📌 What Changed in 2026
On April 24, 2026 Turkey announced the "Strong Investment Hub Program", a package aimed at making the country an investment, export and regional management hub. Its tax measures were legislated through Law No. 7582 (adopted May 21, 2026 and published in the Official Gazette on June 4, 2026) and Presidential Decision No. 11257 (April 30, 2026).
- ✔ 12.5% corporate tax on manufacturing and agricultural earnings from 2027
- ✔ 95% to 100% deduction for transit trade profits
- ✔ New qualified service centre regime for regional hubs
- ✔ 100% deduction for qualifying service exports
- ✔ 20-year foreign income exemption for individuals who relocate
1. The Measures at a Glance
| Measure | Benefit | Applies from |
|---|---|---|
| Manufacturing and agricultural production | 12.5% corporate tax on that profit (general rate is 25%) | 2027 tax period |
| Transit trade | 95% deduction, 100% in the Istanbul Finance Centre or designated zones | Tax periods starting Jan 1, 2026 |
| Qualified service centres | 95% / 100% deduction on eligible foreign income, for 20 accounting periods | Per Law No. 7582 implementation provisions |
| Service exports (software, engineering, design and others) | 100% deduction on qualifying profit | Tax periods starting Jan 1, 2026 |
| Relocating individuals | 20-year exemption on foreign-source income and gains, 1% inheritance tax | Residents from Jan 1, 2026 |
2. 12.5% Corporate Tax for Manufacturers
Companies with an industrial registration certificate that are actually engaged in manufacturing, and companies in qualifying agricultural production, are taxed at 12.5% on that income from the 2027 tax period. For the 2026 period a one-point reduction continues to apply.
💡 Practical Point
The reduced rate covers only manufacturing profit. If your company also trades or provides services, the income streams must be tracked separately. A manufacturing licence and the real production activity both matter.
3. Transit Trade and Qualified Service Centres
Transit trade means buying goods abroad and selling them abroad without importing them into Turkey. Profit from such activity receives a 95% deduction, rising to 100% inside the Istanbul Finance Centre or designated industrial zones. The goods must stay outside Turkey, both buyer and seller must be foreign, and profit must be transferred to Turkey by the tax return deadline.
A qualified service centremust be a capital company serving related entities in at least three countries, with at least 80% of annual turnover from those foreign-related services. Eligible functions include financial advisory, treasury, HR, data analytics, compliance, technical support and R&D coordination.
For holding groups that want a regional headquarters near Europe, the Middle East and Central Asia, this is the most relevant part of the package.
4. The 20-Year Exemption for Relocating Individuals
Individuals who become Turkish tax residents on or after January 1, 2026, and had no residence or disqualifying tax liability in Turkey in the previous three calendar years, can receive a 20-year exemption on foreign-source income and gains. Turkish-source income is still taxed. Assets passing by inheritance during the exemption period face a flat 1% inheritance tax.
One limitation to note: foreign taxes paid cannot be credited against Turkish income tax. Residence and work permit rules continue to apply separately. See our company formation cost guide for the costs around setting up a company at the same time.
5. How This Fits With Other Incentives
The tax package works alongside the Investment Incentive Certificate, technopark advantages and sector-specific support. Combining them is not automatic, and some measures cannot be stacked, so the structure should be planned before the investment starts.
6. Frequently Asked Questions
What is the corporate tax rate in Turkey in 2026?
The general corporate tax rate remains 25%. Under Law No. 7582, published in the Official Gazette on June 4, 2026, earnings from actual manufacturing and agricultural production by qualifying companies are taxed at 12.5% from the 2027 tax period. For the 2026 period, a one-point reduction for manufacturing earnings continues to apply.
Who qualifies for the 12.5% rate?
Companies that hold an industrial registration certificate and are actually engaged in manufacturing, and companies engaged in qualifying agricultural production. The rate applies only to profit from those activities, so mixed-activity companies must keep income separated by source.
What is the 20-year exemption for relocating individuals?
Individuals who become Turkish tax residents on or after January 1, 2026 and had no residence or disqualifying tax liability in Turkey during the previous three calendar years can be exempt from tax on foreign-source income and gains for 20 years. Turkish-source income remains taxable.
What is a qualified service centre?
A capital company that serves related entities in at least three different countries and earns at least 80% of its annual turnover from such foreign-related services. Eligible profits receive a 95% deduction, or 100% in the Istanbul Finance Centre or designated industrial zones, for 20 accounting periods.
Are all of these measures already in force?
Several are, but timing differs by measure (some apply from 2026 tax periods, the 12.5% rate from 2027), and details depend on secondary regulations. Confirm the current text before making an investment decision.
Conclusion
The 2026 package makes Turkey more attractive for manufacturers, regional hubs, exporters of services and relocating individuals. Because rates, conditions and start dates differ by measure, the right structure depends on your activity and where profit is booked.
Koray Akdağ / Sistem Global Danışmanlık can help you test which measures fit your project and set up the company and incentive structure accordingly. Get in touch.
General information as of October 2026, not legal or tax advice. Sources include Law No. 7582, Presidential Decision No. 11257 and published analyses by KPMG, EY and Köksal Law Firm. Confirm the current legislative text before acting.