Technopark Company Setup in Turkey: R&D Incentives

A Turkish Technology Development Zone, commonly called a Technopark or Teknokent, is not a special company type. The business remains an LLC or JSC, but an approved R&D, design or software project operates within a zone governed by Law No. 4691 and the zone management company’s controls.

Foreign ownership does not prevent admission. It also does not guarantee admission or incentives. The project must pass the selected zone’s technical and commercial evaluation, the company must follow zone and Ministry reporting, and qualifying income and personnel time must be separated from ordinary business.

What the Technopark Regime Can Provide

The current statutory period for the principal Law No. 4691 tax incentives runs through December 31, 2028. The current text of Law No. 4691 should be checked together with the applicable secondary rules and Presidential decisions.

Corporate tax exemption

Income derived from qualifying software, design and R&D activities carried out in the zone can be exempt from corporate tax during the statutory period. This is a project-income exemption, not a company-wide status. Hardware resale, routine consultancy, maintenance unrelated to the approved project, financing income and other commercial activities require separate classification.

The company should calculate qualifying project revenue and directly related costs, then allocate shared payroll, rent, cloud, management and financing expenses on a supportable basis. Keeping all income in one accounting account is not enough.

Personnel income tax withholding incentive

The incentive applies to qualifying R&D, design and support personnel for documented work connected with approved zone activities, subject to statutory limits and time records. It is administered through payroll withholding; it should not be described loosely as every developer receiving a completely tax-free salary.

Support personnel are subject to a percentage cap, with a special rule for smaller zone firms. Role descriptions, education/experience evidence, project assignment and working time should match the zone portal and payroll.

Employer social security support

Qualifying personnel can generate support for a portion of the employer’s social security premium under the linked R&D incentive framework and its limits. The payroll file must distinguish the supported days and earnings. Employee SGK, unemployment insurance and unsupported amounts do not disappear.

VAT treatment for specified software deliveries

VAT Law Temporary Article 20 provides an exemption for deliveries of specified software produced in a Technology Development Zone. The statutory categories, place of production and nature of the delivery matter. It is not a blanket VAT exemption for all invoices issued by a Technopark tenant, all SaaS income or hardware bundled with software.

Exported services can separately be tested under the ordinary VAT service-export rules. Corporate tax exemption and VAT exemption should be documented under their own legal conditions.

Admission Is Project-Based

Each zone publishes its own application portal, evaluation timetable, office options and commercial terms. A typical proposal addresses:

• the technical problem and existing alternatives;
• the project’s innovative or R&D content;
• work packages, milestones and measurable outputs;
• personnel qualifications and time plan;
• intellectual property and commercialization plan;
• budget, funding and expected revenue; and
• why the work fits the zone’s focus.

Routine coding capacity, ordinary web design or an untested tax-saving narrative may not demonstrate R&D or innovation. The application should be written by the technical team and reconciled with the commercial and accounting model.

Company Formation Before or After Approval

Some zones accept preliminary applications from founders or an existing foreign business; others expect a Turkish legal entity at a particular stage. The answer is zone-specific. Do not incorporate, lease space or promise an incentive start date until the chosen management company confirms its process in writing.

Where a new Turkish LLC is used, the formation plan should cover foreign shareholder documents, TRY 50,000 statutory minimum capital, manager authority, bank KYC, registered address and payroll. The Technopark lease or allocation does not automatically solve every formation or banking step.

Step-by-Step Setup

1. Compare the standard exporter and zone models

Prepare a tax and cost model using realistic qualifying profit, rent, application timing, payroll, reporting and non-project revenue. A standard software exporter may qualify for the KVK 10/1-ğ deduction without zone admission; see our software company tax guide.

2. Select the zone and obtain its current rules

Confirm focus areas, application entity, evaluation fees, office availability, remote-work implementation, reporting and post-approval timetable. These are not uniform across all Technoparks.

3. Submit an evidence-based project

Define scope, novelty, personnel, milestones, IP, costs and outputs. Separate any routine support, sales, licensing or implementation activity that is not part of the R&D case.

4. Complete entity and lease requirements

After approval at the correct stage, form or register the Turkish entity as required and execute the zone occupancy arrangement. Align the company activities, project approval and lease.

5. Register personnel and accounting dimensions

Create project codes, personnel assignments, time records and payroll controls before incentives are claimed. Map invoices and expenses to approved and non-approved activity.

6. Maintain monthly evidence

Reconcile zone portal time, payroll, SGK, invoices, project milestones and accounting. Changes in staff, project scope, remote work or completion dates should be reported through the applicable process.

Remote Work Outside the Zone

Law No. 4691 permits specified outside-zone working time to retain income-tax withholding incentives within limits set by legislation and Presidential decisions. The percentage can differ by personnel category and period. It is therefore unsafe to promise a permanent 75% or 100% allowance in a static article.

Outside-zone time must be authorized, recorded and matched to the project and payroll. A company-wide remote-work policy does not by itself preserve the incentive. Check the current rate for the payroll month and the zone management company’s documentation method.

Technopark vs Free Zone

A Technopark is designed around approved technology, software, design and R&D projects. A free zone is a geographically defined customs and trade regime often used for manufacturing, storage and international goods transactions. Neither is simply “better”; the product, revenue, staff and import/export chain determine fit. Compare the structures in our free zones guide.

Common Accounting Failures

The largest risks are usually operational:

• treating every company invoice as exempt;
• failing to allocate shared expenses;
• claiming personnel incentives for unsupported time;
• using project staff on routine commercial work without separation;
• applying the special software VAT exemption to a non-listed delivery;
• continuing incentives after a project or approval period ends; and
• allowing zone portal, payroll and accounting records to disagree.

The SMMM, payroll team, project manager and zone administrator should close each month from the same data set.