Expanding Your App or Game Company to Turkey: Incentives, Subsidies, and Tax Advantages You Should Know

Introduction: Why Turkey Is on the Radar of Global Tech Firms

In recent years, Turkey has positioned itself as a rising hub for app developers, gaming studios, SaaS providers, and data analytics companies seeking to expand globally. Its appeal lies in a unique combination:

• Competitive operational costs compared to Europe and North America.

• A young and skilled tech workforce, particularly in software engineering, game design, and data science.

• Generous government subsidies and tax exemptions designed to attract export-oriented technology firms.

For a globally operating company like MIB—or any app developer looking to maximize profitability—establishing a legal entity in Turkey can unlock access to millions in government-backed financial incentives.

1. Government Incentives Available to App Developers and Game Studios

The Turkish government, through its agencies such as the Ministry of Trade, TÜBİTAK, and Technopark Administrations, provides targeted financial support to software and gaming companies. Below is an overview of the key programs.

1.1 Advertising Cost Reimbursements

• Up to 50% reimbursement of digital advertising costs on Google, Facebook, Instagram, TikTok, and similar platforms.

• Applies specifically to international campaigns aimed at promoting Turkish-developed apps, games, or SaaS solutions abroad.

• Designed to help developers scale globally without draining marketing budgets.

1.2 Platform Commission Refunds

• Reimbursement of up to 50% of commissions paid to Apple App Store, Google Play, Steam, and similar digital distribution platforms.

• This directly boosts the net revenue of app and game developers by compensating for the 15–30% commission fees.

1.3 Software License and Development Tool Subsidies

• Financial support for essential tools such as Unity, Unreal Engine, cloud services, and software subscriptions.

• Helps startups and scaling firms reduce initial overhead costs while maintaining competitiveness.

1.4 Hiring Technical Staff

• Grants for the employment of software engineers, designers, and technical staff.

• Wage support packages can reduce the cost of building in-house R&D and development teams.

1.5 Internationalization Incentives

• Coverage of expenses related to:

  • Localization and translation of software and games.

  • Participation in global trade fairs (e.g., Gamescom, Mobile World Congress).

  • Opening offices abroad to strengthen global presence.

1.6 Export Tax Exemptions

• Up to 80% exemption on corporate income tax for companies generating revenue from software exports.

• VAT exemption on sales made to foreign clients.

• Personal income tax exemptions for R&D staff under specific incentive laws.

📊 Table 1 – Key Incentives for App Developers in Turkey

2. Setting Up a Legal Entity in Turkey

2.1 Legal Structures Available

• Limited Liability Company (Ltd. Şti.) – The most common structure for small to mid-sized tech firms.

• Joint Stock Company (A.Ş.) – Preferred for larger companies or those planning to attract investors.

• TechnoPark Entity – If operating within a recognized Technopark, companies enjoy additional tax benefits and grant eligibility.

2.2 Step-by-Step Incorporation Process

1. Drafting and notarization of Articles of Association.

2. Trade Registry application.

3. Tax office registration.

4. Bank account opening.

5. Social security registration (if staff will be hired).

Average timeline: 7–10 business days with professional advisory support.

2.3 Shareholding and Foreign Ownership

• Foreign investors can own 100% of Turkish companies—no local partner is required.

• Profit repatriation is unrestricted, subject to standard compliance.

3. Tax Advantages for Software Exporters

Turkey’s tax regime for export-oriented software companies is among the most favorable in the region.

• Corporate Income Tax: Standard rate is 25% (2025), but export incentives can reduce effective rates by up to 80%.

• VAT: Export invoices are 0% VAT-rated.

• R&D Incentives: Technopark-based staff salaries are exempt from income tax.

• Double Tax Treaties: Over 90 treaties ensure minimal withholding taxes on cross-border payments.

4. Success Stories and Case Studies

• Global Game Studio X: Expanded operations to Istanbul TechnoPark, claimed App Store commission refunds and reduced effective tax rate by 70%.

• SaaS Startup Y: Benefited from advertising reimbursements, cutting international marketing costs in half.

• Mobile App Developer Z: Leveraged software tool subsidies to finance Unity and AWS services during its scaling phase.

5. Risks, Compliance, and Why You Need an Advisor

While incentives are generous, companies often face risks:

• Application rejection due to incomplete documentation.

• Disqualification during audits if reporting is inconsistent.

• Loss of tax exemptions if deadlines are missed.

Partnering with a local CPA and advisory firm ensures:

• Proper eligibility assessment.

• End-to-end application management.

• Ongoing compliance to safeguard incentives.

6. Frequently Asked Questions (FAQ)

Q1: Who is eligible for advertising reimbursement?
A: Any Turkish-registered company exporting apps, games, or software services.

Q2: How much of App Store or Google Play commissions can be refunded?
A: Up to 50%, depending on the incentive package.

Q3: Can a foreign shareholder own 100% of a Turkish entity?
A: Yes, there are no restrictions on foreign ownership.

Q4: What is the effective corporate tax rate after incentives?
A: It can drop from 25% to as low as 5%, depending on export ratios.

Q5: How long does it take to establish a company?
A: Usually 7–10 business days with proper documentation.

7. Conclusion: Turkey as Your Next Growth Hub

Turkey is no longer just an emerging market—it is a strategic launchpad for global tech firms. For companies in app development, gaming, data analytics, and SaaS, the combination of low costs, skilled talent, and unparalleled incentives makes Turkey one of the most attractive destinations worldwide.

Reach Us

Are you considering expanding your tech company to Turkey?
Our firm provides end-to-end advisory services covering:

• Company formation.

• Subsidy applications (advertising, commission refunds, hiring support).

• Tax compliance and ongoing reporting.

👉 Schedule a consultation today to discover how your company can unlock millions in incentives and secure a profitable base in Turkey.

info@ozmconsultancy.com