Türkiye’s Free Zones Exports Goal by 2025: Key Sectors, Benefits, and Investment Opportunities

Türkiye aims to achieve US$12.5 billion in exports from its free zones by 2025, focusing on sectors like automotive, renewable energy, and luxury yacht manufacturing. The country is positioned to meet this goal through tax incentives, operational flexibility, and strategic investments in key industries.

By Giulia Interesse

Türkiye has set an ambitious goal of reaching US$12.5 billion in exports from its free zones by 2025, reflecting its strategic focus on boosting trade and economic growth.

With growing emphasis on sectors such as automotive, renewable energy, and luxury yacht manufacturing, Türkiye is well-positioned to surpass its free zone exports target, marking a key milestone in its efforts to strengthen economic growth and global competitiveness.

In this article, we explore Türkiye’s free zones and their growth potential, highlighting the investment opportunities, tax incentives, and operational advantages they offer to both domestic and international businesses. We also discuss key zones, industries, and the country’s focus on renewable energy and luxury yacht building.

Overview of Türkiye’s free zones

Türkiye’s free zones present exceptional opportunities for companies seeking to expand their operations, offering a business-friendly environment with significant tax incentives, operational flexibility, and strategic advantages. These zones are designated areas that allow businesses to benefit from exemptions and reduced costs, making them highly attractive for both domestic and international investors.

Established under the Free Zones Law No. 3218, Türkiye’s free zones specifically aim to promote export-driven investments. As such, they are strategically located near key ports, airports, and transportation networks, offering easy access to European, Middle Eastern, and Asian markets. This strategic positioning makes Türkiye an ideal hub for global trade, while also facilitating the smooth flow of goods and services.

What are the benefits of operating in Türkiye’s free zones?

Tax incentives

Businesses operating in Türkiye’s free zones enjoy a range of tax advantages, including:

• Corporate income tax exemption: Companies are exempt from corporate tax on earnings generated within the zone.
• VAT exemption: Transactions involving goods and services within the Free Zones are free from VAT.
• Income tax withholding exemption: Companies exporting at least 85% of the value of products produced in the zones can enjoy full exemption from employee income tax withholding.
• Customs and excise duty exemption: Goods imported into Free Zones are exempt from customs duties, and luxury consumer goods are exempt from excise duties.

Operational flexibility

Türkiye’s free zones are designed to simplify operations for businesses, with fewer bureaucratic hurdles and no time limits on how long goods can remain within the zone. This allows businesses to manage their inventories and production schedules with greater ease.

Labor and financial advantages

Free zones in Türkiye offer more flexible labor regulations, facilitating easier hiring processes and workforce management. Furthermore, companies can operate in foreign currencies, which helps mitigate currency fluctuation risks.

What are the most popular free zones in Türkiye?

Türkiye’s free zones offer a variety of strategic locations tailored to different industries. Each zone is designed to cater to specific sectors, providing businesses with unique advantages such as tax incentives, infrastructure, and proximity to key markets. Here are some of the most popular free zones in Türkiye that attract both domestic and international investors:

• Istanbul Specialized Free Zone: Focuses on advanced technology, software development, and R&D-intensive industries, making it an ideal destination for tech companies.
• Mersin Free Zone: Located by the Mediterranean, this zone is a hub for manufacturing, logistics, and export-driven businesses.
• Aegean Free Zone (ESBAŞ): Known for its high-tech industries, including aviation, defense, and automotive sectors, this zone is a key player in Türkiye’s manufacturing landscape.
• Bursa Free Zone: A major center for the automotive and textile industries, with strong connections to key Marmara Sea ports and highways.
• Antalya Free Zone: A prime location for the maritime industry, particularly shipbuilding and maintenance, which benefits from its coastal location.

How to invest in Türkiye’s free zones?

Selecting the right free zone

The first crucial step in investing in Türkiye’s free zones is choosing the one that best suits each business needs. Türkiye is home to 18 free zones, each offering unique opportunities across various sectors and locations. Here are the factors to consider:

• Location considerations: Evaluate the logistical benefits, including proximity to major export markets and access to critical transportation networks like ports, highways, and airports.
• Sector focus: Some free zones specialize in specific industries. It’s essential to choose a zone that aligns with your business operations, whether in technology, manufacturing, logistics, or other sectors.
• Infrastructure availability: Ensure the free zone offers the necessary infrastructure, such as modern office spaces, production facilities, and warehouses, to support your business activities.

For more details, investors can explore resources from the Ministry of Trade (MoT) Free Zones Overview and the Turkish Free Zones Association.

