Turkey has announced a comprehensive reform package expanding tax incentives for transit trade, regional headquarters, and international operations, including exemptions within and outside the Istanbul Finance Centre to attract global investment and strengthen export competitiveness.
Turkish President Recep Tayyip Erdoğan announced, on 24 April 2026 during the “Powerhouse for Investments in the Turkey Century” programme, a comprehensive economic reform package in Istanbul aimed at strengthening the investment environment, supporting exports, and attracting international capital. The announcement was made.
According to the reform package, tax incentives for transit trade and international business activities will be significantly expanded. Within the Istanbul Finance Centre (IFC), a 100% corporate tax exemption (deduction) will apply to transit trade activities. Outside the IFC, 95% of profits from transit trade will be exempt from corporate tax.
In addition, profits derived from intermediary activities in transit trade and overseas trade transactions will benefit from a 100% tax exemption, increased from the current 50%.
The package also introduces a 100% corporate tax exemption (deduction) for regional headquarters managing foreign operations within the IFC.
Beyond the financial centre, new incentives are designed to encourage multinational companies to relocate their regional management headquarters to Turkey, with tax advantages applied to income generated from managing overseas operations.
The reforms are part of a broader policy framework aimed at enhancing Turkey’s competitiveness and positioning the country as a global investment hub. A comprehensive legislative package is expected to be submitted to Parliament to implement the announced measures.
