Turkey has fundamentally renewed its incentive and grant system to support investment, production, and employment as of 2026. The old structure of “general – regional – strategic investment” has been replaced by a new system shaped around Turkey Century Development Initiative, Sectoral Incentive System, and Regional Incentives.
This table creates significant opportunities, especially for manufacturing companies, technology startups, foreign investors, and SMEs looking to expand abroad. However, the details of the new system, regional and sector-based lists, minimum investment amounts, and potential updates in 2026 also create a serious information confusion for business people.
Below, you can find the main grants and incentives valid in Turkey in 2026; the logic of the system, types of support, and critical points to pay attention to, in a “complete list” framework but realistic and applicable.
New Framework of the Incentive System in Turkey 2026
The new investment incentive system works in harmony with the Presidential 2026 Program, Medium-Term Program (MTP) 2026–2028, and Turkey Century Development Initiative. 2026 is defined as “the most critical year” in these programs; reducing inflation, accelerating green and digital transformation, and supporting recovery after the earthquake are among the main priorities.
The general framework is as follows:
- Priority for high value-added and technology-intensive investments
- Additional advantages for green transformation and digital transformation investments
- Additional premiums and tax supports for underdeveloped regions (especially Region 6)
- Exemption from customs duties + VAT on machinery and equipment purchases and grant-like equipment support for purchases above a certain amount
- Continuation of classic supports such as corporate tax reduction, interest/profit share support, and land allocation
Important difference: The “income tax withholding incentive” from the old system is not included in the new system. In contrast, we see that especially machinery and equipment grants have become much more visible and powerful.
1. Turkey Century Development Initiative Programs
The backbone of the new system is formed by the Turkey Century Development Initiative. This structure, consisting of three main sub-programs, targets high-value and strategic investments.
1.1. Technological Initiative Program, Digital and Green Transformation
The Technological Initiative Program primarily targets investments that provide import substitution and produce in areas such as defense and high technology. This program has become more inclusive with two critical expansions:
- Digital Transformation Program: Supports investments where advanced digital technologies (automation, IoT, cloud, big data, artificial intelligence, etc.) are integrated into production and service processes.
- Green Transformation Program: Covers projects with environmental goals such as energy efficiency, reducing carbon footprint, waste recovery, and environmentally friendly production technologies.
Highlighted elements:
- Minimum fixed investment amount: Approximately 100 million TL for high-tech investments, and 200 million TL for other areas (amounts can be updated annually through revaluation).
- Types of support:
- Exemption from customs duties and VAT for machinery and equipment
- Additional cash grant (equipment support) for domestically produced machinery/equipment – for example, up to 25% of the cost for purchases over 2 million TL
- Corporate tax reduction
- Interest/profit share support
- Investment site allocation
This program will be one of the most attractive topics in 2026, especially for investors operating in areas such as defense, advanced manufacturing, software, data centers, clean energy technologies.
1.2. Regional Development Initiative Program
The Regional Development Initiative Program focuses on investments to be made in less developed regions. The list of which investment topics will be counted within this scope in which provinces is updated annually by the Ministry of Industry and Technology through published lists and annexes.
Basic features:
- Especially in Region 6 and other underdeveloped provinces:
- Higher rates of tax reductions
- Long-term SGK employer premium support
- Higher amounts in interest/profit share support
- Priority in investment site allocation
- The investment topic list is region-based; agriculture, food processing, logistics, tourism, and basic manufacturing areas frequently come to the forefront.
1.3. Strategic Initiative Program
The Strategic Initiative Program targets investments that have a high impact on the economy, reduce the foreign trade deficit, and are in the upper segment in terms of technology level. Investments included in this program can generally benefit from “full package” incentives:
- Exemption from customs duties and VAT
- Corporate tax reduction (high rate)
- Machinery/equipment grant support
- Interest or profit share support
- Land allocation
Which sectors and types of investments are included in this scope are determined by regularly updated lists; areas such as chemicals, petrochemicals, semiconductors, battery production, advanced material technologies are prioritized.
2. Sectoral Incentive System: Priority and Target Investments
Sectoral incentives are grouped under two main headings: Priority Investments and Target Investments. In both groups, elements such as exemption from customs duties and VAT, tax reductions, interest/profit share support, and land allocation are common; however, the rates and durations of support vary.
