Free Economic Zones in Turkey: A Guide for Investors and Entrepreneurs
Türkiye, due to its strategic geographical location between Europe and Asia, as well as its dynamic economy, represents an attractive location for doing business. One of the key tools for attracting investment and stimulating export-oriented production is free economic zones (FEZ) . In this article we will take a detailed look at the features of SEZs in Turkey, their advantages and business opportunities.
What is a SEZ in Turkey?
Free economic zones in Turkey are specially designated territories that are outside the country’s customs zone, but are still part of it. They were created with the aim of attracting foreign investment, developing export potential, stimulating production and technology transfer. These zones have a special regulatory regime that provides a number of benefits and simplifications for enterprises.
Main characteristics of the Turkish SEZ:
- Tax benefits: Companies registered in a SEZ may be exempt from paying income tax, value added tax (VAT) and other taxes.
- Customs preferences: goods imported and exported from the SEZ are not subject to customs duties.
- Simplified administrative procedures: registering a business and conducting activities in a SEZ is characterized by fewer bureaucratic barriers.
- Freedom of movement of capital: there are no restrictions on the transfer of profits and capital abroad.
- Strategic location: most SEZs are located near major transport hubs - ports, airports and highways, which ensures convenient logistics.
History of the development of SEZs in Turkey:
The first SEZs in Turkey were created in 1985 in Mersin and Antalya. In subsequent years, the SEZ network expanded, covering various regions of the country. Today, there are 19 free economic zones , located in cities such as Istanbul, Izmir, Adana, Trabzon and others.
Advantages for business in the Turkish SEZ:
- Cost reduction: tax and customs benefits can significantly reduce operating costs.
- Access to international markets: convenient location and simplified customs procedures contribute to the development of export activities.
- Attracting foreign investment: a favorable investment climate and special conditions for business make SEZs attractive to foreign investors.
- Development of innovation and technology: SEZs help attract high-tech companies and stimulate the development of innovation.
Main activities in the SEZ of Turkey:
- Production and export of goods
- Trade and distribution
- Logistics and warehousing
- Provision of services (consulting, engineering, IT)
List of main SEZs in Turkey (incomplete, information may be updated):
- Mersin (Mersin Free Zone)
- Antalya Free Zone
- Aegean (Aegean Free Zone)
- Istanbul Ataturk Airport Free Zone
- Trabzon Free Zone
- Adana Yumurtalik Free Zone
It is important to note: goods produced in the FEZ can also be sold on the domestic market of Turkey, however, in this case, the rules of foreign trade apply (with payment of 0.5% tax on the transaction amount).
Conclusion:
Free economic zones in Turkey are an effective tool for business development, especially for export-oriented companies. Thanks to a number of advantages, such as tax and customs benefits, simplified administrative procedures and strategic location, SEZs create favorable conditions for attracting investment and stimulating economic growth. Before deciding to register a company in a FEZ, it is recommended to carefully study the current legislation and consult with lawyers and tax experts.
