Türkiye has three types of special investment zone. Each has a distinct purpose and a distinct set of advantages, and in the last two years two changes have narrowed what two of them are worth.
1. Technology development zones (technoparks)
Technology development zones under Law No. 4691 support R&D and attract investment in high-technology fields. There are 101 zones, of which 87 are operational and 14 under construction.
Advantages
- Income and corporate tax exemption on profits derived from software development, R&D and design activities, currently until 31 December 2028
- VAT exemption on sales of application software produced in the zone — system management, data management, business applications, internet, mobile and military command and control software
- Income tax exemption on the wages of R&D, design and support personnel, until the same date. Support personnel covered by the exemption may not exceed 10% of R&D personnel
- 50% of the employer's share of the social security premium met by the government
- Customs duty exemption on goods imported for R&D projects, and stamp duty exemption
- Production of technological products developed from R&D projects carried out in the zone may take place in the zone, subject to operator company and Ministry approval
2. Organised industrial zones
Organised industrial zones under Law No. 4562 provide ready infrastructure — roads, water, natural gas, electricity, communications and waste treatment — within a planned industrial environment. There are 392 zones across 81 provinces, of which 274 are operational and 118 under construction, hosting more than 67,000 companies.
Advantages
- No VAT on land acquisition within the zone
- Exemption from real estate tax for five years from completion of the plant construction
- Lower water, natural gas and telecommunications costs
- No tax on the merger or division of plots
- Exemption from municipality tax on the construction and use of the plant
- Exemption from municipal solid waste tax where the OIZ does not use the municipal service
OIZ location also improves the terms available under the investment incentive system, where support durations and caps are more generous inside an OIZ than outside it.
3. Free zones
Free zones under Law No. 3218 are treated as outside the customs area while physically inside Türkiye's borders. There are 19 zones, 18 operating and one under establishment, positioned for access to Mediterranean, Aegean and Black Sea ports.
Advantages
- 100% exemption from customs duties and equivalent charges
- VAT and special consumption tax exemption
- Stamp duty exemption for applicable documents
- Goods may remain in the zone for an unlimited period
- Profits may be transferred abroad and to Türkiye without restriction
- Income tax exemption on employees' wages for companies exporting at least 85% of the FOB value of goods produced in the zone
- Corporate income tax exemption on manufacturing activity — but see below
The minimum corporate tax changes the arithmetic everywhere
Since the 2025 tax period a 10% domestic minimum corporate tax applies, calculated on corporate income before specified exemptions and deductions, with the company paying the higher of that and the standard corporate tax.
For zone users this is the point that matters most: a nil or near-nil effective rate can no longer be assumed from the exemptions alone. Whether and how specific zone exemptions interact with the minimum tax base is a detailed question and one where practice is still settling.
If you operate in a technopark or free zone, model it. We do this for clients as part of the quarterly provisional tax cycle rather than discovering it at year end.