2.1. Priority Investments Incentive System
Priority investments cover projects that are strategically important but do not reach the scale of “project-based mega investment.” Some highlighted areas in 2026 include:
- Private educational institutions
- Care centers for the elderly and disabled (with a capacity of at least 100 people)
- Data centers, cloud services, and related infrastructure investments
- Automated greenhouse and advanced agricultural technologies
- R&D investments and design centers
- Nuclear energy and certain energy infrastructure projects
- High technology manufacturing investments (for example, additional advantages for amounts over 500 million TL)
- Renewable energy production and energy investments for self-consumption
- Mining, transportation and logistics, tourism, licensed warehousing
- Investments aimed at disaster recovery to mitigate disaster effects
Investments made in this scope can also be taken to a higher incentive level than the region they are located in. For example, a priority investment in a province located in Region 3 can benefit from the support elements of Region 4.
2.2. Target Investments Incentive System
Target investments cover areas expected to have a transformative effect on the economy, detailed in the annexes (especially in Annex-3 lists). Some highlighted sector headings include:
- Agriculture / Forestry / Fisheries
- Greenhouse, cattle / sheep / poultry farming enterprises
- Aquaculture
- Energy
- Electricity generation from renewable sources
- Energy storage systems
- Water and Waste Management
- Water collection, treatment, recovery activities
- Waste recycling facilities
- Transportation and Storage
- Railway, maritime, air, pipeline transportation
- Port and airport investments (only freight transportation, excluding marinas)
- Logistics and storage facilities
- Accommodation and Food
- Hotels and accommodation facilities
- Student dormitories
- Information and Telecommunications
- Software development, data processing, infrastructure services
- Professional Services
- Technical testing and analysis laboratories
- Animal hospitals
- Administrative Services
- Call centers
Additionally, investments requiring environmental licenses and certain tourism/education/transportation projects can also be supported under the target investment status.
3. Regional Incentives: Current Status in 2026
The regional system continues to be based on a structure where provinces are divided into 6 regions according to their level of development; however, there are some significant differences as of 2026.
- In all regions, SGK employer premium support continues to be provided.
- Additional premium support is only applied for Region 6 and is subject to stricter conditions compared to the previous system.
- Minimum fixed investment amounts have been updated:
- Regions 1 and 2: Approximately 12 million TL
- Regions 3–6: Approximately 6 million TL
Detailed tables and maps regarding which support elements will be applied for each province and sector, along with their duration and rates, can be accessed from the annexes published by the Investment Office and relevant ministries. At this point, it is critical to follow official announcements and the 2026 Presidential Annual Program.
4. Employment and Social Security Incentives (2026)
Another important topic directly related to investment incentives is the alleviation of SGK burdens on employment. One of the prominent applications of the Ministry of Labor and Social Security for 2026 is:
- For each additional insured employee, support of up to 41,000 TL per person based on the employer’s share of the insurance premium (upper limit).
- Efforts are underway to extend this regulation until the end of 2026.
- The funding source is the Unemployment Insurance Fund, which exceeds 560 billion TL.
These supports are particularly important for companies that grow the workforce and create net employment. Companies that send personnel abroad, rent personnel using the posted worker model, or use EOR (employer of record) solutions must consider employment incentives in Turkey alongside international cost optimization.
At this point, in multi-country employment and payroll planning; both the SGK and tax incentives in Turkey and the tax/social security burdens in the country where the employee is assigned need to be structured together. This point is one of the critical areas where Corpenza’s international payroll, EOR, and posted worker expertise creates value.
5. Machinery – Equipment Supports and Tax Dimension
In the 2026 system, machinery and equipment investments are supported both by classic tax exemptions and cash grants. Highlighted topics include:
- Exemption from customs duties for machinery and equipment imports under the investment incentive certificate
- Exemption from VAT in the same scope
- Cash equipment grant support for purchases above a certain amount (for example, up to 25% of the invoice amount for purchases over 2 million TL)
Since the income tax withholding incentive commonly used in the old system is not included in the new framework, the balance for investors changes as follows:
- In the short term, cash grants and tax exemptions that reduce cash outflow during the investment period have become more important.
- In the medium to long term, corporate tax reductions and SGK employer premium supports lower the total cost.
At this point, especially for investors establishing multinational structures, how to optimize these tax advantages in Turkey; for example, through holding structures, subsidiaries, or branches established in Europe, requires professional planning.
6. Education – Scholarship Programs: Turkey Scholarships 2026
Although not directly for companies, an important topic in terms of international human resources and talent attraction is Turkey Scholarships / Turkey Government Scholarship 2026.
