Teknokent 0% Corporate Tax
100% corporate income tax and VAT exemptions on software development revenue inside certified Technology Zones.
RECOMMENDED ENTITY
Limited Liability Company (LLC)
The gold standard for tech companies, angel investment rounds, Teknopark incubation approvals, and developer work permits.
OFFICE REQUIREMENTS
Virtual or Commercial Office
Virtual office initially, or an approved dedicated workspace inside a certified Teknopark.
REQUIRED LICENSES
- Software & IT NACE Activity Commercial Registration
- Electronic Signature (E-İmza) and Tax Verification
- Teknopark Admission Application (for Zone-specific tax exemptions)
- Multi-Currency Corporate Bank Accounts (USD, EUR, GBP)
SECTOR HIGHLIGHTS
Key Operational Strengths
80% Export Service Tax Deduction
Software and IT services billed to international clients outside Turkey qualify for an 80% corporate tax base deduction.
Expedited Work Permits for Developers
Fast-tracked work permit criteria for foreign engineers, product managers, and developers.
TAX INCENTIVES & EXEMPTIONS
Sector Tax Advantages in Turkey
✓ Software Export Profit Deduction
80% tax deduction on taxable profits generated from international software and design contracts.
✓ 0% VAT on International Software Licenses
Full VAT exemption on software licenses and cloud services invoiced to foreign clients.
FORMATION JOURNEY
Ready in 4 Seamless Steps
STEP 01
Tailored IT Articles of Association
Drafting corporate objects to perfectly align with Teknokent requirements and software export tax incentives.
STEP 02
Commercial Registry Incorporation
Registering at the Istanbul Chamber of Commerce and securing official tax identification.
STEP 03
Teknokent & Incentive Structuring
Preparing technology incubation applications and setting up international invoicing workflows.
STEP 04
Banking & Work Permits
Activating corporate international banking and processing founder/developer work permits.
BARUT GROUP / CORPORATE INTELLIGENCE
Which Corporate Entity Fits Your Business?
Compare legal liability, partnership flexibility, and tax structures to choose the ideal business vehicle in Turkey.
Select Your Profile:
Sole Proprietorship
Sole Proprietorship
Fast single-person registered enterprise.
Legal & Financial Liability
Unlimited (Personal assets are fully liable)
Foreign Partner Capacity
Strictly 1 person (Cannot add partners)
Work Permit Feasibility
Restricted and higher scrutiny
Tax Structure
Progressive Income Tax (15% to 40%)
Best Suited For
Freelancers, independent consultants, and early-stage solo e-commerce sellers.
MOST POPULAR FOR FOREIGN INVESTORS
Limited Liability Company (LLC)
Limited Liability (LLC)
The standard flexible corporate vehicle for international business.
Legal & Financial Liability
Shareholder liability is limited as a general rule, subject to statutory exceptions including certain public debts and the duties of managers and legal representatives.
Foreign Partner Capacity
1 to 50 partners (Allows 100% foreign ownership)
Work Permit Feasibility
Foreign partner or manager work permit eligibility is assessed under prevailing statutory criteria and individual merits. Company formation alone does not guarantee a work permit or residence.
Tax Structure
Standard Corporate Tax rate is 25% (updated 2026), with deductibility of tax-allowable expenses under statutory conditions and supporting documents, subject to sector exemptions.
Best Suited For
E-commerce, import/export, tech startups, logistics, consulting, and growth companies.
Joint Stock Company (JSC)
Joint Stock (A.Ş.)
Large-scale capital projects and structured share transfers.
Legal & Financial Liability
Shareholder liability is generally limited to committed share capital, without prejudice to liabilities arising from management, legal representation, or personal guarantees.
Foreign Partner Capacity
1 person to unlimited shareholders
Work Permit Feasibility
Eligibility of board members and foreign directors is assessed under statutory regulations; no guaranteed outcome is implied.
Tax Structure
Standard Corporate Tax rate is 25% (updated 2026), with allowable expense deductions and statutory share transfer exemptions where applicable.
Best Suited For
Industrial manufacturing, investment funds, holding structures, and corporate ventures.
FAQ
Frequently Asked Questions
Can a tech company outside Teknoparks still get tax benefits in Turkey?
Yes! Under Turkish tax law, companies that export software, design, or data analytics services to clients abroad enjoy an 80% corporate tax deduction.
SECTOR DIRECTORY
Explore Other Business Sectors
Explore sector-specific tax exemptions, regulatory compliance, and setup requirements in Turkey.
01E-Commerce & Digital Marketplaces
Start an E-Commerce Company in Turkey 2026
LLC Incorporation, E-Invoice (E-Fatura), ETBİS Registration for Amazon, Etsy & Trendyol
02Import, Export & Global Trade
Incorporate an Import & Export Company in Turkey 2026
Customs Registration, Exporters Association Membership & VAT (KDV) Refund Management
03Freight & Logistics
Establish a Freight & Logistics Company in Turkey
Ministry of Transport TİO Licensing, Forwarding Operations & Zero VAT Invoicing
04Tourism & Travel Agency
Establish a Tourism Agency in Turkey & TÜRSAB License
Group A Travel Agency Certification, Medical Tourism Accreditation & Tour Operator Setup
05Liaison Office & Foreign Branch
Open a Liaison Office or Branch in Turkey 2026
0% Corporate Tax, 0% Expat Salary Income Tax, and Market Intelligence Operations