Turkey’s investment incentive system was replaced on 30 May 2025. The decision that had governed it since 2012 was repealed, a new decision took its place, and the general incentive scheme was abolished. An investment must now fall within one of the defined programmes to obtain a certificate at all, and meeting the criteria is no longer sufficient on its own — applications compete for limited quotas.
This page covers what the new system consists of, the support instruments available, the minimum investment amounts and how they are updated, what happened to certificates issued under the old regime, and the ceiling that limits what any of it is worth.
What Changed
| Item | Previously | From 30 May 2025 |
|---|---|---|
| Governing decision | 2012/3305 | 2025/9903 |
| Structure | General, regional, priority and strategic | Two pillars: the national development initiative and the sectoral incentive system |
| General incentive scheme | Available to investments outside the defined categories | Abolished |
| How a certificate is obtained | Meeting the criteria | Call-based and competitive; projects compete for quotas |
| Minimum fixed investment, regions 1–2 | TRY 1 million | TRY 12 million |
| Minimum fixed investment, other regions | TRY 500,000 | TRY 6 million |
| Machinery support | No equivalent | New instrument; part of the price paid from the budget |
| Regional structure | Six regions | Six regions retained, supports simplified |
Under the previous system an investment that fell outside the defined categories could still obtain at least customs duty and value added tax exemptions through the general scheme. That route is closed. A certificate now requires the investment to fall within the sectoral incentive system or one of the national development programmes.
The system has also become call-based. Satisfying the criteria is no longer enough to obtain a certificate; projects compete for limited quotas, which makes the quality of the application a determining factor rather than a formality. Guidance written before 30 May 2025 describes a system that no longer exists.
The Two Pillars
Technology, local development and strategic programmes. Research and development, high technology and sustainable investments are prioritised. The strategic programme requires a minimum fixed investment of TRY 50 million. Employer’s social security premium support runs for twelve years in the sixth region and eight years elsewhere for investments within these programmes.
Supports production in strategic sectors under two headings. The six-region structure is retained and the supports have been simplified. Provinces in the earthquake zone continue to receive the supports available in the sixth region.
Support Instruments
| Instrument | What it does |
|---|---|
| Customs duty exemption | Import duties waived on machinery and equipment within the scope of the certificate |
| Value added tax exemption | Applies to machinery and equipment supplied domestically or imported under the certificate |
| Value added tax refund | Available on defined construction expenditure for qualifying investments |
| Reduced corporate tax | Corporate tax applied at a reduced rate until the accumulated benefit reaches the contribution amount recorded on the certificate |
| Employer’s social security premium support | The employer’s share on additional employment met from the budget, for the period set by programme and region |
| Employee’s social security premium support | The employee’s share met from the budget in defined cases |
| Income tax withholding support | Withholding on wages of additional employment not collected, in defined cases |
| Interest or profit share support | Part of the interest on investment loans of at least one year met from the budget, within the limit set against the fixed investment |
| Allocation of investment land | Land allocated under the rules set for certificate holders |
| Qualified personnel support | Support toward the cost of qualified staff for defined investments |
| Machinery support | New in 2025. On request, part of the price of machinery and equipment with a unit price at or above TRY 2 million is paid to the investor from the budget |
Minimum Investment Amounts
Where no specific figure is set for the investment concerned, the minimum fixed investment is TRY 12 million in the first and second regions and TRY 6 million in the others. The increase from the previous TRY 1 million and TRY 500,000 is substantial and takes a significant band of smaller investments out of the system entirely.
Monetary thresholds are indexed to the revaluation rate and increased annually. The current limits apply to applications made from the start of the year; an amount that qualified last year may not qualify this year.
Existing certificates are unaffected by the increase and continue under the limits that applied when they were issued. That is one reason a certificate in hand is worth more than the same certificate reapplied for.
The Ceiling: Domestic Minimum Corporate Tax
This determines what the reduced corporate tax is actually worth and it is absent from most incentive material. Corporate tax computed cannot be less than 10% of corporate income before deductions and exemptions.
The consequence is that reduced corporate tax under an incentive certificate cannot bring the tax below that floor. An investment whose modelling assumes the reduced rate applies to the whole profit will overstate the benefit, sometimes substantially. Exceptions exist — the minimum tax does not apply for the first three accounting periods of a newly established company — but the calculation belongs in the investment model before the application, not after the certificate is issued.
The contribution amount recorded on a certificate is the maximum benefit available, not the benefit that will be received. What is actually received depends on the taxable profit generated, the rate reduction applied, and whether the minimum tax intervenes.
