Turkey (Türkiye) is one of the largest manufacturing economies in its region, with established clusters in automotive, machinery, textiles, chemicals, electronics, white goods and food processing. For foreign manufacturers it offers production close to European customers, access to the EU Customs Union for industrial goods, a large supplier base and an experienced industrial workforce.
Building or taking over a factory is still a long project. Zoning, building, environmental and operating permits must be obtained in the right order. Incentive applications usually need to be made before money is spent, and products must meet Turkish technical regulations before they reach the market. This guide sets out the main decisions and permits, in the order they usually arise.
Key points
- The location decision drives the permit route. Organised industrial zones (OSBs) generally offer ready infrastructure and a simpler, zone-managed permit process.
- Companies with foreign capital can acquire real estate in Turkey, generally subject to an approval process under Article 36 of the Land Registry Law and to checks on military and security zones.
- A typical sequence is: zoning check, building permit, construction, occupancy permit, environmental approvals, then the workplace opening and operating licence.
- An industrial registry certificate becomes particularly important from 2027, when a 12.5% corporate tax rate applies to qualifying production income.
- Applications for investment incentive certificates must normally be made before the investment begins. The incentive regime was restructured in 2025.
- Timings in this guide are indicative and vary widely by site, sector and environmental profile.
Before you choose a site: what should be decided first?
Several decisions shape everything that follows:
- Build, buy or lease. A greenfield factory gives the most control and the longest timeline. Acquiring an existing plant, or the company that owns it, can be faster but brings inherited liabilities. Leasing a built facility is quickest, and the lease terms then matter most. See leasing offices and warehouses and acquisitions and joint ventures.
- The operating entity. Factories are almost always held and operated through a Turkish subsidiary rather than a branch, for liability, incentive and banking reasons. See choosing a business structure and setting up a company.
- The environmental profile of the process. Emissions, wastewater, hazardous substances and energy use determine whether an Environmental Impact Assessment and environmental permits are needed, and which sites are realistic.
- Export orientation. If most output will be exported, customs regimes such as inward processing and free zones can change the economics. See customs, import and export.
- Incentive eligibility. Region, sector, investment size and technology level can affect the support available. That analysis should be done before signing land or equipment contracts.
Where can a factory be located?
| Location type | What it is | Typical advantages | Points to check |
|---|---|---|---|
| Organised industrial zone (OSB) | Planned industrial estates managed by a zone directorate under the Organised Industrial Zones Law (No. 4562) | Ready infrastructure (roads, energy, water, treatment), zone-managed permits, industrial neighbours | Zone rules on sectors, allocation conditions, construction deadlines, transfer restrictions |
| Industrial zone (endüstri bölgesi) | Larger designated zones for strategic or large-scale investment | Land and infrastructure arranged for large projects | Allocation process, eligibility |
| Free zone (serbest bölge) | Areas treated as outside the customs territory for many purposes | Customs advantages for export-oriented production, some tax benefits | Operating licence, sales into Turkey treated as imports, scope of current tax benefits |
| Technology development zone (technopark) | Zones for R&D, software and technology companies | Tax and personnel incentives for qualifying R&D | Mainly R&D and light activities, not heavy production |
| Standalone private land | Land outside a zone with suitable industrial zoning | Flexibility over location and size | Zoning status, infrastructure costs, longer and more fragmented permit route |
Why do many foreign manufacturers choose an OSB?
Within an organised industrial zone, the zone directorate generally acts as the permitting authority for matters such as building permits, occupancy permits and the workplace opening and operating licence, instead of the municipality. Zones already have zoning plans for industrial use and shared infrastructure. Many also have their own wastewater treatment facilities. This can make the process more predictable. Land in established zones can be scarce, and parcels are often bought from existing holders rather than allocated directly. Zones also impose their own rules, for example deadlines to start construction and production after allocation, and restrictions on resale.
For innovation-led projects, see also our article on technoparks in Turkey.
Acquiring or leasing land and buildings
Can a foreign-owned company buy industrial land?
Generally yes. A Turkish company with foreign capital can acquire real estate, but under Article 36 of the Land Registry Law (No. 2644) the acquisition is generally subject to an approval process. The application is reviewed by the relevant governorship, which checks, among other things, whether the property lies within a military forbidden zone, a security zone or a strategic area, and whether the property is to be used for the activities in the company's articles of association. Only once the outcome is positive does the land registry complete the transfer. Different rules apply to foreign companies acquiring property directly, which is far more restricted.
