Technology Development Zones (TDZs) – Technoparks in Turkey

Technology Development Zones (TDZs), commonly referred to as technoparks, are specialized hubs designed to foster research and development (R&D) and attract investments in high-tech industries. Turkey currently hosts 101 TDZs, with 87 fully operational and 14 under construction, making it a growing hub for innovation and technology-driven businesses.

Established under the Law on Technology Development Zones (2001), these zones aim to create strong collaborations between private companies, universities, and research institutions, driving knowledge circulation and technological advancements.

Legal Framework and Objectives

The Law on Technology Development Zones supports:

1. Cooperation Between Universities and Industry: Enabling partnerships to utilize advanced technologies for producing innovative software and tech solutions.
2. Knowledge Circulation: Bridging the gap between research institutions and the private sector to accelerate breakthroughs.
3. Foreign Participation: Allowing foreign companies to operate within TDZs, either as independent entities or shareholders in managing companies, with access to the same tax exemptions as domestic firms.

Key Advantages of TDZs

1. Tax Exemptions:

   • Corporate and Income Tax: Profits from software development, R&D, and design activities in TDZs are exempt until December 31, 2028.
   • VAT Exemption: Sales of software (e.g., business applications, mobile apps, military systems) produced exclusively in TDZs are VAT-free until December 31, 2028.

2. Tax Benefits for Employees:

   • Personal Income Tax: Salaries of employees involved in R&D, design, and support activities are fully exempt from income tax until December 31, 2028.
   • Support Employee Cap: The exemption for support employees is capped at 10% of the total R&D workforce.

3. Social Security Premium Support:

   • Employer’s Share Contribution: 50% of the employer’s share of social security premiums is covered by the government until December 31, 2028.

4. Customs and Stamp Duty Exemptions:

   • Customs Duty: Exemptions for imported goods used in R&D, design, and software projects.
   • Stamp Duty: Exemptions for documents related to eligible projects.

5. Technology Production Investments:

   • TDZs facilitate investments in technological product manufacturing, derived from R&D projects, with approval from the Ministry of Industry and Technology.

Financial Support for TDZ Development

The Ministry of Science, Industry, and Technology provides crucial support for TDZ development, including:

• Land procurement
• Infrastructure development
• Management building construction

Why Choose a TDZ in Turkey?

TDZs offer a thriving ecosystem where businesses can:

• Collaborate with universities and research centers to leverage cutting-edge research.
• Access significant financial incentives to reduce operational costs.
• Partner with like-minded innovators and pioneers in technology development.