For a group with substantial exemptions or deductions from other sources, the minimum tax may already be binding before the incentive is considered, in which case the reduced rate delivers nothing at all in that year and only defers the benefit. That is a question of arithmetic, and it is answerable before the application is prepared.
Certificates Issued Under the Old System
- Certificates issued under previous decisions continue under their own legislation
- They are unaffected by the increased minimum investment thresholds
- Machinery within the scope of an old certificate cannot be transferred to a new certificate
- Supports already accrued continue on their original terms
- A revision that changes the scope may bring the investment under the new decision
- Completion visas and closing procedures follow the regime under which the certificate was issued
- Moving an in-progress investment to the new system requires the transfer restriction to be modelled first
- Where the old certificate is more favourable, keeping it is usually the better answer
How an Application Runs
- Establish which programme, if any, the investment fitsThe general scheme no longer exists, so the first question is whether the investment falls within the sectoral incentive system or one of the national development programmes. An investment that fits neither cannot obtain a certificate, and the analysis should end there rather than proceeding to an application.
- Test the minimum investment amountAgainst the thresholds in force for applications made in the current year, not those quoted in earlier material. Where the investment sits close to the threshold, the annual increase should be taken into account in the timing of the application.
- Model the benefit against the minimum corporate taxThe contribution amount on the certificate is a ceiling. What is received depends on taxable profit and on whether the minimum tax intervenes. This calculation belongs before the application.
- Prepare the application fileInvestment description, capacity, fixed investment breakdown, machinery list, employment projection and financing structure. Because the system is competitive, the file is assessed against other projects rather than only against the criteria.
- File and follow the assessmentApplications are made through the ministry’s electronic system by authorised users. Questions raised during assessment are answered within the periods given; unanswered queries close the file.
- Operate within the certificateMachinery purchased must match the list, expenditure must fall within the investment period, and the exemptions apply only to items within the certificate’s scope. Purchases outside it do not become eligible later.
- Complete and obtain the completion visaAt the end of the investment period the realisation is examined and the completion visa issued. Supports received on an investment that is not completed as certified are recovered with interest.
Reliefs That Do Not Require a Certificate
Where an investment cannot obtain a certificate, or where the certificate route is not worth the constraints, several reliefs operate independently of the investment incentive system. These are set out in full on our page covering corporate tax credits and incentives.
| Relief | Basis |
|---|---|
| Research and development and design deduction | Eligible expenditure deducted a second time from corporate income; withholding, social security and stamp duty supports alongside it |
| Technology development zone exemption | Income from software, design and research activities carried on in a zone exempt from corporate tax, with conditions attached |
| Free zone exemption | Manufacturing income exempt, applying to export revenue only since 2025 |
| Export income rate reduction | Corporate tax applied 5 points lower on income from exports, including exported services |
| Manufacturing income rate reduction | 1 point reduction for companies holding an industrial registry certificate and actually manufacturing |
Common Mistakes
- Planning against the repealed system. The previous decision was repealed on 30 May 2025 and the general incentive scheme abolished; material written before that date describes a system that no longer exists.
- Using the old minimum investment figures. TRY 12 million and TRY 6 million against the previous TRY 1 million and TRY 500,000, and the thresholds rise annually.
- Assuming that meeting the criteria secures a certificate. The system is call-based and competitive; projects compete for limited quotas.
- Treating the contribution amount as the benefit. It is a ceiling; what is received depends on taxable profit and on the domestic minimum corporate tax.
- Ignoring the minimum corporate tax in the investment model. Reduced corporate tax cannot bring the tax below 10% of profit before deductions and exemptions.
- Trying to move machinery from an old certificate to a new one. Transfer is not permitted.
- Buying machinery outside the certificate’s list. Purchases outside the scope do not become eligible afterwards.
- Failing to complete the investment as certified. Supports received are recovered with interest where the completion visa cannot be obtained.
Frequently Asked Questions
Has the investment incentive system in Turkey changed?
Is the general incentive scheme still available?
What is the minimum fixed investment amount?
Does meeting the criteria guarantee a certificate?
What is machinery support?
Does the domestic minimum corporate tax affect incentives?
What happened to certificates issued under the old system?
What reliefs are available without an investment incentive certificate?
As the Ozbek CPA team, we advise on investment incentives in Turkey — establishing which programme an investment fits under the system in force since 2025, testing it against the current minimum investment thresholds, modelling the benefit against the domestic minimum corporate tax before the application is prepared, preparing and following the application file, and managing the obligations that continue until the completion visa. See also our pages on corporate tax credits and incentives and the Turkish taxation system. Contact us.
