The new investment incentive system entered into force with the Decree No. 9903 dated 29.05.2025 published in the Official Gazette dated 30.05.2025 and numbered 32915. The referred Decree aims to update the investment incentive system, support investments in priority areas, accelerate domestic production and technological transformation and reduce regional development disparities. The new system prioritizes a product and sector-oriented incentive model, project-based evaluation and digital/green transformation.
The Decree on State Aids in Investments, which was put into effect by the Decree of the Council of Ministers dated 15/6/2012 and numbered 2012/3305, and the Decree on Supporting Investments within the Scope of the Attraction Centers Program, which was put into effect by the Decree of the Council of Ministers dated 2/1/2018 and numbered 2018/11201, have been repealed.
Support Elements Provided by the New Incentive System
One of the most striking changes in the new incentive system is the inclusion of machinery and equipment support among the support elements to be provided to investment projects. This change aims to encourage investors to strengthen their technological infrastructure and increase their production capacity. The new incentive system, which entered into force under the main programs, offers differentiated support items according to regional, sectoral and strategic priorities, and is based on criteria such as the potential of investments to create added value, the level of technology and their contribution to employment. The main support elements that can be provided under the new system are listed below:
The new incentive system consists of three main programs:
1. Development Movement for Turkey’s Century
Turkey's Century Development Initiative: It consists of three programs, the Technology Move Program, the Local Development Move Program and the Strategic Move Program.
Supports |
Technology Move |
Local Development Move |
Strategic Move |
VAT Exemption |
✓ |
✓ |
✓ |
Customs Duty Exemption |
✓ |
✓ |
✓ |
Corporate Tax Reduction |
|||
Investment Contribution Rate (%) |
50% |
50% |
40% |
Tax Reduction Rate (%) |
60% |
60% |
60% |
Social Security Premium – Employer Share |
8 years (12 years in Region 6) |
8 years (12 years in Region 6) |
8 years (12 years in Region 6) |
Social Security Premium Support |
Only in Region 6 – 10 years |
Only in Region 6 – 10 years |
Only in Region 6 – 10 years |
Interest or Profit Share Support** |
|||
Support Rate |
40% |
40% |
30% |
Maximum Support Amount |
TRY 240 million |
TRY 240 million |
TRY 180 million |
Maximum Support as % of Investment |
20% |
20% |
15% |
Machinery Support* |
|
|
|
Support Rate |
25% |
25% |
25% |
Maximum Support Amount |
TRY 240 million |
TRY 240 million |
TRY 180 million |
Maximum Support as % of Investment |
15% |
15% |
15% |
Investment Land Allocation |
✓ |
✓ |
✓ |
*Machinery support is not available for investments that benefit from interest or profit share support.
**Interest/profit share support rate is calculated based on the CBRT’s one-week repo auction interest rate valid on the loan disbursement date.
1.1. ) Technology Move:
The Technology Move Program is an investment incentive program that aims to increase Turkey's domestic production capacity in critical technology areas and to develop high value-added products. Under this program, investments in medium-high and high-tech products and technologies are supported. Investments are evaluated within the scope of the program carried out by the General Directorate of Strategic Research and Productivity under the Ministry of Industry and Technology. In order for investments to be supported, the relevant product or technology must be included in the priority product list published by the Ministry. The list can be updated every year in January. The projects to be supported are examined on a project-by-project basis by the Technology Move Program Evaluation Committee. A project-based incentive certificate is issued for investments deemed appropriate by the Committee.
VAT exemption and customs duty exemption are available under the Technology Move program. Investment contribution rate is 50% and tax deduction is available. Insurance premium employer's share support is applied for 8 years, and this period is applied for 12 years for the 6th region. Insurance premium support will be applied only in the 6th region and its duration is 10 years. There are three limitations for interest and profit share support. Interest or profit share support is limited to 40% of the interest, 20% of the investment amount and a maximum of 240 million Turkish liras. There are also three limitations for machinery support. Machinery support is limited to 25% of the cost of machinery and equipment, 15% of the investment amount and a maximum of 240 million Turkish liras. It is not possible to benefit from interest or profit share support and machinery support at the same time. Investors are supposed to prefer only one of these two support elements.
1.2) Local Development Move:
The Local Development Move Program is an investment incentive program designed to reduce regional development disparities across Turkey, increase local production capacity and encourage employment. This program supports investments that will increase value-added production and regional competitiveness, especially in less developed regions. The investments to be supported under the program are determined by taking into account the priority product and sector lists created by the Ministry of Industry and Technology and determined for each province. Applications are evaluated on a province-based and sector-oriented basis. Eligible projects are reviewed on a project-by-project basis by the Local Development Move Program Evaluation Committee. When the investment project is approved, a project-based incentive certificate is issued.
