What Are the Tax Advantages of Buying a Game Studio in Turkey? 🎮🇹🇷

Turkey has become a rising hub for gaming and mobile application companies, attracting both local entrepreneurs and international investors. One of the most strategic moves for foreign investors is to acquire an existing Turkish game studio rather than starting from scratch. Beyond market access and ready-made teams, the Turkish tax system offers unique financial incentives that make such acquisitions highly attractive.

In this article, we break down the key tax advantages of purchasing a game company in Turkey and explain why investors are increasingly turning to M&A instead of new incorporations.

1. VAT Refunds on Marketing & Platform Commissions

One of the most overlooked benefits of acquiring a Turkish game company is the ability to recover VAT (Value Added Tax) on international advertising and platform commission expenses.

• Game studios often spend heavily on Facebook Ads, TikTok, Google Ads, and influencer marketing. Under Turkish regulations, these marketing expenditures are eligible for VAT refunds if linked to exports (game downloads, in-app purchases abroad, etc.).

• Commissions paid to platforms like Apple App Store, Google Play, Steam, or Unity Ads can also be refunded, lowering the real cost of global distribution.

➡️ For investors, buying a company with an existing history of such expenses means immediate access to refunds, rather than waiting for eligibility to build up from scratch.

2. Corporate Tax Incentives for Software & Export Revenues

Turkey offers corporate tax reductions and exemptions for technology-oriented companies:

• 80% to 100% Corporate Tax Exemption on revenues derived from software exports and game sales abroad (under Technology Development Zone Law and services export exemptions).

• R&D Deductions: Acquired studios with active R&D projects can continue benefiting from 150% R&D expense deduction in tax calculations.

This makes Turkish studios internationally cost-competitive and highly profitable after tax.

3. Access to Grants and Government Subsidies

Buying a Turkish game company also provides eligibility for existing or pending government supports:

• TÜBİTAK BİGG & TEYDEB Programs: Non-refundable grants for early-stage R&D projects.

• Ministry of Trade Marketing Incentives: Covers international fair participation, influencer campaigns, PR agency fees, and more.

• Services Exporters’ Association (HİB) Membership: Unlocks additional subsidies and foreign promotion supports.

An established company may already be registered in these support schemes, saving the acquirer both time and compliance effort.

4. Withholding Tax (WHT) Relief Through Treaties

Turkey has signed double taxation treaties with more than 85 countries. This means dividends, royalties, or service payments from the acquired company to a foreign parent can often be subject to reduced withholding tax rates (sometimes as low as 5%).

For investors, this reduces the tax leakage on profit repatriation compared to many other emerging markets.

5. Immediate Tax Loss Carry-Forwards

If the target company has accumulated tax losses from its early development phase (common in game startups due to upfront marketing spend), these can usually be carried forward for up to 5 years.

This provides buyers with a built-in tax shield, reducing corporate tax obligations in the coming years.

6. Simplified Payroll Costs for Creative Talent

The Turkish government applies reduced social security and income tax burdens on software developers and creative industry employees, especially when the company operates in a Technopark or R&D center.

For acquirers, this means lower ongoing HR costs compared to other jurisdictions, while retaining top talent locally.

Conclusion: Why Acquisition Beats Greenfield Entry

Setting up a new entity in Turkey is possible, but acquiring an existing game studio unlocks immediate financial and tax advantages:

• Ready access to VAT refunds on ads & commissions

• Ongoing corporate tax exemptions for software exports

• Eligibility for R&D and Ministry of Trade subsidies

• Reduced WHT on dividends via treaties

• Utilization of past tax losses

• Lower payroll tax burdens for developers

For international investors, this combination makes Turkey one of the most tax-efficient jurisdictions in the gaming industry.

📩 Reach Us

Thinking about buying a game studio in Turkey? At Özmen CPA Consultancy, we specialize in due diligence, tax structuring, and acquisition advisory for foreign investors in the gaming sector.

👉 Contact us today to discuss how you can maximize your tax benefits while acquiring a profitable Turkish studio.

info@ozmconsultancy.com