Turkey encourages  foreign direct investments  through a series of special free zones. These areas benefit from special regulatory principles for taxation and they also offer the benefit of a strategic location for investors.

1. 1
FREE ZONES
IN TURKEY

2. 1. Advantages of FZs
• Modern infrastructure facilities
• Availability to potential markets
• Access to foreign and domestic markets
• Reduced Burocracy
• Strategic Location; due to the fact that they are close to both Middle East
and EU markets
• Adjacent to Major Turkish Ports; Medditerenean, Agean and Black
• Easy Access to international airports and highways
• Infrastructure in FZs are competitive as the international markets
• Supply Chain management opportunities; easy Access to raw materials
• Trade between free Trade zones and third countries is not subject to
Foreign Trade regime
2
Izmir Free Zone

3. 1. Advantages of FZs
Turkey encourages foreign direct investments through a series of special free zones. These
areas benefit from special regulatory principles for taxation and they also offer the benefit of
a strategic location for investors.
The zones are located outside the customs area, although they are within the borders of
Turkey. The free zones focus mostly on export businesses and investments.
Among the advatages, we can list the following important benefits ;
• Access to EU countries
• Goods can be sent to EU countries by A.TR document
• Customs duty for goods of third country origin are not paid in FZs at the entry and exit
• Transport facilities, adjacent to ports and Trade roads
• Commercial and industrial infrastructure available in the city
• Availability of manufacturing items like raw material, skilled labour, electricity-fresh
water.
1
Mersin Free Zone

4. 1-Advantages of FZs: Government Incentives( For Istanbul Specialized Free Zone)
• Government supports, the applicants operations that producing software or IT product by meeting
1-the monthly gross wages’ fifty percent of the maximum per ten qualified employees for a
maximum of $15,000 per year per employee and monthly $1.250 ABD.
2- rental expenses of the land and buildings up to %50 and maximum $75,000 for a year.
Applicants can benefit from first incentive up to ten years applying every five years and benefit
from second incentive up to five years.
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5. 1.Advantages of FZs(The Opportunity to Plan the Future in the Medium and Long Term)
Operating License is issued for a specific term based on the following criterias:
1- 15 years for tenant-applicant companies that lease an existing workplace.
2- 20 years for producer-tenant-user companies that lease an existing workplace.
3- 30 years for investor-applicant companies that build their own business,
4- 45 years for producer-investor-applicant companies that build their own workplaces.
Furthermore, investor applicants may be provided with the private property of the Treasury for
leasing and granted easement right on these property up to 49 years.
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6. The Most important Tax Benefit is for the
Manufacturing Companies at the FZs. The revenues
of the Manufacturing Companies, generated through
the sales of goods they have produced in the FZs,
are exempted from income and Corporate taxes
The wages of the workers employed by the
Companies that export at least 85% of the FOB
value of the goods they produce at Free Zones are
exempted from income tax.
2. Tax Benefits of FZs
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Taxation Benefits

7. 2. Tax Benefits of FZs
• 100% exemption from customs duties and other assorted duties.
• 100% exemption from corporate income tax for manufacturing companies.
• 100% exemption from value-added tax (VAT) and special consumption tax.
• 100% exemption from stamp duty for applicable documents.
• 100% exemption from the real estate tax.
• 100% income and corporate tax exemption for certain logistics services to be offered
at the FZs, provided that they are export-oriented.
• 100% exemption from income tax on employees’ wages (for companies that export at
least 85% of the FOB value of the goods they produce in the FZs.
• Goods may remain in FZs for an unlimited period.
• Companies are free to transfer profits from FZs to abroad as well as to Turkey, without restrictions.
• Exemption from title deed fees when acquiring and selling a property.
• VAT exemption during construction, design, settlement, and approval processes.
• Ready infrastructure exempt from VAT and other taxes.
• Import permit for second-hand, used machinery.​ 7

8. • FZs are designed to boost the number of export-focused investments.
• To promote FDI and joint venture with Turkish companies
• Easy Access to manpower and Resources
• Integration with World markets
3. Why does Government support FZs
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Boost
Investments
Promote
FDI and Joint
Ventures
Easy Access
To Resources
Integration with
World Markets

9. 4. Setting up a Company in FZs
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• The investor may prefer to establish a new Company in Free Zone
• Or they can open a branch of their existing Company abroad or located in Turkey (within the customs area)
• selecting a business form – the limited liability is often the preferred choice of investors;
• The registration of a free zone company in is nearly the same as incorporating a business in any other Turkish
City. We say nearly the same because of the licensing procedure which is different.
What are the Alternatives?

10. In order to operate in free zones initially, the applicant should
apply for the free zone operating license with the authority
governing the free zone to operate in.
General type of Operations can be listed as ;
• Manufacturing
• Assembly - disassembly
• Trade
• Services
The land can be owned by the FZ authority and could be
rented to the Company or, the land could be owned by the
operating Company along with the operation of the free zone.
Operator Company can rent or sell the land to its investors
5. Operating at the FZs
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11. • At the application a descriptive information about the applicant’s Operations and
also Company should be provided
• Signature circular of the authorized person, power of attorney, authorization
document
• Trade Registration of the Company (abroad and in Turkey)
• Last three years’ balance sheet
• In order to apply for the free zone operating license an initial fee of 5.000 -USD
needs to be deposited to the Central Bank of Turkey. If the application is refused
then this amount is refunded back to the investor.
• Original receipt of the 5.000 -USD application fee deposited to the Central bank of
Turkey and its copy
• Signed Operation Lincense form
• The HS Codes of the materials which will be purchased and sold at free zone
• Original copies of the Articles of Association of the Company
• Production schema explaining the process
6. How to get the License to operate at FZs
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Documents Needed for Application;

12. Trade Registration- what documents needed;
• Either establishing a new Co. at Free Zone or opening the branch of the foreign or Turkish Company at the FZ.
• A Registration document of the Company/branch taken from the chamber of commerce (original or copy from notary)
• Signed rental contract (needs to be signed within one month after the registration)
• Signature circular of the newly established Company
Registration to the Tax Office- what documents needed;
• Pre-permission or Operating License
• Trade Registry Gazette or Articles of Association Certified by the Chamber of Commerce
• Registry Certificate from the Chamber of Commerce
• Sealed petition
Opening a Bank Account ;
• The New Co. can open a bank account at the free zone branch of the Turkish banks.
6. Registration Steps to Follow
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Registration Steps to Follow

13. There are a total of 19 Free Zones in
Turkey located close to the EU and
Middle Eastern markets.
FZs are strategically located at points
that grant easy access to international
trade routes via ports on the
Mediterranean, Aegean Sea, and the
Black Sea.
7. Where are the FZs located
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14. E-Mail
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Phone : +90 212 951 03 94
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Teşvikiye Mah. Şakayık Sok. No:42 D:6
Şişli/İstanbul/Türkiye
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