Decree No. 2012/3305 was repealed by Official Gazette dated 30 May 2025. Services for existing certificate holders continue uninterrupted.

New System · Decree No. 9903

STB · Strategic Investment Incentive

Maximum support for investments
that will break Türkiye's import dependency.

Investments that will increase the production capacity of goods where domestic production is insufficient and significant foreign currency expenditure is incurred may apply for this status. It offers the most comprehensive support package, surpassing all General, Regional and Large-Scale incentive schemes; six support elements including investment site allocation are applied simultaneously.

6 Support Elements
₺50M+ Minimum Investment
%90 Tax Reduction Rate
FROM VISION TO VALUE
AKBAŞ ADVISORY

Legal Basis

Article 10

Decree No. 2012/3305 · Strategic Investment Incentive Applications

Ministry of Industry and Technology of Türkiye

General Directorate of Incentive Implementation and Foreign Investment

Evaluation Committee

The strategic investment status is reviewed by the Evaluation Committee within the Ministry. Projects approved by the Committee are submitted for Presidential approval, after which the incentive certificate is issued.

Application Conditions

01

Minimum Investment Amount

The fixed investment amount must be at least ₺50 million. This amount consists of the total of machinery and equipment, building/construction and other fixed costs; land value is excluded.

02

Import Dependency Criterion

The domestic production coverage ratio for the product to be manufactured must be below 50%, or the annual import value must exceed USD 50 million.

03

Domestic Value Added

The ratio of domestic value added created in the production process to the total production value must be at least 40%. This ratio is documented and committed in the application file.

04

No Sector Restriction

Unlike the Large-Scale Incentive, the Strategic Investment Incentive is not limited to a specific sector list. Projects from any sector meeting the criteria above may apply for this status.

Manufacturing Pharmaceuticals & Medical Devices Defence Industry Chemistry Electronics Energy Agriculture-Based Industry

Support Elements

All six elements, including site allocation.

The Strategic Investment Incentive is the only incentive status under Decree No. 2012/3305 that activates all six support elements. Investment site allocation is available exclusively within this scope.

VAT Exemption

Domestic machinery and equipment purchases are exempt from VAT; VAT paid on imported machinery and equipment is refunded to the investor.

Scope Domestic and imported machinery & equipment
Distinction VAT refund on imported machinery (not available under other statuses)

Customs Duty Exemption

Machinery and equipment imported within the scope of the investment are exempt from customs duty.

Scope Imported machinery & equipment
Rate Full customs duty waiver

Tax Reduction

Investment contribution rate: 50%; corporate tax reduction rate: 90%. This is the highest tax support among all incentive certificate statuses.

Contribution Rate 50%
Reduction 90% corporate tax reduction
Pre-Production 80% of contribution usable before production

Employer Social Security Premium Support

The employer's social security premium share for employees engaged during the operating period is covered by the Treasury.

Duration 10 years
Scope Full employer share (20.5%)

Interest or Profit-Share Support

A portion of the interest or profit-share expenses on loans used for investments covered by the incentive certificate is covered by the Treasury.

TRY Loan Up to 5 points interest support
FX Loan Up to 2 points interest support

Exclusive to This Status

Investment Site Allocation

Real estate belonging to the Treasury or other public bodies is allocated to the investor free of charge or at a nominal fee, subject to a production commitment.

Condition Completion endorsement + 3-year production commitment
Scope Treasury, Forest Administration, Municipal properties

Working Process

From Committee review
to Presidential approval.

The Strategic Investment Incentive application is a multi-stage process extending from the Committee evaluation through to Presidential approval. Each stage depends on the output of the previous one; the quality of the file directly affects both the evaluation timeline and the outcome.

01

Preliminary Feasibility and Import Analysis

The GTİP code of the product to be manufactured is determined; the annual import value for that code and the domestic coverage ratio are verified from official data sources. If the import criterion cannot be satisfied, the domestic value-added approach is assessed as an alternative.

02

Investment Value Model

The fixed investment amount and machinery-equipment list are prepared. The total value of all six support elements is calculated; the ten-year net contribution of the tax reduction, social security support and investment site allocation is reported.

03

Preparation of the Application File

The feasibility report, machinery list, domestic value-added commitment declaration, GTİP documentation and the application form completed via e-TUYS are submitted to the Ministry.

04

Committee Review and Presidential Approval

The Evaluation Committee examines the project in terms of economic contribution, employment and import reduction potential. A positive decision is forwarded to the Presidency; the incentive certificate is issued upon approval.

05

Implementation Monitoring and Completion Endorsement

Throughout the investment period, certificate revisions, machinery purchase controls and social security registration notifications are managed. Once the investment is completed, the completion endorsement is obtained, making the investment site allocation permanent.

Example Scenario

A ₺500 million pharmaceuticals and medical devices investment scenario.

Sector Pharmaceuticals / Medical Devices
Investment Amount ₺500 Million
Employment 600 Persons
Investment Site Treasury Property

Support Items

VAT Exemption + Refund ₺200M domestic + ₺100M imported machinery & equipment
₺60,000,000
Customs Duty Exemption ₺100M imported equipment, avg. 7% customs
₺7,000,000
Tax Reduction (10-year estimate) 50% investment contribution × 90% reduction, corporate tax saving
₺250,000,000
Employer Social Security Premium (10 years) 600 persons × avg. ₺40,000 gross × 20.5% × 12 months × 10 years
₺59,040,000
Interest or Profit-Share Support ₺150M TRY loan, 5 points × 2 years
₺15,000,000
Investment Site Allocation Estimated market value of Treasury property
₺90,000,000

Estimated Total Contribution

₺481M+

96% of the investment is covered by state support

Tax reduction and social security figures represent a 10-year cumulative projection. The investment site allocation is a market value estimate and may differ from the actual rental value.

Frequently Asked Questions

Questions on the
Strategic Investment Incentive.

Can an investment eligible for the Regional Investment Incentive also apply for the Strategic status?

Yes. Projects meeting the conditions of both incentive statuses should prefer the Strategic status, as it encompasses and extends the support offered by all other statuses. Remaining within the Regional scope means forgoing the investment site allocation and the 90% tax reduction.

How is the ₺50M threshold calculated? Does it include land and buildings?

The ₺50M threshold is calculated on the fixed investment amount, comprising the total of machinery-equipment and construction/building costs. Land value is excluded from this calculation; raw land value is kept outside the incentive calculation. The market value of any property to be acquired through investment site allocation also does not count towards the ₺50M threshold.

How does the domestic value-added route work when the import criterion cannot be met?

For products whose import value is below USD 50 million or whose domestic coverage ratio exceeds 50%, the Committee may accept the domestic value-added criterion as an alternative evaluation route. In this case it is necessary to document that the value added created in the production process is at least 40% of the total production value. Both criteria independently grant the right to apply.

How long does Presidential approval take?

The Evaluation Committee review typically takes 60–90 days. Once the Committee reaches a positive decision, the file is forwarded to the Presidency; the waiting period at this stage varies depending on the nature of the project and the current priority order, but an average of an additional 30–60 days should be expected. When the file is complete and prepared in accordance with the Committee's recommendations, the process is noticeably shortened.

Can the investment site allocation be revoked?

After the completion endorsement is obtained, the production commitment must be fulfilled for 3 years. If production is halted or commitments are not met during this period, the allocation may be cancelled and the property returned to the Treasury. Once the commitment period has elapsed and production continues, the allocation becomes permanent with no additional obligations.

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The import dependency criterion, domestic value-added ratio and minimum investment amount are assessed to determine the project's eligibility for the Strategic status and to calculate the expected total support value.

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