The same approval logic can apply when a foreign investor acquires a Turkish company that already owns real estate. That is a point to check in any acquisition. For more detail, see our guide to real estate acquisition by foreigners and foreign-capitalised entities and our real estate investment services.
What due diligence is needed on an industrial site?
Typical checks include:
- title deed records, mortgages, annotations (şerh) and restrictions at the land registry
- the zoning plan status and permitted use (imar durumu), building coefficients and setbacks
- existing building permits and occupancy permits, and whether the buildings on site match them
- environmental history, soil and groundwater contamination, and existing environmental permits
- access to energy, water, natural gas and wastewater capacity
- pending expropriation, planning changes or disputes
For leased sites, Turkish lease law contains mandatory tenant-protective rules, and the permitted use of the building should match the intended production activity, otherwise the operating licence may be refused.
Which permits does a factory need, and in what order?
The exact list depends on the site, the process and the sector. A typical sequence for a new facility is:
- Zoning status (imar durumu). Confirm that the parcel is zoned for the intended industrial use and obtain the zoning status document.
- Environmental Impact Assessment (ÇED). Depending on the activity and capacity, the project may need either an "EIA positive" (ÇED olumlu) decision after a full assessment, issued by the Ministry of Environment, Urbanisation and Climate Change, or an "EIA not required" (ÇED gerekli değildir) decision after a preliminary review, generally issued by the provincial governorship. Where a project falls within the EIA Regulation, the Regulation provides that incentives, approvals, permits and building and occupancy permits should not be granted, and the investment should not start, until the relevant decision has been issued.
- Building permit (yapı ruhsatı). Issued by the municipality, or by the OSB directorate within a zone, on the basis of approved architectural and engineering projects.
- Construction under building inspection. Licensed building inspection firms supervise construction.
- Occupancy permit (yapı kullanma izin belgesi). Confirms that the completed building complies with the approved projects.
- Environmental permit and licence (çevre izin ve lisans). Depending on the activity, covering air emissions, wastewater discharge, noise and waste. Some facilities first receive a temporary activity certificate and then the permanent permit.
- Fire safety approval. A fire department report or compliance confirmation, often required for the operating licence.
- Workplace opening and operating licence (işyeri açma ve çalışma ruhsatı). Issued by the municipality or the zone directorate. Under the licensing regulation, workplaces are classified as sanitary or non-sanitary (gayrisıhhi müessese, GSM). Non-sanitary establishments, which include many factories, are subject to stricter conditions such as site inspections, distance requirements and sometimes a trial operation period.
- Sector permits. For example licences for food, pharmaceuticals, medical devices, chemicals, explosives, energy generation or waste processing, as applicable.
Recent amendments to the licensing regulation have changed some procedural details. The current version should be checked at the outset. For regulatory matters generally, see regulatory and compliance in Türkiye.
Industrial registry certificate and capacity report
What is the industrial registry certificate?
Industrial enterprises are required to register with the Ministry of Industry and Technology's industrial registry and obtain an industrial registry certificate (sanayi sicil belgesi). Enterprises must also report production and capacity information annually, and the certificate's continued validity generally depends on filing the annual business information on time. The certificate is often required to access incentives, certain electricity tariffs and other benefits available to manufacturers.
From 2027, the certificate has an additional significance. Under Law No. 7582, a 12.5% corporate tax rate applies to income derived exclusively from production activities carried out by companies that hold an industrial registry certificate and actually engage in production. Income taxed at that rate cannot also benefit from the export-income reduction. See the tax guide and our article on Türkiye's 2026 tax incentives.
What is a capacity report?
A capacity report (kapasite raporu) is issued by the relevant chamber of industry, or chamber of commerce and industry, after reviewing the facility. It records production capacity, machinery and inputs. It is commonly used for the industrial registry, for incentive and inward processing applications, and in dealings with public bodies and banks.
Investment incentives for manufacturers
Turkey operates an investment incentive system under which qualifying investments can receive an investment incentive certificate (yatırım teşvik belgesi) from the Ministry of Industry and Technology. The framework was restructured in 2025 by a new Presidential Decision on State Aid in Investments (No. 9903), which replaced the previous 2012 decree. Its programmes are organised around strategic, technology-focused, sectoral and regional priorities.
