Turkey offers one of the most attractive environments for foreign investors in the region, thanks to a variety of investment incentives and the strategic advantages provided by free zones. Understanding these legal frameworks is crucial for maximizing your business success. At ER&GUN&ER Turkish Law Firm, our English-speaking Turkish lawyers provide comprehensive legal services to help foreign investors benefit from Turkey's pro-business ecosystem.
Overview of Investment Incentive Programs in Turkey
- General Investment Incentive Scheme: Available for projects meeting minimum investment thresholds in any region.
- Regional Investment Incentive Scheme: Sector-specific support depending on the region's development level.
- Strategic Investment Incentive Scheme: For large-scale investments considered critical for Turkey's economy.
- Project-Based Incentive Scheme: Tailored support for high-tech and R&D-focused projects.
Types of Incentives Available
- Customs duty exemption
- VAT exemption
- Tax reductions
- Social security premium support
- Land allocation
- Interest rate support for loans
- Income tax withholding allowance
- Insurance premium support
Free Zones in Turkey: Unique Advantages for Foreign Investors
Turkey has 19 operational Free Zones offering:
- Exemption from customs duties and VAT
- Corporate tax exemptions for manufacturing activities
- Profits transfer without restrictions
- 100% foreign ownership without a Turkish partner
- Simplified trade procedures and bureaucratic efficiency
Steps to Set Up a Company in Turkish Free Zones
- Application to the Free Zone Directorate with a business plan
- Obtaining an Operating License
- Company registration with the Free Zone Trade Registry
- Leasing land or warehouse units within the zone
- Commencing operations under Free Zone regulations
Why Work with a Turkish Law Firm Specialized in Investment Law?
- Strategic investment planning based on sector and region
- Application and licensing procedures with relevant authorities
- Company formation and corporate structuring advice
- Drafting investment contracts and shareholder agreements
- Representation before Turkish Investment Office and Ministry of Trade
Internal Link: Related Investment Legal Services
Explore how we assist foreign investors with trade and company setup:
👉 Setting Up a Branch Office in Turkey
Frequently Asked Questions (FAQs)
- Can foreigners benefit from Turkish investment incentives? Yes. Foreign and local investors are treated equally under Turkish law.
- Are Free Zones open to all types of businesses? Primarily manufacturing, export, logistics, and tech companies are targeted, but service sectors are also encouraged in some zones.
- Is there a minimum investment amount required? Yes. It varies depending on the sector, region, and type of incentive program.
- Are profits from Free Zone operations tax-exempt? Yes, especially for manufacturing activities, under certain conditions.
- Can you help with investment incentive applications? Absolutely. Our Turkish law firm prepares and manages all filings and follow-ups with relevant authorities.
- How long does it take to set up in a Free Zone? Typically 2–4 weeks if documentation is complete and approvals are granted timely.
- Are there special visa/residence permit benefits for investors? Yes. Investors and key executives may apply for long-term residence permits.
- What happens if my business expands outside the Free Zone? Different tax and regulatory rules apply. We advise clients on transitions and expansions.
- Can you assist with cross-border transactions from Free Zones? Yes. We provide legal structuring advice for global supply chain and export management strategies.
- Why ER&GUN&ER? Because we are a trusted Turkish law firm specializing in investment law, business incentives, and corporate support for international investors.
If you are considering investing in Turkey or establishing operations in Turkish Free Zones, trust ER&GUN&ER Law Firm for strategic, bilingual, and full-service legal support to maximize your business potential and minimize risks.