Free
Zones in Turkey
What are Free Zones?
Where are the Free Zones in Turkey?
Laws relating to Free Zones
in Turkey
Investment Incentives
for Turkey
Further Information
What
are Free Zones in Turkey?
Free
Zones are specially zoned areas within Turkey which are governed by a
specific set of laws, effectively creating an area geared toward foreign
investment, and free from Turkey’s normal customs regulations and
taxation.
They
have been established by the government with the objective of increasing
the countries export oriented investment and production, gaining foreign
investment, finance, technology and trade possibilities.
In
general all kind of activities can be performed in Turkish Free Zones
such as manufacturing, storing, packing, general trading, banking and
insurance. Investors are free to construct their own premises, while
zones have also available office spaces, workshops, or warehouses on
rental basis with attractive terms. All field of activities open to
Turkish private sector are also open to joint-venture of foreign
companies.

Where
are the Free Zones in Turkey?
Adana
Yumurtalik (1999) |
Aegean (1990) |
Antalya
(1987) |
Bursa
(2001) |
Denizli (2001) |
Eastern Anatolia
(1995) |
Europa (1999) |
Gaziantep
(1999) |
ISE Istanbul International Stock Exchange (1997) |
Istanbul
Atatürk Airport (1990) |
Istanbul
Thrace (ÇATALCA)(1998) |
Istanbul-Leather (1995) |
Izmir
Menemen-Leather (1998) |
Kayseri
(1998) |
Kocaeli (2001) |
Mardin (1995) |
Mersin
(1987) |
Rize (1998) |
Samsun
(1998) |
Trabzon
(1992) |
TUBITAK-Marmara
Research Center Technology (2002 |
|

Laws
relating to Free Zones in Turkey
The
legislation for foreign investment consists of a Law, a Framework Decree
and a Communiqué as follows:
-
Law Concerning
the Encouragement of Foreign Capital
Law No : 6224 Date : 18 Jan 1954
Date of Official Gazette : 24 Jan 1954
-
Foreign Capital
Framework Decree
Decree no : 95/6990 Date : 7 June 1995
Date and no. of Official Gazette : 23 July 1995, 22352
-
Communique
concerning the the decree on the framework for foreign investment
(as amended by communique no : 3 published in the official gazette
on 27 June 1996)
Date of Official Gazette : 24 August 1995
-
Date of Official
Gazette : 24 August 1995
These
combined documents can be summarized as providing the following:
-
Those companies
utilizing the Free Trade Zones are regarded as Turkish Companies in
relation to the law.
-
Turkish and
international companies may engage in all types of industrial,
commercial, agricultural and other commercial activities.
-
Foreign capital
may be brought into turkey in the form of cash, machinery and
equipment, assets and intellectual property.
-
Minimum capital
requirement of US$50,000 per person.
-
There is no
limitation on participation ratios between local and foreign
partners, indicating that a company can be 100% foreign owned.
-
The transfer of
shares between the foreign shareholders are realized freely without
any further authorization.
-
Real persons and
legal entities residing abroad (including investment trusts and
investment funds abroad) can freely purchase and sell all sorts of
securities and other capital market instruments through banks and
intermediary institutions.
-
Public and
private sector enterprises shall apply to the GDFI for the
registration of license, know-how, technical assistance, management
and franchising agreements to be made with persons and legal
entities residing abroad. These agreements shall become effective
only after the registration by GDFI.
-
Capital
increases may be made with application to Ministry of Industry and
trade
-
After deduction
of appropriate taxation, net amounts may be transferred out of
Turkey freely

Investment Incentives - Invest in Turkey
The
current legislation concerning the investment incentives is shaped by
the decree published at 25th of March 1998, and its related
communiqué published at 6th of May, 1998. According to this
legislation, the incentive tools granted to investors are;
-
Exemption from
customs duties and fund levies
-
Investment
allowance
-
VAT (Value Added
Tax) exemption for imported and locally purchased machinery and
equipment
-
Exemption from
taxes, duties and fees
-
as
capital-in-kind

Free
Zones Usage, 1980 to 2003
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