Depending on the programme, the investment, its location and its sector, support instruments have historically included:
- VAT exemption on qualifying domestic and imported machinery and equipment
- customs duty exemption on imported machinery and equipment
- tax reduction on income from the investment, up to a contribution amount
- employer social security premium support for new employment
- interest or profit-share support on investment loans
- land allocation and other forms of support for certain investments
The precise instruments, rates and eligibility conditions should be confirmed against the current decision and its implementing communiqués. They are restructured from time to time and differ between programmes. In most cases the application must be made before the investment begins, and the certificate carries conditions on completion, employment and use of the assets. Breaching those conditions can lead to the support being clawed back.
Other relevant regimes include R&D and design centre incentives, technology development zones, and support linked to SME status. See our SME definition update.
Product compliance: can you sell what you make?
Products placed on the Turkish market must meet Turkish technical regulations, many of which are aligned with EU product legislation because of the Customs Union. Depending on the product:
- CE marking and conformity assessment under Turkish regulations harmonised with EU directives, using notified or designated bodies where required
- Turkish Standards (TSE) certificates for some products and for some public procurement
- sector registrations, for example for food, cosmetics, medical devices, chemicals and construction products
- labelling, user instructions and warranty documents in Turkish, and after-sales service obligations for certain goods under consumer law
For exporters, the requirements of the destination market apply as well. Goods exported to the EU must meet EU rules, and the A.TR movement certificate supports duty-free circulation of qualifying industrial goods. See customs, import and export.
Environmental and climate obligations
Beyond the permits above, manufacturers should expect ongoing obligations such as waste management plans, packaging waste registration, monitoring and reporting of emissions, and environmental officer or consultancy requirements for certain facilities.
Turkey adopted its first Climate Law in 2025, providing for an emissions trading system and climate-related reporting obligations that are being implemented through secondary legislation. Energy-intensive and export-oriented manufacturers should also consider the EU's carbon border adjustment mechanism when selling into the EU. See our article on Turkey's new Climate Law.
Workforce, health and safety
Factories are usually classified as hazardous or very hazardous workplaces for occupational health and safety purposes under the Occupational Health and Safety Law (No. 6331). This brings obligations to:
- carry out and update risk assessments
- appoint occupational safety specialists and workplace physicians, in-house or through an accredited provider, according to hazard class and headcount
- provide OHS training before employees start work and periodically afterwards
- carry out health examinations, prepare emergency plans and keep accident records
Some jobs in hazardous work require vocational qualification certificates. Shift work, night work and overtime are regulated by the Labour Law. See hiring employees, onboarding and our article on workplace safety rules. Foreign engineers and managers who will work at the plant generally need work permits.
Inward processing and other customs tools for exporters
Manufacturers that import raw materials or components and export finished goods can often use the inward processing regime (dahilde işleme rejimi). Under this regime, imported inputs can be brought in without paying customs duties and import VAT, subject to an authorisation and to export of the products within the permitted period. Customs warehouses (antrepo), temporary admission and free zones can also help, depending on the supply chain. These regimes are explained in the customs guide, and our manufacturing sector page describes the wider commercial issues.
How long does it take? An indicative timeline
| Stage | Indicative duration | Main variables |
|---|---|---|
| Company formation and bank account | A few weeks | Document preparation, bank onboarding |
| Site search and due diligence | 1–6 months | Availability of land or buildings, quality of title and permit records |
| Article 36 approval for land acquisition | Several weeks to a few months | Governorship review, security zone checks |
| Incentive certificate application | Several weeks to a few months | Programme, completeness of the application |
| EIA process (if required) | Several months | Whether a full EIA is needed, public participation |
| Building permit | Weeks to a few months | Project approvals, OSB or municipality practice |
| Construction | Varies widely | Size and complexity of the facility |
| Occupancy, environmental permits and operating licence | Several weeks to several months | Inspections, environmental profile, fire safety |
These figures are only a planning aid. Timelines depend heavily on the site, the activity, the authority and the quality of the application files.
Checklist for foreign manufacturers
- Confirm the target activity, capacity and environmental profile.
- Compare OSB, industrial zone, free zone and standalone sites.
- Check incentive eligibility before signing land or equipment contracts.
- Incorporate the Turkish operating company and open bank accounts.
- Complete title, zoning, permit and environmental due diligence.
- Obtain Article 36 approval for any land acquisition, if required.
- Obtain EIA, building, occupancy, environmental and fire approvals in sequence.
- Obtain the workplace opening and operating licence and any sector licences.
- Apply for the industrial registry certificate and capacity report.
- Put OHS, employment, payroll and work permit arrangements in place.
