Monetary Advantages

  • 100% Tax Exemption:

    Companies that settle in the free zone are 100% exempted from corporate tax or income tax through their profits generated from production activities until Turkey’s main entry to European Union. (Corporate tax ratio in Turkey is 20 %.)

  • Customs related tax exemptions:

    Companies operating in free zone are exempt from Value Added Tax, and all sorts of customs duties.

  • Income Tax exemption over salaries paid to employees:

    Production companies who sell at least 85% of their production to other countries than Turkey are 100% exempt from income tax payable over salaries of the employees, which differs between 15% and 35% according to the salary level.

  • Money value control:

    As the transactions within the zone are performed with convertible foreign currencies, domestic inflation rate will not influence purchasing and selling activities, inventory control and accounting procedures in general.

  • Free Profit Transfer:

    The companies settled in free zone can transfer their profits and earnings to other locations in Turkey or abroad without any permission.

Commercial Advantages

  • Since the sales from Turkey to free zone is considered as export, companies in the free zone have the advantage of buying products at export prices, which are usually lower than domestic prices.

  • There is no prohibition against selling from the free zone to domestic market for raw materials, semi products and industrial goods.

  • The goods produced in free zone have the right for free circulation in European Union Countries since Turkey is a member of European Customs Union.

  • Transit and barter trade is possible in the free zone. The faulty goods can easily be returned to its origin.

  • There is no time limitation in the free zone for keeping stock. These goods can be delivered to Turkey and abroad partially.

Investment Advantages

  • Ready Infrastructure:

    Infrastructure such as electricity, natural gas, telephone, water, sewage and purification system are ready to be installed in factories.

  • Equal Treatment to Foreign Capital:

    The companies operating in free zone can be 100% foreign capital. There is no minimum capital requirement.

  • Ownership:

    Foreigners may acquire land within the free zone. They may sell such lands and buildings to third parties. There is no buying-selling tax in free zone as it is in Turkey (3%).

  • Simplified Procedures:

    Required formalities for investments are minimal. Incentive certificates are not required for investments because a more expansive, limitless incentive is granted at the free zone.

  • High and Good Quality Employment potential:

    The existing industrial settlement in the region offers a large pool of qualified employees. Thrace is the most densely and reasonably industrialized region in Turkey. The community therefore has an industrial culture and stable business life.

  • Free Entrance to 2nd hand machines:

    The investor companies may bring used machines to free zone without any restriction or tax.

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