Government Incentives Concerning the Game Development Industry in Turkey
Updated: May 2025 | Author: Evren Özmen, CPA Istanbul
Executive Summary
Turkey has emerged as a dynamic hub for digital creativity, particularly in the field of game development. With a young tech-savvy population, competitive operational costs, and strong governmental support, the country has become increasingly attractive to both domestic and international gaming companies. This article explores the key government incentives available for the game development sector in Turkey and outlines the legal, fiscal, and operational framework required to benefit from them.
1. Why Turkey? A Rapidly Growing Gaming Market
Ranked among the top 20 mobile gaming markets worldwide
Revenue in 2024: Exceeded $1.3 billion (Statista)
70% of gaming revenue generated from mobile platforms
Over 100 active studios in Istanbul alone
Turkey is not only a consumer market for games but also a production hub for indie and AAA developers. The Turkish government has strategically positioned the game development sector as a priority area within its digital economy roadmap.
2. Key Government Incentives for Game Developers
2.1. R&D and Design Center Support (Law No. 5746)
| Feature | Description |
| Corporate Tax Deduction | 100% deduction on R&D expenses in corporate tax base |
| Income Tax Withholding Relief | 80%-95% exemption for R&D personnel salaries |
| Social Security Premium Support | 50% employer contribution covered by the government |
| Stamp Duty Exemption | Exemption for R&D-related contracts and documentation |
To benefit: The company must apply for R&D Center or Design Center status through the Ministry of Industry and Technology.
2.2. TÜBİTAK and Techno-Enterprise Support Programs
TÜBİTAK 1501 & 1507 Programs: Grants for prototyping, game engines, AI tools, and cross-platform development.
Techno-Enterprise Capital Support: Up to TRY 450,000 for early-stage gaming startups.
TÜBİTAK 1512 (BIGG): Encourages university spin-offs and individual entrepreneurs.
🔍 Tip: Many grants are non-refundable if project milestones are met.
Under Decree No. 5973, game developers are treated as software exporters and enjoy various export incentives:
3.1. Advertising Cost Reimbursement (Up to 60%)
| Eligible Costs | Platforms Covered | Maximum Support |
| Facebook, Google, TikTok, Twitch ads | Game trailers, performance ads | TRY 2.000.000 |
| Influencer collaborations | Regional or global marketing campaigns | 60% of total |
3.2. Foreign Fair Participation and Localization Grants
Up to 75% reimbursement for international expo participation (GDC, Gamescom, etc.)
Up to 70% of costs covered for translation, dubbing, and localization services
3.3. Turquality and Branding Support
Qualified game studios can benefit from brand-building support including:
4. Technopark Benefits for Game Startups
Operating within a technopark offers considerable tax and operational advantages.
4.1. Tax Exemptions under Law No. 4691
| Tax Type | Exemption Rate | Notes |
| Corporate Tax | 100% | On income generated within the technopark |
| VAT | 100% | On software and game development activities |
| Income Tax | 100% exemption for employees | Only for R&D personnel |
| Custom Duties | Exemption | For imported R&D equipment |
To benefit: The company must register with a technopark and get project approval.
5. Intellectual Property and Patent Incentives
The Turkish government encourages IP protection and commercialization:
Patent Incentive Support: Up to 50% grant for patent application costs (domestic or international)
Trademark registration costs partially covered
Royalty income from licensed IPs are eligible for reduced corporate taxation under Technology Transfer incentives
6. How to Qualify: Entity Setup and Compliance
To benefit from the above incentives, companies must:
Establish a legal entity in Turkey – generally a Joint Stock Company or Limited Liability Company.
Register for tax and social security through the Revenue Administration.
Apply for R&D Center, Technopark, or Exporter status depending on chosen benefits.
Maintain proper bookkeeping and documentation in line with Turkish Commercial Code and tax regulations.
Comply with local employment and data protection laws (KVKK).
❗ Foreign shareholders must obtain a potential tax number and complete notarized translations of incorporation documents.
7. Common Mistakes and How to Avoid Them
| Mistake | Consequence | Recommended Action |
| Registering wrong NACE code | Ineligibility for software/gaming incentives | Consult with a tax advisor before incorporation |
| Late R&D Center application | Loss of tax incentives for previous periods | Apply as soon as operational criteria are met |
| Incomplete expense documentation | Reimbursement claims rejected | Maintain organized receipts and payment records |
| Mixing commercial and R&D personnel roles | Invalidates income tax exemptions | Keep clear project-based personnel assignments |
8. Future Outlook and Legislative Developments
The Turkish government has signaled further support for gaming with the following plans:
Digital Game Clusters in major cities
Additional tax breaks for international gaming investors
MMP (Mobile Measurement Partners) standardization
E-sports focused amendments in the Digital Economy Strategy 2025
9. Conclusion
Turkey offers one of the most comprehensive and developer-friendly incentive frameworks for game studios outside of North America and the EU. These incentives, when combined strategically, significantly reduce startup and operational costs while enabling international expansion.
Call to Action
Are you planning to establish a game development studio in Turkey or expand your international operations through Turkish incentives?
Our team specializes in tax advisory, incentive applications, and legal incorporation for foreign investors and gaming entrepreneurs.
📩 Contact us today to schedule a consultation on how to benefit from Turkey’s game development ecosystem.
info@ozmconsultancy.com
