📌 What Will You Find in This Guide?
The Investment Incentive Certificate is one of the most comprehensive support tools the state offers to companies that will make a new investment in Turkey, expand an existing facility, or modernize it. With Presidential Decision No. 9903, which entered into force on May 30, 2025, the system was overhauled from top to bottom; the old "general, regional, priority, large-scale, strategic" incentive applications gave way to a new architecture. In this article, we walk through the current structure in force as of 2026, step by step — which costs are reduced and by how much, and how the application process works.
- ✔ What exactly does an Investment Incentive Certificate provide?
- ✔ How did the system change with Decision No. 9903?
- ✔ Which support elements (VAT, customs, tax, social security, interest) can you benefit from?
- ✔ What are the regions and the 2026 minimum investment amounts?
- ✔ Who can apply, what documents are required?
- ✔ How does the application through E-TUYS work, step by step?
- ✔ Critical points to watch and FAQ
📑 Table of Contents
1. What Is an Investment Incentive Certificate, Which Authority Issues It?
The Investment Incentive Certificate is an official document showing that an investment has been found eligible for state support. The authority that issues the certificate is the General Directorate of Incentive Implementation and Foreign Capital, under the Ministry of Industry and Technology. The certificate is issued not for the investor itself, but specifically in connection with the investment project; that is, it does not cover the company's general activity, but the specific investment that is the subject of the certificate (such as new facility setup, capacity expansion, modernization, product diversification, or relocation).
In practice, the certificate functions as a "permit and support package" that substantially reduces many cost items — from customs duty and VAT exemption on machinery and equipment to be imported or acquired domestically for the investment, to a corporate tax reduction, to employer/employee social security premium support, to credit interest/profit- share support. None of these advantages apply automatically to investments made without a certificate; to benefit from the support, the application must have been completed and the certificate issued before the investment begins.
📌 The Certificate's Core Objectives
- ✔ Directing savings toward high-value-added investments
- ✔ Increasing production and employment
- ✔ Supporting international competitiveness and exports
- ✔ Reducing regional development disparities
- ✔ Accelerating investments in R&D and innovative/strategic products
- ✔ Attracting foreign-capital investments to Turkey
An important note: the Investment Incentive Certificate is not a loan or a cash grant; it is an incentive mechanism that reduces the tax, customs, and premium burden on expenditure the investor was going to make anyway, and shares part of certain financing costs.
2. How Did the System Change with Decision No. 9903?
Decision No. 9903 "on State Aid in Investments," published in the Official Gazette No. 32915 dated May 30, 2025, repealed the old Council of Ministers Decision No. 2012/3305 and Decision No. 2018/11201, which regulated the Attraction Centers Program, replacing them with a new and more complex structure. Applications made in 2026 are subject to the framework of this new decision.
| Old System (2012/3305) | New System (2025/9903) |
|---|---|
| General Incentive Application | Fully abolished |
| Regional Incentive Applications | Converted into a region-based application within the Sectoral Incentive System |
| Priority Investment Incentives | Sectoral Incentive System → Priority Investments Incentive System |
| Large-Scale Investment Incentives | Distributed among the Turkey Century Development Initiative programs |
| Strategic Investment Incentives | Turkey Century Development Initiative → Strategic Move Program |
| Attraction Centers Program | Turkey Century Development Initiative → Local Development Move Program |
💡 The Most Important Change: The General Incentive Was Abolished
Under the old system, almost any investment meeting the minimum investment amount, regardless of region or sector, could benefit from a VAT exemption and customs duty exemption under the "General Incentive Application." Under the new system, this open category has been completely abolished; now, correctly identifying which program (one of the Development Initiative programs, or Priority/Target Investments under the Sectoral Incentive System) each investment falls under directly determines the support elements it will receive.
Under the decision, incentive certificate applications made through December 31, 2030 will be considered. Given legislative tradition, further changes before that date are also possible; it is therefore important to confirm the current text of the decision and Ministry announcements before applying.
3. Incentive Programs: Which Investment Falls Under Which Program?
The new system is organized under two main headings: the Turkey Century Development Initiative and the Sectoral Incentive System. Under each heading are sub-programs addressing different investment profiles.
🚀 Turkey Century Development Initiative
- Technology Move Program — targets high-technology manufacturing investments on the priority product list that provide import substitution.
- Local Development Move Program— aims to reduce interregional development disparities; supports investments suited to a province's potential with a high probability of success.
- Strategic Move Program — designed for large-scale strategic manufacturing investments involving green and digital transformation and reduced import dependence, with the highest support ceilings.
🏭 Sectoral Incentive System
- Priority Investments Incentive System — covers investments in priority areas determined by the Ministry, such as mining exploration, manufacturing of renewable energy equipment, licensed warehousing, and greenhouse technologies.
