Investment Incentives

Government Investment Support in Turkey – Legal Framework and Tax Benefits

Investments are a key driver of economic growth and business expansion. Türkiye offers attractive investment incentive programs to support companies and investors by providing financial and tax advantages, such as direct grants, tax reductions, low-interest loans, employment and other investment incentives.

Whether for national or international investments, making use of available incentives can significantly reduce capital requirements and increase business competitiveness. However, investment incentives are subject to various legal and tax regulations, which differ depending on the region, industry, and type of investment. The Turkish investment incentive system was reorganised in 2025 by a new Presidential Decree, and new applications must be assessed on that basis.

GEMS Serbest Muhasebeci Mali Müşavirlik A.Ş. assists you with the tax structuring of your investments. We help you to identify suitable incentive programs, properly apply for funding, and strategically plan your investments.

Our Services in Investment Incentives

  • Advisory on National and International Investment Incentive Programs: Analysis of government and regional funding opportunities for your business.
  • Tax Assessment of Investment Projects: Assessment of tax reductions, depreciation options and tax credit schemes.
  • Assistance with Applications and Approval Processes: Support with funding applications, documentation, and regulatory approvals.
  • Incentives for Foreign Investments: Tax consultancy for international companies entering into a new market.
  • Combination of Incentive Measures: Strategic utilization of various support mechanisms (e.g., grants, tax incentives, benefits for social security contributions, low-interest loans).
  • Support Before Authorities and Funding Authorities: Assistance with negotiations with governmental agencies and funding authorities.

Requirements of Investment Incentives

Investment incentives are subject to specific legal requirements. Depending on the type of funding and investment, companies must comply with different conditions to qualify for and properly utilize incentive programs. Key legal aspects include:

  • Compliance with Subsidy Conditions: Grants and incentives are often tied to economic or social commitments, such as job creation or sustainable investments.
  • Public Procurement and Regulatory Requirements: Companies receiving government funding may be required to adhere to procurement laws and tendering procedures.
  • Repayment Obligations: If funding conditions are not met, subsidies may need to be repaid. Strict compliance with incentive terms is crucial.
  • International Investment Agreements: Cross-border investments are often subject to bilateral agreements that may offer additional benefits or restrictions.

Tax Benefits of Investment Incentives

In addition to direct grants, Türkiye provides tax incentives to encourage business investments. Key tax benefits include:

  • Investment Allowances & Special Depreciation: Companies can deduct part of their investment costs from taxable income, reducing their tax burden.
  • VAT Refunds & Exemptions: Certain investment goods and infrastructure projects benefit from reduced VAT rates or refunds.
  • Tax Incentives for R&D Investments: Research and development projects often receive additional tax reductions.
  • Lower Corporate Tax Rates for New Investments: In case of an investment in special regions reduced corporate tax rates for strategic or large-scale investments are applied.

Investment Incentives for International Companies

International companies expanding into new markets can benefit from special incentive programs aimed at attracting foreign direct investments (FDI). These programs often include:

  • Tax exemptions or reductions for foreign investors
  • Financial support for setting up production or research facilities
  • Grants for job creation and promotion of regional economic development
  • Low-interest loans for large-scale investment projects

Focus Areas – Our Expertise in Investment Incentives

We help companies with the tax structuring of their investments and the use of available incentives.

  • Advisory on Government & International Investment Programs
  • Eligibility Review for Investment Grants & Subsidies
  • Tax Assessment of Investment Projects
  • Application Process & Negotiations with Grant Authorities
  • Incentive Programs for Foreign Investments
  • Public Procurement & Compliance in Investment Incentives
  • Support in Administrative Reviews & Repayment Cases
Team
Gürkan Erdebil > Seçkin Serpil > Serkan Yılmaz >