The 264 Organized Industrial Zones in Turkey
Turkey has 264 Organized Industrial Zones (OIZs), which were established by law in 2000, according to a World Trade Organization (WTO) report.
The aim of these zones is to create an investment-friendly environment, with business-ready infrastructure, and to enable planned development in different regions.
The zones are established in different regions, subject to approval by the Ministry of Industry and Technology, which also provides loans to companies for the establishment, construction and operation of the ZIOs.
In 2022, interest rates on the loans were 3%, with a three-year grace period and a repayment period of 13 years.
One of the changes introduced in the Regulations on the Implementation of Organized Industrial Zones during has been the elimination of restrictions imposed on the types of activities that could not be established in an organized industrial zone (i.e. refining, nuclear power generation, cement manufacturing, petrochemical complexes and integrated sugar factories).
Another change is the simplification of the provisions relating to the interest subsidy granted by the Ministry on loans granted by banks to ZIOs for their investment projects.
Industrial Zones
According to the WTO, the incentives available in IZs are VAT exemption for land acquisitions, a five-year exemption from real estate duties, tax exemption in case of merger or segregation of plots, exemption from municipal tax in certain cases, and exemption from construction tax.
On the other hand, the main business activities of the Organized Industrial Zones are the production of food, textile products, leather products, furniture and wood products, paper, chemicals, pharmaceuticals, plastics, base metal manufactures, electrical and electronic products, automotive sector activities, and land vehicle manufacturing.
Meanwhile, by the end of 2021, there were 73 Technology Development Zones (TDZs) in operation in Turkey dedicated to developing the high-tech sector through R&D support.
The implementing legislation is the 2001 Law on Technology Development Zones and its implementing regulation.
The Law was amended in 2021 to extend until 2028 the scope of the planned incentives and exemptions, which were scheduled to expire in 2023; to provide support for the employment of graduates specialized in R&D; and to provide subsidies for the employment of PhD students, the construction of R&D workshops and buildings in technology parks, and the financing of machinery, equipment and software for the development and operation of technology parks.
