From pharmaceuticals to EVs, “Priority Investments” receive the lucrative 5th region benefits regardless of their actual location in Türkiye.
The Turkish investment incentive system features a unique “Fast-Track” mechanism known as Priority Investments. This policy allows certain high-impact sectors to bypass the standard regional constraints of the incentive map. Even if a project is physically located in a highly developed 1st or 2nd Region city (like Istanbul, Ankara, or Kocaeli), it can qualify for the significantly higher support levels of the 5th Region. In 2026, this “Sector-First” approach is a primary tool for driving high-tech industrialization across the nation’s heartlands.
The list of “Priority Investments” for 2025-2026 includes sectors that are vital for national security and economic resilience: pharmaceuticals and medical devices, automotive (specifically EVs and high-tech components), aerospace, high-tech electronics, and investments in specific organized industrial zones (OIZs). A simulation for a 500 million TRY (~$15M) Priority Investment reveals a total support intensity of roughly 60%. This includes 150 million TRY in tax reductions, 100 million TRY in VAT/Customs exemptions, and nearly 20 million TRY in social security support for an average workforce of 100 employees.
This mechanism is particularly beneficial for the automotive and railway sectors. For instance, the manufacture of motor land vehicles or railway locomotives is automatically granted Priority status, receiving 5th Region benefits such as 7 years of Social Security Premium Support and an Investment Contribution Rate of 40%. This ensures that critical manufacturers can set up shop near existing supply chains in developed areas without losing out on the fiscal incentives typically reserved for less developed regions.
For global investors, Priority Investments offer the “best of both worlds”: the logistical and talent advantages of Türkiye’s industrial hubs, combined with the aggressive financial support of the eastern regions. As the world pivots toward localized and sustainable manufacturing, this program ensures that Türkiye’s priority industries are equipped with the capital and tax advantages necessary to compete on a global scale. For sourcing professionals, buying from a “Priority Investment” company means partnering with a firm that has been fast-tracked for growth and technological excellence by the Turkish state.
Citations & Sources:
- Official Document: Investment Incentive System – Sectoral and Regional Presentation
- Embassy Guide: Guide to State Incentives for Investments in Türkiye – Turkish Embassy Riyadh
- Strategy Roadmap: Ministry of Industry and Technology – 2030 Industry Strategy
