Investment incentives in Türkiye: the certificate comes before the first invoice
VAT exemption, customs relief, reduced corporate tax and social security support — and the mistake that costs all of them.
For how the tax base itself is built once the company is running: Corporate tax in Türkiye: what foreign-owned companies actually pay →
The plant is decided, the machine ordered, the customs duty paid. An incentive certificate obtained afterwards will not bring those payments back. The certificate is issued before the investment begins — that single rule is where most projects lose money.
What the certificate provides
- VAT exemption on machinery and equipment purchased under the certificate
- Customs duty exemption on imported machinery and equipment
- Reduced corporate tax on income generated by the supported investment
- Employer's social security contribution support, for a period that depends on the region
- Interest support and, in defined cases, allocation of a site
Location is a financial decision
There are general, regional, priority and strategic schemes with different packages. Which one applies depends on the subject of the investment, the province and the amount. The same project may attract only general support in one province and reduced tax plus contribution support in another. Choosing a site on logistics alone regularly leaves money on the table.
The two mistakes that recur
First: expenditure before the certificate date does not generally count towards the investment — including a deposit already paid. Second: the machinery list in the certificate does not match what is actually bought. If the list is not amended in time, the exemption falls away for those items.
Incentives are not a refund claimed later. They are part of the investment plan from the first day.
Sequence matters: expenditure before the certificate date does not generally count towards the investment — including a deposit already paid.
Completion and clawback
When the investment finishes, a completion visa is issued. If it is not completed within the period allowed, does not reach the stated capacity, or the supported assets are used for another purpose, the benefits can be recovered with interest. Selling supported machinery within a lock-up period belongs in the same category. If the plan changes during the build, amend the certificate — staying silent is the most expensive option.
Questions
Do incentives apply to a foreign-owned company?
Yes. What matters is that the company is established in Türkiye; the nationality of the shareholders is irrelevant. Foreign investors are subject to the same regime, not a separate one.
Does used machinery qualify?
Imported used machinery can qualify subject to conditions; used machinery bought domestically generally does not. Check against the certificate before you commit to a purchase.
How long does the application take?
With complete papers, weeks rather than months. In practice the delay is not the authority but the apostille and sworn translation of the foreign corporate documents.
General information only — not legal advice. Every matter turns on its own facts. Before acting on anything here, speak to a lawyer about your specific situation.
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