Investment Incentive Certificate in Türkiye: A Powerful Advantage in 2026

Türkiye has long positioned itself as a strategic investment hub bridging Europe, Asia, and the Middle East. To reinforce its attractiveness for both domestic and foreign investors, the Turkish government has developed a comprehensive Investment Incentive Certificate system. As of 2026, this regime continues to play a decisive role in reducing investment costs, enhancing competitiveness, and accelerating project implementation across priority sectors.

At Finlexia Turkish Accounting Firm, we have advised international and local investors on Turkish company formation and investment incentives since 2017. Our Turkish company formation lawyers team provides a detailed, up-to-date overview of the Investment Incentive Certificate in Türkiye, its benefits, eligibility requirements, application process, and strategic considerations for investors.

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Türkiye (Turkey) has established itself as a dynamic global investment hub, driven by a powerful commitment to attracting both domestic and foreign capital. At the heart of this strategy lies the Investment Incentive Certificate (IIC), or Yatırım Teşvik Belgesi (YTB), a critical instrument for companies seeking to capitalize on significant government support.

The IIC is more than just a document; it is a meticulously crafted government support mechanism designed to channel savings into high value-added investments, boost production and employment, and reduce regional disparities. For any business planning to navigate the exciting journey of [company formation in Türkiye], understanding and leveraging the IIC is paramount to maximizing profitability and securing a competitive edge.

Finlexia Turkish Accounting Firm, a top-notch full-service firm in Istanbul, has been guiding foreign investors through the complexities of Turkish company formation and governance since 2017. We provide comprehensive, multi-lingual support, ensuring your investment is structured to receive the maximum available government benefits.

What is the Investment Incentive Certificate (IIC)?

The Investment Incentive Certificate is an official document, typically issued by the Ministry of Industry and Technology, that details the characteristics of an investment project and outlines the specific state supports the project is entitled to receive. These supports are designed to reduce the cost of investment, shorten the return-on-investment period, and enhance competitiveness in the international arena.

The legal framework governing the IIC is regularly updated by Presidential Decrees, reflecting the evolving economic goals of the Republic of Türkiye. Investors must align their projects with the criteria set forth in these regulations to qualify.

4 Main Pillars of Türkiye’s Investment Incentive System

The Turkish investment incentives system is structured around four main schemes, each catering to different types of investment projects based on their scale, location, and strategic importance. Choosing the correct scheme for your project requires careful planning and expert legal analysis.

1. General Investment Incentive Scheme (GIIS)

The General Scheme is the most accessible level of support, available to almost all investment projects regardless of their location, provided they meet the minimum fixed investment amount.

• Eligibility: Generally open to all sectors, subject to specific fixed investment thresholds (which vary by region).
• Key Supports:
  • VAT Exemption: Exemption from Value Added Tax for imported and domestically purchased machinery and equipment used in the investment.
  • Customs Duty Exemption: Exemption from customs duty for imported machinery and equipment.

2. Regional Investment Incentive Scheme (RIIS)

The Regional Scheme is designed to reduce regional development disparities by offering higher support levels for investments made in less developed provinces. Türkiye is divided into six regions, with Region 6 being the least developed and thus receiving the most generous support.

• Eligibility: Investments in sectors and provinces specified in the regional map, meeting the minimum fixed investment amount for that region.
• Key Supports (in addition to GIIS):
  • Tax Reduction: Significant reduction in Corporate Tax or Income Tax until the defined “investment contribution amount” is reached.
  • Social Security Premium Support (Employer’s Share): Coverage of the employer’s share of the social security premium for additional employment generated by the investment for a specified period.
  • Interest/Profit Share Support: Government contribution to the interest or profit share of investment loans.
  • Land Allocation: Potential allocation of investment land from the state for qualifying projects.

3. Large-Scale Investment Incentive Scheme (LSIIS)

This scheme targets large, strategic investments that are crucial for the development of high-tech and high value-added industries in Türkiye.

