Minister of Treasury and Finance Mehmet Şimşek made a strategic call to global technology giants and announced new incentive packages for Türkiye to become a regional management and service center.

Stating that they aim for world giants such as Google, Microsoft and Apple to manage a wide geography such as Central Asia, the Middle East, North Africa and the Balkans through Turkey, Şimşek made a commitment to zero corporate taxes for 20 years for the companies that will operate within the Istanbul Financial Center (IFC). This step aims to make Türkiye not only a production center but also a global finance and technology base.

Regional Management Center Target: Türkiye Route from the Balkans to the Middle East

Minister Şimşek, in his statements on TRT News live broadcast, drew attention to Turkey’s strategic location and strong infrastructure and emphasized that large companies should shift their operational loads to this region. Minister Şimşek said, “We say that global companies such as Google, Microsoft and Apple should move their activity centers to Türkiye.

“We want Türkiye to govern Central Asia, the Middle East, North Africa and the Balkans.” He pointed out the logistical and economic advantages offered by Türkiye as the center of operations in these regions.

This call covers not only technology giants but also high value-added sectors such as biotechnology and the pharmaceutical industry. Türkiye’s young population and speed of digitalization have the potential to provide the qualified workforce that global companies need to manage their operations in this geography.

Zero Tax for 20 Years: Istanbul Financial Center Advantage

The most concrete incentive offered to companies to come to Türkiye is tax exemption. Minister Şimşek announced that corporate tax will be zeroed for 20 years for companies that establish a service center in the Istanbul Financial Center and obtain 80 percent of their income from abroad. This is considered one of the most ambitious tax incentives offered worldwide.

Advantages continue for companies that will operate outside IFM. According to the Ministry’s planning, a 95 percent tax reduction is also available for companies that meet these criteria but are located in regions outside IFC. With this strategy, Türkiye is an attractive port, especially for global giants who want to escape from the strict bureaucratic processes and high tax rates of the European Union.

HIT-30 Program and Data Center Incentives

The technology move of economic management is not limited to administrative centres. Within the scope of the “HIT-30 High Technology Investment Program”, multi-billion dollar support packages are being implemented for data centers and artificial intelligence infrastructures. A support budget of 1.5 billion dollars has been allocated especially for data centers with a capacity of 30 MW and above and compatible with artificial intelligence hardware.

Additional advantages such as VAT exemption, customs duty exemption and energy support are also offered to investors in these investments.

Türkiye’s Position and Competitors in Global Competition

This move by Türkiye also intensifies its competition with its regional rivals. Currently, the regional managements of giants such as Google, Microsoft and Apple are generally concentrated in centers such as Ireland, the Netherlands or the United Arab Emirates (Dubai).

Ireland, in particular, has been the European and Middle Eastern center of these companies for years with its low tax policy. However, the European Commission’s past tax penalties against giants such as Apple and increased regulations are pushing companies to look for new alternatives.

Dubai stands out as a strong competitor for Middle East and North African operations. Türkiye; Thanks to its geographical location at the intersection of Europe, Asia and Africa, its large domestic market and its Customs Union relationship with the European Union, it offers a different set of advantages over these competitors. Cultural and economic ties, especially in Central Asia and the Balkans, make Türkiye a more natural candidate for the management of these regions.

Domestic Technology Ecosystem and Sub-Industry

The arrival of global companies at this level to Türkiye means a great acceleration not only for tax revenue but also for the domestic software and hardware ecosystem. Having the regional headquarters of companies such as Microsoft or Google in Turkey may enable local start-ups to work more closely with these giants and accelerate technology transfer.

In addition, along with data center investments, Turkey’s fiber infrastructure and energy network are entering the modernization process, creating a general development model.