- Target Investments Incentive System — operates according to a sector/NACE list determined separately for each region and province, and is the application closest to the classic regional incentive logic; most SME and medium-scale investments are assessed through this system.
| Program | Known Interest/Profit-Share Support Ceiling* |
|---|---|
| Strategic Move Program | Up to TL 226,000,000 in interest support + up to an additional TL 226,000,000 in machinery support |
| Priority Investments Incentive System | Up to TL 30,100,000 |
| Target Investments Incentive System | Up to TL 15,100,000 |
* Amounts are updated annually according to the revaluation rate under Decision No. 9903; current amounts at the time of application should be confirmed through E-TUYS and Ministry announcements.
4. Support Elements Provided
The extent to which you can benefit from each support element varies according to the investment's program, region, sector, and amount. The support elements found in the certificate are generally as follows:
🧾 VAT Exemption
No value-added tax is paid on machinery and equipment acquired domestically or imported under the certificate. In some large-scale projects, VAT refund on building construction expenditure may also be possible.
🚢 Customs Duty Exemption
No customs duty is collected on the import of machinery and equipment registered in the certificate. This provides a significant cost advantage particularly in investments weighted toward imported machinery.
💰 Tax Reduction (Reduced Corporate Tax)
A reduced corporate tax rate applies to earnings derived from the investment, until the investment contribution amount is reached. The reduction rate and the investment contribution rate are determined according to the program, region, and subject of the investment.
👥 Employer's and Employee's Social Security Premium Support
For the additional employment created by the investment, part of the employer's and/or employee's social security premium share is covered from the Ministry's budget for a certain period. In region 6, this support can extend up to 10 years after the completion visa.
🏦 Interest or Profit-Share Support
Part of the interest or profit-share expense on the credit used for the investment is covered on a non-repayable basis, up to the ceiling determined according to the program.
📍 Investment Site Allocation
For eligible investments, an investment site (land) can be allocated on suitable terms from Treasury-owned real estate.
⚠️ Why Aren't the Rates Given One by One in This Article?
Percentage values such as the tax reduction rate, the investment contribution rate, the duration of social security support, and the interest support points vary in a matrix format according to the investment's program, region, sector (NACE code), and location, such as an organized industrial zone/free zone. Because this matrix is complex and frequently updated, the exact rates specific to your project must always be confirmed through the E-TUYS system and the current annexed tables to the decision before applying. Planning an investment based on general estimates can be misleading.
5. Regions and 2026 Minimum Investment Amounts
Turkey is divided into 6 incentive regions according to its socioeconomic development level, and further into 289 district- based sub-regions beneath these regions. As a general rule, support intensity increases from region 1 to region 6 (as development level decreases); region 6 in particular stands out with additional advantages, such as the employee's social security premium support being able to extend up to 10 years.
| Item | 2026 Current Amount |
|---|---|
| Minimum Fixed Investment Amount (Regions 1 and 2) | TL 15,100,000 |
| Minimum Fixed Investment Amount (Regions 3, 4, 5 and 6) | TL 7,500,000 |
📅 Why Do the Amounts Change Every Year?
Minimum investment amounts are updated every year according to the revaluation rate. This is why the amounts above, current for 2026, differ from the lower figures you may see in publications from previous years. In addition, under the new system, the investment contribution rate is now shaped not only by the province where the investment is located but also by the chosen program and the investment's location, such as an organized industrial zone/industrial zone; for this reason, "region" alone is no longer the sole criterion determining the level of support.
6. Who Can Apply, What Are the Conditions?
Domestic or foreign-capital individuals or legal entities operating in Turkey can apply for an Investment Incentive Certificate. Sole proprietorships, limited and joint stock companies, and companies set up in Turkey by foreign investors all fall within this scope.
✅ General Conditions
- ✔ The investment meets the minimum fixed investment amount
- ✔ The activity subject to the application is on the list of supported sectors within the region/program scope
- ✔ The investment has not yet actually begun (application is required before expenditures)
- ✔ The investment's financing structure and the equity/debt balance are appropriate
- ✔ The requested documents (feasibility report, financial statements, letters of commitment, etc.) are submitted completely
- ✔ Authorization and registration procedures through E-TUYS have been completed
❌ Common Reasons for Rejection/Rejection Risk
- ❌ The investment having actually started before the application
- ❌ The sector being on the unsupported/negative list
- ❌ The minimum investment amount not being met
- ❌ Inconsistencies in the feasibility report and financial statements
- ❌ Existing tax/social security debt (for certain support elements)
- ❌ An incomplete or incorrectly filled-out E-TUYS application form
7. The Step-by-Step Application Process Through E-TUYS
Since 2018, all investment incentive certificate applications have been carried out entirely electronically, with no paper involved, through E-TUYS (the Electronic Incentive Implementation and Foreign Capital Information System).
1. Authorization
The company's authorized representative obtains an e-signature and applies to the General Directorate through KEP to obtain E-TUYS user authorization.
2. Investment Information Form
The subject, amount, employment, financing, and machinery list of the investment are entered into the system.