Application process

Once the right free zone is identified, the next step is to complete the application process. While the procedure is relatively straightforward, attention to detail is required to ensure compliance. Here’s what needs to be done:

• Submit the free zone user application: The first step is to submit the Free Zone User Application Form to the MoT, specifying the type of activity the business will undertake, such as manufacturing, storage, or trade.
• Prepare required documents: Along with the application, supporting documents must be provided, such as company registration records, a trade registry gazette, and any relevant business certifications.
• Evaluation and approval: The MoT will review the application, ensuring that all criteria are met. If approved, authorization to proceed will be granted.

Establishing a business in a free zone

After receiving approval to operate in a free zone, the next phase is setting up the business. This process involves several key steps:

• Sign a lease agreement: Secure office or production space in the free zone that meets the operational needs. free zones offer various types of spaces for manufacturing, warehousing, and administrative purposes.
• Obtain an operating license: To legally start business activities, an operating license must be acquired from the free zone authority.
• Set up the facility: Invest in the necessary equipment and infrastructure for production or trade. This could involve setting up manufacturing lines, purchasing machinery, or installing IT systems.
• Start operations: With all legalities and infrastructure in place, production, service provision, or trading can commence.

By following these steps, businesses can successfully tap into the benefits offered by Türkiye’s free zones, allowing them to streamline operations, access key markets, and enjoy a range of financial incentives.

Growth in Türkiye’s free zone exports

In 2024, Türkiye’s free zones recorded a notable trade surplus of US$4.1 billion, demonstrating the significant economic contribution of these zones. A closer look at export activities reveals a strong reliance on advanced manufacturing, with 47.7 percent of exports coming from medium and high-tech products. Additionally, high-tech products accounted for 8.3 percent of the total exports, signaling Türkiye’s growing role in the global value chain for more sophisticated goods.

This growth reflects a concerted effort to foster innovation, increase production efficiency, and expand into high-value sectors, further enhancing Türkiye’s competitiveness in international markets.

Key free zones in leading industries

Türkiye’s free zones have become major drivers of industrial development and economic growth, with several areas standing out for their strategic importance and sectoral focus. Among the most significant are the Aegean Free Zone, Mersin Free Zone, and Bursa Free Zone, which have attracted substantial investment in key industries such as automotive, machinery, textiles and apparel, steel, chemicals, and yacht and shipbuilding.

• Aegean Free Zone (ESBAŞ): Located in Izmir, this zone is renowned for its high-tech industries, particularly in aviation, defense, and electronics. It serves as a key player in Türkiye’s manufacturing landscape, making it an attractive option for companies looking to tap into these growing sectors.
• Mersin Free Zone: Situated by the Mediterranean, Mersin Free Zone serves as a hub for manufacturing and logistics, playing a central role in exports driven by businesses engaged in both production and storage. Its access to international shipping routes positions it as an ideal location for export-oriented activities.
• Bursa Free Zone: Known for its strong automotive and textile sectors, the Bursa Free Zone is strategically located near key ports in the Marmara region. The zone supports industries looking to access both European and regional markets.

Focus on renewable energy

Renewable energy is becoming an increasingly important focus in Türkiye’s free zones, as the country strives to meet both domestic and international energy needs while advancing green technologies. The production of renewable energy equipment, such as wind turbine blades and towers in Izmir and solar energy equipment in Istanbul and surrounding regions, has grown significantly. This shift not only supports Türkiye’s sustainability goals but also positions its Free Zones as key players in the global renewable energy market.

Development in luxury yacht and shipbuilding

The luxury yacht and shipbuilding industry has also witnessed significant growth in Türkiye’s free zones, particularly in Antalya and Kocaeli. These zones have become key hubs for the maritime sector, offering specialized facilities for shipbuilding, maintenance, and repair. The strategic coastal locations of these free zones provide easy access to international maritime markets, further boosting Türkiye’s competitive advantage in the global luxury yacht industry.

Foreign investment in Türkiye’s free zones

Türkiye has seen a significant level of foreign investment in its free zones, with 25 percent of the companies operating in these zones being foreign-invested. This figure highlights the global appeal of Türkiye’s free zones, which offer businesses a range of financial, logistical, and operational advantages.

To further encourage foreign investment, Türkiye has entered into agreements with 17 countries to promote its free zones, facilitating easier access for international companies seeking to establish a presence in the Turkish market. This commitment to fostering a welcoming environment for foreign investors is key to Türkiye’s broader strategy to integrate into the global economy and attract international capital.

Why consider investing in Türkiye’s free zones

Türkiye’s free zones are emerging as crucial components of the country’s economic growth strategy, providing a wealth of opportunities for businesses across diverse sectors. With a focus on high-tech industries, renewable energy, manufacturing, and logistics, these zones are not only helping to boost exports but also positioning Türkiye as an attractive destination for both domestic and international investors.

By offering compelling tax benefits, operational flexibility, and access to strategic markets, Türkiye’s free zones are paving the way for continued economic development and global competitiveness.

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