Turkey: Free Trade Zones İn Turkey

Free trade zones have been established in Turkey after the entry of the Free Trade Zones Law No. 3218 (FZL) in force in 1985. This article is intended to provide a general information about the legislation concerning the free trade zones in Turkey and their advantages.

Free trade zones are the areas which are exempted from the laws regarding foreign trade regime and which are generally located near an international port or airport. These zones are considered as outside of customs areas and these are principally export-oriented.

The objectives of free zones are

  • increasing foreign trade volume,
  • facilitate the import and export,
  • accelerate the technology transfers into the counrty.

In this regard, free zones are established on the purpose of increasing the foreign investments and technology in the country.

Advantages of Free Trade Zones

Free zones provide numerous advantages and facilitations to investors and users, these are stated below:

1- Tax-related advantages for manufacturers

The free zones provide many opportunities regarding tax liability:

  • The revenue of the manufacturers in free trade zones which have been retained through sales of products they produced in free trade zones are exempted from income or corporation tax.
  • Furthermore, the salaries of employees which are employed by users exporting at least 85 % of FOB value of the goods produced in free trade zones are exempted from income tax.
  • Transactions and documents regarding the operations in free trade zones are also exempted from stamp duty and charges.

These advantages are in force until the end of the taxation period in which Turkey becomes full member of the European Union. (temporary Art. 3 of FZL).

2- Possibility of transfer profits

The transfer of revenue from free trade zones to Turkey or abroad is not subject to any permission.

3- Trade facilities

The goods in free trade zones are subject to the export regime. Therefore, the users do not need to pay VAT by purchaise of services and goods from Turkey. However, it is possible that the goods with turkish origin the value of which does not exceed 5.000 USD are not subject to the export regime upon request. (Art. 8 of FZL)

4- Opportunity for medium and long term planning

Free trade zones give the opportunity of medium or long term planning for users. The Law provides the following validity periods of an operating license:

for tenant users 15 years,

for manufacturer tenant users 20 years,

for investor users 30 years,

for manufacturer-investor users 45 years.

Building plans and buildings on land of the Treasury can be leased or assigned until 49 years for the investors.

5- Advantages concerning customs duty

The goods in free circulation are exempted from customs duty which are sent to Turkey or to the EU countries from the free zones. Furthermore, the goods of third country origin are also exempted from customs duty.

6- Delivery of free movement documents

Since free zones are considered as part of "Customs Territory of Turkey-EU", the goods of Turkish or EU origin and the goods in free circulation in Turkey can be sent to the EU with an A.TR certificate. This certificate indicates that the related goods are subject to the Customs Territory and therefore in free circulation.

Moreover, the goods of third country origin can be sent to the EU with an A.TR certificate after the payment of customs duty.

7- Equity Principal

All local and foreign firms may benefit from the facilitations and advantages provided in free zones equally regardless their origin. The tax-exempt facilitations stated by Council of Ministers are also available for operators and users during investment and production stages.

8- Managing trade activities according to market demands and possibility of payment with foreign currency

In free trade zones, any authority concerning prices, quality and standards allowed to public institutions by laws are not valid unless the manufacturers demand.

Furthermore, every payment regarding the transactions in free zones is done with foreign currency.

9- Access to local and international market

There are no restrictions imposed regarding the trade between free zones and third countries and regarding the import/export. Only the sales of the risky goods and consumer goods from free zones into Turkey are subject to restrictions.

10- Minimized bureaucracy

All kinds of bureaucracy in free zones during application process and operation are minimized. Free zones are managed by professional private sector companies.

11- Strategical advantages

Turkish Free Trade Zones are established close to the strategical relevant areas such as EU and Middle East Markets, the major Turkish Ports on the Mediterranean, Aegean and Black Sea. Furthermore, free trade zones are located adjacent to international airports and highways, cultural and touristic centers.

12- Infrastructure possibilities

Infrastructure of the Turkish free trade zones is in similar standards with free zones in developed countries.

13- Income tax is not deducted from the salaries of employers in free trade zones.

Operation in free zones

According to art. 5 of FZL real persons or legal entities may operate in free trade zones provided that they obtain operating license. The application process for an operation license is regulated in Free Zone Regulation in art. 11 and in related circular. The operation license can be obtained from the Free Zones General Directory (FZGD).

Persons and legal entities with an operating license may operate in all kinds industrial, commercial services which are regarded as appropriate by Higher Planning Council. (Art. 4 FZL)

There are 21 free zones in Turkey. Their major fields of activities are trade, production, offshore banking, banking, rental, insurance and financial leasing.


The advantages and facilitations, especially tax and customs duty advantages in Turkish Free Zone Laws provide the increase of costs of production for firms, and the accelerate of import and export in Turkey. In conclusion, due to all above mentioned advantages, Turkish Free Trade Zones have become an attractive investition area for foreign and domestic investors.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Bereket & Baltaci
Herdem Attorneys at Law
Herdem Attorneys at Law
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Bereket & Baltaci
Herdem Attorneys at Law
Herdem Attorneys at Law
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions