Official Communiqué on the Implementation of the Presidential Decree on Investment Incentives (Communiqué No. 2025/1)

What does the Communiqué on the Implementation of Investment Incentives entail?

Türkiye has updated its investment incentive legislation with the aim of increasing production and employment, promoting high value-added investments, accelerating the green and digital transformation of businesses, encouraging foreign direct investment (FDI), and reducing regional development disparities.

Within this scope, the new Presidential Decree on State Aids for Investments ("the Decree") entered into force on 29 May 2025, replacing the 2012 Decree on State Aids for Investments and the 2018 Decree on the Attraction Centers Program.

The Communiqué sets out the procedures and principles for implementing the Decree and constitutes the legal framework under which the new incentive regime will operate.

New Investment Incentive System: What Has Changed?

While Türkiye continues to apply a six-region model, the regional classifications have been revised. Moreover, the technological content, sectoral impact, and value-added potential of investment projects are now decisive criteria for eligibility.

Under the previous system, general, regional, and strategic categories defined the scope of incentives, with tools such as interest/profit share support, withholding tax relief, and social security contribution support applied based on region.

The new model restructures these components and introduces a more targeted, impact-oriented incentive strategy.

Types of Incentives and Support Instruments

The incentive framework now comprises three main categories: A) “Century of Türkiye” Development Initiative; B) Sectoral Incentive Mechanisms; C) Regional Incentives

A) “Century of Türkiye” Development Initiative includes “Technology Initiative Program”, “Local Development Initiative Program” and “Strategic Initiative Program”

Key supports:

Tax reductions
Social security contribution support for the employer
General social security contribution support
Interest or profit share subsidies
Allocation of investment land
Support for acquiring machinery and equipment
VAT and customs duty exemptions

B) Sectoral Incentive Mechanisms include “Priority Investment List” and “Targeted Investment Support Scheme”. Incentives under this section include all support tools listed above, except for machinery and equipment support.

C) Regional Incentives
Investments falling under categories A and B may also benefit—based on the investment region—from:

Additional employer social security contribution support
General social security contribution support

The Communiqué also introduces sector-specific technical and structural criteria for certain types of projects. Notably, investments in solar and wind-based power plants, data centers, charging stations for electric vehicles and electronic devices must meet specific technical and structural criteria to qualify for incentives.

Application Procedure for Investment Incentives

Eligible applicants include:

Individuals
Partnerships and corporations
Cooperatives, associations, foundations
Professional chambers and unions
Branches of foreign companies incorporated in Türkiye

Applications must be submitted through a registered user, and a valid Investment Incentive Certificate is required to benefit from the incentive system.

Applications on behalf of companies whose establishment has not yet been completed will not be accepted.

Key Practical Points for Investors

All applications must be submitted digitally via E-TUYS, the official online incentive management system through which all documents and processes related to incentives are transmitted electronically to the Ministry.

Investors are fully responsible for the accuracy of submitted data. If false or incorrect information is identified during any stage of the investment, the incentive certificate may be revoked, or the granted incentives may be partially reclaimed with applicable sanctions
Foreign investors without a legal presence in Türkiye must establish a branch or entity before applying.

Conclusion

The Communiqué plays a crucial role in clarifying the legal criteria for benefiting from investment incentives and enhancing Türkiye’s investment environment.

The new system requires careful alignment of technical eligibility, legal compliance, and strategic planning.

At GEMS Schindhelm, we provide investors with full-spectrum legal and strategic support in line with Türkiye’s evolving investment incentive regime.

Autor: Senem Kathrin Güçlüer
Autor: Sedanur Zengin