional incentive system, sub-region support rates based on province/district may differ, particularly in SGK incentives.
Application, Conditions and Process
Minimum Investment Conditions for the Investment Incentive Certificate
Minimum fixed investment amounts vary depending on the implementation:
- Target/Priority Incentive System: on a sector/province basis, starting from TRY 12,000,000 in regions 1 and 2 and TRY 6,000,000 in other regions.
- Strategic Initiative Program: TRY 100 million for high-technology investments and TRY 200 million for other matters.
- Technology Initiative Program and Local Development Initiative: determined within the scope of the call.
- Project-Based Investment Incentive System: TRY 1 billion.
- An investment plan of at least TRY 2 billion under HIT-30.
Investment expenditures benefiting from support under the investment incentive certificate cannot be used together with other public support and grant support. Once the investment is completed, an application must be made to the Ministry for the certificate closure process.
Duration of the Investment Incentive Certificate
The certificate term is generally approximately 3 years. Where additional time is needed, an extension of up to half the certificate term may be granted. The term may vary depending on the sector and the nature of the investment.
In cases of delays in obtaining the necessary permits/licenses, public-sourced stoppages or force majeure, additional time may be granted.
Who Can Obtain an Investment Incentive Certificate?
An incentive certificate can be issued in the name of real persons, capital companies, sole proprietorships, ordinary partnerships/joint ventures, cooperatives, unions, associations, foundations, public institutions and organizations, professional organizations, municipalities and municipal affiliates, as well as Turkish branches of foreign companies.
Foreign direct investments and foreign-capital companies can also obtain a certificate for the investments they plan in Türkiye.
When Should the Certificate Be Obtained?
Preparation for obtaining the certificate should begin once the investment site has been determined and the investment plan has been established.
Since it is critical that an expenditure be invoiced after the certificate date in order to benefit from the incentive, the certificate must be obtained before starting investment expenditures.
How to Apply for an Investment Incentive Certificate?
As of July 2, 2018, new certificate applications and related notifications are made through the web-based E-TUYS application managed by the General Directorate of Incentive Implementation and Foreign Investment.
Only individuals holding a qualified electronic certificate and authorized by the Ministry can carry out transactions via E-TUYS; for this reason, the authorization process must be completed as the first step.
Investment Incentive Certificate Supports
VAT Exemption
No VAT payment on investment-grade machinery and equipment procured domestically or from abroad.
Customs Duty Exemption
Application of a 0% customs duty rate on investment-grade machinery and equipment procured from abroad.
Tax Reduction
Application of income/corporate tax at a reduced rate until the investment contribution amount is reached.
Investment Site Allocation
Allocation of an investment site within the relevant procedures and principles.
Interest or Profit Share Support
Coverage of part of the interest/profit share on credit used up to a certain proportion of the fixed investment amount.
Employer's Share of Social Security Premium
Employer premium support for additional employment (the full amount in region 6, certain rates in other regions).
Employee's Social Security Premium Support
Coverage of the portion of the employee's share premium corresponding to the minimum wage for additional employment.
Machinery Support
Payment by the Ministry of a certain proportion of the cost of machinery and equipment that meets specific conditions.
Other Supports and Exemptions
Under Municipal Revenues Law No. 2464, there are exemptions relating to fees for parceling, subdivision-consolidation, plan-project approval, ground excavation-earthworks, building construction and occupancy permits.
Under Law No. 6728, stamp duty and fee exemptions apply to contracts, undertakings, technical consultancy/advisory documents relating to investment goods within the scope of the incentive, as well as certain intangible rights transactions during the investment period. In addition, a property tax exemption may be provided under certain conditions.
Ecosystem Development Plan
An investor that does not fall within the SME category, or an investor supported under the Local Development Initiative, is obliged to carry out an ecosystem development plan during the investment period for the purposes of investment sustainability, technological/sectoral development, training-R&D and contribution to local development.
The amount of investment and expenditure within this scope cannot be less than 2% of the fixed investment amount.
Sistem Global Service Scope
Information and Analysis Service
- Analysis of the investment subject and conditions; evaluation of the support categories that can and cannot be benefited from.
- Provision of pre-investment information.
- Provision of regular information to the investor in the event of legislative changes.
Operational Tracking in Investment Processes
Consistently carrying out the technical, financial and legislative steps throughout the entire process from obtaining the certificate to its closure is the fundamental condition for actually benefiting from the incentives.
A well-planned process reduces investment costs, lowers certificate risks and makes the financial impacts measurable.
Let Us Build the Most Suitable Incentive Strategy for Your Investment Together
awaits you.
Achieve maximum benefit from incentives by managing eligibility analysis, application, maintenance and closure processes from a single point.
How Can We
Help You?
With our expert team, we provide consultancy at global standards for your R&D and Design processes.
Call Now
+90 212 709 08 50