Investment Incentive Map

Which Sector Should You Invest In? What is the Investment Incentive System? What is Türkiye's Century of Development? What are Sectoral and Regional Incentives?

The "Investment Incentive System," published by the Ministry of Industry and Technology, provides answers to the question of which city and which sector to invest in. Based on the investment incentive map, you can guide your business and make strategic investment decisions.

Do not make investment decisions without looking at and analyzing this map!

The investment incentive map, divided into six main categories, is categorized by regional and city development levels. The goal is to provide more incentives and support to underdeveloped cities, increasing their level of development and providing attractive investment opportunities for investors.

What is the Investment Incentive System?

New investment incentive system;

a) Turkey's Century of Development Initiative

b) Sectoral and Regional Incentive System

It is divided into two.

a) Turkey's Century Development Move is categorized under three subheadings: Technological, Local Development and Strategic Move.

Technology Move	Local Development Initiative	Strategic Move
Products in medium-high and high-technology sectors, which will be determined by taking into account various criteria, are supported.	Investments that will contribute to the utilization of the potential of the provinces and the increase of their competitiveness are supported.	Investments with high added value, that ensure supply security, reduce external dependency and have high R&D content are supported.
High value-added investments in products and topics included in the Priority Product List will be supported.	Investment topics such as integrated livestock farming, integrated food processing investments, and value-added manufacturing investments, selected according to the potential of the provinces, will be supported.	Investments in strategic and critical areas such as high-tech machinery, next-generation mobility, active pharmaceutical ingredients, and semiconductor production will be supported.

b) The Sectoral and Regional Incentive System is categorized under two subheadings: Priority and Target Investments.

Priority Investments	Target Investments
Qualified investments that support the investment ecosystem and cut across supported sectors horizontally are supported.	Investment topics created within the framework of criteria such as sectoral qualifications, capacity utilization rates, and added value are supported.
Selected investment topics such as green transformation, digital transformation, medium-high and high-tech product production, mining investments, and unlicensed electricity generation are supported.	Manufacturing industry investments, service sector investments, greenhouse farming, integrated livestock investments, energy and mining investments are supported on a broad basis.

What Supports Are Provided?

Supports include VAT exemptions, customs duty exemptions, tax reductions and investment contribution rates (reduced corporate tax), SSI employer and employee support, interest and dividend support, machinery and equipment support, and land allocation. These support rates and durations vary depending on the region.

Which Sector? Which City?

Let's explain with an example; an investment of 100,000,000 TL is being considered in the "Target Investment" category in Antalya, located in the 1st Region.

Investment Expenses	Incentive Investment	Investment without Incentives
Total Investment Amount	100,000,000 TL	100,000,000 TL
Imported Machinery	50,000,000 TL	50,000,000 TL
Domestic Machinery	25,000,000 TL	25,000,000 TL
Construction Cost	25,000,000 TL	25,000,000 TL
Employment	50 people	50 people
Advantages	Incentives	Without incentives
VAT Exemption (machinery)	75,000,000TL * 20% VAT 15,000,000TL will not be paid.	VAT is paid. Total cost is 75,000,000 + 20% VAT 15,000,000 = 90,000,000TL.
VAT Exemption (construction)	25,000,000TL * 20% VAT 5,000,000TL will not be paid.	VAT is paid. Total cost: 25,000,000 + 20% VAT 5,000,000 = 30,000,000TL.
Customs Duty Exemption (imported machinery)	50,000,000TL * 2% (average customs duty) 1,000,000TL will not be paid.	Customs duty is paid. Total cost: 50,000,000TL + * 2% 1,000,000TL = 51,000,000TL.
Tax Deduction (Corporations)	100,000,000TL * 20% would be a tax deduction of 20,000,000TL.	There will be no tax deduction. 100,000,000TL * 20% 20,000,000TL tax will be paid.
Interest or Dividend Support	None	None
Social Security Premium Support	None	None
Total Cost	100,000,000 TL	141,000,000 TL

***If we had made this investment in other regions, additional social security support + interest/dividend support would have also come into effect.

As a result , before making a new investment, it is useful to determine which city and sector you will invest in, and to choose a location on the map (investment strategy) according to your budget, as the cost of the investment you will make will be quite expensive as an investment incentive.

By taking advantage of these supports, you will make a significant financial contribution to your short, medium and long-term expense management.

Do not forget to prepare "R&D and feasibility reports" for the right investment at the right time.