Turkey Investment & Tax Reform 2026

Turkey’s New Investment Law: Exporter Tax Cuts, IFC Incentives and a Stronger Case for Regional Headquarters

Turkey is preparing a comprehensive legislative package aimed at improving investment attractiveness, supporting exporters and encouraging international businesses to manage regional operations from Turkey.

Executive Summary

President Recep Tayyip Erdoğan announced that Turkey will soon submit a new investment-focused legal package to Parliament. The proposed measures include a reduction of corporate tax for manufacturing exporters to 9%, a 14% rate for other exporters, expanded tax advantages for Istanbul Financial Center participants, and new rules designed to bring foreign-held assets and overseas earnings into Turkey’s economy.

1. A New Investment Framework for Turkey

The announced package appears to be part of a broader policy shift: Turkey is positioning itself as a more competitive jurisdiction for exporters, regional headquarters, holding structures and entrepreneurs with international operations.

According to the announcement, the government intends to introduce legal, administrative, financial and institutional reforms to strengthen the investment environment and support sustainable high growth.

2. Corporate Tax Reduction for Exporters

One of the most commercially significant measures is the proposed reduction of corporate tax rates for exporters.

3. Istanbul Financial Center Incentives Will Be Expanded

The package also includes an expansion of tax advantages for institutions operating in the Istanbul Financial Center.

This is particularly relevant for multinational groups considering Turkey as a regional management, treasury, investment or coordination hub. Companies managing overseas operations from Turkey are expected to benefit from strong tax incentives under the new framework.

4. Foreign Assets and Overseas Earnings

Another important pillar of the proposed reform is the encouragement of foreign-held assets and overseas business earnings to be brought into Turkey’s economy.

The announcement specifically refers to entrepreneurs who have established companies abroad or hold stakes in foreign companies. This suggests that the new package may create tax-efficient repatriation or restructuring opportunities for Turkish founders, international entrepreneurs and cross-border business owners.

5. Why This Matters for Foreign Investors

For foreign investors, the proposed law should be read together with Turkey’s broader commercial advantages: strategic geography, access to regional markets, a large talent pool, competitive operating costs and an increasingly sophisticated export incentive ecosystem.

The most relevant opportunities may arise for:

• manufacturing exporters,

• technology and service exporters,

• regional headquarters structures,

• foreign company shareholders considering Turkey-based management,

• entrepreneurs with overseas companies or retained foreign earnings,

• groups evaluating Istanbul Financial Center participation.

Planning to Use Turkey as an Export or Regional Headquarters Base?

The proposed rules are not yet enacted, and the final legal wording will be critical. Businesses should review their corporate structure, export model, place of management, income classification and Turkish tax exposure before making implementation decisions.

OzM Consultancy assists foreign investors, exporters and international entrepreneurs with Turkish tax structuring, incorporation, accounting, payroll and investment incentive advisory.

For professional assistance, contact us at: info@ozmconsultancy.com

FAQ

Is the 9% corporate tax already in force?

No. The announced measure is not yet in force. It is expected to be included in a legislative package to be submitted to the Turkish Parliament.

Who may benefit from the proposed 9% corporate tax rate?

The proposed 9% rate is expected to apply to manufacturing exporters.

What is the proposed tax rate for other exporters?

According to the announcement, other exporting companies may benefit from a 14% corporate tax rate.

Will Istanbul Financial Center incentives be expanded?

Yes. The announced package includes an expansion of tax advantages for institutions operating in the Istanbul Financial Center.

Why is this reform important for foreign investors?

Because it may make Turkey more attractive as an export base, regional headquarters location and international business management hub.

Should companies restructure immediately?

No. Companies should wait for the final legal text before implementation, but strategic planning can begin now.