# What Are the Tax Advantages of Buying a Game Studio in Turkey? 🎮🇹🇷 # 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 ![](https://cdn.hashnode.com/res/hashnode/image/upload/v1756016995409/7c7d2182-1161-4d43-8b49-2f5e51b19961.png align="center")