Investment Incentives

Government Investment Support – 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 the best 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.

Our experienced lawyers and tax advisors assist companies and investors in structuring their investments in a legally secure and tax-optimized manner. We help you to identify suitable incentive programs, properly apply for funding, and strategically plan your investment to maximize financial benefits.

Our Services in Investment Incentives

• Advisory on National and International Investment Incentive Programs – Analysis of government and regional funding opportunities for your business.
• Legal Compliance for Investment Incentives – Ensuring adherence to all legal requirements to avoid repayment obligations or legal risks.
• Tax Optimization of Investment Projects – Leveraging tax reductions, depreciation benefits, and tax credit schemes to minimize tax liabilities.
• Assistance with Applications and Approval Processes – Support with funding applications, documentation, and regulatory approvals.
• Incentives for Foreign Investments – Legal and 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) to maximize financial advantages.
• Representation Before Authorities and Funding Authorities – Assistance with negotiations with governmental agencies and funding authorities.

Legal Aspects 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.
• Legally Secure Contract Drafting – Investment agreements should be reviewed and structured in accordance with incentive conditions to minimize risks.
• 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

With our international expertise, we help companies structure and optimize their investments legally and tax-efficiently to maximize available incentives.

• Advisory on Government & International Investment Programs
• Legal Compliance for Investment Grants & Subsidies
• Tax Optimization for Investment Projects
• Application Process & Negotiations with Grant Authorities
• Incentive Programs for Foreign Investments
• Public Procurement & Compliance in Investment Incentives
• Representation in Administrative Reviews & Repayment Cases