This program provides full scholarships for international students who want to receive undergraduate, master’s, and doctoral education in Turkey:
- Tuition fees
- Accommodation
- Health insurance
- Airfare
- Monthly scholarship:
- Undergraduate: 4,500 TL
- Master’s: 6,500 TL
- Doctorate: 9,000 TL
- Application period: January 10 – February 20, 2026
For details of the program and application conditions, you can check the official website of Turkey Scholarships.
For companies operating in Turkey and establishing international teams, these scholarship students also mean a potential pool of qualified employees after graduation.
7. 2026 Macro Framework: Why Are Incentives So Aggressive?
The Medium-Term Program covering the 2026–2028 period and the 2026 Budget clearly outline the political priorities behind the incentive system:
- Forecast of a 30.5% increase in budget revenues with a target of 16.27 trillion TL
- Target of reducing inflation to around 16% by 2028
- Target of increasing employment and reducing the unemployment rate to 7.8% by 2028
- Strong public investments for green and digital economy transformation
- Allocation of approximately 90 billion TL for reconstruction and strengthening after the earthquake
These targets explain why investment and employment incentives are designed to be so broad and focused in 2026. Projects in the fields of green transformation, digitalization, high technology production, and regional development are at the center of the system.
8. Strategic Use of Incentives for Companies Expanding Abroad
Benefiting from investment incentives in Turkey offers critical advantages not only for investments aimed at the domestic market but also for companies with global expansion plans. Integrated planning is especially necessary in the following areas:
- Establishing companies abroad (for example, Germany, the Netherlands, Estonia, UAE, etc.)
- Sending personnel abroad (posted worker model)
- EOR (employer of record) and international payroll solutions
- Simultaneous tax and social security obligations in multiple countries
For example:
- A manufacturer establishing a factory with an investment incentive certificate in Turkey can distribute through a company established in Europe.
- While receiving SGK premium support for employment in Turkey, they can optimize tax and premium costs for personnel in Europe by using the posted worker or EOR model.
- They can reduce their total cost by integrating the hardware grants and tax incentives received from Turkey for high technology investments into global tax planning.
At this stage, it becomes critical to work with a team that understands not only Turkish legislation but also tax and labor law regulations in the target country. Corpenza offers the opportunity to create a end-to-end strategy by addressing both investment and incentive planning in Turkey and company establishment, residency, payroll, and taxation in Europe and other markets.
9. Expectation of a “Complete List” for 2026 and Realistic Approach
A common expectation encountered in practice is to reach a single and fixed list valid for all sectors and provinces under the title “complete list of grants and incentives in Turkey 2026.” However, due to the technical structure of the system, this is not possible:
- Which investment will benefit from which incentive depends on sector, geographical region, investment amount, and technologies used.
- Many details are updated throughout the year with annex lists, annual programs, and Official Gazette decisions.
- Especially the list of priority and target investments is revised according to the country’s economic priorities.
Therefore, a healthy roadmap for 2026 goes through the following steps:
- Analyzing the current and planned investment/business model
- Identifying which incentives are theoretically possible on a sector and regional basis
- Checking current lists and Official Gazette decisions
- If necessary, making preliminary discussions with the authorities (Ministry of Industry and Technology, Investment Office, etc.)
- Preparing the investment incentive certificate application in line with the long-term global strategy
Conclusion: 2026, A Year of Opportunity for Well-Positioned Investors
Turkey’s 2026 incentive system offers a highly ambitious framework focused on high technology, green transformation, employment growth, and regional development. Customs and VAT exemptions, machinery/equipment grants, tax reductions, interest/profit share supports, and SGK premium incentives can significantly reduce the total cost of an investment when structured correctly.
On the other hand, the system’s multilayered structure based on region and sector necessitates professional guidance, especially for companies planning to expand abroad and work with multiple countries. Addressing both the incentive system in Turkey and the dimensions of global company establishment, taxation, and mobility is key to truly evaluating the opportunities presented by 2026.
Corpenza can assist you in creating an integrated investment and mobility strategy that includes Turkey’s incentives by providing holistic solutions in international accounting, payroll (payroll/EOR), posted worker model, and tax optimization alongside company establishment, residency, and citizenship through investment processes on a European and global scale.
Important Disclaimer
The information contained in this document is for general informational purposes only; it does not constitute legal, financial, or tax advice. Since regulations, incentive programs, and application conditions can be frequently updated, be sure to check current official sources (ministry announcements, Official Gazette, Investment Office, etc.) and consult with professionals in the field before making investment or employment decisions. The summaries here are based on publicly available data and international reports regarding 2026, and each specific case requires separate evaluation.
