Investment Zones and Guidance INVEST IN TÜRKİYE

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In Turkey, there are three different special investment zones:

1. Technoparks and Technology Development Zones

Technology Development Zones (TDZ) are places created to encourage investment in high-tech fields

and R&D activity. There are 84 TDZs, of which 63 are active and 21 are currently under development

after receiving approval.

2. Zones of Industry Organization

Organized Industrial Zones (OIZ) are created to provide businesses with a welcoming environment for

investors complete with social amenities. Roads, water, power, natural gas, communications, waste

treatment, and other services are all currently offered in OIZs.

There are 353 OIZs in 81 provinces, 258 of which are now in use, while 95 OIZs are currently being

built in Türkiye. Additionally, more than 2 million people are employed by the OIZs, and over 67,000

businesses produce in over 32,000 parcels.

3. Free Zones

Turkey developed a number of Free Zones starting in 1987. Free zones are fenced-in locations where

operating users receive special regulatory protection in order to support exports of products and

services. In comparison to other regions of the country, free zones provide a more accommodating and

flexible business environment, which helps to improve trade volume and export for some industrial

and commercial activity. Promoting export-oriented investment and production, expediting foreign

direct investment and technology access, steering businesses toward export, and fostering global

commerce are the main goals of the free zones.

Free zones (FZ) are unique locations that are exempt from customs even though they are

geographically situated inside the nation's boundaries. FZs are intended to increase the volume of

investments with an export orientation. In FZs, legal and administrative requirements that are

applicable within the customs area in the commercial, financial, and economic spheres are either not

applied at all or only partially enforced.

There are a total of 19 free zones in Turkey, 18 of which are operational, and 1 is in the establishment

stage. They are all accessible to the EU and Middle Eastern markets. FZs are strategically positioned

in areas with ports on the Mediterranean, Aegean Sea, and Black Sea that provide quick access to

major international trade routes.

What benefits do free zones offer?

● Companies that hold a manufacturing operating license are completely excluded from

corporate tax (20%) and income tax (15%–35%%).

● Free Zones are thought of as existing outside of the customs border; no Customs Duty,

Value Added Tax (VAT), or KKDF (6% above the credit payments) are imposed on

products entering the zone.

● Companies that export at least 85% of their goods are entirely exempt from paying

income tax on employee wages.

● The Custom Union Agreement between Turkey and the EU allows for the free circulation

of goods with Turkish origin on the EU market (No Tax between TR & EU)

● Profits and earnings of businesses may be freely transferred to Turkey or any other nation.

● Free Zones allow businesses to buy goods from Turkey at export prices because they are

located outside of the customs border. (No VAT)

● Infrastructure services are given without paying VAT (Electricity, water, Gas,

telecommunication)

● In the Free Zones, businesses are free to bring second-hand (used) equipment.

● The domestic inflation rate will not have an impact on buying and selling activities,

inventory control, or basic accounting procedures because the transactions therein are

conducted in convertible foreign currencies.

● Simply by issuing an invoice, the defective items can be easily returned to their place of

manufacture.

● Companies are allowed an infinite amount of time to keep their stock duty-free.