Executive summary

On 24 April 2026, the President of the Republic of Turkiye announced the "Strong Investment Hub Program" (Program), which includes a wide range of tax and administrative measures planned to be introduced, aimed at strengthening Turkiye's position as an investment, export and regional management hub.

The announcement includes significant changes regarding the Istanbul Finance Center (IFC), transit trade, regional management centers, corporate income tax reductions for exporters, service export incentives, a new tax regime for individuals relocating to Turkiye, as well as measures related to asset repatriation from abroad, project-based tax assurance and administrative simplification.

All measures are currently at the announcement stage and will become effective following the enactment of relevant legislative amendments and secondary regulations. Implementation details are also expected to be determined in the later stages.

The main points highlighted in the announcement are outlined below.

Istanbul Finance Center

Under existing legislation, companies operating within the IFC may deduct from their corporate tax base 50% of profits derived from transit trade activities and overseas purchases and sales of goods (not physically entering into Turkiye), subject to certain conditions.

Based on the announcement:

• For companies operating within the IFC, the deduction rate applicable to such income would be increased to 100%.
• For companies conducting transit trade activities outside the IFC, 95% of the related profits would be excluded from corporate income tax.

Regional management and coordination centers

To attract multinational enterprises' regional headquarters and coordination functions to Turkiye, a new incentive framework has been announced.

Under the new framework, 100% of the income earned by regional management centers operating within the IFC, and 95% of the income earned by centers operating outside the IFC may be deductible from the corporate tax base for a duration of 20 years.

In addition, personal income tax incentives for qualified employees working at these centers are envisaged, subject to conditions to be determined.

Corporate income tax incentives for exporters

Under the current tax regime:

• A five-point corporate income tax rate reduction applies to export income.
• An additional one-point corporate income tax rate reduction applies to income from manufacturing activities.

The Program proposes a significant change to this application, such that:

• Manufacturer-exporter companies would be subject to a 9% corporate income tax rate.
• Other exporter companies would be subject to a 14% corporate income tax rate.

Service export incentives

Tax advantages for service exporters are also proposed to be expanded.

Under current legislation, 80% of profits derived from certain services provided from Turkiye to nonresidents and utilized abroad (including software, engineering, architecture, design, medical reporting, accounting, call-center, data-storage, education and healthcare services) may be deducted from the tax base.

Under the new Program, the deduction rate would be increased to 100% for such service export income.

Asset repatriation

The Program also includes an application similar to wealth amnesties in previous years for the repatriation of offshore assets into Turkiye.

The application is expected to cover cash, gold and marketable securities brought into Turkiye within a specified period, for low-rate taxation to apply.

Special tax regime for individuals relocating to Turkiye

A special tax regime aimed at attracting individuals residing abroad has been announced.

Under the regime, individuals who have not been Turkish tax residents within the last three years and relocate their residence to Turkiye would benefit from both:

• Tax exemption for their foreign-source income and gains for a period of 20 years
• Tax liability limited to Turkiye-source income

In addition, inheritances received by these individuals would be subject to inheritance and gift tax at a rate of 1%.

Start-up related measures

The Program also includes measures aimed at encouraging start-ups.

In this context:

• Employee stock option plans are expected to be made more effective and attractive.
• Convertible debt and equity-linked instruments are expected to be simplified.
• A digital company application is expected to be made possible to simplify the establishment and operation of start-ups.
• Within the scope of the Terminal Istanbul project, former airport terminal buildings will be converted into a start-up campus. The primary objective is to attract entrepreneurs, capital and talent.

Project-based tax assurance

For large-scale and strategic investments, a project-based tax assurance mechanism has also been announced.

The aim of this mechanism is to:

• Increase tax predictability on a project basis
• Reduce the impact of tax amendments introduced after an investment decision
• Provide reasonable transition periods

One-Stop Shop for investors

To simplify investment procedures, a One-Stop Shop structure is planned under the coordination of the Presidential Investment and Finance Office.

Through this structure, multiple administrative processes are expected to be handled centrally, including:

• Company establishment
• Environmental and zoning approvals
• Tax and social security registrations
• Employment procedures
• Work and residence permits
• Investment incentives and permits

The measures outlined above are policy announcements only. The scope, eligibility criteria, application principles and procedures and effective dates will be clarified through forthcoming law amendments and secondary legislation.

Implications

Taxpayers who could potentially be affected by these developments — particularly exporters, multinational groups, investors and individuals considering relocation to Turkiye — should closely monitor further legislative developments.

The presentation shared by Ministry of Treasury and Finance regarding the Program can be accessed via following link: Turkiye-Global Investment Hub.pptx