What Is Free Zone (Serbest Bölge)?
A free zone in Türkiye is an area designated under Law No. 3218 which, although inside the country, is treated as outside the customs territory and offers companies operating there specific tax and trade facilities.
Free zones exist to encourage export-oriented investment and international trade, and are operated under the supervision of the Ministry of Trade. Operating in a zone requires an operating licence rather than a simple lease.
Goods entering a zone are treated as outside the customs territory, so customs and foreign trade procedures follow a different regime. This is the operational draw for businesses that import inputs, process them and export the finished product.
The tax advantages available differ according to the type of activity: manufacturing and non-manufacturing operations are not treated alike. The scope and duration of the exemptions are updated periodically, so the position should always be assessed against current legislation.
Zone status does not amount to a blanket tax holiday. Transactions falling outside the scope of the licence, the separation of in-zone and out-of-zone sales, and the composition of the workforce all require careful tracking if the advantages are to be preserved.