Investment Incentives and Tax Structures Supporting Creative Industries in Türkiye
The Rising Star of the Creative Industry: Support for Film, Gaming, and Design Investments in Türkiye
In Türkiye, investments in film, gaming, design, and creative technology have gained significant momentum by 2026 with government incentives. Grant rates reaching up to 75%, along with tax exemptions providing full exceptions in VAT and customs duties, reduce investment costs by nearly 50%.
Tax Advantages: Key Factors Cutting Costs
The Investment Incentive System offers a 30% contribution rate to priority investments and a 60% tax reduction in both programs. In the Technology Move and Local Development Move, this rate increases to 50%, while in the Strategic Move, it stands at 40%. Notable highlights in the creative sectors include:
- KDV (Value Added Tax) Exemption: Covers machinery, equipment, construction expenses; R&D, design centers, and software sales. (Rate: 100%)
- Customs Duty Exemption: Applicable to imported equipment and R&D materials. (Rate: 100%)
- Corporate Tax Reduction: For software, R&D, design earnings; complete exemption in Technology Development Zones. (Rate: 100% profit exception)
- Income/Corporate Tax Exemption: Applies to software development and design activities. (Rate: 100%)
High-tech investments (minimum 100-200 million TL) focusing on green and digital transformation can benefit from additional interest/profit support and land allocation. Design centers and Technology Development Zones efficiently utilize these advantages.
Grants and Cash Support: Project-Based Opportunities
The Ministry of Trade’s “Information and Game” supports are tailor-made for globalization: 60% reimbursement on advertising expenses (including platforms like Google, Meta, Unity, with a maximum of 20 million TL) and 50% support on personnel salaries (1.2 million TL per person). The HİSER program funds dubbing, subtitling, and overseas promotion costs for creative industries (music, advertising, game platforms, experience design), with a budget of 12 billion TL in 2026.
At TÜBİTAK, the 1501 and 1507 programs are in place for innovative game engines or AI projects: SMEs receive a 75% grant on the first 5 projects (budget of 3-4 million TL) and unlimited grants in 1501. KOSGEB provides a cash grant of 2 million TL to IT and gaming ventures, covering personnel, software, and machinery expenses. The cinema sector received 57.8 million TL in grants from the Ministry of Culture and Tourism for 158 projects. Istanbul Development Agency (İSTKA) offers a 50% tax reduction and 15-20% cash support (up to 301 million TL) to design campuses, creative production workshops, and prototyping centers. TÜSEB has accelerated R&D with project-based innovations.
Sectoral Highlights: Gaming and Film Take the Lead
Game developers benefit from TOGED’s BTK meetings for PEGI integration; giants like Tencent and Moonton collaborate with local teams. Film and series exporters have expanded the creative spectrum with HİSER – including 16 sub-sectors from architecture to advertising. Design investments thrive on green incentives with circular production workshops.
These incentives not only reduce the cost of creative investments but also propel them into global competition. Crafting project structures with financial advisors ensures the highest returns, as cash flow planning is critical. The industry is poised to birth new “Turcorns” in 2026 with this wind of change.
