Investment Zones
The dedicated infrastructure and advantages offered to investors by Türkiye’s organized industrial zones, technology development zones, and free zones.
Overview
Türkiye offers four types of investment zones that provide modern infrastructure and attractive incentives. Technology Development Zones support R&D and high‑tech projects, Organized Industrial Zones offer ready‑to‑use industrial land, Free Zones enable tax‑advantaged export‑oriented operations, and Industrial Zones facilitate large‑scale, integrated investments.
1. Technology Development Zones - Technoparks
Technology Development Zones (TDZ) are areas designed to foster research and development (R&D) initiatives and attract investments into high-technology sectors. Presently, there are 101 TDZs, with 87 fully operational and an additional 14 that have received approval and are currently under construction.
- Profits derived from software development, R&D, and design activities are exempt from income and corporate taxes until December 31, 2028.
- Sales of application software produced exclusively in TDZs are exempt from VAT until December 31, 2028. Examples include software for system management, data management, business applications, different business domains, the internet, mobile phones and military command and control systems.
- Remuneration for R&D, design and support personnel employed in the zone is exempt from all taxes until December 31, 2028. The number of support personnel covered by the exemption may not exceed 10 percent of the total number of those involved in R&D, though.
- Investments for the production of technological products developed based on the outcome of R&D projects conducted in the TDZ may be made in the TDZ if deemed suitable by the operator company and allowed by the Ministry of Industry and Technology.
- 50 percent of the employer’s share of the social security premium will be paid by the government until December 31, 2028.
- Customs duty exemption for imported products and stamp duty exemption for applicable documents within the scope of R&D, design, and software development projects.
2. Organized Industrial Zones
Organized Industrial Zones (OIZ) are designed to allow companies to operate within an investor-friendly environment with ready-to-use infrastructure and social facilities. The existing infrastructure provided in OIZs includes roads, water, natural gas, electricity, communications, waste treatment, and other services
There are 392 OIZs in 81 provinces, 274 of which are currently operational, while the remaining 118 OIZs are being constructed throughout Türkiye. In addition, more than 67,000 companies produce in over 32,000 parcels while more than 2 million people are employed through the OIZs.
- Profits derived from software development, R&D, and design activities are exempt from income and corporate taxes until December 31, 2028.
- Sales of application software produced exclusively in TDZs are exempt from VAT until December 31, 2028. Examples include software for system management, data management, business applications, different business domains, the internet, mobile phones and military command and control systems.
- Remuneration for R&D, design and support personnel employed in the zone is exempt from all taxes until December 31, 2028. The number of support personnel covered by the exemption may not exceed 10 percent of the total number of those involved in R&D, though.
- Investments for the production of technological products developed based on the outcome of R&D projects conducted in the TDZ may be made in the TDZ if deemed suitable by the operator company and allowed by the Ministry of Industry and Technology.
- 50 percent of the employer’s share of the social security premium will be paid by the government until December 31, 2028.
- Customs duty exemption for imported products and stamp duty exemption for applicable documents within the scope of R&D, design, and software development projects.
3. Free Zones
Free zones (FZ) are special sites deemed outside the customs area, although they are physically located within the political borders of the country. FZs are designed to boost the number of export-focused investments. Legal and administrative regulations in the commercial, financial, and economic domains that are applicable within the customs area are either not implemented or partially implemented in FZs.
There are a total of 19 Free Zones in Türkiye located close to the EU and Middle Eastern markets, 18 of which are active and 1 is at the stage of establishment. FZs are strategically located at points that grant easy access to international trade routes via ports on the Mediterranean, Aegean Sea, and the Black Sea.
- Profits derived from software development, R&D, and design activities are exempt from income and corporate taxes until December 31, 2028.
- Sales of application software produced exclusively in TDZs are exempt from VAT until December 31, 2028. Examples include software for system management, data management, business applications, different business domains, the internet, mobile phones and military command and control systems.
- Remuneration for R&D, design and support personnel employed in the zone is exempt from all taxes until December 31, 2028. The number of support personnel covered by the exemption may not exceed 10 percent of the total number of those involved in R&D, though.
- Investments for the production of technological products developed based on the outcome of R&D projects conducted in the TDZ may be made in the TDZ if deemed suitable by the operator company and allowed by the Ministry of Industry and Technology.
- 50 percent of the employer’s share of the social security premium will be paid by the government until December 31, 2028.
- Customs duty exemption for imported products and stamp duty exemption for applicable documents within the scope of R&D, design, and software development projects.
4. Industrial Zones
Industrial zones (IZs) are specialized areas to enhance the global competitiveness of the national economy, facilitate technology transfer, boost production and employment, accelerate international capital inflow, and create industrial areas suitable for large-scale investments, particularly in terms of production costs. IZs, fostering an optimal investment environment for large-scale and integrated investments, have grown increasingly attractive due to the streamlined bureaucratic processes available to investors and regional administrations. Presently, there are 40 IZs across several regions.
- Profits derived from software development, R&D, and design activities are exempt from income and corporate taxes until December 31, 2028.
- Sales of application software produced exclusively in TDZs are exempt from VAT until December 31, 2028. Examples include software for system management, data management, business applications, different business domains, the internet, mobile phones and military command and control systems.
- Remuneration for R&D, design and support personnel employed in the zone is exempt from all taxes until December 31, 2028. The number of support personnel covered by the exemption may not exceed 10 percent of the total number of those involved in R&D, though.
- Investments for the production of technological products developed based on the outcome of R&D projects conducted in the TDZ may be made in the TDZ if deemed suitable by the operator company and allowed by the Ministry of Industry and Technology.
- 50 percent of the employer’s share of the social security premium will be paid by the government until December 31, 2028.
- Customs duty exemption for imported products and stamp duty exemption for applicable documents within the scope of R&D, design, and software development projects.
Related Documents
Why Invest in Türkiye?
Türkiye:Nexus of Value Chains
Guide to state incentives for investment in Türkiye
Türkiye:Nexus of Value Chains
Guide to state incentives for investment in Türkiye
Türkiye:Nexus of Value Chains
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