Turkey Unveils Generous Incentives to Boost Exports and Attract Investment

In a strategic move to bolster its economy and enhance its global standing, Turkey has unveiled a comprehensive incentive package designed to support its exporting firms and attract crucial international direct investments. This initiative, announced by President Recep Tayyip Erdoğan, signals a clear commitment to reinforcing Turkey's role as a 'regional island of stability' amidst a shifting global landscape.

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A very generous incentive package has been announced for exporting companies.

The new measures include a substantial reduction in corporate tax rates for exporters. Manufacturing exporters will now face a 9% corporate tax rate, down from the previous 25% (and 20% for general exporters), while other exporters will see their rate drop to 14%. This significant fiscal relief is intended to provide breathing room for companies navigating challenging financing conditions and encourage investment in innovation and productivity, which are identified as key drivers for future competitiveness.

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The corporate tax rate, which was normally 25%, was applied as 20% for exporting companies. With the new regulation, the corporate tax rate has been reduced to 9% for manufacturing exporters and 14% for other exporters.

Beyond supporting domestic exporters, Turkey is actively positioning itself as a prime destination for international direct investment. Leveraging its strategic location and proven resilience in the face of global shocks—including trade tensions and geopolitical instability—Turkey aims to become a central hub for finance, logistics, and trade. The government's proactive approach, coupled with its dynamic economic performance, is expected to significantly increase Turkey's appeal to global investors in the coming period. This proactive stance contrasts sharply with the perceived stagnation in some European economies, highlighting Turkey's forward-looking economic strategy.

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Various incentives have also been put into effect for international direct investments that will contribute to Turkey's goal of becoming a 'regional island of stability.'