The Istanbul Financial Center ("IFC") is designed as two distinct sections: an office area where financial institutions will operate, and an ancillary area containing commercial and social units that will meet the daily needs of employees:
- Office Area: Natural and legal persons, along with their branches and representative offices, ordinary partnerships, liaison offices, regional management centers, and national asset funds may operate within the office area of the IFC. Office area occupiers, referred to as "participants," may benefit from the incentives and simplified procedures provided for in the Istanbul Financial Center Law No. 7412 ("IFC Law") under certain conditions. Pursuant to Article 3 of the IFC Law, a participant certificate is required to operate in the office area.
- Excluded Area: Businesses that can meet the daily needs of employees working at the IFC and visitors are located in the excluded area. These businesses cannot benefit from favorable regulations established for participants regarding taxation, foreign worker employment, and record keeping.
In addition to the advantages provided by participation alone, transactions recognized as "financial services exports" under the IFC Law may benefit from additional incentives. Financial services provided by financial institutions (i) to persons residing abroad and (ii) ultimately benefiting persons abroad are considered financial services exports. Furthermore, financial institutions are given priority in participant certificate applications.
Operations recognized as financial activities under the IFC Law are listed in the Annex with reference to the relevant provisions of the legislation.
Annex: Legal Entities Engaged in Financial Activities Under the IFC Law
| Legislation listed in Article 2, Paragraph 1(a) of the IFC Law | Legal entities conducting the relevant activity |
|---|---|
| Law No. 1567 on the Protection of the Value of Turkish Currency |
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| Law No. 4632 on the Individual Pension Savings and Investment System |
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| Banking Law No. 5411 |
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| Law No. 5464 on Bank Cards and Credit Cards |
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| Insurance Law No. 5684 |
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| Law No. 6361 on Financial Leasing, Factoring, Financing, and Savings Financing Companies |
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| Capital Markets Law No. 6362 |
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| Law No. 6493 on Payment and Securities Settlement Systems, Payment Services, and Electronic Money Institutions |
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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.
