ANKARA – Turkey has fundamentally revamped its state aid system for investments with the new “Decision on State Aids in Investments” (Decree No. 9903, dated May 30, 2025). This monumental decision shifts focus toward high value-added, critical supply investments aimed at securing domestic supply, increasing international competitiveness, and accelerating green and digital transformation.
The new structure, titled “Türkiye Yüzyılı Kalkınma Hamlesi” (Turkey’s Century of Development Move), introduces three highly-supported programs (Technology, Local, and Strategic Move Programs) that offer support well beyond previous schemes, specifically targeting international direct investment (FDI).
Core Support Pillars: Unprecedented Financial Incentives
The new system categorizes investments into three main incentive packages (Turkey’s Century of Development, Sectoral, and Regional), with the Century of Development programs offering the most robust package:
| Support Element | Technology/Local Move Program | Strategic Move Program | Prioritized Investments |
| Investment Contribution Rate (Tax Break) | 50% | 40% | 30% |
| Corporate Tax Discount Rate | 60% | 60% | Varies by Region |
| Max Financial Support (Interest/Machine Grant) | ₺240 Million TL ($5.6M USD) | ₺180 Million TL ($4.2M USD) | Varies (Lower) |
| Financial Support Type | Interest/Profit Share Support OR Machine Grant | Interest/Profit Share Support OR Machine Grant | Interest/Profit Share Support |
Key Advantages for Foreign Investors:
- High-Tech Premium: Investments producing High-Tech (NACE 21, 26, 30.3) and Mid-High-Tech (NACE 20, 27, 28, 29, 32.5) products (as listed in EK-1) are prioritized and receive the maximum 50% Investment Contribution Rate.
- Financial Grants: The Technology/Local Move programs offer a maximum financial grant of ₺240 Million TL (approx. $5.6 Million USD) on top of tax breaks. This grant can be chosen as either Interest/Profit Share Support (up to 20 points of the reference rate) or a Machine Grant (25% of the cost of machinery priced over ₺2 Million TL).
- Digital and Green Focus: Investments under the Digital Transformation Program and Green Transformation Program are automatically eligible for the Strategic Move Program, receiving significant support to accelerate technological adoption and circular economy practices.
Strategic Programs at a Glance
- Technology Move Program: Focuses on products and technologies in the Ministry’s “Priority Product List”, with evaluation done by a project-specific committee.
- Strategic Move Program: Targets high value-added manufacturing, minimum investment size of ₺100 Million TL (High-Tech) or ₺200 Million TL (Other), and requires passing stringent criteria related to import dependency (Max 70% import coverage) and value-added (Min 30% added value).
- Local Move Program: Aims to reduce regional disparities by supporting investments aligned with local economic potential, determined on a province-by-province basis.
Burç Consulting: Structuring Your Investment for Maximum ROI
The new incentive structure is more complex and merit-based than previous schemes, requiring meticulous project planning and due diligence to secure approval and maximize benefits.
Ali Burç, Managing Partner at Burç Consulting, highlights the necessity of expert guidance: “The shift to the ‘Century of Development’ programs means generic applications will fail. An investor must first accurately classify their product according to the new NACE codes and then structure the project to meet the high value-added and self-financing criteria (20% equity required for Strategic Move). Furthermore, investors must choose optimally between the Interest Support and the Machine Grant, as they are mutually exclusive. Burç Consulting specializes in navigating the E-TUYS system and developing the required ecosystem development plans (for large investors) to ensure projects are approved and capture the maximum 50% investment contribution rate possible under these powerful new rules.”
Application and Timeline
All applications for the incentives under this new decree are evaluated until December 31, 2030. Applications are submitted electronically via the E-TUYS system and are subject to detailed sectoral, financial, and technical evaluations.
