Technology Development Zones (TDZ)

The support for the establishment of Technology Parks (the Law on Technology Development Zones, No:4691) of Ministry of Science, Industry and Technology which is an on-going measure that act upon the importance of establishing strong linkages between the private sector and the research community came into force in 2001.

The Law on Technology Development Zones fosters the establishment of Technology Parks (Techno parks) in higher education institutes and/or research centers to enhance knowledge circulation.

“The Law of Technology Development Zones” also promotes the use of high/advanced technologies and the development/production of technology or software in Technology Development Zones through cooperation between universities, research institutions, and production sector.

The main financial support mechanism for TDZs is provided by the Ministry of Science, Industry and Technology. Financial support is granted for land procurement, infrastructure and construction of management building.

Foreign firms can also take part in TDZs and become shareholders of the managing company and can benefit from tax exemptions as domestic firms.

Tax Exemptions and Incentives provided with the law (till the end of 2023) are;

  • Grant support for construction of infrastructure and management and incubation building,
  • Income and corporate tax exemptions for the managing company,
  • Income and corporate tax exemptions for the incomes obtained from software development and R&D activities of the companies operating in these zones,
  • Income tax exemptions for the salaries of the researchers, software engineers, and R&D personnel working at the zone,
  • Value added tax (VAT) exemptions for the software development activities,
  • Half of the employer share of the Insurance Premium for the R&D&I and support personnel is covered by Ministry of Finance.

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Technology Development Zones in Turkey

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