📌 Short Answer
Turkey has 19 free zones under Law No. 3218. The headline benefit is a 100% corporate tax exemption on manufacturing profit, but it is for companies holding a manufacturing licence. A trading or storage licence does not automatically get the same exemption. Free zones suit export-oriented manufacturers and some service activities, not every foreign investor.
1. What the Free Zone System Looks Like
Free zones in Turkey have operated since 1987 under the Ministry of Trade. According to the Ministry's January 2026 release on 2025 results:
| Indicator (2025) | Figure |
|---|---|
| Number of free zones | 19 |
| Exports from free zones | USD 12.5 billion (up 4%) |
| Total trade volume | USD 28.55 billion |
| Net foreign currency inflow | USD 3.68 billion |
| Exports as share of free zone sales | 75.5% |
| Medium-high and high-tech share of exports | 57.4% |
| Largest zone by exports | Aegean Free Zone, USD 3.26 billion |
2. The Tax Benefits
- Corporate tax: companies with a manufacturing licence have their manufacturing profit exempt from corporate tax. The exemption applies only during the licence period.
- 2026 change: under Law No. 7577, effective January 1, 2026, the exemption was extended to manufacturers' sales to other users inside the same free zone and in other free zones, in addition to exports.
- VAT and customs duty: goods bought domestically for the zone or brought in from abroad are generally exempt.
- Profit transfer: profits can be transferred abroad without special approval.
- Employee income tax: wage exemption exists for qualifying exporters, subject to export-ratio conditions.
⚠️ The Exemption Is Not Automatic
The exemption is tied to licence type and activity conditions. A company in a free zone with a trading licence, or one that sells mainly into mainland Turkey, will not enjoy the same treatment. Confirm the licence category before choosing the zone.
3. Free Zone vs Mainland: How to Decide
Starting in the 2027 tax period, manufacturers on the mainland with an industrial registration certificate pay 12.5% corporate tax on production profit (see our 2026 tax package guide). That narrows the gap with a free zone for some manufacturers. Compare:
| Question | Free zone | Mainland with incentives |
|---|---|---|
| Main customer base | Export and other zone users | Domestic and export |
| Manufacturing profit tax | Exempt (licence conditions) | 12.5% from the 2027 period, plus any incentive certificate benefits |
| Sales into mainland Turkey | Treated as imports, with customs consequences | Normal domestic sales |
| Setup | Zone operator licence and lease | Standard company formation |
Mainland investors can also combine the Investment Incentive Certificate, technopark benefits and the new tax package. The right answer depends on where your customers are.
4. How to Set Up in a Free Zone
- Choose the zone based on sector, port or airport access and available land.
- Apply to the zone operator and obtain an operating licence (manufacturing, trading, storage, services).
- Form the company and sign the zone lease.
- Complete tax, social security and customs registrations.
Licence durations differ by type, commonly longer for manufacturing than for trading. Timelines depend on the sector and the zone, so plan for several weeks to months.
5. Frequently Asked Questions
How many free zones are there in Turkey?
The Ministry of Trade's January 2026 release on 2025 results counts 19 free zones.
Is there a 100% corporate tax exemption in Turkish free zones?
Yes, for manufacturing profit of companies holding a manufacturing licence. Other licence types, such as trading or storage, do not automatically receive the same exemption.
What changed for free zones in 2026?
Law No. 7577, effective January 1, 2026, extended the corporate and income tax exemption of producers to sales made to other users in the same free zone and in other free zones, in addition to exports.
Can a free zone company sell to the Turkish domestic market?
Sales from a free zone into mainland Turkey are treated as imports and carry customs and VAT consequences. Free zones fit companies whose customers are mainly abroad or in other zones.
Is a free zone better than a mainland company?
It depends on your customers and activity. Exporting manufacturers often benefit, but from the 2027 period mainland manufacturers get a 12.5% corporate tax rate and incentive certificates, which can make the mainland competitive for companies selling domestically.
Conclusion
Free zones are a strong fit for export-focused manufacturers, and the 2026 change widened the exemption. They are not a shortcut for every foreign investor. Choose by licence type and customer location, then compare with the mainland incentives.
Koray Akdağ / Sistem Global Danışmanlık can compare free zone and mainland structures for your project and prepare the incentive plan. Get in touch.
General information as of October 2026, not legal or tax advice. Confirm current rules with the relevant authority before acting.