Guide to free economic zones in Turkey

The free economic zones of Turkey are attractive sites for businessmen and investors. If you’re planning to start your own business and want to make a good decision about the location, we advise you to take advantage of the successful experience of thousands of entrepreneurs and choose one of the country's free zones.

Although these economic zones of Turkey are located in different parts of the state, most of them are concentrated in major cities. Let's take a closer look at the advantages that a free economic zone in Turkey gives.

What is a free zone in Turkey?

A free zone in Turkey is a special zone where a foreign citizen can open their enterprise and fully control it. These zones are autonomous in matters of legislation, have their own management and regulatory bodies and have established tax systems. For example, the tax regime in the economic zone offers VAT and customs duty exemptions.

Let’s give the peculiarity of economic zones in Turkey. It’s the opportunity to register a company in a free economic zone but conduct business outside of it. Thus, it’s easy to open an office in Turkey and operate in other countries.

A local agent or partner is not required to set up a company in a free economic zone, but a registered office is required.

What free zones are needed in Turkey? Free economic zones are designed to attract foreign investment, create additional jobs and increase export opportunities. These zones allow investors to reduce costs and focus on business development.

Features of free economic zones

What do you need to know about free zones? Entrepreneurs who create their businesses in one of the local free economic zones can apply for a resident visa. However, conducting business is allowed either within a particular zone or outside the country.

There are currently about 20 free economic zones in Turkey. Each region has its peculiarities and rules, which are regulated by local authorities.

Taxes in Turkey

There are significant tax preferences for business owners in the free zones in Turkey. The main aspects of taxation in such zones include:

Exemption from income tax: For a certain period, businesses may not pay income tax, which significantly increases the economic efficiency of conducting business;
No VAT on imports: Goods supplied for production needs are not subject to value-added tax, which helps reduce start-up costs;
Privileges on customs duties: Most often, customs duties are not levied on imported goods intended for processing or subsequent sale abroad, which reduces overall costs.

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Advantages of Turkish free zones

What do free economic zones in Turkey boast as their key benefits:

Tax privileges: The cancellation of VAT on imports and income tax significantly reduces the financial burden on businesses;
Simplified registration: Quick registration of businesses and obtaining permits ensures the fastest entry of companies into the market;
Developed infrastructure: The convenient location of commercial property in Turkey near key transport hubs, such as ports and airports, simplifies logistics and international trade. Businesses can also benefit from modern office and production facilities on attractive terms;
Diversity of sectors: A variety of industries, including research, production and development, are allowed in free zones, providing companies with the flexibility to respond to market changes;
Access to finance: Subsidies and other types of government support are available to investors;
Government support: The Turkish government actively invites investors to free economic zones by providing subsidies and financing a variety of infrastructure programmes and projects to create a conducive business environment.

Advantages of owning a company in a free zone

Starting your own business in different types of economic zones in Turkey offers numerous advantages:

No strict requirements to cooperate with local firms and representatives;
Full control over the business without the need to transfer a share to a local partner;
Minimal taxes, which makes business more profitable;
Greater freedom of action and the opportunity to operate globally.

Since 1987, Turkey's first free economic zone was established in the port of Mersin on the Mediterranean coast and since then, free zones of various kinds have been springing up in the country's major cities.

Free zones in Turkey

If you’re planning to move to Turkey or are already living there, understanding the location of the free economic zone in Turkey and its opportunities can help you make an informed investment decision.

The list of economic free zones of Turkey that offer significant privileges to investors:

Istanbul Ataturk Airport Free Zone
This was the first zone of its kind in Turkey, designed for businesses in the logistics and aviation sectors.
Istanbul Thrace Free Zone
Located in the Çatalca neighbourhood on the European side of Istanbul, this zone’s strategic position near ports, highways, airports and other transport networks makes it a promising hub for logistics and business activities.
Aegean Free Zone
Located in Izmir, the Aegean Free Zone is one of Turkey’s largest and most active free zones. It specialises in the production and export of manufactured goods.
Mersin Free Zone
Situated in Mersin, this zone occupies a strategically important position on the Mediterranean coast, serving as a crucial hub for logistics and trade.
Antalya Free Zone
Located in Antalya, this zone caters to companies involved in manufacturing and exporting, providing optimal conditions for business development.
Bursa Free Zone
An essential centre for industrial production and trade.
Trabzon Free Zone
Located in the port city of Trabzon, this free zone provides convenient and secure conditions for cargo storage. It’s ideal for companies shipping small quantities of goods to local markets.
Istanbul International Financial Centre (IIFC)
The IIFC is Turkey's leading financial hub, offering excellent conditions for successfully launching a new business.
Samsun Free Zone
Located in the province of the same name on the Black Sea coast, this zone was established to boost the economy, attract investors and enhance export trade.

Help from our experts

Are you looking to buy apartments in Turkey near one of the free economic zones? The specialists at Turkey.realestate are ready to assist you in your search and purchase. Their catalogue features not only apartments but also villas in Turkey.