3. Uploading Documents
The letter of commitment, signature circular, Trade Registry Gazette, and a feasibility report if required are added to the system.
4. Fee Payment
The application/appraisal fee determined according to the Ministry's current tariff is paid and the receipt is added to the system.
5. Ministry Assessment
Experts examine the application from a sectoral, financial, and technical standpoint; additional time may be granted for missing documents.
6. Issuance of the Certificate
For an approved application, the support elements are determined and the certificate is issued through E-TUYS.
⚠️ Application Timing Is Critical
To benefit from the support elements, the application must be completed before expenditures related to the investment begin. For applications made after a machine order has been placed, construction has started, or an invoice has been issued, expenditures made before the application date may not be included within the incentive scope.
8. Certificate Duration, Completion Visa, and Transitional Provisions
An Investment Incentive Certificate is issued for a specific period according to the nature of the investment, and additional time can be granted upon justified request. When the investment is actually completed, the enterprise applies for a completion visa to notify the Ministry that the investment has been realized as envisaged; the certificate is only closed with this visa.
🕓 The 3-Month Completion Visa Period
Under Decision No. 9903, the completion visa application period — for both new certificates and certificates previously issued under Decision No. 2012/3305 — has been reduced to 3 months from the end of the certificate's term. Failure to comply with this period can create a risk that the supports received under the certificate will be reclaimed.
🔄 What Happens to Old Certificates?
Under the transitional articles of Decision No. 9903, investment incentive certificates previously issued under the old Decision No. 2012/3305 are not considered invalid; these certificates continue to be applied under the provisions of the legislation under which they were issued. In other words, if you have an existing incentive certificate, the new system does not automatically change its conditions, but the provisions of the current decision will apply to any new additional/revised applications.
9. Points to Watch Out For
- Because the General Incentive Application has been abolished, correctly identifying which program (a Development Initiative program or the Sectoral Incentive System) each investment falls under now directly determines the support it will receive.
- Support rates and durations vary in a matrix according to region, sector (NACE code), organized industrial zone/free zone location, and program; you should act based on current annexes to the decision and data confirmed through E-TUYS, not general estimates.
- The application must be completed before investment expenditures begin; otherwise, prior expenditures may fall outside the incentive scope.
- The completion visa application must be made within 3 months of the end of the certificate's term.
- If the envisaged employment, investment amount, or capacity is not achieved, the supports received may be partially or fully reclaimed.
- Because minimum investment amounts and support ceilings are updated annually according to the revaluation rate, the current figures in force during the application period must always be checked.
10. Frequently Asked Questions
Is the Investment Incentive Certificate a grant?
No. The certificate is a support package that reduces the tax, customs, and social security premium burden on the investment expenditures you will make, and also covers part of the credit interest/profit share. It does not involve a direct cash grant payment.
Can a sole proprietorship obtain an Investment Incentive Certificate?
Yes, domestic or foreign individuals and legal entities operating in Turkey can apply. Sole proprietorships and limited and joint stock companies fall within this scope; what matters is that the investment meets the minimum amount and sector conditions.
Can an incentive certificate application be made after the investment has already started?
In principle, no. To benefit from the support elements, the application must be completed before investment expenditures begin. For this reason, it is critical to start the application process at the project planning stage, before the first expenditure is made.
Has the General Incentive Application been fully abolished?
Yes, under Decision No. 9903, the old "General Incentive Application," which provided a VAT exemption and customs exemption to investments simply meeting the minimum amount regardless of region or sector, has been abolished. Today, it is necessary to determine which program (a Development Initiative or the Sectoral Incentive System) each investment falls under.
Can foreign investors obtain this certificate with a company set up in Turkey?
Yes. Foreign-capital companies can apply for an Investment Incentive Certificate under the same conditions as domestic companies in Turkey; this certificate can also be considered for investments planned together with the formation of a new company in Turkey.
Can I run the application process myself without consulting support?
Technically, yes. However, choosing the right program, structuring the feasibility report and machinery list appropriately, requesting the support elements completely, and being prepared for subsequent audits requires managing the process correctly from the start. A small mistake can both extend the certificate approval time and reduce the amount of support that can be obtained.
11. Conclusion
When structured correctly, the Investment Incentive Certificate is a powerful tool that can visibly reduce the total cost of an investment project through VAT, customs duty, corporate tax, social security premiums, and financing expenses. However, the new structure that came with Decision No. 9903 — the abolition of the "General Incentive Application," five different programs under two main headings, and a complex region/sector- based support matrix — means that choosing the right program before applying, confirming current rates and amounts, and running the E-TUYS process on time have become more critical than ever.
Koray Akdağ / Sistem Global Danışmanlık is by your side to help determine which incentive program is the best fit for your company's investment project, prepare the E-TUYS application and feasibility process completely, and manage your post-certificate monitoring and completion visa obligations. Without needing to look for a separate consulting firm, we can run both your incentive application process and your post- investment reporting and compliance obligations from a single point.