Investment Incentive Certificate in Turkey
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Investment Incentive Certificate in Turkey -Current Guidance - 2025
The Investment Incentive Certificate (Yatırım Teşvik Belgesi – YTB) is a government support mechanism designed to encourage domestic and foreign investors to carry out medium- and large-scale investments in Türkiye. Issued by the Turkish Ministry of Industry and Technology, the certificate offers significant financial advantages, tax exemptions, and operational benefits to reduce investment costs and increase competitiveness.
In this comprehensive guide, you will find everything you need to know about the Investment Incentive Certificate, including its purpose, types, application steps, required documents, regional support maps, and FAQs
Table of Contents
What Is the Investment Incentive Certificate in Turkey
The Investment Incentive Certificate in Turkey is an approval document that enables investors to benefit from various government support mechanisms during and after the investment period.
It provides broad advantages such as:
Tax reductions
VAT exemption
Customs duty exemption
Employer’s social security premium support
Interest or profit share support
Land allocation
VAT refund (for strategic investments)
The certificate applies to both domestic and foreign investors, without discrimination.
Objectives of the Investment Incentive System
The incentive system aims to:
Increase production capacity
Support high-tech and strategic investments
Reduce regional development disparities
Promote clustering and industrial specialization
Encourage employment
Improve Türkiye’s export capacity
Attract foreign direct investment (FDI)
Types of Investment Incentive Certificates in Türkiye
Türkiye offers four main categories of incentives:
1. General Investment Incentive Certificate
Available to all investors if the minimum investment amount is met.
Supports include:
VAT exemption
Customs duty exemption
2. Regional Investment Incentive Certificate
Support levels vary according to Türkiye’s 6-region development map.
Additional supports:
Tax reduction
Social security premium support
Income tax withholding support
Interest rate support
3. Strategic Investment Incentive Certificate
Issued for investments that significantly reduce foreign dependency.
Benefits include:
VAT refund
Up to 50% investment contribution
Long-term tax deductions
Employer’s premium support up to 10 years
4. Project-Based Investment Incentive Certificate (Super Incentives)
Granted to cutting-edge, R&D-heavy, and critical technology investments.
Advantages:
Corporate tax exemption
Energy support
Capital support
Employment guarantees
Minimum Investment Amounts
| Investment Type | Minimum Amount |
|---|---|
| General Incentives | 1,000,000 TL (depending on province) |
| Regional Incentives | 1,000,000 – 8,000,000 TL |
| Strategic Investments | Minimum 50 million TL |
| Project-Based Investments | No standard minimum; project-specific |
Main Advantages of the Investment Incentive Certificate
1. VAT Exemption
No VAT is paid on imported or domestically purchased machinery and equipment.
2. Customs Duty Exemption
Imported machinery is exempt from customs tax.
3. Tax Reduction
Corporate tax and income tax rates are significantly reduced during the investment period.
4. Social Security Premium Support
Employer’s share of the premium is covered by the government.
5. Interest or Profit Share Support
State contribution to interest on investment loans.
6. Land Allocation
Public land may be allocated for eligible projects.
7. VAT Refund
For strategic investments over 500 million TL.
Who Can Apply for the Investment Incentive Certificate?
Eligible applicants include:
Joint-stock and limited liability companies
Foreign-invested companies
Individual investors (in limited categories)
Cooperatives
SMEs and large-scale enterprises
Foreign investors can apply with equal rights as local investors.
Sectors Eligible for Incentives
Priority sectors supported include:
Manufacturing
Renewable energy
Food and agriculture
Machinery & equipment
Pharmaceuticals and medical devices
R&D and technology
Logistics
Automotive
Defense industry
Service industries (in specific categories)
Investment Incentives by Region (6-Region Map)
Support levels increase from Region 1 (developed regions) to Region 6 (least developed regions).
