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Turkish Free Trade Zones: 100% Corporate Tax Exemption for Export Manufacturers

Exploring Turkey's 19 Free Trade Zones, customs duty exemptions, VAT relief, and cross-border manufacturing incentives.

Turkish Free Trade Zones: 100% Corporate Tax Exemption for Export Manufacturers

Turkey's Industrial Powerhouse Free Trade Zones

Turkey hosts 19 strategically positioned Free Trade Zones (such as Istanbul European Free Zone, Aegean Free Zone in Izmir, and Mersin Free Zone) designed to stimulate export manufacturing and international trading.

Entities operating within these zones enjoy exceptional fiscal exemptions outside the standard customs territory.

Comprehensive Tax & Customs Exemptions

  • 100% Corporate Income Tax Exemption: Manufacturing entities that export at least 85% of their production value abroad are 100% exempt from corporate income tax.
  • 100% Personal Income Tax Relief: Salaries of employees working for export-qualifying manufacturers in free zones are entirely exempt from domestic personal income tax.
  • 0% Customs Duty & 0% VAT: Raw materials, machinery, and production inputs imported from abroad are fully exempt from customs tariffs and VAT.

Operational Flexibility

Companies can hold earnings in foreign currencies (USD, EUR) and repatriate 100% of profits and dividends internationally without exchange restrictions.

This material is for general information only and is not legal, tax or investment advice.

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