Turkey is an attractive country for foreign investors due to the legislations offered many opportunities for foreign investors. One of the important opportunity is investment incentive system that encourage, support and orient investments in order to reduce reoginal disparities within the country. The other purpose of investment incentive is to create new employment opportunities.

The recent invesment incentive system in Turkey contains five sort of invesment schemes;

These are the five different support shemes that have been regulated in the new investment incentive regime. The system includes incentives that called support measures. These incentive tools generally contains; income tax withholding support, vat refund, free land allocation, social security premium support (employer’s share), social security premium support (employee’s share), tax deduction, customs duty exemptions and interest support  (Please see our related articles…). The information contained in this article is an explanation for the investors who need to have an idea about four kind of investment shemes in Turkey. General Investment Incentive Scheme is explained in details in this article.

The aim of the regional system is dispose of inter-regional instabilities by means of encouragement of sectors determined. In order to equalize the level of development between different regions, the rate of support measures differentiates. Investment subjects to be supported have been identified by concideration of the economic potentials of provinces.

Within the scope of regional investment encouragement, minimum investment amounts are determined for certain investment subjects in each region seperately. If there is no defined minimum investment amount, it is; 1 million TL in Regions I and II, 500 thousand TL in Regions III, IV, V and VI (Please see the regions table…).

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