Examples of Supported Regions:
Region 1: İstanbul, Ankara, İzmir
Region 2: Bursa, Antalya
Region 3: Konya, Kayseri
Region 4: Samsun, Gaziantep
Region 5: Erzurum, Adıyaman (priority incentives)
Region 6: Şanlıurfa, Mardin, Hakkari
Region 6 investments receive the highest level of support.
Required Documents for the Investment Incentive Certificate
Typical documents include:
Application form (electronic system)
Investment feasibility report
Company registration documents
Signature circular
Machinery list (domestic & imported)
Financial statements
Environmental impact documents (if required)
How to Apply for the Investment Incentive Certificate (Step by Step)
1. Preparation Stage
Determine investment location
Prepare feasibility report
Identify machinery list
2. Application Through E-TUYS System
The online E-TUYS platform is used to submit applications.
3. Review by the Ministry
The Ministry examines:
Financial validity
Technical feasibility
Sectoral eligibility
4. Approval and Issuance
If approved, the certificate becomes active in the system.
5. Monitoring and Reporting
Investors must periodically report progress and submit invoices.
Validity Period of the Certificate
Typically 3 years
Extensions may be granted up to 1 additional year
Strategic and project-based certificates may have longer periods
Why Should Foreign Investors Consider Türkiye’s Investment Incentives?
Key reasons include:
Strong government support
Strategic location bridging Europe & MENA
Skilled workforce
Competitive operating costs
No discrimination between local and foreign investors
Wide incentive coverage for industrial and technological investments
Contact Us for Professional Support for Investment Incentives Certificate
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- Company Registration in Turkey
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- Turkiye Tech Visa
- Establishment of Association in Turkey
- Foundation Registration in Turkey
- Company Winding Up in Turkey
FAQs About Investment Incentives Certificate in Turkey
It is an approval document issued by the Ministry of Industry and Technology that allows investors to benefit from tax reductions, exemptions, and financial support during their investment.
Both domestic and foreign investors, including joint-stock companies, limited liability companies, and SMEs, can apply.
No. Foreign investors have the same rights as local investors and can apply without limitations.
VAT exemption
Customs duty exemption
Tax reduction
Social Security Premium Support (employer’s share)
Interest rate support
Land allocation
VAT refund (for strategic investments)
The process typically takes 2–6 weeks, depending on documentation and investment type.
Minimum amounts vary by incentive type and region:
General incentives: around 1 million TL
Regional incentives: 1–8 million TL
Strategic incentives: minimum 50 million TL
No. Each sector has specific eligibility criteria. However, many industrial, manufacturing, technology, energy, and service sectors are supported.
Yes. Turkey is divided into 6 regions according to development levels. Region 6 receives the highest level of support.
Company registration documents
Signature circular
Feasibility report
Machinery list (domestic/foreign)
Financial statements
Environmental permits (if required)
Application form through E-TUYS
Applications are submitted online via E-TUYS, followed by Ministry review and approval.
Typically 3 years, with possible extensions.
Yes. Companies may request an extension (usually 1 year) by providing justification.
Yes. You can update the machinery list, investment location, capacity, or project details if needed.
Yes. Regional, general, and strategic incentives may combine with other government grants or EU-funded programs.
Yes. Imported machinery is fully eligible for VAT and customs duty exemptions.
Yes. The company must be legally established in Turkey to apply.
Rarely. Most incentive types require a registered company.
Some service sectors (logistics, R&D, health, tourism) are eligible under specific criteria.
Supports may be canceled, and incentives already used may need to be returned.
Yes, but hiring foreigners is regulated under separate Work Permit procedures.
Mostly tax-based incentives are provided. Only strategic or project-based investments may receive limited financial support.
Yes, for eligible sectors and regions, interest or profit-share support applies to TRY and FX loans.
No. Only purchases made after the certificate is issued are eligible.
For certain industries, an EIA (ÇED) approval may be mandatory.
No. Investment Incentive Certificates are non-transferable.
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