VAT exemption and customs duty exemption are available under the Local Development Move program. Investment contribution rate is 50% and tax deduction is available. Insurance premium employer's share support is applied for 8 years, and this period is applied for 12 years for the 6th region. Insurance premium support will be applied only in the 6th region and its duration is 10 years. There are three limitation factors for interest and profit share support. Interest or profit share support is limited to 40% of the interest, 20% of the investment amount and a maximum of 240 million Turkish liras. There are also three limitations for machinery support. Machinery support is limited to 25% of the cost of machinery and equipment, 15% of the investment amount and a maximum of 240 million Turkish liras. It is not possible to benefit from interest or profit share support and machinery support at the same time. Investors are restricted to choose only one of these two support elements.
1.3) Strategic Move Program:
The Strategic Move Program is an incentive mechanism that supports investments in critical products and technologies in order to strengthen Turkey's economic and technological independence. This program supports investments to improve domestic production in strategic sectors with high foreign dependency by evaluating them on a project basis. Within the scope of the program, investments within the scope of the Digital Transformation Program and the Green Transformation Program can be supported, as well as investments in the manufacturing sector with high added value, which will meet the critical needs of our country, ensure supply security, reduce foreign dependency, increase international competitiveness and high research and development content. Investments to be supported under the green transformation program and digital transformation program with a minimum amount of 50 million TL can be supported under this program without an evaluation process. The minimum fixed investment amount is set as 100 million TL for high-tech investments and 200 million TL for other investments.
VAT exemption and customs duty exemption are available. Investment contribution rate is 40% and tax deduction is available. Insurance premium employer's share support is applied for 8 years, and this period is applied as 12 years for the 6th region. Insurance premium support will be applied only in the 6th region and its duration is 10 years. There are three limitations for interest and profit share support. Interest or profit share support is limited to 30% of the interest, 15% of the investment amount and a maximum of 180 million Turkish liras. There are also three limitations for machinery support. Machinery support is limited to 25% of the machinery and equipment, 15% of the investment amount and a maximum of 180 million Turkish liras. It is not possible to benefit from interest or profit share support and machinery support at the same time. Investors are required to choose only one of these two support elements.
2. Sectoral Incentive System
Sectoral Incentive System: Consists of two programs: Priority Investments and Target Investments.
Supports |
Priority Investments |
Target Investments |
VAT Exemption |
✓ |
✓ |
Customs Duty Exemption |
✓ |
✓ |
Tax Reduction |
|
|
Investment Contribution Rate (%) |
30 |
20 |
Tax Reduction Rate (%) |
60 |
60 |
Employer's Share of Social Security Premium Support |
Gradual by Region 1–6: 0 – 1 – 2 – 4 – 8 – 12 years |
|
Employee's Share of Social Security Premium Support |
Only applicable in Region 6: 10 years |
|
Interest or Dividend Support* |
|
|
Support Rate** |
25% |
25%* |
Maximum Support Amount |
TRY 24 million |
TRY 12 million* |
Maximum Support Rate |
10% of the investment |
10% of the investment* |
Investment Land Allocation |
✓ |
✓ |
* Applicable only in Regions 4, 5, and 6.
** Refers to the rate to be applied over the CBRT one-week repo auction interest rate valid at the time of loan utilization
2.1) Priority Investments:
The “Digital Transformation Program”, which aims to achieve results such as cost reduction, productivity and quality increase through technological products and solutions, and the “Green Transformation Program”, which aims resource-efficient and low-carbon production that is compatible with the circular economy, protects natural resources, contributes to sustainability goals, and is resource efficient, are supported within the scope of priority investments. In addition, many sectors such as R&D, high and medium technology products, mining, defense industry, data center, nuclear energy, health, education, elderly/disabled care services are supported. The minimum fixed investment amount is 12 million TL in Regions 1 and 2, and 6 million TL in Regions 3, 4, 5 and 6.
VAT exemption and customs duty exemption are available in the Priority Investments program. Investment contribution rate is 30% and tax deduction is available. Insurance premium employer's share support increases gradually according to regions. Insurance premium support is only available in Region 6 and lasts for 10 years. There are three limitations for interest and profit share support. Interest or profit share support is limited to 25% of the interest, 10% of the investment amount and a maximum of 24 million Turkish liras.
2.2) Target Investments:
Many sectors such as agriculture, forestry and fishing, mining, manufacturing, electricity, gas, steam and air conditioning production and distribution, transportation and storage, and education are supported within the scope of target investments. The minimum fixed investment amount is 12 million TL in Regions 1 and 2, and 6 million TL in Regions 3, 4, 5 and 6.
