Türkiye has introduced a dedicated legal and tax incentive framework under Law No. 7412 on the Istanbul Financial Centre (“IFC”) with the objective of positioning Istanbul as a regional financial hub.

With the amendments introduced by Law No. 7582, which entered into force on 4 June 2026, the scope and duration of several incentives have been significantly expanded.

Strategically located at the crossroads of Europe, the Middle East, Central Asia and Africa, the Istanbul Financial Centre offers an attractive ecosystem for international investors and financial institutions seeking to conduct regional operations through Türkiye.

Key Tax Incentives

100% Corporate Tax Deduction on Export of Financial Services

One of the most significant incentives available under the IFC regime is the 100% deduction from the corporate tax base of income derived by certified financial institutions from financial services provided to non-residents.

Following the amendments introduced by Law No. 7582, this incentive has been extended until 22 June 2047.

To qualify as an export of financial services, the service must:

• be provided to a non-resident;
• ultimately benefit a person outside Türkiye.

Transactions carried out by institutions on their own account, including derivatives transactions and purchases or sales of assets for their own portfolios, activities transferring the savings of Türkiye-resident persons abroad, and services provided to domestic customers do not fall within this scope.

International Trade and Transit Trade

IFC participants may benefit from a 100% corporate tax deduction on income derived from selling goods purchased from abroad without bringing them into Türkiye, or from intermediating in the purchase and sale of goods located abroad.

The transaction must take place entirely outside Türkiye and the relevant income must be transferred to Türkiye by the deadline for filing the corporate tax return.

Income Tax Exemption for Qualified Employees

Employees working at the IFC who have acquired professional experience abroad may benefit from significant income tax exemptions on their salaries:

• 5+ years of overseas professional experience: 60% exemption
• 10+ years of overseas professional experience: 80% exemption

The employee must also not have worked in Türkiye during the three years preceding their employment at the IFC.

BSMV, Stamp Duty and Fee Exemptions

Transactions falling within the scope of financial service exports are exempt from Banking and Insurance Transactions Tax (BSMV), while the relevant documents are exempt from stamp duty and certain fees.

The exemption from financial activity fees has also been extended from 5 years to 20 years under Law No. 7582.

A New Regime: Qualified Service Centre

One of the notable changes introduced by Law No. 7582 is the Qualified Service Centre regime.

This regime is designed to encourage multinational companies operating in at least three countries and generating at least 80% of their annual revenue from related companies abroad to relocate their regional management functions to Türkiye.

Eligible entities operating at the IFC may deduct 100% of their foreign-source income from the corporate tax base, with the incentive available for up to 20 fiscal years.

In addition, qualified service centre employees may benefit from a full income tax exemption on the portion of their salary up to five times the gross minimum wage.

Operational Advantages

• the ability to maintain accounting records in a foreign currency;
• the ability to choose foreign law in certain contracts;
• the ability to execute contracts and correspondence in foreign languages (i.e. Law No. 805 shall not apply);
• a “One-Stop Office” facilitating company establishment, tax registration, work permits and licensing processes through a single digital portal; and
• priority and exceptional treatment for work permit applications of foreign employees.

Who Can Benefit from the IFC Regime?

The incentives are not automatically available to every company operating at the IFC.

Companies must obtain an IFC Participant Certificate, and their activities must fall within the categories of activities eligible for incentives under the IFC legislation.

Depending on the nature of the activity, eligible entities may include:

• Regional treasury and financial management centres operating actively in at least three countries;
• Banks and participation banks;
• Investment firms, portfolio management companies and licensed entities providing investment services;
• Insurance and reinsurance companies;
• Financial leasing, factoring and financing companies;
• Payment and electronic money institutions and licensed fintech companies; and
• Private pension companies.

For each specific activity, the licensing and permit requirements of the Capital Markets Board (CMB), Banking Regulation and Supervision Agency (BRSA), Central Bank of the Republic of Türkiye (CBRT), or other relevant regulatory authorities must also be assessed.

A Key Point for Investors

The IFC incentives should not be viewed as automatic tax exemptions simply based on having an office at the Centre.

The business model must be structured in compliance with the IFC legislation, the relevant licences and permits must be obtained, an IFC Participant Certificate must be secured, qualifying income must be separately reported in the corporate tax return, and the applicable conditions must continue to be satisfied.

Investment funds, private equity structures, venture capital investments, group financing companies, fintech models and cross-border investment platforms require case-by-case assessment of their tax and licensing position.

written by GTO Law & Consultancy, our Interact Law member in Türkiye.