Establishing a Software Company in Turkey: Advantages & Incentives

Establishing a software company in Turkey offers numerous advantages that can significantly benefit entrepreneurs and investors. As a leading law firm in Istanbul, Akkas & Associates Law Firm is well-positioned to guide you through the legal landscape of starting a business in this dynamic market.

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Advantages of Establishing a Software Company in Turkey

Establishing a software company in Turkey is a strategic decision that leverages the country’s unique advantages. Turkey’s geographical location as a gateway between Europe and Asia not only enhances market accessibility but also fosters international partnerships.

The favorable economic environment is bolstered by government incentives, such as tax breaks and grants specifically aimed at technology and software enterprises, which significantly reduce operational costs.

Furthermore, the country has a skilled workforce with a strong emphasis on STEM education, providing software companies with access to talented professionals eager to innovate. The burgeoning technology ecosystem in urban centers like Istanbul and Ankara, characterized by incubators and co-working spaces, facilitates collaboration and networking opportunities essential for growth.

Additionally, Turkey’s evolving legal and regulatory framework supports foreign investment, ensuring a transparent and fair business environment. With diverse funding opportunities available through government initiatives and private investors, entrepreneurs can secure the necessary capital to launch and expand their software ventures.

By choosing Turkey as a base for your software company, you position yourself to capitalize on these advantages while benefiting from expert legal guidance from firms like Akkas & Associates Law Firm.

Government Incentives

The Turkish government offers various incentives to encourage the establishment of software companies. These incentives include tax exemptions, grants, and subsidies for research and development (R&D) activities. Companies located in technology development zones (TechnoParks) benefit from additional tax advantages and support.

Free Zone Incentives for Software Companies in Turkey

Turkey offers lucrative incentives for businesses operating in designated Free Zones, designed to boost export performance and economic growth. Below are the details of the incentives based on your export figures.

Incentives for Reaching a Total Export Figure of USD 2.250 Million in the Last 3 Years

Achieving this milestone grants you access to a range of benefits that significantly reduce operational costs and enhance business profitability.

• Rent Support: Up to USD 75,000 with a 50% rent support for 5 years (provided an annual export of USD 1 Million and increasing).
• Personnel Salary Support: USD 150,000 total support for 10 personnel salaries for 5 years (provided an annual export of USD 1 Million and increasing).
• License Period: 20 years.
• Tax Exemptions:
• 100% Corporate Tax Exemption.
• 100% Income Tax Exemption for Personnel (covers all personnel working in the free zone).
• 100% VAT and Stamp Tax Exemption.
• 100% Customs Duty Exemption.
• Social Security Contribution Support: 35% Employer’s Social Security Contribution Support for 7 years (provided an Investment Incentive Certificate is obtained).

Incentives for Not Reaching a Total Export Figure of USD 2.250 Million in the Last 3 Years

If your business has not yet reached the USD 2.250 million export figure in the last 3 years, you are still eligible for significant incentives.

• License Period: 3 years.
• Tax Exemptions:
• 100% Corporate Tax Exemption.
• 100% Income Tax Exemption for Personnel (covers all personnel working in the free zone).
• 100% VAT and Stamp Tax Exemption.
• 100% Customs Duty Exemption.

Note: At the end of 3 years, if you demonstrate an increasing performance with an annual export of not less than USD 1 Million, you can apply for rent and salary support with a 17-year license. You are not entitled to rent and salary support for the first 3 years.

How to Apply for Free Zone Incentives

Applying for these incentives involves a streamlined process designed to facilitate easy access for eligible businesses. Our experts at Akkas & Associates Law Firm are here to guide you through each step, ensuring that you maximize the benefits available to you.

1. Eligibility Check: Determine if your business meets the export criteria for the desired incentives.
2. Documentation: Prepare and submit the required documents, including proof of export performance.
3. Application Submission: Submit your application to the relevant authorities.
4. Approval and Implementation: Once approved, implement the incentives to reduce costs and enhance profitability.

Why Choose Akkas & Associates Law Firm

At Akkas & Associates Law Firm, we specialize in helping businesses navigate the complexities of Free Zone incentives in Turkey. Our experienced team offers tailored support to ensure you make the most of the available benefits.

• Expert Guidance: Benefit from our deep understanding of the regulatory landscape and incentive programs.
• Comprehensive Support: From eligibility checks to application submission, we provide end-to-end assistance.
• Maximize Benefits: Ensure your business takes full advantage of all available incentives to boost growth and profitability.

Strategic Location

Turkey’s geographical position serves as a bridge between Europe and Asia, providing access to a vast market of over 1.5 billion consumers. This strategic location facilitates trade and collaboration with various international markets, making it an ideal base for software companies looking to expand their reach.

Favorable Economic Environment

Turkey has been recognized for its growing economy and supportive government policies aimed at fostering entrepreneurship. The Turkish government offers various incentives for technology and software companies, including tax reductions, grants, and subsidies. These measures are designed to encourage innovation and attract foreign investment.

Skilled Workforce

Turkey boasts a young, tech-savvy population with a strong emphasis on education in science, technology, engineering, and mathematics (STEM). This results in a pool of skilled professionals who can contribute to the growth of software companies. The availability of qualified talent ensures that businesses can find the right employees to drive their projects forward.

Growing Technology Ecosystem

The Turkish technology sector is rapidly evolving, with numerous incubators, accelerators, and co-working spaces emerging in major cities like Istanbul, Ankara, and Izmir. This vibrant ecosystem supports networking, collaboration, and access to resources, making it easier for software companies to thrive.

Legal and Regulatory Framework

Navigating the legal landscape is crucial for any business. Turkey has made significant strides in improving its legal framework to support foreign investments. Establishing a software company in Turkey involves clear regulations that promote transparency and fairness. Akkas & Associates Law Firm specializes in guiding clients through the complexities of Turkish business law, ensuring compliance with all legal requirements.

Access to Funding

Turkey offers various funding opportunities for startups and technology companies. Government-backed initiatives, venture capital firms, and angel investors are increasingly interested in supporting innovative software solutions. This access to funding can be pivotal for new companies looking to scale their operations.

Conclusion

Establishing a software company in Turkey presents a unique opportunity for entrepreneurs and investors. With its strategic location, favorable economic environment, skilled workforce, and supportive legal framework, Turkey is an attractive destination for tech businesses.

At Akkas & Associates Law Firm, we are committed to providing the necessary legal support to help you navigate this promising landscape and achieve your business goals.

Contact us for Establishing a Software Company in Turkey

Establishing a software company in Turkey presents significant benefits, including strategic market access, cost efficiency, and robust government support. The country’s dynamic tech ecosystem, combined with a skilled workforce and advanced infrastructure, creates an ideal environment for software businesses to thrive.

Additionally, Turkey’s favorable business climate, comprehensive legal framework, and extensive trade agreements with emerging markets make it a prime destination for tech entrepreneurs. For expert legal guidance on setting up your software company in Turkey, contact Akkas & Associates Law Firm today.