SECTOR-SPECIFIC SOLUTIONS · TEXTILE & APPAREL
Region strategy and
incentive structure for textile investment.
In the textile and apparel sector, region preference, investment amount and capacity scale directly determine the incentive value. Mapping incentives before the investment site decision ensures that social insurance premium support and interest reduction are fully utilised.
Sector Profile
Turkey is a significant production hub for textile and apparel exports at global scale. Investment incentive assessment in this sector is shaped by production type, investment location and capacity scale. In Regional Investment Incentive applications, companies in regions 5 and 6 benefit from maximum tax reduction and SGK support, while investments within OIZs benefit from an additional region advantage. The investment site decision is made before the application; it cannot be changed afterwards.
Incentive Applicability Table
| Investment Type | Incentive Route | Priority |
|---|---|---|
| Yarn and weaving facility | STB Regional Investment Incentive | High |
| Apparel manufacturing facility | STB Regional Investment Incentive | High |
| Technical textile production | STB Large-Scale or Strategic Incentive | High |
| Dyehouse and finishing facility | STB Regional Investment Incentive | Medium |
| Textile machinery R&D | TÜBİTAK 1501 or 1507 | Medium |
Key Legal References
Decision on State Aids in Investments
Regional and Large-Scale Incentive statuses, textile sector applications
Industrial Registry Law
Manufacturing facility qualification and industrial registry certificate, incentive application condition
Organised Industrial Zones Law
Application of one-region-higher incentive advantage for investments within OIZs
Incentive Profile
Textile Sector Quick Reference
Applicable Services
Services and supports
used in this sector.
STB
Regional Investment Incentive
Yarn, weaving and apparel investments fall within Regional Incentive in most cases. Location and investment amount determine the incentive rate. Strategic location analysis is carried out before the site decision.
STB
Large-Scale Investment Incentive
Technical textile and synthetic fibre investments may qualify for Large-Scale status under specific sector lists. Tax reduction rate and SGK support period are the highest.
TÜBİTAK
1501 Industrial R&D Support
Textile machinery development, smart textile technologies and technical textile material R&D projects can benefit from TÜBİTAK 1501 grant support.
FINANCIAL ADVISORY
Tax Advisory
Incentive contribution tracking, VAT refund and tax reduction application in textile investments require correct structuring. Export incentives must also be managed in integration.
FINANCIAL ADVISORY
Company Formation & Structuring
Company structure, partner structure and investment vehicle selection before the textile investment decision directly affect eligibility for regional incentives. The investment structure must be built correctly before the application.
FINANCIAL ADVISORY
Accounting & Financial Reporting
In textile companies, tracking incentive-covered investment expenditures, monitoring the SGK support period and preparing periodic reports require regular expertise.
Process Management
How does the incentive process
work in textile investment?
From investment site selection to Ministry application, from SGK support activation to completion visa — we manage every step.
Investment Type & Region Mapping
Production type (yarn, weaving, apparel, technical textile) and investment amount are identified. The incentive map is prepared for candidate locations. OIZ vs. outside-OIZ comparison and region-based support rates are analysed.
Investment Site Decision
Region incentive rate, SGK support period, interest support availability and OIZ advantage are compared. The optimal location is determined before the investment decision. This decision cannot be changed after the application.
Application Preparation
Industrial registry certificate, production technology specifications and machinery-equipment list are prepared. Sector list compliance and minimum investment amount are verified.
Ministry Application & Follow-Up
STB application is prepared and followed up during the Ministry process. Necessary corrections and additional documents are addressed on time. Once the certificate is obtained, the investment schedule is monitored.
Completion Visa & Support Activation
Completion visa procedures, SGK premium support activation and interest support application are managed. Machinery-equipment list revisions are tracked throughout the production process.
Frequently Asked Questions
Common questions about
textile & apparel.
What is the impact of region selection on the incentive rate in textile investments?
Region selection is among the most critical decisions in textile investments. In regions 5 and 6, tax reduction rate is 50% and 100% respectively; SGK support period is 7 and 10 years. In regions 1 and 2, tax reduction rate is 15-20% and SGK support period is much shorter. OIZ advantage adds one region to this; a region 4 OIZ investment is treated as region 5.
Can SGK premium support be used for existing personnel as well?
SGK premium support under the investment incentive certificate covers the social insurance premium support of new employees hired after the investment completion. It does not apply to existing employees. The employment schedule and new personnel plan must be managed in conjunction with the completion visa process.
What is a technical textile investment and is it eligible for strategic incentive?
Technical textiles are functional textile products used in sectors such as defence, health, automotive and construction. These investments have a higher strategic importance and may qualify for Strategic Investment Incentive depending on import dependency rate. The classification of the investment is determined by identifying the correct NACE code before application.
Can textile and apparel investments benefit from both incentive certificate and export incentives?
Yes. The STB investment incentive certificate covers investments; export incentives cover production and sales activity. Both can run together. However, managing tax reduction application and export VAT refund processes simultaneously without confusion requires careful planning.
Is there a minimum investment amount for textile investments?
For Regional Investment Incentive, the minimum fixed investment amount varies by region: TRY 500,000 in regions 1 and 2, TRY 300,000 in regions 3 and 4, TRY 150,000 in regions 5 and 6. These amounts are revised periodically. For OIZ investments, lower thresholds may apply. Verifying current amounts before application is essential.
textile investment analysis
Let us map the incentive for your location and production type.
A region-based incentive comparison is carried out for your investment type, capacity and location alternatives.
Request a MeetingRELATED SERVICES
Advisory services we provide in this sector
STB · Investment Incentive
STB Investment Incentive Applications
Regional incentive certificate preparation for textile investments; strategic region analysis and SGK premium support planning.
Financial Advisory · CPA
Financial Advisory Services
Tax advisory, company structuring and export incentive management in textile companies; integrated financial management with CPA expertise.
TÜBİTAK · Support Programmes
TÜBİTAK National Support Programmes
For textile machinery, technical textile and smart textile R&D projects: 1501 and 1507 programme grant application, reporting and audit process.
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Let us build the right incentive strategy
for your textile investment.
We carry out region-based incentive comparison at the first meeting and determine the optimal investment location.