Turkey’s ‘attraction area program’

tar laThe Turkish cabinet issued a long-waited “attraction area program” on Nov. 28, 2016, covering 23 provinces in eastern and southeastern Anatolian regions. Applications to the Development Bank of Turkey and local development agencies for the incentives offered by the program began on Jan. 24.

Incentives will be given to industrial, call center and data storage center investments, and they include investment and production support as well as the production facility relocation support for the industry. Incentives in this group will be offered to over 2 million Turkish Liras in investment, which promises to provide at least 30 new jobs. Support includes advisory services support, investment site land allocation support, building construction support, interest free investment loan support, and operational loan support with lower interest rates.

Production facility movement support will be offered to investors who guarantee at least 200 jobs. This consists of cash movement support up to 1 million liras, exist incentives support (mainly reducing personnel costs), advisory services support, land allocation support, interest-free investment loans, and low-interest operation loans.

Call center support is offered to those who are going to create jobs for 200 people. Incentives include building allocation support, 2,500 liras of personnel training support per person, land allocation and construction support, and interest-free investment loan support.

Data storage center incentives cover the investments that are no smaller than 5,000 square meters of land. Supports are 30 percent of energy support, land allocation support and interest-free investment loan support.
Interest-free investment loans consist of a two-year grace period and six years in payment terms. If the investor uses locally produced machinery and equipment, the loan will be offered on a 10-year basis.
Investors are expected to put in at least 30 percent capital for the investment. The loan is only available to cover up to the remaining 70 percent.