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The new investment incentives scheme is specifically designed to encourage investments with the potential to reduce dependency on the importation of intermediate goods vital to the country’s strategic sectors. Amongst the primary objectives of the new investment incentives scheme are: reduce the current account deficit; boost investment support for lesser developed regions; increase the level of support instruments; promote clustering activities; and to support investments that will create the transfer of technology.

Investment incentives system has been comprised of four different schemes. Local and foreign investors have equal access to:

  • Regional Investment Incentives Scheme
  • General Investment Incentives Scheme
  • Large-Scale Investment Incentives Scheme
  • Strategic Investment Incentives Scheme

Regional investments incentives are mainly rural development incentives programmes. There are several programme in this category. The most known as the mutual programme which is organised by Turkish Rural Development Committee and EU Rural Development Authority. The programme called TKDK & IPARDD. Agricultural and animal incentives are in this programme.

General investment incentives are incentive packages for new investments in the regions in Turkey. According to the region scheme and industrial activities, the incentive ratio is changing. This package includes mainly tax and custom exemptions.

Large-scale investment incentives are for bigger scale investments over 50 million TL upto 1 billion TL according to the different sectors. 12 investment subjects, which will potentially foster Turkey’s technology, R&D capacity and competitiveness, are supported by Large-Scale Investment Incentives Scheme instruments.

Strategic investment incentives are aiming the domestic production capacity for the product to be manufactured with the investment shall be less than the import of the product. The investment shall have a minimum investment amount of TRY 50 million. The investment shall create a minimum added-value of 40% (this condition is not applicable to refinery and petrochemicals investments). The total import value of the product to be manufactured with the investment shall be minimum of USD 50 million as of the past one year (excluding products that are not locally produced).

If you want to have more information about incentives, please check the incentive articles for each category in the below. For more information about the incentives, especially incentives for animal breeding, agriculture or chicken broiler facilities, we uploaded some files in the category to check.

Rural Development Incentives by Turkish Rural Development Committee and EU

Turkish Government and EU has mutual support and incentives in many cities in Turkey to support rural development with investments and business. The main support and incentive programme is called IPARD.  The IPARD supports these kind of investments in Turkey. First of all, lt’s check what type of investments are supported and which cities are in the support programme.

IPARD & TKDK Supported Investment Types: IPARD & TKDK Supported Investment Types:

  • Farming Investments for milk & dairying
  • Farming Investment for stockfarming
  • Farming Investment for chicken-turkey meat as broiler
  • Farming Investments for egg
  • Entegrated facility investment for milk and milk based products
  • Entegrated facility investment for red meat and products
  • Entegrated facility investment for chicken-turkey meat and products
  • Engetrated facility investment for fisheries
  • Entegrated facility investments for fruits and vegetables
  • Plant & Herbal production agriculture and entegrated facilities
    • Flowers and ornament plants
    • Medical and flavoury plants
    • Mashroom and mashroom’s micelleo Seedling & Sapling
  • All kinds of beeculture investments
  • Rural tourism investments
  • Renewable energy investments

Click for Incentive Details & Conditions
Click for Simple Incentive Feasiblity for Cow Breeding Farm Investment

Click for Simple Incentive Feasiblity for Chicken Broiler Investment

Turkish Republic Ministry of Economy Regional Investment Incentives

The sectors to be supported in each region are determined in accordance with regional potential and the scale of the local economy, while the intensity of support varies depending on the level of development in the region. The minimum fixed investment amount is defined separately for each sector and region with the lowest amount being TRY 1 million for Region 1 and 2, and TRY 500,000 for the remaining regions.

For more details about this incentives, please visit Turkish Republic Ministry of Economy Incentive Guide >

General Incentive Details

Regardless of the region where investment takes place, all projects meeting both the specific capacity conditions and the minimum fixed investment amount are supported within the framework of the General Investment Incentives Scheme. Some types of investments are excluded from the investment incentives system and would not benefit from this scheme.

The minimum fixed investment amount is TRY 1 million in Region 1 and 2, and TRY 500,000 in Region 3, 4, 5 and 6. Major investment incentive instruments are:

1) Exemption from customs duties: Customs tax exemption for imported machinery and equipment for projects with an investment incentive certificate.

2) VAT exemption: VAT exemption for imported or domestically purchased machinery and equipment for projects with an investment incentive certificate. 

For more details about this incentives, please visit Turkish Republic Ministry of Economy Incentive Guide >

12 investment subjects, which will potentially foster Turkey’s technology, R&D capacity and competitiveness, are supported by Large-Scale Investment Incentives Scheme instruments.

Large-Scale Investments

 

Investment Subject

Minimum Fixed Investment Amount

(million TRY)

1

Production of refined petroleum products

1,000

2

Production of chemical products

200

3

Harbors, harbor services and airport investments

200

4

a)      Automotive main industry

b)      Automotive supply industry

200

50

5

Production of railway and tram locomotives and/or tram cars

50

6

Transit pipeline transportation services

7

Electronics industry

8

Production of medical, high-precision and optical equipment

9

Production of pharmaceuticals

10

Production of aircraft and spacecraft and/or related parts

11

Production of machinery (including electrical machinery and equipment)

12

Mining (including metal production)

For more details about this incentives, please visit Turkish Republic Ministry of Economy Incentive Guide >

Investments meeting the criteria below are supported within the framework of the Strategic Investment Incentives Scheme:

  • The domestic production capacity for the product to be manufactured with the investment shall be less than the import of the product.
  • The investment shall have a minimum investment amount of TRY 50 million.
  • The investment shall create a minimum added-value of 40% (this condition is not applicable to refinery and petrochemicals investments).
  • The total import value of the product to be manufactured with the investment shall be minimum of USD 50 million as of the past one year (excluding products that are not locally produced).

For more details about this incentives, please visit Turkish Republic Ministry of Economy Incentive Guide >