The Ministry of Treasury and Finance is working on legislation that would extend tax benefits currently limited to Istanbul Finance Center (IFC), across the wider economy. The draft proposal is expected to be presented to parliament in the coming weeks, as part of efforts to attract international companies reassessing their regional presence amid geopolitical uncertainty.
New Tax Measures Target Foreign Trade Activity
At the heart of the proposal is a tax incentive already available to firms operating within the Istanbul Finance Center. Under the planned expansion, companies could deduct 50% of income generated from trading goods sourced abroad without bringing them into Turkey.
The measure is designed to attract international firms engaged in global trade and intermediation. Authorities are seeking to position Turkey as a competitive base for multinational operations, particularly as companies reassess risk exposure in other regional hubs.
Regional Dynamics Create Opportunity
Officials believe current geopolitical tensions, particularly those linked to the Iran conflict, have created a window of opportunity for Turkey to reposition itself as a stable alternative for global business.
While some Gulf markets face increased uncertainty, Istanbul has remained outside direct conflict zones, strengthening its appeal as a potential regional headquarters location for international companies.
This change in risk perception is already stimulating renewed interest from companies that previously favoured cities such as Dubai, with policymakers aiming to capture redirected investment flows.
Istanbul Finance Center (IFC): A Global Hub
Opened in 2023, the Istanbul Finance Center plays a central role in Turkey’s ambition to become a global financial hub. The district is home to key institutions, including the Central Bank of the Republic of Turkey (CBRT), along with major state lenders.
Companies operating within the district currently benefit from a range of incentives, including corporate tax deductions on financial services exports, exemptions from certain transaction taxes and reduced income tax rates for employees. The proposed expansion would extend elements of this nationwide.
Growing Interest from International Firms
More than 40 firms, primarily from East Asia and the Gulf, have held discussions about relocating or expanding operations in Turkey. These discussions include sectors such as fintech, finance, Islamic finance, and insurance – involving companies from countries including the UAE, Malaysia, Japan, Singapore, South Korea and Hong Kong.
Government Push to Position Turkey as Regional Hub
Recep Tayyip Erdoğan has repeated the government’s commitment to positioning Turkey as a regional centre for global business. He said: "Our economic team is making an intensive effort to position Turkey as a strong regional management centre for multinational companies, transform it into a global hub for transit trade, and turn the Istanbul Finance Center into one of the world's leading financial centres."
With expanded tax incentives, growing international interest, and a strategic geographic position, Turkey is aiming to strengthen its role as a key destination for global capital. If approved, the proposed reforms would significantly enhance the country’s competitiveness for multinational companies seeking stability and long-term growth opportunities.
Cameron Deggin 
Founder & CEO, Property Turkey
Cameron Deggin is Founder and CEO of Property Turkey. A former finance professional and FCCA-qualified accountant, he founded the company in 2001 after recognising Turkey’s investment potential. With more than two decades analysing Turkish real estate, Cameron regularly advises international investors and is quoted by media including the Financial Times and BBC.
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