As the "Middle Corridor" of the Belt and Road Initiative strengthens, Türkiye has solidified its position as a premier jurisdiction for Chinese outbound investment. For the sophisticated investor, the Turkish market offers a modernized legal framework, harmonized with EU standards, coupled with some of the most aggressive fiscal and operational incentive regimes in the EMEA region.
1. Regulatory Framework & Transactional Structuring
The execution of M&A in Türkiye requires a granular understanding of the Turkish Commercial Code (Law No. 6102) and the Foreign Direct Investment Law (Law No. 4875).
- Principle of National Treatment: Foreign investors enjoy the same rights and obligations as local players, including the absolute right to 100% equity ownership and the seamless repatriation of capital and dividends.
- Merger Control & Antitrust: Transactions exceeding the notification thresholds set by the Turkish Competition Authority require mandatory filing. We provide strategic counsel on "gun-jumping" risks and the negotiation of "conditions precedent" (CPs) to ensure regulatory clearance.
- Enhanced Environmental Compliance: Following the March 2026 EIA Regulation amendments, environmental due diligence has become a critical deal-breaker. Our firm ensures that target acquisitions meet new technical thresholds to avoid post-closing administrative liabilities.
2. Comprehensive Support for the Digital Economy: Decree No. 10962
Following the enactment of Presidential Decree No. 10962 on January 1, 2026, Türkiye has established a restructured support framework for digital products, software, and mobile applications. This non-refundable financial assistance is a key driver for Chinese gaming and tech giants entering the market:
- Platform & Agency Commissions: 50% coverage of digital platform commissions (e.g., Steam, App Store) up to 20,000,000 TL (~USD 445,000) annually. This includes a limit of 4,000,000 TL (~$USD 90,000) per game for up to 10 games per year over a 5-year period.
- Digital Product Promotion: 50% coverage of overseas advertising costs up to 50,000,000 TL (~USD1,111,000) annually, providing significant leverage for global market penetration.
- Operational & Hosting Support: 50% of cloud server expenses for overseas markets up to 5,000,000 TL (~USD112,000) annually and 50% of software license purchase/rental expenses up to 2,500,000 TL (~USD57,000).
- IP Protection: 50% of overseas trademark registration and protection costs up to 2,500,000 TL (~USD57,000) annually, securing the investor's intellectual property assets.
- Physical & Human Capital: 50% support for rent/certification for up to 25 overseas units (capped at 6,000,000 TL (~USD 135,000 per unit) and 50% employment support for up to 5 marketing personnel for 5 years.,
To know more about the incentives on service exports in Turkey read our article: Restructuring of the Service Export Support System within the Framework of Presidential Decree No. 10962
3. Strategic Incentive Ecosystems in Turkey: Decree No. 5447 & 5448
Beyond the gaming sector, the Turkish Presidency continues to support the broader informatics and service sectors through established decrees:
- Decree No. 5447: Designed for software, gaming, and fintech sectors to facilitate internationalization through grant supports for marketing, certification, and localized scale-up operations.
- Decree No. 5448 (Service Exports): Targets engineering, healthcare, and creative industries. It provides significant percentage-based returns on international branding, market research, and global trade missions.
4. Fiscal Optimization: The 80% Corporate Tax Exemption of Service Exports
Perhaps the most compelling argument for establishing a regional HQ in Türkiye is the tax treatment of service exports. Under current tax legislation, Turkish entities providing eligible services strictly to non-residents (abroad) benefit from a profound deduction.
- Tax Base Reduction: 80% of the net income derived from cross-border services (Software, Gaming, Design, Engineering, and Data Analysis) is exempt from the Corporate Tax base.
- Structural Advantage: With the 2026 Corporate Tax rate at 25%, the effective tax rate for compliant service exporters is reduced to a nominal 5%, offering a superior fiscal environment compared to many traditional mid-shore jurisdictions.
5. Professional Mandate: How NPartners Protects Your Interests
NPartners operates at the intersection of local expertise and international standards. Our mandate for Chinese clients includes:
- Bilingual Transaction Management: Drafting and negotiating complex SPAs and SHAs that protect the investor’s minority or majority rights under Turkish Law.
- Incentive Procurement: Navigating the bureaucracy of the Ministry of Trade to secure Investment Incentive Certificates, ensuring VAT exemptions and Customs Duty waivers.
- Strategic Due Diligence: Providing localized insights into the Turkish market, from labor law liabilities to the latest ESG and EIA regulatory requirements.
Strategic Consultation
We understand the cultural and procedural nuances of Chinese outbound investment (ODI). For a confidential discussion regarding a specific M&A target, market entry strategy, or to receive our detailed "Invest in Türkiye 2026" whitepaper, please contact our International Investment Desk via:
- WeChat ID: wxid_8wjzrt05eb1c12
- Email: info@npartners.com.tr
- Web: www.npartners.com.tr
