Who Can Operate in the Istanbul Specialized Free Zone?

A Specialized Free Zone for Software, IT and Advanced Technology Investments

With its specialized free zone status, the Istanbul Specialized Free Zone (ISBI) hosts companies operating in software, information technologies, medium-high technology, advanced technology manufacturing and foreign-currency-earning service activities.

Thanks to its structure supporting technology-focused investment, ISBI offers domestic and international investors free zone advantages together with modern infrastructure and a strong technology ecosystem.

Incentives Offered According to Export Performance

The operating licence term and the additional support available at ISBI are assessed according to a company's export performance over the last three years.

Companies Meeting the Criterion of USD 2,250M in Total Exports Over the Last 3 Years

Companies meeting the relevant export criterion can benefit from additional support programmes as well as free zone incentives.

Incentives and Support Offered

• A 20-year operating licence

• 100% corporate tax exemption

• 100% employee income tax exemption (for personnel working in the free zone, within the scope of the relevant legislation)

• 100% VAT exemption

• 100% stamp duty exemption

• 100% customs duty exemption

• Rent support of up to 50% (up to USD 75,000 per year, for 5 years)

• Salary support for 10 qualified employees (up to a total of USD 150,000 per year, for 5 years)

• 35% social security employer premium support (for 7 years, on condition that an Investment Incentive Certificate is obtained)

Rent and personnel support are applied on condition that at least USD 1 million in annual exports is achieved and the relevant performance criteria are met.

Companies Not Yet Meeting the Criterion of USD 2,250M in Exports Over the Last 3 Years

Companies that do not yet meet the specified export threshold can also operate in the Istanbul Specialized Free Zone and benefit from free zone incentives.

Incentives Offered

• A 3-year operating licence

• 100% corporate tax exemption

• 100% employee income tax exemption

• 100% VAT exemption

• 100% stamp duty exemption

• 100% customs duty exemption

Additional Support Available After Performance

At the end of the first 3-year operating period, companies that meet the conditions of;

• achieving at least USD 1 million in annual exports,

• demonstrating an increase in export performance

may;

• apply for rent support,

• benefit from personnel salary support.

Rent and salary support are not applied during the first 3-year operating licence period.

Software and IT Companies Operating in the Istanbul Specialized Free Zone

The Istanbul Specialized Free Zone hosts leading Turkish software, IT, gaming technology, artificial intelligence, fintech, telecommunications and R&D companies.

The more than 70 technology companies operating in the zone work in fields such as software development, digital transformation, payment systems, data analytics, gaming technologies, cloud computing and advanced technology.

Note: Tax exemptions, operating licence terms and support programmes are applied in line with the Free Zones legislation in force and the conditions determined by the relevant public authorities.

The ISBI Incentive and Support Model

The Istanbul Specialized Free Zone (ISBI) offers companies operating in software, IT, medium-high and advanced technology different incentive and support models according to their export performance.

A company's export performance over the last three years is taken as the basis for determining the operating licence term and eligibility for additional support.

Companies With Total Exports of USD 2.25 Million Over the Last 3 Years

Companies meeting the specified export criterion can benefit from additional support programmes as well as a long-term operating licence.

Advantages Provided

• A 20-year operating licence

• Corporate tax exemption*

• Employee income tax exemption*

• VAT and stamp duty exemption

• Customs duty exemption

Additional Support

Where the relevant conditions are met;

• 50% of workplace rental costs may be supported, up to USD 75,000 per year, for 5 years.

• The salaries of up to 10 qualified employees may be supported, up to USD 150,000 per year, for 5 years.

Support is provided on condition that at least USD 1 million in annual exports is achieved and the relevant performance criteria are met.

Companies Not Yet Meeting the USD 2.25 Million Export Criterion Over the Last 3 Years

Companies that do not yet meet the export criterion can also begin operating while benefiting from free zone tax advantages.

Opportunities Offered at the Initial Stage

• A 3-year operating licence

• Corporate tax exemption*

• Employee income tax exemption*

• VAT and stamp duty exemption

• Customs duty exemption

At the end of the first three-year operating period, companies achieving at least USD 1 million in annual exports and increasing their export performance;

• may apply to the rent support and personnel salary support programmes.

Rent and personnel salary support are not applied during the first 3-year operating licence period.

Information Documents

You can find detailed information about application conditions, support programmes and implementation principles in the documents below.

• View the Incentive Brochure

• View the Procedures and Principles Document

* Tax exemptions and support schemes are applied within the scope of the Free Zones legislation in force and the conditions determined by the Republic of Turkiye Ministry of Trade.