There are three types of investment areas in Turkey:
- Technology Development Zones – Technoparks
Technology Development Zones (TDZ*) are areas designed to support R&D activities and to attract high-tech investments.
There are currently 69 TDZs, 56 of which are operating; the other 13 zones have been approved and they are under construction.
- Organized Industrial Zones
The Organized Industrial Zones (OIZ*) are designed to enable companies to operate using ready-made infrastructure and social facilities. The infrastructure provided in these regions includes road, water, natural gas, electricity, communication, waste treatment and other services.
In 80 provinces, there are a total of 322 OIZs, 255 of which are active; the remaining 67 OIZs are under construction in various regions throughout Turkey.
The advantages of the OIZs
The investors operating in OIZs benefit from the following advantages in addition to the existing investment incentive applications in Turkey (general investment incentives, regional investment incentives, large-scale investment incentives, strategic investment incentives, incentives for employment, R&D support, etc.):
- VAT exemption in land purchases.
- Property tax exemption for five years, effective from the completion of the construction of the facility.
- Low water, natural gas and communication costs.
- Tax exemption in the division / merging of parcels.
- Local government tax exemption in facility construction and operation.
- Solid waste tax exemption if OIZ does not benefit from the municipal services.
- Free Zones
The Free Zones* are special areas located outside the scope of the customs territory, although they are within the political borders of the country. These zones are designed to increase the number of export-oriented investments. The legal and administrative regulations in the commercial, financial and economic areas of the customs territory are not implemented or partially implemented in the free zones.
In Turkey, there are totally 19 Free Zones situated close to the EU and the Middle East markets and 18 of them are active while one is under construction. The Free Zones are located at the points where access to international trade routes can easily be achieved by the ports in the Mediterranean, Aegean and Black Sea.
Advantages of the Free Zones:
- 100% exemption from customs duty and other taxes of the same type.
- 100% exemption from corporate tax for manufacturing companies.
- 100% exemption from VAT and special consumption tax.
- 100% exemption from stamp duty applied to the documents to be issued.
- 100% exemption from property tax.
- 100% income and corporate tax exemption to specific logistics services to be provided from Free Zones, all of which are abroad.
- 100% exemption from income tax on employee salary (for companies exporting at least 85% of the FOB price of products produced in free zones).
- The goods can be kept in free zones without time limitation.
- Corporations can transfer the profits obtained in the free zones to abroad as well as to Turkey without restrictions.
- Exemption from title deed in the purchase and sale of property.
- VAT exemption in construction, project, settlement, permit and approval processes.
- Ready infrastructure exempted from VAT and other taxes.
• Permission of introduction of used / second hand machinery.