Türkiye’s Technology and Investment Vision: The 2026 Entrepreneurship Incentive Package and Sectoral Opportunities

The Türkiye Century Investment Initiative, announced by President Recep Tayyip Erdoğan on 24 April 2026 under the Türkiye Century: Strong Centre for Investment Programme, includes a range of incentives and reforms designed to support technology entrepreneurship, increase exports of services, and strengthen Türkiye’s position as a regional investment hub. The announced package envisages significant measures across a broad range of areas, from tax incentives and venture financing to digital company models and the development of the technology ecosystem.

In this article, we provide a legal assessment of the measures that are particularly relevant to technology companies, software developers, entrepreneurs, and investors.

Tax Advantages for Service Exports and Istanbul Financial Center Regulations

Under the announced package, existing tax incentives are to be expanded in relation to income derived from services supplied abroad, including software development, information technology, data analysis, engineering, architecture, and design.

In this context, the aim is to support the competitiveness of companies providing services from Türkiye to international markets by increasing the tax exemption for income generated from service exports.

Separately, the scope of the tax incentives available to participants operating in the Istanbul Financial Center under the Istanbul Financial Center Law No. 7412 has also been expanded. Specifically, following an amendment to Provisional Article 1 of Law No. 7412, the rate applicable to the corporation tax exemption regulated by Article 6 of the Law has been set at 100 per cent for the 2022–2047 tax periods, with effect from 4 June 2026. The same amendment has extended from five years to twenty years the period during which financial activity fees are not collected from participants operating in the Istanbul Financial Center.

These amendments aim to position the Istanbul Financial Center as an international financial centre offering long-term tax and fee advantages to financial institutions that meet the relevant requirements. Eligibility for these incentives, however, depends on satisfying the operating conditions and participation criteria prescribed by the relevant legislation.

It is therefore important to conduct a separate legal assessment for each company to determine whether it is eligible for the incentives.

The Digital Company Model and Next-Generation Venture Financing

The announced package states that work will be carried out to move company formation and management processes entirely online. The proposed “digital company” model is intended to enable a wide range of corporate procedures, beginning with company formation, to be completed electronically.

In addition, with a view to facilitating investment processes for early-stage technology ventures in particular, SAFE (Simple Agreement for Future Equity)-style investment instruments, which are widely used internationally, are planned to be introduced into Turkish law. If implemented, this mechanism could enable ventures to use more flexible and rapid financing models when raising investment.

The package also announces work to encourage employee share option schemes; this measure is regarded as an important step towards retaining skilled workers within the entrepreneurship ecosystem.

The Terminal Istanbul Project

One of the projects intended to strengthen the technology ecosystem’s physical infrastructure is the Terminal Istanbul Project. The centre, which is to be created by repurposing the terminal buildings at Atatürk Airport, is planned to operate under the coordination of Bilişim Vadisi and host the entrepreneurship ecosystem.

According to the announcements, the centre will include entrepreneurship incubation programmes, accelerator programmes, research and development laboratories, and co-working spaces that bring investors and entrepreneurs together. The project is intended to support Türkiye’s objective of becoming a regional technology hub.

Expected Impact on Transit Trade and International Investors

It was also announced that the existing tax advantages for transit trade activities would be maintained under the Investment Initiative and that Türkiye’s position as a regional hub for international supply chains would be strengthened. Taken together, the reforms concerning tax incentives, digital company models, and venture financing indicate that Türkiye aims to create a more predictable and competitive investment environment for both domestic ventures and foreign investors.

Conclusion

The 2026 Entrepreneurship Incentive Package contains significant measures designed to support technology entrepreneurship, increase exports of services, and encourage international investment. The implementation of a substantial proportion of the announced measures will, however, depend on the preparation of secondary legislation and the completion of the relevant legislative amendments. It is therefore important that investment decisions and corporate structures be assessed under the legislation currently in force.

At Esenyel Partners, we provide legal advisory services to technology companies, ventures, and investors in relation to tax incentives, corporate structuring, investment transactions, and technology law. We continue to monitor developments concerning the implementation of new regulations closely and support our clients throughout their compliance processes.

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