Turkey is preparing new tax incentives aimed at strengthening its position in high-value global services sectors, according to Treasury and Finance Minister Mehmet Şimşek. The measures form part of a wider legislative package designed to increase foreign currency earnings, attract investment and support the country’s long-term services export strategy.
Tax Deduction Could Rise to 100%
Şimşek said the government plans to raise the tax deduction to 100% for many service activities, provided that the earnings are brought back to Turkey. The measure is intended to encourage companies to repatriate foreign revenues and improve Turkey’s competitiveness in international service sectors.
He said: “We will further strengthen our global position in high-value-added services exports by increasing the tax deduction to 100%, provided that the full earnings from many service activities are brought back to Türkiye.”
Services Trade Surplus Nears $63 Billion USD
Turkey has increasingly prioritised services exports as a source of foreign currency income and a counterbalance to the country’s goods trade deficit. According to Şimşek, Turkey’s services trade surplus has reached nearly $63 billion USD.
Annualised services exports stood at $122.2 billion USD as of February, while services imports totalled $59.7 billion USD. Total goods and services exports reached a record $396 billion in 2025 USD, according to official data.
Software, Gaming and Health Tourism in Focus
The proposed incentive is expected to support sectors such as software, gaming, health tourism, and other knowledge-intensive services. These industries are viewed as important because they generate high-value export income, require skilled labour, and can scale internationally without the same physical trade constraints as goods exports.
Part of Wider Investment Package
The services export tax break forms part of a broader competitiveness package aimed at attracting capital and supporting export-led growth. Other planned measures include reducing the corporate tax rate for manufacturing exporters to 9% and introducing zero corporate income tax on transit trade.
The Turkish government’s medium-term programme forecasts overall goods exports of $282 billion USD this year, with combined goods and services exports expected to reach a total of $410 billion USD.
If implemented, the new tax incentives could further strengthen Turkey’s role in global services trade while supporting foreign currency inflows, Turkish investment, and long-term economic resilience.
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.
View full author profile →
By:
Bodrum 
3 
3 
X