Contents 11
Note on sources. The official legal texts of Türkiye are in Turkish. Each provision below is quoted verbatim in Turkish (the authoritative text) and followed by an unofficial English translation for convenience only. Where exact wording matters, the Turkish text governs.
Short Answer
There are four main types of investment zone in Türkiye: free zones (Law No. 3218), technology development zones / technoparks (Law No. 4691), organised industrial zones (Law No. 4562) and industry zones (Law No. 4737). Each is subject to a different purpose and regime. These zones offer various advantages to the investor; but the scope and duration of the advantages change — some are valid only until a specified date — so the current advantages must be verified from the relevant legislation at the time of the investment decision.
Whichever zone is chosen, the vehicle is still an ordinary Turkish company — the formation steps are set out in setting up a company in Türkiye as a foreigner, and the resulting tax position in taxation of foreign companies.
Is This You?
This guide is relevant if you are:
- An investor assessing in which zone to invest in Türkiye,
- Curious about the difference between free zone, technopark and OSB,
- Building an export-, R&D- or industry-focused business model,
- Wishing to verify the currency of zone advantages,
- An entrepreneur planning a zone investment with foreign capital.
The Four Main Zone Types
Free Zone (Law No. 3218)
“Bu Kanun; ihracata yönelik yatırım ve üretimi teşvik etmek, doğrudan yabancı yatırımları ve teknoloji girişini hızlandırmak, işletmeleri ihracata yönlendirmek ve uluslararası ticareti geliştirmek amacıyla…”
(3218 sayılı Serbest Bölgeler Kanunu m.1)
Unofficial translation: “This Law … for the purpose of promoting export-oriented investment and production, accelerating foreign direct investment and the entry of technology, directing enterprises towards exports, and developing international trade …”
Free zones are designed particularly for foreign-trade and export-oriented activity and are subject to a different customs/foreign-trade regime.
Technology Development Zone / Technopark (Law No. 4691)
“Bu Kanunun amacı, üniversiteler, araştırma kurum ve kuruluşları ile üretim sektörlerinin işbirliği sağlanarak, ülke sanayiinin uluslararası rekabet edebilir ve ihracata yönelik bir yapıya kavuşturulması maksadıyla teknolojik bilgi üretmek…”
(4691 sayılı Teknoloji Geliştirme Bölgeleri Kanunu m.1)
Unofficial translation: “The purpose of this Law is … to produce technological knowledge, through cooperation between universities, research institutions and the production sectors, so as to bring the country’s industry into an internationally competitive and export-oriented structure …”
Technoparks are established for R&D, software and technology production and are based on university-industry cooperation.
Organised Industrial Zone (Law No. 4562)
“Bu Kanunun amacı organize sanayi bölgelerinin kuruluş, yapım ve işletilmesi esaslarını düzenlemektir.”
(4562 sayılı Organize Sanayi Bölgeleri Kanunu m.1)
Unofficial translation: “The purpose of this Law is to regulate the establishment, construction and operation principles of organised industrial zones.”
Organised industrial zones enable industry to be gathered in a planned and infrastructured area; they are suitable for industrial-production investment.
Industry Zone (Law No. 4737)
Industry zones, under Law No. 4737, are zones envisaged particularly for large-scale industrial investment.
Advantages Change: A Critical Caveat
The attraction of these zones lies in the tax, customs and infrastructure advantages they offer. However, this article deliberately does not list the current rates and amounts of those advantages — because they are the most variable element in this area. Zone advantages are set by law and Presidential decrees; some are valid until a specified date and may be extended or changed.
Practical consequence: when making an investment decision, the current advantages of the chosen zone must be verified from the legislation in force of that zone. Advantage figures in promotional texts belong to the date they were written and should not be relied on directly.
Which Zone for Whom?
A short pointer:
- Foreign trade / export-focused business → free zone (Law No. 3218).
- R&D / software / technology → technopark (Law No. 4691).
- Industrial production → organised industrial zone (Law No. 4562).
- Large-scale industrial investment → industry zone (Law No. 4737).
A foreign investor may also invest in these zones under the principle of equal treatment with domestic investors (Law No. 4875). For the general framework of company formation, see our article “Setting Up a Company in Türkiye as a Foreigner”.
Common Mistakes
- Assuming advantages are permanent. Zone advantages may be time-limited and change; the current legislation must be checked.
- Relying on promotional rates. Rates in brochures and web texts belong to the date they were written.
- Choosing the wrong zone. The zone should be chosen according to the type of activity (export, R&D, industry).
- Ignoring the legal regime. Each zone has its own law and secondary legislation; do not act on general assumptions.
Summary
There are four main types of investment zone in Türkiye: free zone (Law No. 3218), technopark (Law No. 4691), organised industrial zone (Law No. 4562) and industry zone (Law No. 4737). Each targets a different type of activity and regime. Zone choice should be made according to the nature of the business (export, R&D, industry). Because the tax and similar advantages these zones offer are variable and often date-limited, the current advantages must always be verified from the relevant legislation at the time of the investment decision. A foreign investor may also invest in these zones under the principle of equal treatment (Law No. 4875).
Frequently Asked Questions
What types of investment zone exist in Türkiye?
There are mainly four types. Free zones (Law No. 3218), technology development zones — technoparks (Law No. 4691), organised industrial zones (Law No. 4562) and industry zones (Law No. 4737). Each has a different purpose and regime.
What is a free zone?
Under Law No. 3218 (Free Zones Law), free zones are special areas established to promote export-oriented investment and production, accelerate foreign direct investment and the entry of technology, and develop international trade. They are generally subject to a different regime in terms of foreign trade and customs.
What is a technopark (technology development zone)?
Under Law No. 4691, technology development zones are established to produce technological knowledge and develop innovation in products and production methods, through cooperation between universities, research institutions and the production sectors. They are zones designed for R&D and software activity.
What is an organised industrial zone (OSB)?
Under Law No. 4562, organised industrial zones are zones whose establishment, construction and operation principles are regulated so that industry is gathered in a planned area. They aim for industrial investment to be made in an infrastructured, planned environment.
What advantages do these zones offer?
Each zone's own law and secondary legislation provide advantages specific to that zone (tax, customs, infrastructure, etc.). However, the scope and duration of these advantages change over time; some are valid until a specified date. The current advantages must therefore be verified from the relevant zone's legislation at the time of the investment decision.
Are the zone advantages permanent?
As a rule, no. Most of the tax and similar advantages offered by investment zones are set by law and Presidential decrees and may be time-limited; date-limited exemptions are common. Rather than relying on advantage figures seen online or in promotional texts, the current legislation must always be checked.
Can a foreign investor invest in these zones?
Yes. Foreign investors may invest in these zones under the principle of equal treatment with domestic investors (Law No. 4875). Indeed, the free-zone legislation expressly aims to accelerate foreign direct investment. Which zone is suitable is determined by the type of activity.
Which zone is suitable for my investment?
Zone choice depends on the type of activity. Free zones stand out for foreign-trade/export-oriented business, technoparks for R&D/software, and organised industrial or industry zones for industrial production. The right choice should be assessed together with the nature of the activity and the current advantage regime.