New Era in Investment Incentive System Begins!

New Era in Investment Incentive System: Regulation No. 2012/3035 Ended, New Rules in Force
The long-standing 2012/3035 regulation has been terminated, and with the new incentive system, application conditions, minimum investment amounts, supported sectors, and types of incentive certificates have been reshaped. Incentives are now categorized more clearly depending on where and in what scope investments are made, with expanded support in certain areas.
Structure of the New System
•    Türkiye Century Development Initiative
o    Technology Initiative
o    Local Development Initiative
o    Strategic Initiative
o    Project-based evaluation with committee decisions.
o    Supports: customs duty exemption, VAT exemption, tax reduction, interest/profit share support, land allocation, plus a new “machinery support” cash incentive.
•    Sectoral Incentives
o    The General Incentive System has been abolished.
o    Customs duty exemption for machinery-equipment in non-supported sectors/products removed.
o    Incentives now grouped as priority investments, target investments, and regional incentive investments.
•    Regional Incentives
o    Regional incentive map updated; some provinces reclassified.
o    Support rates and conditions vary by location.
o    Minimum fixed investment amounts raised: 12 million TL in 1st and 2nd regions, 6 million TL in other regions.
Key Innovations

• Machinery Support: For machinery-equipment with unit price ≥ 2 million TL, 25% of the cost reimbursed to the investor (with limits). Investments benefiting from machinery support cannot also receive interest/profit share support.
• Priority Sectors: High technology, green transformation, and digital transformation emphasized. Self-consumption solar (GES) and wind (RES) investments by manufacturing firms included as priority investments.
• Strategic Investments: Redefined under the Strategic Initiative Program with higher minimum thresholds.

Application Note
Only applications made before the specified deadline will benefit from the new incentives. Investors must quickly check region, sector, and minimum investment criteria under the new system to secure eligibility.