Free Trade Zones
"What advantages do Turkish Free Trade Zones offer to businesses?"
Quick Answer
Turkish Free Zones (Serbest Bölgeler) are governed mainly by Free Zones Law No. 3218 and related tax/customs rules. Benefits vary by activity and licence (e.g., customs and VAT treatment, operational flexibility, export-oriented incentives). Proper structuring is key when goods/services move between the zone, Türkiye, and abroad.
Legal Framework for Turkish Free Zones
Turkish Free Zones (Serbest Bölgeler) are special areas designed to promote export-oriented investment and trade. They are primarily governed by Free Zones Law No. 3218 and secondary regulations, and their customs/tax treatment depends on the type of activity (e.g., manufacturing, trading, warehousing, services) and the operating licence.
Key Points to Remember
- Operating in a Free Zone generally requires an operating licence and an approved activity scope (e.g., manufacturing, trading, warehousing, services).
- Customs and tax treatment depends on the direction of movement (Free Zone ↔ Türkiye ↔ abroad) and the transaction type.
- “Free Zone” does not mean “no compliance”: customs classification, origin, valuation, and documentation still matter.
- Key contractual points include lease/warehouse arrangements, logistics terms, and dispute/exit planning if the licence or operator relationship ends.
Practical Structuring and Compliance
In practice, the biggest Free Zone issues are (i) selecting the correct activity/licence, (ii) planning goods flows (Free Zone–abroad vs. Free Zone–Türkiye), and (iii) aligning invoices, customs declarations, and logistics documents so the intended VAT/customs treatment is defensible.
Before starting operations, businesses typically map: product classification and origin, storage/processing steps, customer locations, and contract terms (Incoterms, title/risks transfer, and dispute resolution). This prevents costly surprises when goods are sold into Türkiye or re-exported.
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