- Confirm product conformity, labelling and after-sales obligations.
- Set up customs authorisations such as inward processing, if exporting.
Frequently asked questions
Can a foreign company build a factory in Turkey?
Yes, generally through a Turkish subsidiary, which is treated like any other Turkish company for permits and licences. Acquiring the land is generally subject to an approval process for foreign-capital companies under Article 36 of the Land Registry Law. The project then follows the usual zoning, building, environmental and licensing steps. See setting up a company.
What is an organised industrial zone (OSB) in Turkey?
An organised industrial zone is a planned industrial estate established under the Organised Industrial Zones Law and run by its own directorate. It generally provides infrastructure such as roads, energy, water and wastewater treatment. Within the zone, the directorate usually handles building, occupancy and workplace licences. Zones have their own rules on allocation, construction deadlines and transfers.
Can a foreign-owned Turkish company buy industrial land?
Generally yes. A Turkish company with foreign capital can acquire real estate subject to an approval process under Article 36 of the Land Registry Law. The governorship checks matters such as military and security zones and the property's use for the company's activities. The land registry completes the transfer only after a positive outcome.
Is an Environmental Impact Assessment required for a factory in Turkey?
It depends on the activity and capacity. Projects listed in the Environmental Impact Assessment Regulation need either an "EIA positive" decision after a full assessment or an "EIA not required" decision after a preliminary review. Many projects outside those lists do not need either. For projects within the Regulation, permits, incentives and the start of the investment generally have to wait for the decision, so it should be considered at the site selection stage.
What is the workplace opening and operating licence?
It is the licence that allows a business to operate at a specific address. It is issued by the municipality or, within an organised industrial zone, by the zone directorate. Many factories are classified as non-sanitary establishments (GSM), which are subject to stricter conditions and inspections. Fire safety and occupancy documents are usually required for the licence.
What is an industrial registry certificate and why does it matter?
It is the registration of an industrial enterprise with the Ministry of Industry and Technology, and enterprises must report production information annually. It is often needed for incentives and other manufacturer benefits. From 2027, holding it is one of the conditions for the 12.5% corporate tax rate on qualifying production income under Law No. 7582. See the tax guide.
What incentives are available for manufacturing investments in Turkey?
Qualifying investments may obtain an investment incentive certificate under the incentive regime restructured in 2025. Depending on the programme, support has included VAT and customs duty exemptions on machinery, tax reductions, social security premium support and finance support. Applications generally have to be made before the investment starts, and the current scheme should be checked for each project.
Can I import machinery without paying customs duty and VAT?
Often, if the import is covered by a valid investment incentive certificate that lists the machinery. Without a certificate, the usual customs duties and import VAT apply, although machinery in free circulation in the EU generally benefits from the Customs Union for customs duty purposes, and additional duties may still apply depending on its origin. Import VAT is generally recoverable as input VAT. See customs, import and export.
Do products made in Turkey need CE marking?
Many do. Turkish technical regulations for products such as machinery, electrical equipment, toys and construction products are largely aligned with EU legislation, and CE marking and conformity assessment are required where the relevant regulation applies. Some products also need Turkish registrations or certificates. Products for export must also meet the rules of the destination market.
What health and safety rules apply to factories?
Most factories are hazardous or very hazardous workplaces under the Occupational Health and Safety Law. Employers must carry out risk assessments, appoint occupational safety specialists and workplace physicians, provide training before work starts and keep health and accident records. Some roles also require vocational qualification certificates. See onboarding employees.
Is a free zone a good location for a factory?
It can be for export-oriented production, because free zones are treated as outside the customs territory for many purposes. Goods sold from a free zone into Turkey are treated as imports, and the tax benefits for free zone activities have been narrowed over time. A free zone operating licence is required. The comparison should be based on the expected domestic and export sales split.
How long does it take to set up a factory in Turkey?
Leasing an existing permitted facility can allow production to start within months. A greenfield project, including land acquisition, EIA, construction and licensing, commonly takes considerably longer. Timelines are indicative and depend on the site, the activity's environmental profile and the authorities involved. An early permit roadmap is the most effective way to avoid delays.
This guide is general information about Turkish law and practice at the date shown above. It is not legal, tax or customs advice and should not be relied on as such. Rules, thresholds and procedures in Türkiye change frequently and their application depends on the facts, so take advice on your own circumstances before acting. Advice on Turkish law is provided through lawyers qualified in Türkiye.