FREE ZONES
Free zones are a great way to attract international investments and create employment opportunities. There are three free zone located in Izmir :
Aegean Free Zone
İzmir Free Zone - İZBAŞ
Western Anatolia Free Zone
EMPLOYMENT IN FREE ZONES
By 2022, İZBAŞ and ESBAŞ had contributed 20% to Türkiye’s overall exports.
According to 2022 data, ESBAŞ and İZBAŞ together employ 32.2% of workers in Türkiye’s free zones, with ESBAŞ employing 26.5% on its own.
ORGANIZED INDUSTRIAL ZONES (OIZS)
There are currently 17 Organized Industrial Zones (OIZ) in Izmir, and this number is expected to increase to 17 soon, as other OIZ constructions will be finished shortly. The OIZs in Izmir can be classified into three different categories, namely
- Specialized
- Mıxed
- Specialized Agriculture-Based Organized Industrial Zone (SAOIZ)
* When completed, it will be Europe and Türkiye’s largest geothermally heated SAOIZ.
** Bayındır Çiçekçilik OIZ aims to develop the city’s floriculture and ornamental plant production, to ensure the use of new-generation agricultural technologies in this field, and to establish a “Flower Exchange” within the OIZ
The significance of TDIOSBs has grown in recent years, due to Izmir’s agricultural development capacity, local agricultural policies, increased incentives and support for producers, as well as the agricultural export potential of the city.
Moreover, Izmir’s OIZs have recently taken steps towards becoming Green OIZs, Türkiye with the EU Green Deal process, and have received financial support from international organizations.
KONAK
MENDERES
BORNOVA
URLA
INCENTIVES PROVIDED BY THE MINISTRY OF INDUSTRY AND TECHNOLOGY
GENERAL INVESTMENT INCENTIVES
- VAT Exemption for Machinery
- Customs Duty Exemption
REGIONAL INVESTMENT INCENTIVES
Medium High Tech (Region 4) Incentives
Priority (Region 5) Incentives
- VAT Exemption for Machinery
- VAT Exemption for ConstructionCustoms Duty Exemption
- Corporate Tax Reduction
- Social Security Premium Support (Employer’s Share)
- Land Allocation
- Interest Rate Support
Region 6 Incentives
- Social Security Premium Support (Employee’s Share)
- Income Tax Withholding Support
STRATEGIC INVESTMENT INCENTIVES
- VAT Exemption for Machinery
- VAT Exemption for Construction
- Customs Duty Exemption
- Corporate Tax Reduction
- Social Security Premium Support (Employer’s Share)
- Land Allocation
- Interest Rate Support
PROJECT-BASED INVESTMENT INCENTIVES
- Cashback Support
- VAT Exemption for Machinery
- VAT Exemption for Construction
- Customs Duty Exemption
- Corporate Tax Reduction
- Social Security Premium Support (Employer’s Share)
- Income Tax Withholding Support
- Qualified Personal Support
- Energy Support
- Interest Rate Support
- Capital Contribution Support
- Land Allocation
- Infrastructure Support
- Purchasing Guarantee
- Facilitation of Permit Procedures
INVESTMENT INCENTIVES
The Turkish Ministry of Industry and Technology has implemented 4 different incentive systems across 6 regions in the country in order to attract foreign capital and facilitate international investments.
These systems include:
- GENERAL INVESTMENT INCENTIVES
- REGIONAL INVESTMENT INCENTIVES
- STRATEGIC INVESTMENT INCENTIVES
- PROJECT-BASED INVESTMENT INCENTIVE
Türkiye is divided into six regions according to industrialization level. Region 1 consists of the most developed cities. Izmir falls within Region 1 and is part of the incentive system as follows:
TÜRKİYE INVESTMENT INCENTIVES REGION MAP
REGIONAL SUPPORT MEASURES
VAT Exemption for Construction VAT exemption is provided for building and construction expenditures.
Customs Duty Exemption Machinery and equipment to be purchased from abroad are exempt from Customs Duty.
Corporate Tax Exemption/Reduction Corporate tax is exempted or paid with a reduction.
Social Security Premium Support (Employer’s Share) The government will cover the employer’s share of the social security premium calculated for employment.
Social Security Premium Support (Employee’s Share) The government will cover the employee’s share of the social security premium calculated on the basis of the legal minimum wage for employment.
Interest Rate Support The government will cover a certain portion of the interest to be paid for loans obtained.
Land Allocation Land is allocated for investment based on the availability, in accordance with the principles and procedures set by the Ministry of Environment and Urbanization
REGIONAL INVESTMENT INCENTIVES
1. Free Zone Incentives in İzmir
| %100 VAT Exemption |
| %100 Customs Duty Exemption (For Manufacturing Industry) |
| %100 Special Consumption Tax Exemption |
| %100 Stamp Duty Exemption |
| %100 Property Tax Exemption |
| %100 Income and Corporate Tax Exemption for certain logistics services to be offered at the Free Zones (FZs), provided that they are export-oriented. |
| %100 Exemption from income tax on employees’ wages (for companies that export at least 85 percent of the FOB value of the goods they produce in the FZs) |
| Goods may remain in FZs for an unlimited period |
| Companies are free to transfer profits from FZs to abroad as well as to Türkiye, without restrictions. |
| Exemption from title deed fees when acquiring and selling a property |
| VAT exemption during construction, design, settlement, and approval processes. |
| Ready infrastructure exempt from VAT and other taxes. |
| Import permit for second-hand, used machinery. |
2. Organized Industrial Zones
3. Technology Development Centers
4. Industrial Zones
FEATURED SECTORS
World-renowned international companies select Izmir for their investments in the following sectors
