Turkey: Turkey introduces a new scheme to boost investment in underdeveloped areas

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Turkey: Turkey introduces a new scheme to boost investment in underdeveloped areas

gozluklu.jpg
bicer.jpg

Burçin Gözlüklü

Ramazan Biçer

Turkey has introduced several incentive packages to attract foreign investors over the past decade. As a successor of earlier incentives, the Turkish government has recently released a new centre of attraction programme to accelerate the amount of domestic and foreign investments made in the relatively less developed areas of the country.

The programme focuses on new investments for the manufacturing industry, call centres and data centres and intends to revive unfinished or partially completed investments that were left because of inadequate working capital or other reasons.

What the package includes

The package includes super incentives, which cover turnkey factory construction support, interest-free investment credits, and working capital credit with reduced interest.

Accordingly, incentives available under the programme are as follows:

  • Capital support to obtain investment land;

  • Turnkey factory building construction support;

  • Interest-free investment loan support;

  • Interest-reduced business loan support;

  • Call and data centre support;

  • Support for removing manufacturing facilities;

  • Ownership transfer with limited rights of land, factory building and public immovables to the investors;

  • Consulting service support; and

  • Participation in companies and leading the company establishments by the Development Bank of Turkey in the cities where the programme is applicable.

Eligibility conditions

To benefit from the programme, a fixed investment of TRY 2 million ($543,000) with at least 30 employees is required for the manufacturing industry. For call centres, only 200 employees are required, and for 5,000 square metres of white area to be occupied by the data centres.

However, call centre and data centre investments do not need to meet minimum investment amount of TRY 500,000 in the regions where they are located.

In addition, the programme allows the investors to use the unused public buildings for their call centre and data centre investment and energy support will be available for such investments.

Those who would like to remove their manufacturing units to the cities within the scope of the programme will be also supported by cash. To receive the cash from the programme, the business owner should employ at least 200 people and be conducting business activities for the past two years.

Expected outcome of the programme

Turkish government officials expect the total investment through the programme, which comes mostly from the manufacturing industry, will be about TRY 20 billion. The officials also expect 112,000 jobs to be created because of the incentives available.

In this regard, it is also expected that each year 30 factories will be built in the cities where the programme is applicable. In terms of call centres, it is envisaged that 20,000 people will be employed as an outcome of the programme.

These numbers indicate that the Turkish government has strong support to improve the investment climate in Turkey. Also, it is observed that a good number of investors have already applied for the incentives provided by the programme. We believe that the Turkish government will increasingly continue to support the business community with new incentive packages in the coming years.

Burçin Gözlüklü (burcin.gozluklu@centrumauditing.com) and Ramazan Biçer (ramazan.bicer@centrumauditing.com)

Centrum Consulting

Tel: + 90 216 504 20 66 and + 90 216 504 20 66

Website: www.centrumauditing.com

more across site & shared bottom lb ros

More from across our site

Imposing the tax on virtual assets is a measure that appears to have no legal, economic or statistical basis, one expert told ITR
The EU has seemingly capitulated to the US’s ‘side-by-side’ demands. This may be a win for the US, but the uncertainty has only just begun for pillar two
The £7.4m buyout marks MHA’s latest acquisition since listing on the London Stock Exchange earlier this year
ITR’s most prolific stories of the year charted public pillar two spats, the continued fallout from the PwC Australia tax leaks scandal, and a headline tax fraud trial
The climbdowns pave the way for a side-by-side deal to be concluded this week, as per the US Treasury secretary’s expectation; in other news, Taft added a 10-partner tax team
A vote to be held in 2026 could create Hogan Lovells Cadwalader, a $3.6bn giant with 3,100 lawyers across the Americas, EMEA and Asia Pacific
Foreign companies operating in Libya face source-based taxation even without a local presence. Multinationals must understand compliance obligations, withholding risks, and treaty relief to avoid costly surprises
Hotel La Tour had argued that VAT should be recoverable as a result of proceeds being used for a taxable business activity
Tax professionals are still going to be needed, but AI will make it easier than starting from zero, EY’s global tax disputes leader Luis Coronado tells ITR
AI and assisting clients with navigating global tax reform contributed to the uptick in turnover, the firm said
Gift this article