Private Investment Regions
There are 3 types of private investment regions in Turkey. Those are classified as; Organized Industrial Zones, Technology Development Zones, Free Zones.
The Private Investment Zones in İzmir:
- 4 technology investment zones,
- 13 organized industrial zones,
- 2 free zones
Advantages of Technology Development Zones
- Software development and R & D activities’ incomes are exempt from income and corporate taxes until 31st of December 2023.
- The software sales of systems administrations, data administrations, business applications, different business sectors, internet, mobile telephones, military commanding control system are exempted from the value – added tax until 31st of December 2023.
- The salaries of the personnel that work for R&D and the support personnel up to 10% of the R & D personnel are exempted from all kinds of taxes.
- Until 31st of December 2023 50% of the employer's share of Social Security contributions will be covered by the state.
- The R&D personnel that work in the software project and / or R&D project for entrepreneurs are exempted from the income tax for the amount of 50% for the academic personnel and 25% for the R&D personnel for the revenue gained through working outside of the area. In order to benefit this exemption, personnel must take the approval of the patron company that performs in the area.
- The revenues of academic personnel from the technology development zones are exempted from the revolving fund.
- Academic personnel may establish or be a partner of a company in the technology development zones with the permission of University’s Executive Board.
- Entrepreneurs may invest in order to produce the high technology related products which has been a result of a R&D project that are executed in the zones with the approval of patron company and the permission of Ministry of Science, Technology and Industry.
- The investments in order to produce the high technology related products which were the result of state supported R & D projects are included in the 5th Region Incentives
- Ministry of Science, Industry and Technology supports are given for the technology related products in the context of “Technology Related Support Program”. Ministry opens calls
The advantages that organized industrial zones provide;
In addition to the existing incentive schemes; investors which are operating in OIZ in Turkey,
- Value added tax exemption in land acquisition
- Real estate tax exemption, valid for five years from the completion of the construction of the facility
- Lower water, natural gas and communications expenses
- Tax exemption in the process of parting and merging of parcels. Local government tax exemption in the construction and operation of facilities.
- Solid waste tax exemption in case the OIZ does not benefit from the services of the municipality.
List of organized industrial zones in İzmir
- Aliağa Organized Industrial Zone: www.alosbi.org.tr
- Bağyurdu Organized Industrial Zone www.bayosb.org
- Bergama Organized Industrial Zone http://bosbi.org.tr
- İTOB Organized Industrial Zone www.itob.org.tr (With the pioneer of İzmir Chamber of Commerce)
- İzmir Atatürk Organized Industrial Zone www.iaosb.org.tr
- İzmir Buca (Agean Wear) Organized Industrial Zone www.begos.org.tr
- İzmir Kemalpaşa Organized Industrial Zone www.kosbi.org.tr
- İzmir Pancar Organized Industrial Zone www.iposb.com.tr
- Kınık Organized Industrial Zone www.kinikosb.org.tr
- İzmir Menemen Plastik İhtisas (Plastic Specialization) Organized Industrial Zone www.impiosb.org.tr
- Ödemiş Organized Industrial Zone
- Tire Organized Industrial Zone www.tosbi.org.tr
- Torbalı Organized Industrial Zone www.torbaliosb.org.tr
Free zones are the areas in which national trade, monetary and economic laws and regulations are not implemented or partly implemented and larger incentives are given for the industrial and commercial activities.
They are established in order to support the investment and production for export, increase the foreign direct investments and technology access, to orient firms to export and develop the foreign trade.
List of Free Zones in İzmir
- Aegean Free Zone ( ESBAŞ) – www.esbas.com.tr
- İzmir Free Zone – www.izbas.net