Istanbul Free Trade Zones for Foreign Investors

Free zones near Istanbul: where they fit

Turkey’s free zones (Serbest Bölgeler) can support customs operations and provide tax advantages for qualifying activities. The benefit depends on the activity licence, transaction and current legislation; a free-zone address alone does not make a company tax-exempt. This guide focuses on Istanbul and nearby Marmara locations. For the national overview, see our investment incentives in Turkey guide and free zones in Turkey service page.

What Are Free Trade Zones in Turkey?

Free zones are designated areas subject to the customs and tax rules in Law No. 3218 on Free Zones. The Ministry of Trade issues operating licences and publishes the current zone list. Customs treatment and tax incentives depend on the goods, activity, licence and transaction; an operator should confirm the applicable rules before committing to a site.

Key Free Trade Zones Near Istanbul

The Ministry of Trade lists several zones across Istanbul and the surrounding Marmara region. These locations are separate operating areas; names and facilities should be confirmed with the relevant regional directorate or operator before an application.

Istanbul Specialization Free Zone (Istanbul İhtisas)

This zone is at the former Atatürk Airport site on Istanbul’s European side. The regional customs directorate describes its focus as software, information technology and high-technology production. Confirm that the proposed activity fits the current licence categories.

Istanbul Industry and Trade Free Zone (Istanbul Endüstri ve Ticaret)

This zone is in the Aydınlı-Orhanlı area of Tuzla, on Istanbul’s Asian side. Its location may suit businesses assessing the eastern Istanbul and Kocaeli supply corridor. Site availability, permitted activity and logistics arrangements require direct confirmation with the operator.

Istanbul Thrace Free Zone (İstanbul Trakya)

The zone is in Çatalca, on Istanbul’s European side. Check the exact premises, transport route and available capacity with the regional directorate and operator; do not rely on general claims about plot size or available facilities.

Other Marmara options

The European Free Zone (Avrupa Serbest Bölgesi) is in Tekirdağ, while Kocaeli and Bursa also have free zones. The Ministry’s official free-zone overview and current zone list are useful starting points. They do not replace confirmation of current premises, operating permissions or commercial terms with the relevant operator.

Tax Benefits and Incentives

Free-zone benefits are conditional. The 2026 amendment to Law No. 3218 changed the scope of the income and corporate-tax exemption for qualifying producer companies:

Corporate Tax Exemption

• The treatment of companies holding operating licences issued before February 6, 2004 depends on the applicable transitional provisions and licence conditions; confirm eligibility and expiry with a tax adviser.

• For qualifying production activity, the exemption applies to earnings from goods produced in the zone and sold abroad, within the conditions of the applicable law.

• From January 1, 2026, the amended rule also covers qualifying sales by producer companies to the same free zone and other free zones. Do not calculate the exemption from a simple export-revenue percentage without checking statutory conditions and accounting allocation.

VAT Exemption

• Qualifying deliveries of goods to a free zone may be treated as exports for VAT purposes; the treatment depends on the transaction and its documentation.

• Services are not all exempt merely because they are supplied in a free zone. Check the statutory provision and the nature and place of the service.

• Goods entering from abroad are handled under the customs regime applicable to the zone. A later entry into Turkey’s customs territory is an import and may trigger customs duty and VAT.

Customs Duty Exemption

• Goods entering a free zone from abroad are handled under the applicable customs regime; do not assume every movement or service is duty-free.

• Storage periods and other customs conditions depend on the applicable regime and goods; confirm them with the zone operator and customs adviser.

• Origin rules apply when goods enter Turkey’s customs territory from the FTZ

Income Tax Exemption on Wages

• The wage withholding exemption is limited to qualifying production activity and the statutory export threshold and calculation rules. Confirm the current conditions for the company, licence, employees and period before including a payroll saving in a business case.

• Do not assume a fixed payroll saving: confirm the current statutory conditions, production licence, export calculation and employee scope first.

Other Financial Benefits

• Certain documents and transactions may qualify for stamp-tax exemptions under the law; verify that the specific document and activity meet the conditions.

• Property-related tax treatment depends on the property, activity and statutory conditions; do not assume a blanket exemption.

• Profit and capital transfers remain subject to applicable foreign-exchange, tax and reporting rules.

• Foreign-exchange, tax and reporting rules continue to apply to transactions involving a free zone.

How to Set Up Operations in a Free Trade Zone

Step 1: Choose the Right FTZ

Select an FTZ based on your industry, space requirements, logistics needs, and proximity to suppliers or customers.

Step 2: Apply for an Operating License

Submit an application to the Ministry of Trade, General Directorate of Free Trade Zones. Required documents include your registering a company in Turkey records and:

• Application form and business plan

• Company registration documents

• Financial statements

• Investment plan and projected employment

Step 3: Lease or Build Facilities

You can lease existing office space, warehouses, or production facilities within the FTZ, or build your own facility on designated plots.

Step 4: Begin Operations

Once your operating license is approved, you can begin commercial activities. FTZs have their own customs administrations for accelerated import and export customs clearance.

Activities Allowed in Free Trade Zones

• Manufacturing: Production of goods for export or Turkish domestic market

• Trading: Import, export, and re-export of goods

• Warehousing and logistics: Storage and distribution operations

• Assembly: Product assembly from imported components

• Research and development: R&D activities with additional incentives

• Software and other services: Activity eligibility and tax treatment depend on the licence and applicable legislation; do not assume software work is treated as manufacturing.

• Banking and insurance: Financial services within FTZs

Key Considerations for Foreign Investors

Before selecting a zone, compare the licensed activity, usable premises, utilities, workforce access, route to port/airport, expected customs flows and the operator’s written commercial terms. The Ministry’s zone list confirms locations, not vacant capacity or a company’s eligibility for incentives.

Free zone vs. regular Turkish company

An FTZ operation makes the most sense when:

• Your primary focus is export-oriented manufacturing

• You need to store goods in transit between markets

• You want to avoid customs duties on imported raw materials for re-export

• You want to benefit from wage tax exemptions for manufacturing employees

FTZ May Not Be Ideal When:

• Your primary market is domestic Turkish consumers

• You provide services that don’t qualify as manufacturing

• Your business requires frequent physical presence in central Istanbul

The Ministry of Trade announced that Law No. 7577, published on April 17, 2026, expanded the producer income-tax exemption from January 1, 2026 to qualifying sales made to the same and other free zones. Review the Ministry’s current free-zone announcements and general free-zone guidance before relying on an exemption.