Free zones can be described as sites considered to be outside the customs area although they are inside the political borders of the country. Within these free zones, legal and administrative regulations in commercial, financial and economic fields applicable in the rest of Turkey are either not implemented at all or are partially implemented, more extensive incentives are given for industrial and commercial operations.
The Directorate General of Free Zones was founded in 1983 within the organization of the Prime Ministry. Later in 1994, the Directorate General of Free Zones was included into the organization of the Undersecretariat of Foreign Trade of the Prime Ministry since the Undersecretariat of Treasury and Foreign Trade was divided into two. However, this Decree was canceled. Thereafter, as the result of the reorganization of two Undersecretariats as the Undersecretariat of Foreign Trade and the Undersecretariat of Treasury, with Law Nr. 4059, in 1994, the Directorate General of Free Zones began to carry out its activities within the structure of the Undersecretariat of Foreign trade.
In general, all kind of activities can be performed in Turkish Free Zones such as:
- Research and Development (R&D),
- Manufacturing, Software,
- General trading,
- Banking and insurances
Hereinbelow the advantages of investing in Turkish Free Zones such as:
- Opportunity to Benefit from Tax Advantages for Manufacturer Users
- Until the end of the taxation year including the date Turkey becomes a full member of the European Union, the earnings of the manufacturer users, generated through the sales of the goods they produced in the free zones, are exempted from the income or corporate taxes.
- Opportunity of Medium and Long Term Planning
- 15, 20, 30, 45 and 49 years licencing
- Opportunity to Transfer Profits
- Non-permit permission for transferring the revenue and earings from free zone activities
- Facilitation of Foreign Trade
- Trade Facility Free from Customs Duty Procedure
- Easy Access to EU Countries
- Equal Treatment
- No Time Limitation
- The goods can remain in the zones without any time limit.
- Managing Trade Activities According to Market Demands and Condition
- Inflation Accounting Opportunity (with Convertible Currencies)
- Access to Domestic and Foreign Markets
- In contrast to most of the free zones in the world, sales to the domestic market with the exception of consumer and risky products are allowed.
- Reduced Bureaucratic Procedures and Dynamic Management
During application and operation process bureaucracy is minimized. Professional private sector companies manage free zones.
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OZBEY Attorney Partnership & Consultancy