Priority Investments

The New Investment Incentive Program defines certain investments subjects as “priority” and offers an exceptional scheme for them. “Priority Investments” can benefit from regional supports extended to Region 5 by the “Regional Investment Incentive Scheme” regardless of the region of investment. If priority investments are made in Region 6, the regional incentives available for this particular region shall apply.
The following investment subjects, regardless of the region, will benefit from the regional incentive package extended to Region 5:

• Tourism investments in Cultural and Touristic Preservation and Development Regions and thermal tourism investments,
• Mining investments,
• Railroad and maritime transportation investments,
• Defense industry investments,
• Test facilities, wind tunnel and similar investments made for automotive, space or defense industries,
• Nursery, Preschool, Primary, Middle and High School investments,
• Investments made to manufacture the products and parts designed and developed as an outcome of the R&D Projects supported by the Ministry of Science, Industry and Technology, TUBITAK and KOSGEB,
• International fairground investments with a minimum covered area of 50.000 m2,
• Motorized land vehicles key industry investments with a minimum investment amount of 300 million TL, automotive engine manufacturing investments with a minimum amount of 75 million TL and transmission components/parts and automotive electronics manufacturing investments with a minimum amount of 20 million TL,
• Investments made to generate electricity from coal,
• Investments made to generate electricity through waste heat recovery in a facility,
• Energy efficiency investments made in existing manufacturing facilities,
• Liquefied natural gas (LNG) investments and underground gas storage investments with a minimum amount of 50 million TL,
• Investments of carbon fiber or the composite materials made from carbon fiber provided that along with carbon fiber production,
• Investments made to manufacture high-technology products classified according to OECD technology intensive definition,
• Investments made to explore mines in the permitted fields for the investors holding Mining License and Certificate.

Priority investments in Region 1, 2, 3, 4 and 5 benefit from incentive instruments at the same rates and terms. There are more advantageous incentives offered to the priority investments made in organized industrial zones in Region 5 and those made in or out of organized industrial zones in Region 6. Incentives provided within the scope of the Incentive Scheme for Priority Investments are as follows:

A certain part of the contribution rate to the investment generated through tax deduction under the Incentive Scheme for Priority Investments can be used before an investment is completed. A part of the tax deduction offered at different rates as per regions as shown in the following table can apply to the revenues generated from all other activities of the investor during the investment period.

In order to further accelerate investment decisions on projects under the Incentive Scheme for Priority Investments, the new Investment Incentive Program offers more advantageous incentives to investments launched before January 1, 2016, in line with the supports granted to Region 5 under the scope of the Regional Investment Incentive Scheme. Tax Deduction and SSP Support for Employer’s Share will be applicable at the following rates and terms to the investments that will be launched as of the mentioned date. 

Turkey's Culture and Tourism Conservation and Development Regions