VAT exemption and customs duty exemption are available in the Target Investments program. Investment contribution rate is 20% and tax deduction is available. Insurance premium employer's share support increases gradually according to regions. Insurance premium support is only available in Region 6 and lasts for 10 years. There are three limitations for interest and profit share support. Interest or profit share support is limited to 25% of the interest, 10% of the investment amount and a maximum of 12 million Turkish liras. Under the Target Investments program, investments in electricity generation, electricity distribution, electricity storage and distribution of gaseous fuels through the main grid are not eligible for tax deductions and interest and dividend support. Investments to be realized in the province of Istanbul are also not eligible for tax reduction support.
3. Regional Incentives
Investments supported within the scope of Turkey's Century Development Move and Sectoral Incentive System may benefit from insurance premium employer's share support and insurance premium support (for investments to be realized in the 6th region) according to the region of the investment. In addition, investments made in organized industrial zones or industrial zones and investments made in the districts specified in Annex-5 of the Decree may benefit from this support under the conditions and duration provided in one sub-region of the region in terms of support for employer's share of insurance premium, and investments that meet both conditions may benefit from this support under the conditions and duration provided in two sub-regions of the region in which they are located.
Regions in Investment Incentives |
|||||
Region 1 |
Region 2 |
Region 3 |
Region 4 |
Region 5 |
Region 6 |
Ankara |
Aydın |
Adana |
Afyon |
Bartın |
Adıyaman |
Antalya |
Balıkesir |
Bilecik |
Aksaray |
Bayburt |
Ağrı |
Bursa |
Bolu |
Burdur |
Amasya |
Çankırı |
Ardahan |
Eskişehir |
Çanakkale |
Düzce |
Artvin |
Erzurum |
Batman |
İstanbul |
Denizli |
Gaziantep |
Çorum |
Giresun |
Bingöl |
İzmir |
Edirne |
Isparta |
Elazığ |
Hatay |
Bitlis |
Kocaeli |
Kayseri |
Karabük |
Erzincan |
Kahramanmaraş |
Diyarbakır |
Muğla |
Konya |
Karaman |
Kastamonu |
Kilis |
Gümüşhane |
Manisa |
Kırklareli |
Kırıkkale |
Kırşehir |
Niğde |
Hakkari |
Mersin |
Kütahya |
Nevşehir |
Malatya |
Ordu |
Iğdır |
Sakarya |
Tekirdağ |
Sivas |
Osmaniye |
Kars |
|
Yalova |
Rize |
Sinop |
Mardin |
||
Samsun |
Tokat |
Muş |
|||
Trabzon |
Tunceli |
Siirt |
|||
Uşak |
Yozgat |
Şanlıurfa |
|||
Zonguldak |
Şırnak |
||||
Van |
4. Other Issues
The amounts in the Decree and its annexes shall be updated every year to be effective from the beginning of the calendar year within the framework of the procedures and principles to be determined by the communiqué, taking into account the revaluation rate for the previous year. The total value of VAT exemption, customs duty exemption, tax deduction, interest or profit share support and machinery support provided under the incentive certificate, calculated with the revaluation rate based on the year of benefit, cannot exceed the actual fixed investment amount calculated by taking into account the revaluation rate.
Investments benefiting from the support elements within the scope of the Decree cannot benefit from the supports of other public institutions and organizations. For investments that have benefited or will benefit from the supports of other public institutions and organizations, an application cannot be made to the Ministry to benefit from the supports under this Decree. Investments decided to be supported under the Technology Oriented Industrial Move Program may also be directly supported by KOSGEB and/or TÜBİTAK in accordance with the relevant legislation.
The Decree on State Aids in Investments dated 15/6/2012 and numbered 2012/3305 and the Decree on Supporting Investments within the Scope of the Attraction Centers Program dated 02/01/2018 and numbered 2018/11201 were abolished from the legislation. Incentive certificate applications to be made until 31/12/2030 will be evaluated within the scope of the new incentive system.
Pursuant to the Decree, applications to be made until 31.12.2030 will be evaluated and incentive certificates will be issued after sectoral, financial and technical evaluations to be made by taking into account macroeconomic programs and supply-demand balance in order to support the investments within the scope of the Decree.
Applications for investment incentive certificates made before the Decree will be evaluated within the framework of the legislation in force at the date of the relevant application, but may also be evaluated within the framework of the new Decree upon request.
Implementations regarding the incentive certificates issued based on previous decisions will continue within the framework of the decision on which the incentive certificate is based and other relevant decisions, and additions for capacity increase will not be included in the investment incentive certificates issued based on previous Decisions on investment issues that are not supported under this Decree.
The provisions of the Decree regarding the document layout, notification to the Ministry of the supports utilized and the comparison of the supports utilized with the total fixed investment amount will enter into force on 01.01.2026, while the other provisions entered into force on the date of its publication.
Secondary regulations regarding the Decision will be published by the Ministry of Industry and Technology in the following periods.
Click HERE to view the full announcement.
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