From which country can one reach 67 countries hosting 1.6 billion people with a 4-hour’ flight? A safe country is located at the centre of such markets with a Gross National Product of USD 43 trillion. Türkiye is the most convenient and safest investment spot to access such countries, with USD 11 trillion in business volume.
A neighbour of the European Union in the West, Türkiye, with the advantage of historical relations in accessing the Middle East in its South, is now a nearby supply centre for Europe.
Embracing the essential human resources for production and innovation, Türkiye is, at the same time, a massive market with a population of 85 million people. Considering its logistical advantages, Türkiye is an ideal country for on-site production, and the government provides extra facilities through industrial investment incentives and state aid to increase exports.
Banking activities are conducted in line with the global rules in the country, and there are no obstacles in the transfer of company profits. In brief, situated in the middle of three continents, Türkiye is a golden country for investments as it is a nearby supply centre that offers easy access to internal and external markets and investment incentives.

INCENTIVE CERTIFICATE SYSTEM
Support can be received in Türkiye for industrial investments under the ‘incentive system’ in many areas ranging from tax reductions to machinery procurement. In this respect, industrial investments for medium-high technology products and intensely imported goods in Türkiye are the most advantageous areas.

The investment incentive certificate is granted to the following persons and corporations within the scope of the regulations:
* Türkiye branches of foreign companies abroad
* Real persons
* Unincorporated companies, equity companies
* Cooperatives and unions
* Business partnerships
* Public institutions and organizations 
* Professional organizations
* Associations and foundations

Applications are made to the Ministry of Industry and Technology via the E-TUYS for all processes regarding the investment incentive certificate.

WHICH EXPENDITURES FALL UNDER THE INCENTIVES? 
Machinery and equipment
Land–building plots
Buildings, construction, facilities
Studies - projects
Imports and customs clearance
Transport and insurance
Assembly

9 TYPES OF SUPPORT 

Nine types of support can be received as part of the incentives system

1. Value-added tax exemption
2. Customs duty exemption
3. Tax rate reduction
4. Employer’s national insurance contribution support
5. Income tax withholding support
6. Insurance premium support
7. Interest or royalty support
8. Investment space assignment
9. Value-added tax returns

RECOGNISED INVESTMENT TYPES

The following are the investment types to receive incentive certificates:
* Fully new investments
* Modernization
* Extension (capacity increase)
* Integration
* Product diversification

The investment incentive system comprises three main components: the ‘General Incentive System’, ‘Regional Incentive System’ and the ‘Strategic Investments Incentive System’. The regional incentive system provides support at different levels to various cities.

Project-based incentive system

The fixed investments of a minimum of TRY 1 billion deemed compatible with the incentive criteria in the regulations are granted cap incentives. In addition to tax deductions, energy support is also among such incentives.

For detailed information:

www.yatirimadestek.gov.tr

Program for supporting technology products

The minimum investment amount is TRY 50 million for the applications made as part of the Technology-Focused Industry Move Program. Investors wishing to invest in the product groups declared as part of the program must follow the announcements.

For detailed information:

www.hamle.gov.tr

Government support for export activities

Investors establishing companies and starting industrial production investments can apply to receive export support when they wish to conduct export activities from Türkiye. The Ministry of Trade provides government support in many areas, from market penetration studies to fair participation expenses.

https://ticaret.gov.tr/destekler/ihracat-destekleri

Investment through building partnerships

Foreign investors can directly establish companies in Türkiye for investment (next page). Moreover, investors can invest by taking over the shares of a company based in Türkiye. Likewise, they can retire from a partnership by transferring their shares to other persons.

Government’s reliable investment office

The Presidency of the Republic of Türkiye Investment Office offers reliable services such as export consultancy, site selection support, project launch, partnership development assistance and ongoing support to potential investors after the project is completed. 

www.invest.gov.tr

SECTORAL BREAKDOWN

The sectors to attract the most foreign investors

(2016-2020 term):

Manufacturing:

8.5 $ billion

Finance and insurance:

6.7 $ billion

Wholesale and retail trade:

4.4 $ billion

Transport and storage:

3.4 $ billion

Information and communication:

2.8 $ billion