Local DevelopmentInitiative Incentive Program
Strengthen your regionally prioritized investments with the high-rate incentives of the Türkiye Century Local Development Initiative. The 2nd Call application period runs from 02.03.2026 to 15.05.2026.
Strengthen Your Investment with the
Local Development Initiative
It is an important incentive mechanism launched to accelerate regional development across Türkiye and to direct investors toward strategic areas. Offering substantial advantages for investments aligned with regional priorities, this program enables you to benefit from high-rate incentives when you position your investment correctly.
What Is the Local Development Initiative Program?
Türkiye Century Local Development Initiative
Under the Türkiye Century Local Development Initiative Program, conducted under the coordination of the Ministry of Industry and Technology, investments aimed at reducing regional development disparities and mobilizing local production potential are supported.
The 2nd Call application period will begin on 02.03.2026 and end on 15.05.2026. The program is carried out through 26 Development Agencies under the coordination of the Directorate General of Development Agencies.
30 years of experience, measurable results
The approval rate we have achieved across all our incentive applications. The right structure, a complete file, full regulatory compliance.
The recovery rate of your investment when the right support package is selected. Tax, SSI (Social Security Institution), interest and machinery supports are evaluated together.
The number of certification and incentive projects successfully completed each year. A broad portfolio ranging from SMEs to large-scale investors.
Local Development Initiative Support Details
| SUPPORTS | LOCAL DEVELOPMENT INITIATIVE | |
|---|---|---|
| VAT Exemption | ✓ | |
| Customs Duty Exemption | ✓ | |
| Tax Reduction | Contribution-to-Investment Rate (%) | 50 |
| Tax Reduction Rate (%) | 60 | |
| Social Security Premium Employer Share Support | 8 Years (12 Years in Region 6) | |
| Social Security Premium Employee Share Support | Region 6 Only — 10 Years | |
| Interest or Profit Share Support | Support Rate* | 40% |
| Maximum Support Amount | TRY 301M | |
| Maximum Support Rate | 20% of the investment | |
| Machinery Support | Support Rate | 25% |
| Maximum Support Amount | TRY 301M | |
| Maximum Support Rate | 15% of the investment | |
| Investment Site Allocation | ✓ | |
* Interest and machinery support are used on an EITHER/OR basis, with only one being selected.
Incentive Comparison — All Incentive Programs
The Local Development Initiative stands out as one of the strongest incentive mechanisms. Alongside the VAT exemption and customs exemption, it offers a highly advantageous financial structure with a 50% contribution-to-investment rate for tax reduction and a 60% tax reduction rate. On the financing side, interest support of up to 20 points significantly reduces investment costs.
| Support Element | R1 | R2 | R3 | R4 | R5 | R6 | Priority | Tech-Focused IM | LDI ★ | Strategic | Project-Based |
|---|---|---|---|---|---|---|---|---|---|---|---|
| VAT Exemption | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Customs Exemption | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Tax Reduction CIR | 20% | 20% | 20% | 20% | 20% | 20% | 30% | 50% | 50% | 40% | 200% |
| Tax Red. Rate | 60% | 60% | 60% | 60% | 60% | 60% | 60% | 60% | 60% | 60% | 100% |
| SSI (Social Security Institution) Empl. (Outside OIZ) | None | 1 Year | 2 Years | 4 Years | 8 Years | 12 Years | Region | 8-12Y | 8-12Y | 8-12Y | 10 Years |
| SSI (Social Security Institution) Empl. (Inside OIZ) | 1Y | 2Y | 4Y | 8Y | 12Y | 14Y | Region | — | — | — | — |
| Investment Site | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Interest Supp. (Domestic) | None | None | None | 12.5p | 12.5p | 12.5p | 12.5p | 20p | 20p | 15p | Unlimited |
| Interest Supp. (Foreign) | None | None | None | 1p | 1p | 1p | 1p | 2p | 2p | 2p | Unlimited |
| Machinery Support | None | None | None | None | None | None | None | 15% | 15% | 15% | None |
| SSI (Social Security Institution) Employee Support | None | None | None | None | None | 10Y | R6 | R6 | R6 | R6 | R6 |
★ The Local Development Initiative column is highlighted. R = Region, p = points.
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Frequently Asked Questions
Which sectors are supported?
Are the same investment topics valid for every province?
How is the application made?
Which documents are required for the application?
Can newly established companies apply?
Which supports are provided?
Is there a grant?
On what basis are applications evaluated?
Is there a minimum investment amount within the program?
How long does it take for application results to be announced?
Can ongoing investments apply?
Can the same firm apply with more than one project?
Is it mandatory to obtain consulting?
If the application is rejected, can it be reapplied?
What is the most important success criterion in the Local Development Initiative Program?
How can I get support during the application process?
Why should professional consulting support be obtained?
How can I reach the contact information of the Development Agencies?
Development Agencies Contact
You can apply through the development agencies operating under the coordination of the Turkish Ministry of Industry and Technology.
| Development Agency | Headquarters | Phone |
|---|---|---|
| Ankara Development Agency | Ankara | 0312 310 03 00 |
| Istanbul Development Agency (İSTKA) | Istanbul | 0212 468 34 00 |
| Izmir Development Agency (İZKA) | Izmir | 0232 489 81 81 |
| Western Mediterranean Development Agency (BAKA) | Isparta | 0246 224 37 37 |
| Dicle Development Agency (DİKA) | Mardin | 0482 212 11 14 |
| Fırat Development Agency (FKA) | Malatya | 0422 212 87 98 |
| South Aegean Development Agency (GEKA) | Denizli | 0258 371 88 44 |
| İpekyolu Development Agency (İKA) | Gaziantep | 0342 231 07 01 |
| Northeast Anatolia Development Agency (KUDAKA) | Erzurum | 0442 235 61 11 |
| Serhat Development Agency (SERKA) | Kars | 0474 212 52 00 |
| Zafer Development Agency (ZAFER) | Kütahya | 0274 271 77 61 |
| East Marmara Development Agency (MARKA) | Kocaeli | 0262 332 01 53 |
| South Marmara Development Agency (GMKA) | Balıkesir | 0266 246 10 00 |
| Çukurova Development Agency (ÇKA) | Adana | 0322 363 00 40 |
| Middle Black Sea Development Agency (OKA) | Samsun | 0362 431 24 00 |
| Ahiler Development Agency (AHİKA) | Nevşehir | 0384 214 36 66 |
| Bursa Eskişehir Bilecik Development Agency (BEBKA) | Bursa | 0224 211 13 27 |
| West Black Sea Development Agency (BAKKA) | Zonguldak | 0372 257 74 70 |
| Mevlana Development Agency (MEVKA) | Konya | 0332 236 32 90 |
| East Mediterranean Development Agency (DOĞAKA) | Hatay | 0326 225 14 15 |
You can reach the current websites and the comprehensive list of all agencies through the Development Agencies portal of the Ministry of Industry and Technology.
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