Türkiye continues to develop as an important location for innovation and investment. Its combination of tax incentives, support for technology development zones and public funding programmes creates a useful platform for innovative businesses. The country is particularly relevant for companies in manufacturing, software, engineering and export-oriented sectors.
Overview
Türkiye has built a broad support framework for innovation and entrepreneurship, combining R&D tax relief, technopark incentives, investment support, public grants and a growing venture capital market. The strongest measures are aimed at technology-led businesses, industrial development and projects that support national productivity goals.
The regime is quite layered, so the practical question is usually which route fits the project best rather than whether support exists at all.
1. R&D and design incentives
Law No. 5746 remains the main basis for R&D and design incentives in Türkiye. It provides a full deduction for qualifying R&D and design expenditure, along with exemptions and employer-side payroll relief for staff engaged in eligible activities.
The regime can be very valuable for companies with genuine R&D centres or structured design activity. It reduces the direct cost of technical teams, supports investment in equipment and helps make ongoing development work more affordable.
2. Technopark incentives
Technoparks are one of the most attractive parts of the Turkish innovation system. Businesses operating in these zones can benefit from tax exemptions on qualifying software and R&D income, along with income tax relief for eligible personnel and exemptions on certain equipment purchases.
The practical appeal is that technoparks combine physical clustering with tax relief. For technology businesses, that can make them a useful base for product development, software work and collaborative R&D.
3. Investment incentive programme
Türkiye’s general investment incentive programme is another important route. It supports domestic and foreign investment through VAT exemptions, customs duty relief, tax reductions, social security support, interest support and, in some cases, land allocation.
For larger or strategically important projects, project-based incentives can provide additional support. These are most relevant where the investment aligns with national industrial, technological or export priorities.
4. TÜBİTAK and KOSGEB
TÜBİTAK and KOSGEB are the two main public bodies supporting applied innovation and entrepreneurship. TÜBİTAK typically supports R&D projects, start-ups and collaborative research, while KOSGEB is more focused on SMEs, business formation, innovation and commercial application.
Together, they provide a useful grant layer for companies that are at the earlier stages of development or that need support moving from concept to prototype and then to market.
5. Venture capital and share incentives
Türkiye’s venture capital market is still developing, but it is becoming more supportive of technology-driven companies. Recent reforms have also improved the treatment of share-based incentives for employees of technology start-ups, which should help with hiring and retention.
That is important because many innovative businesses in Türkiye need more than tax relief: they need a way to attract talent and close the funding gap between early development and growth capital.
6. Practical view
Türkiye offers a genuinely broad innovation package, but the detail matters. The incentives are strongest when projects are structured properly from the outset and aligned with the right legal regime.
For clients, the key point is that Türkiye can be a very attractive jurisdiction for R&D and innovation, provided the project is planned carefully and the relevant approvals, registrations and documentation are handled early.
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