President Recep Tayyip Erdoğan on Friday announced a series of tax incentives and reforms aimed at boosting investment and strengthening Türkiye’s position as a global economic hub, while warning of mounting uncertainty in the world economy.
Speaking at the “Türkiye Century Investment Program,” Erdoğan said both the region and the global economy were going through a period of intense volatility, with wars and shifting dynamics reshaping markets.
“The war has shaken energy markets and many sectors are feeling its impact,” he said, adding that recent developments recalled the instability seen during the კორონავირუს pandemic.
Erdoğan said Türkiye was working with allies to promote peace in the face of escalating conflicts, warning that neither the region nor the global order would return to its previous state.
He argued that the changing global economic landscape was elevating Türkiye into a “key country” and a major pole in an emerging multipolar world.
As part of new measures, Erdoğan said Türkiye would expand tax advantages for companies operating at the Istanbul Financial Center and eliminate corporate tax on certain international trade activities conducted there.
He added that profits from transit trade carried out abroad would be fully exempt from corporate tax, while companies operating outside the centre would benefit from significant exemptions.
Corporate tax for manufacturing exporters would be reduced to 9 percent and to 14 percent for other exporters, he said, while additional steps would aim to attract foreign-held assets back into the domestic economy.
Erdoğan also said individuals who had not been tax residents in Türkiye for the past three years would be exempt from taxes on foreign income for 20 years if they relocate to the country.
The government would also introduce measures to facilitate financing, including easing mechanisms for convertible debt instruments and making employee stock options more attractive.
Erdoğan said Türkiye’s economy had reached $1.6 trillion in size and pledged further steps to transform the country into a regional hub for startups and venture capital.
