Incentives
Technopark and Free Zone Incentives
Where you are established directly determines how much tax you pay. The right structure creates a permanent difference in your annual cost base.
- Structures
- Technology Development Zone / Free Zone
- Typical advantages
- Income exemption, withholding and SSI support
- Obligation
- Project-based reporting and regular audit
- Duration
- Permanent, for as long as conditions hold
Technology development zones and free zones are the strongest permanent advantage structures available in Türkiye to software and R&D-focused companies. Income exemption, withholding support on personnel income tax, employer's social security premium support and stamp duty exemption on certain transactions come together.
These are not, however, incentives you apply for and then forget. They carry project-based reporting to the zone administration, personnel tracking, a distinction between work performed inside and outside the zone, and regular audit obligations. Letting those obligations slip can mean losing the exemption retrospectively.
Which structure is right also varies from company to company: a SaaS business selling software abroad does not need the same thing as a hardware manufacturer. We select the structure first, then set it up and run it.
Who is eligible?
- Companies carrying out software development, R&D or design activity that can be defined as a project.
- Companies planning to operate within a technopark or to open a branch or office there.
- Companies planning manufacturing, software or export-focused activity in a free zone.
- Structures where a significant part of the workforce is engaged in R&D and software development.
What you gain
- Corporate income tax exemption on income arising from qualifying activity within the zone.
- Income tax withholding and employer's social security premium support for R&D and software personnel — a marked reduction in staff cost.
- Stamp duty exemption on certain transactions and agreements.
- Operational ease in customs and foreign trade procedures within a free zone structure.
- The collaboration and investor access that comes with being part of the technopark ecosystem.
What this service covers
- Analysis of your current structure and a technopark versus free zone comparison
- Preparation of the project file and application documents
- Conducting discussions with the zone administration and following the admission process
- Embedding the exemption into your accounting routine
- Written guidance on the inside-zone versus outside-zone work distinction
- Support with periodic reporting and audit preparation
Process
How we work
- 01
Structure analysis
Your activity, staffing and revenue structure are reviewed, and the two structures are compared numerically to see which serves you better.
- 02
Project design
The project definition, duration and personnel plan are prepared in the form the zone administration will accept.
- 03
Application and admission
The application is filed, discussions with the zone administration are conducted, and the settlement process is completed after approval.
- 04
Going live
Working with your accountant, we put the routine in place so the exemptions are applied correctly in the books.
- 05
Maintaining it
Periodic reports, personnel changes and audit preparation are tracked so the exemption continues uninterrupted.
Common questions
Frequently asked questions
Which is better — technopark or free zone?
It depends on your activity. For software development and R&D-focused companies a technopark is usually more suitable; for manufacturing, warehousing and physical export a free zone comes to the fore. In the initial analysis we compare both scenarios with actual figures.
Does the whole team have to sit in the technopark?
No, but personnel benefiting from the exemption must carry out the qualifying activity within the zone. Separate rules apply to time spent outside it, and remote teams run into problems when that distinction is not recorded. We set up a written routine for this from the start.
Can the exemption be lost retrospectively?
Yes. Lapsed reporting, activity falling outside the project scope, or inconsistent personnel records can lead to the exemption being rejected on audit and tax being assessed for past periods. That is why we keep the maintenance phase within the service, not just the setup.
Can I benefit by opening a branch without relocating?
In many cases yes — companies headquartered elsewhere can open a technopark branch and move the qualifying activity there. Separating in-zone and out-of-zone income is critical in that structure, and we design it with you.
The information on this page is general in nature and does not constitute legal advice or a commitment. Support rates and ceilings are subject to change under the applicable regulation. Contact us for an assessment specific to your company.
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Let's review your position together
In a free initial consultation we look at your current structure and share, in writing, the support you may be eligible for and any legal risks we see. No obligation.