Why These Incentives Matter
Turkey offers one of the most generous government support packages for software developers in any emerging market. Programs span advertising cost rebates, store commission refunds, R&D tax credits, and preferential corporate tax rates.
Advertising Cost Refund
Through the Ministry of Trade's Market Entry Support program:
- 60-70% refund on international digital advertising expenses
- Covers Google Ads, Apple Search Ads, Meta Ads, TikTok Ads
- Annual cap: Approximately $300,000 per company
- Must promote a Turkish-developed product to international markets
- Requires invoices, ad reports, and bank transfer records
If you spend $100,000 on US market user acquisition, you can get $60,000-$70,000 back. For growth-stage apps, this is transformative.
App Store Commission Refund
- Up to 50% refund on commissions paid to Apple and Google
- Applies to revenue from international (non-Turkish) users
- Falls under the software export support program
- Requires store financial reports and export documentation
Combined with the ad refund, this dramatically reduces acquisition costs and effective revenue share.
KOSGEB Support
KOSGEB (Small and Medium Enterprises Development Organization) offers:
Digital Transformation Program
- Up to 60% of eligible expenses as a non-repayable grant
- Covers software tools, cloud services, digital marketing, hardware
- Maximum: 300,000 TRY for micro enterprises
Young Entrepreneur Support
- Entrepreneurs under 30 get additional allocations
- Up to 400,000 TRY combining multiple programs
- Covers company formation, equipment, rent, and operations
TUBITAK R&D Programs
1501 - Industry R&D Projects
- 40-60% of R&D project costs covered
- Up to 36 months per project
- Covers personnel, equipment, software, consultancy
1507 - SME R&D Start Support
- Up to 75% support for first-time applicants
- Maximum: 1.2 million TRY per project
- Faster evaluation than 1501
1512 - Entrepreneurship Support
- Seed funding up to 450,000 TRY
- Includes mentorship and office space
- Competitive pitch-based application
Teknokent Benefits
Technology Development Zones offer the most comprehensive package:
- Corporate tax exemption on software income
- Income tax exemption for R&D personnel
- VAT exemption on software deliveries
- Below-market rent and university access
- Over 90 zones across Turkey
Software Export Income Deduction
Available to any Turkish company exporting software (not just Teknokent residents):
- 50% income deduction on software export revenue
- Reduces effective corporate tax from 25% to about 12.5%
- Teknokent residents can bring this below 4%
Employer Social Security Support
- Government covers 50% of employer social security for R&D employees
- Additional incentives for hiring new graduates
- Duration: 12-24 months per hire
How to Access These Programs
- Register as a technology company in Turkey
- Join a Teknokent for full tax benefits
- Apply to KOSGEB for SME support (online)
- Submit TUBITAK proposals for R&D funding
- Register with Ministry of Trade for export support
- Work with a local accountant experienced in R&D incentives
Documentation is critical. The incentives are generous but require meticulous records of expenses, revenues, and R&D activities.