Turkey Technoparks: Tax Exemptions for Software Firms

Offering 100% VAT and Corporate Tax exemptions for software development, TGBs are the engine of the "Turcorn" boom through 2028.

Türkiye’s 92 Technology Development Zones (TGBs), commonly known as Technoparks, have become the primary breeding ground for the nation’s explosive software, gaming, and biotech sectors. These zones are not just office parks; they are integrated ecosystems where universities, the private sector, and the government collaborate under a single roof. As of early 2026, the incentives within these zones have been extended and refined, making them one of the most competitive environments globally for the digital economy.

The fiscal regime within a Technopark is designed to maximize the "reinvestment of profit" into innovation. Profits derived specifically from software development, R&D, and design activities are 100% exempt from income and corporate taxes until December 31, 2028. Furthermore, the sale of application software produced within these zones—ranging from systems management to mobile games—is 100% exempt from VAT. For a high-growth SaaS (Software as a Service) or gaming company, these exemptions provide a massive boost to cash flow, allowing them to scale their engineering teams and marketing budgets far faster than their competitors in Western Europe.

Technoparks also offer a sanctuary for human capital. The wages of R&D, design, and support personnel (up to 10% of the total R&D workforce) are exempt from all taxes until 2028, and the state covers 50% of the employer’s share of Social Security (SGK) premiums. In the 2025-2026 period, new regulations have been introduced to facilitate the employment of foreign experts and the transfer of venture capital, ensuring that the 7 existing "Turcorns" (billion-dollar startups) are soon joined by many more.