We’re covering an important topic for technology companies considering investment in Türkiye: Technology Development Zones (technoparks) and the tax incentives available in these regions.

For software and technology firms, corporate tax exemptions and VAT incentives can create significant advantages. Let’s take a closer look.

What Is the VAT Exemption?

In Türkiye, software developed within technoparks—including system management, data management, business applications, internet, gaming, mobile, and even military software—is exempt from VAT.

This means if your software is developed in a technopark, you do not charge VAT when selling it.

Also, if a technopark is simultaneously designated as a free zone, this does not affect the VAT exemption.

If you pay VAT on inputs for your projects, you may deduct it, but you cannot request a refund.

In summary, companies operating within technoparks continue to enjoy both corporate income tax exemptions and VAT exemptions.

What Happens If a Company Leaves the Technopark?

This part is critical. Once your company leaves a technopark, even if you generate revenue from projects developed earlier, the tax benefits end.

  • Corporate Tax: Profits earned in a technopark are exempt from corporate income tax until December 31, 2028. The general corporate tax rate in Türkiye is 25%. However, once you exit a technopark, you can no longer benefit from this exemption—even if you continue selling projects developed there.
  • VAT: Sales of projects developed inside technoparks are VAT-exempt. But once sold outside, VAT must be applied.

In short, these incentives are valid only as long as you remain within a technopark.

What About Domain, Hosting, and SSL Sales?

A common question is: “Are domain, hosting, and SSL services also VAT-exempt?”

The answer is no.

  • Domain registration, web hosting, and SSL certificates are not considered “software.”
  • Therefore, they are always subject to VAT, even if provided within a technopark.
  • The same rule applies whether these services are sold directly or through resellers.

Key Takeaways

Türkiye’s technoparks offer strong tax advantages for technology companies.

Software projects developed in technoparks benefit from corporate income tax exemptions and VAT exemptions, creating a significant edge.

These incentives do not extend outside the technopark.

If you’re planning to invest in Türkiye, it’s essential to structure your company and project timelines with these benefits in mind.

We hope this article clarifies how technoparks can benefit your business in Türkiye.

If you’re considering investment and would like to learn more, feel free to leave your questions in the comments.

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Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.