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Recent Amendments to Turkish Investment Incentive Scheme

Turkish generous incentive system for investments has always been an appealing factor for investors seeking a convenient venue for their investments. Legislative amendments have recently been introduced to the Turkish Investment Incentive Scheme, by the newly enacted Presidential Decree No. 1402 Amending the Decree on Subsidies in Investments (“Decree No. 1402”) and the Presidential Decree No.1403 Amending the Decree on Providing Project Based Subsidies to Investments (“Decree No. 1403”).

The following amendments have been made through Decree No. 1402:

  • The investment incentives system previously comprised five schemes; however, with the amendment, the so called ‘large-scale investment incentive scheme’ has been abolished.

  • A new investment support program, namely ‘Technology-Oriented Industry Move Program’ aiming to support investments related to the products in a Preferential Products List has been introduced. Such list will be determined by the Ministry of Industry and Technology based on certain criteria such as foreign trade data, level of competition, growth in demand, and will include products in the mid-high and high technology sectors and those which are critical for the expansion of these sectors. The ultimate goal of the government is to improve the production and trade of the products to be included in the list and related sectors. Moreover, the newly introduced Program Assessment Committee will evaluate and select the investment project applications to be supported under the Technology Oriented Industry Move Program. This Committee is also authorized to decide which investment project related to production of products in the Preferential Products List can be supported under the strategic investment incentive scheme. The Committee will determine the support measures from which these investment projects benefit.

  • One of the subsidies in the investment incentive scheme, the interest support, has been amended as “interest support or dividend support”. The amount of the interest or dividend support varies between one to ten points, depending on the zone where the investment will be made and whether the investment is supported as strategic investment, along with other criteria.

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​Decree No. 1403 introduced the following amendments with regards to project-based incentives:

  • The minimum fixed investment amount for an investment project to be eligible for project-based incentive is re-determined. The minimum fixed investment amount for investment projects is amended from USD 100 million to TRY 500 million and TRY 50 million is required for investments supported under the Technology Oriented Industry Move Program and relating to the manufacturing of products in the Preferential Product list as referred to in Decree No. 1402. The Technology Oriented Industry Move Program will be implemented within the scope of the plans to be determined by the Ministry of Industry and Technology. The applications to the program are evaluated and prioritized by the Program Assessment Committee according to criteria such as market saturation and needed support. The Program Assessment Committee may decide to support selected prioritized projects according to the Ministry of Industry and Technology’s plans.

  • The transfer of the investment is subject to the duration and terms set out in the subsidy decision, as well as the approval of, the Ministry, and in respect of investments with a fixed investment amount equaling or exceeding TRY 500 million, of the President.

  • In line with the Decree No. 1402, the interest support has been amended as “interest support or dividend support” and “support in form of grant” has been added to the subsidies.


Both Decrees entered into force on the day of their publication, being August 7, 2019, except for selected articles in the Decree No. 1403 including the amendment of interest support, which will be deemed valid as of November 26, 2016.