INCENTIVES OFFERED IN TURKISH FREE ZONES
- Turkish Free Zones are tax free zones. Income generated through commercial activities in the Zones are exempted from all kinds of taxes including income, corporate and value-added tax.
- The validity period of an operating licence is maximum 10 years for tenant users, and 20 years for users who wish to build their own working spaces in the zone; If the operating licence is for production, these terms are 15 and 30 years for tenant users and investors, respectively.
- Free Zone earnings and revenues can be transferred to any country, including Turkey, freely without any prior permission and are not subject to any kind of taxes, duties and fees.
- There is no limitation on the proportion of foreign capital participation in investment within the Free Zones.
- In contrast to most Free Zones in the world, sales into the domestic market are allowed. Trade conducted between Turkish Free Zones and Turkey is subject to foreign trade regime. (Sales to the domestic market is subject to a fee of 0.5 % of the transaction value.)
- Currencies used in the zone are convertible foreign currencies dealt by the Central Bank of Turkey.
- Infrastructure of the Turkish Free Zones is competitive with international standards.
- Red tape and bureaucracy have been minimized during application and operation phases by authorizing only one agency in charge of these procedures.
- The geographical location of Turkey provides significant advantages to the Turkish Free Zones.
- Turkish Free Zones are adjacent to the major Turkish Ports on the Mediterranean, Aegean and Black Seas and have easy access to international airports and highways.
- There is no procedural restrictions regarding price, standards or quality of goods in the Turkish Free Zones.
- For a period of 10 years following the commencement of operations in the zones, the strikes and lockouts shall not be applicable. However, any disputes occurring within the context of collective bargaining during this period shall be resolved by the Supreme Arbitration Council.
- In the Turkish Free Zones, Municipality Law, Passport Law, Foreign Investment Law, Foreign Investment and Encouragement Law, and all other articles of laws contrary to the provisions of the Free Zones Law, shall not be applicable.