Unveiling Technology Development Zones Incentives
Turkey, a rising hub for innovation and technology, hosts 87 fully operational and 14 under-construction Technology Development Zones (TDZs), commonly referred to as Technoparks. These dynamic hubs are not merely spaces; they are engines of progress, fostering research, development, and investments in groundbreaking technologies.
Among the most attractive investment incentives in Turkey are those provided within Technoparks, which play a vital role in attracting both local and international entrepreneurs, R&D support, and access to a skilled talent pool—all designed to accelerate innovation and commercialization.
Here’s how these incentives are shaping the future of innovation in Turkey:
1. Tax Incentives: A Gateway to Growth
One of the most compelling benefits for companies operating within TDZs is the extensive tax relief:
- Profit Tax Exemption: Profits generated from software development, R&D, and design activities within TDZs are completely exempt from income and corporate taxes until December 31, 2028.
- VAT Exemption: Sales of application software exclusively developed in TDZs are free from Value-Added Tax (VAT) during the same period.
This tax framework provides a fertile ground for businesses to focus on innovation without financial hurdles.
2. Talent Support: Empowering Human Capital
To attract and retain top-tier talent, Turkey offers significant incentives to individuals and businesses:
- Tax-Free Salaries: R&D, design, and support personnel working within TDZs benefit from income tax exemptions on their salaries until 2028.
This initiative ensures that skilled professionals can concentrate on pioneering solutions, unburdened by financial constraints.
3. Bridging Innovation and Production Through Investment Incentives in Turkey
TDZs act as a seamless bridge between research and commercialization:
- Companies can invest in producing technological products derived from R&D projects conducted in TDZs. With approval from the Ministry of Industry and Technology, businesses can transform innovative ideas into market-ready products, bolstering Turkey’s position as a global technology leader.
4. Government Partnership: Shared Responsibility for Growth
The government’s financial support reduces the operational costs of businesses:
- Social Security Premium Support: Until 2028, the government covers 50% of the employer’s share of social security premiums for staff employed in R&D and design roles.
This partnership reflects a commitment to fostering a conducive environment for business growth and technological advancement.
5. Global Collaboration: Breaking Barriers
In a bid to enhance international cooperation and streamline innovation:
- Customs Duties and Stamp Duties Waived: Imported products essential for R&D, design, and software development are exempt from customs duties. Additionally, contracts and other documents related to these projects are free from stamp duties.
These measures promote cross-border knowledge exchange, enabling Turkey to integrate seamlessly into the global tech ecosystem.
Conclusion
Turkey’s Technology Development Zones are more than just geographic locations; they are catalysts for a future driven by innovation and excellence. By leveraging the comprehensive investment incentives in Turkey, businesses can thrive in an ecosystem designed to nurture creativity, reduce costs, and pave the way for transformative advancements.
Invest in Turkey’s TDZs—where innovation meets opportunity. Whether you are a budding entrepreneur or an established enterprise, the time to harness these incentives is now.
For more information or tailored guidance on investing in Technology Development Zones, feel free to contact us.