Decree No. 2012/3305 was repealed by Official Gazette dated 30 May 2025. Services for existing certificate holders continue uninterrupted.
New System · Decree No. 9903MoIT · Regional Investment Incentive
Location choice
is a strategic decision.
Under this regulation, based on Türkiye's 6 development regions, support rates increase as the region number rises. Tax reduction, social security support, interest support and investment site allocation form a complementary package tied to the investment's location. The choice of region directly determines the total incentive value.
Legal Basis
Article 8
Decree No. 2012/3305 — Regional Incentive Applications
6 Regions
Scope of Services and Eligibility Conditions
The Regional Investment Incentive applies to investments that reach the minimum fixed investment thresholds set separately for each region and sector under Decree No. 2012/3305. In addition to the VAT exemption and customs duty exemption offered by the General Investment Incentive, it provides tax reduction, employer social security premium support, interest or profit-share support, and investment site allocation for qualifying investments.
The support rates are directly linked to the region number. Tax reduction and social security support, which remain minimal in Region 1, reach their maximum contribution rates in Region 6. This structure transforms the investment location decision from a purely logistical and operational matter into a financial strategy question.
Which sectors qualify for incentives in which regions is determined by the US-97 sector list appended to the Decree. Sectors not listed cannot apply for regional incentives. The first task of the pre-analysis is to verify this eligibility; the second is to calculate the minimum investment threshold and applicable support rates.
Support Elements
Six supports,
a package strengthened by region.
The Regional Investment Incentive consists of six supports, each forming a distinct layer of value. Tax and social security advantages directly affect the return on investment; interest support reduces financing costs.
VAT Exemption
No VAT is paid on domestic and imported machinery and equipment purchases. Applied across all regions under the same conditions as the General Investment Incentive.
All regionsCustoms Duty Exemption
Customs duty and housing development fund payments are eliminated for imported machinery and equipment. Applies to all regions.
All regionsTax Reduction
Income generated from the investment is subject to reduced corporate tax. The reduction rate and investment contribution rate vary by region: Region 1 applies a 15% contribution at 50% reduction, while Region 6 applies a 50% contribution at 90% reduction.
Regions 1–6 (rate varies)Employer Social Security Premium Support
The employer's social security premium share for additional employment created through the investment is covered by the state. The duration ranges from 2 to 10 years by region. In Region 6, the employee's social security share is also included.
2–10 years (by region)Interest or Profit-Share Support
A portion of the interest or profit share on investment credits is covered by the Treasury. Active from Region 3 onwards, this support directly impacts financing costs; up to 3 points on TL loans in Regions 3 and 4, and up to 7 points in Regions 5 and 6.
Regions 3–6Investment Site Allocation
Land registered in the name of the Treasury or that has lost its forest status may be offered through allocation or leasing for investments meeting the applicable conditions. This creates a critical advantage in large industrial investments where land cost is a decisive factor.
Eligible regions and sectorsProcess Management
From regional analysis
to completion visa.
Process management for the regional incentive is more complex than for the General Incentive. Sector eligibility, minimum investment threshold and region determination stages are interdependent; there is no margin for error.
Sector and Region Eligibility Analysis
The investment's US-97 sector code is determined and verified against the supported sectors list in the Decree appendix. If multiple provincial options exist, the applicable support rates are calculated for each and a comparative analysis is prepared. The total incentive value tied to the investment location becomes clear at this stage.
Investment Plan and Support Projection
The monetary equivalent of each support element is calculated by evaluating the investment amount, employment target and financing structure. The number of years needed to consume the tax reduction, the total social security support amount and, where applicable, the interest support contribution are modelled. The client sees the expected incentive value in concrete figures.
File Preparation
The investment plan, capacity report, machinery schedule and documents confirming the sector code are prepared according to Ministry criteria. Regional incentive applications require more comprehensive documentation than General Incentive applications; an incomplete or inconsistent file may result in rejection or significant delays.
Ministry Application and Process Follow-Up
The application is submitted to the Ministry of Industry and Technology. Requests for additional information, sector code objections and revision requests are managed by Akbaş. Once the certificate is obtained, monitoring of machinery schedules and employment commitments is also part of the ongoing process.
Completion Visa and Rights Confirmation
When the investment is complete, machinery acceptance records, employment documents and accounting data are prepared for Ministry review. Tax reduction and social security support are not legally confirmed until the completion visa is obtained. Exceeding the visa deadline creates a risk of cancellation; this stage cannot be neglected.
Support Rates
As the region number rises,
so does the incentive value.
The table below shows the indicative rates set out in Decree No. 2012/3305. Actual rates may vary by sector, investment amount and location inside or outside an Organised Industrial Zone; precise calculations are performed during pre-analysis.
| Region | Investment Contribution | Tax Reduction | SSP Support | Interest Support (TL) |
|---|---|---|---|---|
| Region 1 | 15% | 50% | 2 yrs | — |
| Region 2 | 20% | 55% | 3 yrs | — |
| Region 3 | 25% | 60% | 5 yrs | 3 pts |
| Region 4 | 30% | 70% | 6 yrs | 3 pts |
| Region 5 | 40% | 80% | 7 yrs | 5 pts |
| Region 6 | 50% | 90% | 10 yrs | 7 pts |
Comparative Scenario: ₺20M Investment, 22% Corporate Tax Base
20% contribution rate · 55% reduction
30% contribution rate · 70% reduction
50% contribution rate · 90% reduction
Only the tax reduction contribution is shown. When social security support, interest support and VAT exemption are included, the total incentive value rises substantially.
Frequently Asked Questions
Common questions about
the Regional Incentive.
Can every sector benefit from the Regional Investment Incentive?
No. The Regional Investment Incentive applies only to investment subjects listed in the US-97 sector list appended to the Decree. Sectors not on the list may apply for the General Investment Incentive but cannot benefit from regional supports. Verifying sector eligibility is the first step of the pre-analysis.
Does investing in an Organised Industrial Zone (OIZ) affect the support rates?
Yes, positively. Investments made within an OIZ can benefit from the support rates of the next higher region. Accordingly, an investment in a Region 2 OIZ becomes subject to Region 3 support rates. Because OIZ location can significantly affect total incentive value, it should be factored into the site selection decision.
When does the tax reduction begin, and how long does it last?
The tax reduction begins after the completion visa is obtained and is applied against the income generated from the investment. It continues until the investment contribution amount is reached; this is determined by amount, not by region or sector. Once the contribution amount is reached, the support ends. The duration can range from a few years to over a decade depending on the profitability of the investment.
Is additional employment required for social security support?
Yes. Social security support applies to additional employment created above the headcount existing before the incentive certificate is obtained. Existing employees cannot benefit from this support. The employment level must be maintained throughout the incentive period; failure to do so may result in the support being suspended.
Can we change the investment location after receiving the certificate?
A change of investment location after the incentive certificate is obtained is subject to Ministry approval. If the new location is in a different region, the support rates are recalculated; moving to a lower region reduces the advantage, while moving to a higher region increases it. The investment location decision should therefore be finalised before the application, and the possibility of future changes should be assessed from the outset.
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Which region delivers the most value for your investment?
The investment's sector, amount and planned locations are evaluated to provide a region-by-region total incentive comparison.
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