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The machinery sector plays a vital role in Turkey’s industrial development, contributing significantly to employment, production, and exports. Recognizing its strategic importance, the government provides a wide range of incentives, grants, and support schemes through various institutions such as the Ministry of Trade, Ministry of Industry and Technology, SGK, İŞKUR, KOSGEB, and TÜBİTAK.
Below is a comprehensive overview of the main government supports available to the machinery industry.
1. Supports by the Ministry of Trade
The Ministry of Trade offers both project-based and general supports to manufacturers and exporters in the machinery sector. Especially for companies engaged in industrial product design, incentive amounts range from 1 million to 1.4 million USD.
Scope of Support:
- International brand registration and promotional campaigns
- Establishment of overseas design offices
- Certification and product conformity costs
- Overseas unit rental support
- Domestic and international trade fair participation
- Market access certifications (CE, ISO, etc.)
Furthermore, if the investment is made in a region designated under the Centers of Attraction Program, additional incentive rates apply.
2. Supports by the Ministry of Industry and Technology
This ministry supports machinery manufacturers who develop R&D-based and patented products. Through initiatives like the Technology-Oriented Industry Move Program, companies engaged in high-tech manufacturing receive grants and interest-free loans.
Key Benefits:
- Support for establishing R&D centers
- Project-based grants and financing
- Regional priority for patented products
- Land allocation and infrastructure support in Organized Industrial Zones (OSBs)
3. Employment Incentives (SGK and İŞKUR)
Companies in the machinery sector that create new jobs benefit from employer SGK (social security) premium support, which can last between 12 and 54 months depending on the region.
Additional Incentives:
- Recruitment support via İŞKUR
- On-the-job training programs
- Subsidies for salaries and insurance premiums of newly hired qualified personnel
4. Investment Incentives for the Machinery Sector
The machinery industry is classified as a medium-high technology strategic sector, making it eligible for generous regional investment incentives. The following production categories (classified under US-97 codes 29, 2929, 30, and 31) are directly supported by Turkey’s investment incentive system:
Incentive Instruments:
- VAT exemption
- Customs duty exemption
- Corporate tax reduction (up to 80%)
- Investment contribution rate (up to 40%)
- Interest rate support (5 points for TRY loans, 2 points for FX loans)
- Employer’s SGK premium support
- Land allocation
- Exemptions from stamp and property taxes
Who Can Benefit?
- Real and legal persons (companies, cooperatives, partnerships)
- Foreign-capital firms or branches established in Turkey
- Public institutions, universities, associations, and foundations
Minimum Investment Amounts:
- In 1st and 2nd regions: 3 million TL
- In 3rd to 6th regions: 1.5 million TL
5. Sub-Sectors Eligible for Higher Incentive Rates
Some sub-industries within the machinery sector are classified as priority or strategic investment areas and benefit from enhanced support rates. These include:
- CNC and robotic machinery production
- Industrial automation systems
- Packaging and filling machinery
- Agricultural and food processing equipment
- Renewable energy components (e.g., turbine parts)
- Defense industry machinery
The machinery industry is one of the most heavily supported sectors in Turkey due to its contribution to local production, technology development, and exports. At every stage of the business lifecycle—from R&D to production, employment to international expansion—manufacturers can leverage public incentives to reduce costs and scale faster.
If you're operating in the machinery industry, taking advantage of these government supports can significantly increase your profitability and competitiveness.