• Eligibility: Investments above a predetermined minimum fixed investment value and in sectors such as automotive, chemical production, metal processing, and specific high-tech areas.
• Key Supports (in addition to RIIS supports): More favorable rates and longer durations for tax reductions and social security premium support.

4. Strategic Investment Incentive Scheme (SIIS)

The Strategic Scheme offers the most comprehensive incentives and is reserved for investments that address Türkiye’s critical needs, such as reducing foreign dependency and boosting domestic production of high-import intermediate and finished goods.

• Eligibility: Investments meeting strict criteria, including minimum fixed investment amounts (often exceeding 50 million TL), contributing to a reduction in imports, and having high value-added potential.
• Key Supports (The “Super Incentives”): Includes all the above supports, plus:
  • VAT Refund: Refund of VAT collected on construction expenses (a significant benefit).
  • Income Tax Withholding Support (for Region 6): Exemption from income tax withholding on employees’ wages.

The Massive Financial Benefits for 2026 Investors

Securing an IIC can dramatically alter the financial trajectory of your investment. While the specifics depend on the chosen scheme and region, the core benefits that investors can look forward to in 2026 include:

• Reduction in Corporate Tax: This is often the most impactful benefit, where your income or corporate tax rate is substantially reduced for a set period.
• Zero-Rated Machinery Imports: The VAT and Customs Duty Exemption means you acquire your essential production machinery and equipment duty-free, leading to massive upfront savings.
• Lower Labor Costs: Through Social Security Premium Support, the government covers a portion of your employment costs, making new job creation more affordable.

This powerful combination of incentives effectively reduces capital expenditure, lowers operational costs, and accelerates the time it takes for your project to become profitable.

Application and Legal Process: How to Obtain Your Certificate

The process for obtaining an IIC is highly structured and requires meticulous preparation and submission of documents via the electronic incentive implementation system (E-TUYS).

1. Feasibility Study & Scheme Selection: The first crucial step is preparing a comprehensive investment information form and feasibility study, which determines the most advantageous incentive scheme for your project. This requires expert consultation to correctly calculate the minimum fixed investment, the projected employment, and the overall economic contribution.
2. Required Documents: The application package requires various legal and financial documents. These typically include the [required documents for company formation], Turkish Trade Registry Gazette, a “No Debt” certificate from the Social Security Institution, and detailed lists of machinery/equipment to be procured.
3. Application Submission: The application is submitted electronically to the Ministry of Industry and Technology (or local development agencies for smaller, General Scheme investments).
4. Evaluation and Issuance: The Ministry evaluates the project’s compliance with all criteria. Upon approval, the Investment Incentive Certificate is issued.
5. Completion and Closure: Once the investment is fully realized, a final audit (or completion visa) is required to ensure the terms of the certificate have been met. Only after this step can the investor fully benefit from the reduced corporate tax registration elements.

Strategic Company Formation and the IIC

The type of legal entity you establish in Türkiye will directly influence your ability to apply for and manage an IIC. Both the limited liability company formation and the joint stock company formation are common structures used by foreign investors.

It is critical that your entire company formation in Türkiye process—from articles of association to the final registration—is handled in conjunction with your IIC strategy. An expert in both Turkish company formation lawyers and incentive legislation can ensure that your corporate structure is optimized to receive and manage the incentive benefits throughout the investment period. This holistic approach prevents legal inconsistencies and future compliance issues.

Contact us to Obtain an Investment Incentive Certificate in Türkiye

Navigating Türkiye’s investment incentive system requires specialized knowledge and experience. At Finlexia Turkish Accounting Firm, we have been supporting international investors since 2017 with comprehensive legal and advisory services for obtaining investment incentive certificates.

Our multilingual team of experts handles every aspect of your application process, from initial feasibility assessment and company establishment through certificate acquisition and implementation monitoring. We ensure maximum utilization of available incentives while maintaining full compliance with Turkish regulations.

Contact us today to discuss your investment plans and discover how we can help you secure the most advantageous incentive package for your Turkish venture.