Grants and Incentives Guide
Türkiye’s 6 Investment Incentive Regions: What Does Each Region Offer?
Written by Başak Yüksel, Project and TURQUALITY® Specialist
Reviewed by Ahmet Ersoy, Co-Founder
- Related service Investment Incentive Consulting
- The basics How to get an Investment Incentive Certificate
Contents5 sections
Türkiye’s investment incentive regions, a system run by the Republic of Türkiye Ministry of Industry and Technology, group the country’s 81 provinces into 6 regions by socio-economic development. Regional support lasts longer the further east you go. The system turns the choice of location from a logistics decision into one tied directly to financial return. Under Decision No. 9903, the investment contribution rate depends on the programme, not the region: Target 20%, Priority 30%, Strategic Incentives 40%, Technology and Local Development Incentives 50%. The region sets how long employer SGK premium support lasts: none in Region 1, 12 years in Region 6. So which region really pays off, and for whom?
From İstanbul and Ankara to Şanlıurfa: Türkiye’s 6 investment incentive regions
The logic is simple: the higher the region number, the deeper the government support. Region 1 includes economic centres such as İstanbul, Ankara and İzmir; Region 6 includes priority development provinces such as Ağrı, Muş, Bitlis and Şanlıurfa. The state wants to close the development gap between regions; for investors, the opportunity is a shorter payback period.
A high support rate does not settle the decision on its own. Market size, the skilled labour pool and supply chain access count too. İstanbul proves the point: despite relatively low incentive rates, it is still the province that attracts the most investment in Türkiye.
Support available in every region
- VAT exemption: No 20% VAT on machinery and equipment purchases.
- Customs duty exemption: No customs duty on imported machinery and equipment.
- Investment site allocation: Treasury land can be allocated on suitable terms.
Regional investment incentives in Türkiye: the 2026 comparison table
| Support item | Region 1 (İstanbul) | Region 1 (inside an OIZ) | Region 3 | Region 6 (e.g. Şanlıurfa) |
|---|---|---|---|---|
| VAT exemption | Yes | Yes | Yes | Yes |
| Customs duty exemption | Yes | Yes | Yes | Yes |
| Investment contribution rate | 20–50%, by programme | 20–50%, by programme | 20–50%, by programme | 20–50%, by programme |
| Tax reduction rate | 60% | 60% | 60% | 60% |
| Employer SGK premium support | No | 1 year | 2 years | 12 years |
| Interest or profit share support | Not under Target Incentives; available under the other programmes | Not under Target Incentives; available under the other programmes | Not under Target Incentives; available under the other programmes | Yes (limit of 12.5 to 20 points, by programme) |
| Insurance premium support (employee’s share) | No | No | No | Yes (10 years) |
Can you get incentives for an investment in İstanbul?
The idea that there are no incentives in İstanbul is common, but misleading. Investments in Region 1 also qualify for regional support in certain sectors, provided they meet the minimum investment amounts. And an investment inside an organised industrial zone in İstanbul gets the Region 2 period for employer SGK premium support.
Priority areas supported in İstanbul in 2026
- Software and technology development centres
- High-tech manufacturing: defence, aviation, pharmaceuticals
- Technical textiles and advanced materials
- R&D-intensive service investments
High-technology product investments can be supported under Priority Incentives (investment contribution 30%) or Technology Incentives, whatever their region. A company planning a pharmaceutical plant in İstanbul, for example, can apply to these programmes regardless of location. Companies that use Investment Incentive Certificate consulting put this advantage to work much faster.
Sector restrictions and the HS code trap
Not every sector is supported in every region. In Region 1, new capacity in areas such as basic textile production and cement and concrete products is excluded. What decides whether an investment is supported, more than anything, is its HS code (GTİP) and US-97 product code. Choose the wrong code and the application can be rejected, or the certificate’s scope narrowed sharply.
Investment Incentive Certificate applications go through E-TUYS, the Ministry’s online incentive system. The main steps:
- Define the investment subject and capacity
- Prepare the machinery and equipment list with the correct HS codes
- Check the minimum investment amount (TRY 15.1 million for Regions 1 and 2 in 2026, TRY 7.5 million elsewhere; Annex 3 sets separate amounts for some subjects)
- Upload the application form and attachments to E-TUYS
- Ministry review and issue of the certificate
- Obtain the investment completion approval
The work does not stop once the certificate is issued. Applying the VAT exemption, getting the completion approval and booking the tax reductions each need their own expertise. Our Investment Incentive Consulting service guides you through every one of these steps.
Used well, the incentive system gives you more than a certificate: it can cut years off your payback period. That is why expert support from day one matters.
Frequently asked questions
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If I invest in an organised industrial zone in İstanbul, which region’s support applies?For employer SGK premium support, an investment inside an organised industrial zone in İstanbul…
For employer SGK premium support, an investment inside an organised industrial zone in İstanbul gets the Region 2 period instead of Region 1, which means 1 year of support. The investment contribution rate depends on the programme, not the region.
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Are high-tech investments limited by region?No. Investments to produce high-technology products on the priority product list are supported…
No. Investments to produce high-technology products on the priority product list are supported under Priority Incentives wherever they are (investment contribution 30%). Defence investments also qualify with project approval from the Presidency of Defence Industries. That makes such investments in İstanbul particularly attractive.
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Can you move the investment site after the certificate is issued?You can apply to the Ministry to do so, but if the new province is in a different region, the…
You can apply to the Ministry to do so, but if the new province is in a different region, the support rates change. Handling that revision correctly is a critical step where advice pays off.
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When should you apply for the completion approval?Once the investment is complete, and no later than 3 months after the investment period, or any…
Once the investment is complete, and no later than 3 months after the investment period, or any extension, ends. Without the completion approval, you cannot make full use of the tax reduction and SGK support.
At FIX, based in Ankara, we run this process from start to finish, from HS code analysis and the E-TUYS application to the completion approval and booking the tax reductions. Whatever your region and sector, we build the right certificate structure and plan every incentive item you are eligible for.