Technology Development Zones (Teknoparks, Law 4691) — Exemption
Offers Turkish technology and software companies tax exemptions through development zones for innovation activity.
Turkey's Technology Development Zone programme — commonly known as Teknopark and governed by Law 4691 — grants permanent tax exemptions to companies that physically locate and register operations within one of Turkey's 97 designated Teknoparks across 59 provinces. Companies qualifying under the programme receive 100% corporate tax exemption on income derived from R&D, software development, and design activities conducted within the zone, and 100% income tax exemption on salaries of R&D, design, and support personnel. Both exemptions are confirmed valid through 31 December 2028. VAT exemption applies to qualifying software and R&D-related sales. Customs duties are waived on equipment and materials imported for R&D purposes.
The Ministry of Industry and Technology covers the employer's share of social security premiums for qualifying zone-resident companies. IT personnel employed by Teknopark-resident companies may work 100% remotely while the company retains the full tax benefit; other qualifying support staff may work up to 75% remotely. This flexibility makes Teknopark status attractive for software and AI companies that do not require physical laboratory infrastructure. The programme is distinct from the R&D and Design Center scheme (Law 5746), which is location-agnostic but requires larger personnel headcounts. In some configurations, Teknopark benefits can stack with Investment Incentive Certificate (YTB) and Organised Industrial Zone (OSB) incentives.
Registration is through the Teknopark management entity of the chosen zone, not directly with MoIT. Once registered, the tax benefit operates continuously without competitive application rounds. Companies best positioned are those in AI, software, cybersecurity, IoT, and advanced manufacturing that can credibly locate or incorporate a Teknopark-resident entity, are planning to grow R&D or software headcount in Turkey, and seek to eliminate corporate and income tax exposure on Turkish-derived technology revenue.
R&D, software development, design, and innovation activities conducted by companies physically located and registered in one of Turkey's 97 designated Technology Development Zones (Teknoparks), with tax exemptions valid through December 2028.
Sign up free to see the funding breakdown
Sign up free to see the industries in scope
Sign up free to see the full eligibility
Sign up free to see the timeline
Sign up free to see where teams trip up