Türkiye’s objective of becoming a regional center for finance, international trade, technology, qualified services, and investment operations has become more visible with the “Türkiye Century: Strong Center for Investment Program.” Following the announcement of the program, the draft bill submitted to the Turkish Grand National Assembly on 5 May 2026 introduced several important topics that may make the Istanbul Finance Center a more attractive structuring alternative for foreign investors.
Within this new investment framework, the Istanbul Finance Center stands out not merely as an alternative location for company establishment, but as a strategic hub for foreign investors whose business models involve international income, financial services exports, transit trade, regional treasury management, fintech activities, and group-level coordination needs.
The main advantage of the Istanbul Finance Center model is that a company established in Türkiye may be positioned not only as a local commercial entity, but also as an international service, finance, trade, and coordination center. In this respect, Türkiye may offer a strong base for financial services exports, regional treasury and financial management activities, international trade flows, and cross-border group operations.
From a tax perspective, the Istanbul Finance Center provides significant advantages for financial services exports. According to official information, all income derived from financial services exports may be deducted from the corporate tax base until 22 June 2032; after this date, the deduction rate will continue as 75%. In addition, amounts received in favor of the company due to financial services export transactions are exempt from Banking and Insurance Transactions Tax, while the relevant transactions and documents may also benefit from fee and stamp duty exemptions.
One of the most notable areas of the new investment package concerns transit trade and international trade income. Under the current framework, companies operating in the Istanbul Finance Center may deduct 50% of the income derived from purchasing goods abroad and selling them abroad without bringing them into Türkiye, or from intermediating foreign-to-foreign trade transactions. The draft bill submitted on 5 May 2026 proposes to increase this deduction rate to 100% for companies operating in the Istanbul Finance Center with participant status.
This development may create an important opportunity for foreign investors seeking to use Türkiye as an international trade coordination base. For international group companies, regional distributors, supply chain structures, and companies managing foreign-to-foreign trade transactions, the Istanbul Finance Center may offer a more advantageous structuring option compared to a standard Turkish company model.
Another important opportunity offered by the Istanbul Finance Center relates to regional treasury and financial management centers. Under the official framework, regional treasury and financial management centers of participants actively operating in at least three countries may also benefit from the incentives available under the Istanbul Finance Center regime. For multinational groups, this structure may allow Türkiye to be used as a regional hub for cash management, financial coordination, intra-group financial services, reporting, and treasury functions.
The Istanbul Finance Center may also be attractive for foreign investors in terms of qualified personnel employment. Under the current framework, a certain portion of the monthly salary paid to employees with international professional experience may be exempt from income tax, provided that the statutory conditions are met. This may facilitate the employment or relocation of senior managers, finance professionals, compliance teams, risk management staff, fintech specialists, and other qualified personnel within a Türkiye-based regional structure.
With these features, the Istanbul Finance Center may be considered a strong structuring model for foreign investors with international income, financial services export potential, transit trade operations, regional treasury functions, fintech activities, qualified service center needs, or group-level coordination structures. When evaluated together with Türkiye’s objective of becoming a regional finance and trade center, the Istanbul Finance Center model offers a more strategic and internationally oriented alternative beyond a standard limited liability or joint stock company incorporation.
Before establishing a company in Türkiye or applying for an Istanbul Finance Center structure, each foreign investor’s position should be assessed separately. The investor’s nationality, residence status, source of capital, target market, income structure, financial services activity, transit trade model, group company relationships, employment plan, and long-term Türkiye strategy may materially affect the legal and tax outcome.
Professional legal and tax advice is essential to determine whether the Istanbul Finance Center model is suitable for the investor, to identify applicable incentives, to structure the company and capital flows correctly, to complete participant status and regulatory procedures, and to ensure that the investment is established in a sustainable, compliant, and tax-efficient manner.
Legal Support