Turkish Technology Development Zones Law No. 4691: The 2026 Investor Guide

Why This Law is the “Holy Grail” for Investors in 2026

If you are a foreign investor or tech entrepreneur looking at Turkey, forget the standard incentives for a moment. The Technology Development Zones Law No. 4691 is arguably the most powerful tool in the Turkish legal arsenal. It effectively transforms specific zones within Turkey from simple office spaces into tax havens for Research and Development (R&D).

The Bottom Line: Companies operating within these designated “Technoparks” enjoy massive fiscal immunity until December 31, 2028. This includes 100% exemption from corporate tax on profits derived from software and R&D activities, and income tax exemptions for your R&D staff. But the real game changer for 2026 is the evolution of the Remote Work Regulation. Personnel can now spend up to 75% of their time working outside the zone without forfeiting their tax exempt statusa critical flexibility in the hybrid work era.

This article provides not just an overview, but a corrected, practitioner verified English translation of the Implementation Regulation. While most sources offer clunky machine translations, we have refined the legal terminology to ensure you understand exactly what “legal basis” and “scope” mean for your compliance strategy.

Implementation Regulation on Technology Development Zones

Editor’s Note: The text below is a refined translation of the official regulation governing Law No. 4691. We have added “Street Smart” tips where applicable to highlight potential friction points.

PART ONE: Purpose, Scope, Legal Basis, and Definitions

Purpose

ARTICLE 1 – (1) The purpose of this Regulation is to govern the establishment, operation, management, and supervision of Technology Development Zones, as well as the duties, powers, and responsibilities of the related persons and institutions. It further lays down the procedures and principles regarding the implementation of Law No. 4691 on Technology Development Zones dated June 26, 2001.

Scope

ARTICLE 2 – (1) This Regulation covers the establishment, operation, management, and supervision of Technology Development Zones, and the obligations, powers, and responsibilities of the associated entities within the framework of Law No. 4691.

(2) Unless specifically regulated otherwise, the Public Financial Management and Control Law No. 5018, the Court of Accounts Law No. 6085, the State Tender Law No. 2886, and the Public Procurement Law No. 4734 shall not apply to activities within the regions falling under Law No. 4691.

Legal Basis

ARTICLE 3 – (1) This Regulation is based on Articles 4, 5, 8, 9, and Provisional Article 2 of Law No. 4691, as well as Article 27 of the Decree Law No. 635 on the Organization and Duties of the Ministry of Science, Industry, and Technology.

Definitions and Abbreviations

ARTICLE 4 – (1) For the purposes of this Regulation, the following terms are defined as:

• a) Research and Development (R&D): Creative work undertaken on a systematic basis to increase the stock of knowledge (including culture, humanity, and society) and the use of this stock of knowledge to devise new processes, systems, and applications, including software.
• b) Researcher: Experts with at least a bachelor’s degree who are involved in the creation of new information, products, processes, and systems, and who manage R&D projects.
• c) R&D Based Production Activities: Activities aimed at manufacturing commercial products resulting from the R&D activities of entrepreneurs within the Zone.
• ç) R&D Centers or Institutes: Publicly owned institutions equipped with qualified personnel and modern infrastructure for technology development.
• d) R&D Personnel: Researchers, software developers, and technicians directly involved in R&D activities. (Tip: This is a critical definition for your hiring strategy in Turkey, as only these roles qualify for the primary tax cuts.)
• e) Ministry: The Ministry of Industry and Technology.
• f) Application File: The dossier containing the necessary documents for the establishment, expansion, or modification of a Zone.
• g) Region / Zone: The Technology Development Zone (Technopark).
• h) Zone Operating Directive: The set of rules prepared by the Managing Company governing services and activities within the Zone.
• i) Support Personnel: Managers, technical staff, lab assistants, secretaries, and similar personnel supporting R&D activities.
• k) Entrepreneur: Natural and legal persons utilizing services and facilities within the Region.
• o) Incubation Center (Incubator): Facilities supporting young companies (startups) with office services, equipment, and mentoring.
• p) Technology Development Zone: A site (Technopark/Technopolis) where academic, economic, and social structures are integrated, and where companies produce high technology.
• s) Technology Transfer Office (TTO): An entity facilitating cooperation between R&D institutions and industry, as well as the commercialization of intellectual property.
• ee) Managing Company: The joint stock company responsible for the management and operation of the Zone.

PART TWO: Establishment, Operation, and Activities

Formation of the Founding Committee

ARTICLE 5 – (1) A Founding Committee is established by protocol. It consists of representatives from at least one university, a high technology institute, or a public R&D center, along with other participating institutions in the province where the Zone is to be established.

Site Selection

ARTICLE 6 – (1) Site selection is conducted by the Founding Committee or the Managing Company.

(2) A prerequisite is proximity to at least one university or R&D institute within the provincial boundaries.

(3) Criteria such as proximity to the university, infrastructure, geological conditions, ownership status, and compliance with development plans are considered during selection. (Note: This is why you will often see Technoparks located on university campuses, making renting accommodation nearby a strategic move for employees.)

(4) Protected areas such as national parks, coastal protection zones, or military forbidden zones are generally excluded from selection unless special laws permit otherwise.

Application for the Zone

ARTICLE 8 – (1) The Founding Committee submits the application for the establishment of the Zone to the General Directorate. This also applies to expansions or changes to Zone boundaries.

(2) The application dossier must include, among other things:

• An official letter of application.
• The protocol of the Founding Committee.
• Land registry information and maps of the selected area.
• A detailed Feasibility Report.

For investors, this step is critical: Without an approved Feasibility Report proving the industrial and academic potential of the region, no Technopark will be authorized.

Evaluation Board

ARTICLE 9 – The Evaluation Board consists of representatives from various ministries (including Industry, Finance, Environment), the Council of Higher Education (YÖK), TÜBITAK, and the Union of Chambers and Commodity Exchanges (TOBB). This ensures broad regulatory alignment.

Duties of the Managing Company

ARTICLE 15 – The Managing Company is the heart of the Technopark operation. Its duties include:

• Planning and constructing infrastructure.
• Providing services such as electricity, internet, security, and cleaning.
• Allocating office space to entrepreneurs.
• Crucial for Startups: Operating an Incubation Center.
• Auditing the R&D projects of entrepreneurs to approve tax exemptions.

Street Smart Warning: If you complete an R&D project and fail to submit a new one within three months, the Managing Company has the authority to terminate your lease and evict you from the Zone (Article 15, Paragraph n). In the world of Technoparks, innovation isn’t just a goal; it’s your rent.

Incubation Center and Technology Transfer

ARTICLE 16 & 17 – The Zone is mandated to support young companies. Startups in the Incubator often receive significantly discounted rent (up to 50%). The Technology Transfer Office (TTO) supports patenting and commercializing inventionsa valuable resource for those spinning out of academia.

PART THREE: Planning and Real Estate

ARTICLE 20 – Lands owned by universities may be allocated to the Managing Company for use. Interesting for developers: State owned lands can be granted for free use for the first five years, followed by a nominal fee thereafter.

PART FOUR: Support and Incentives (The Core Value)

This is where investors find the “Hidden Gems” of the law. The financial backing from the Ministry is substantial.

Utilization of Funds

ARTICLE 27 – The Ministry can financially support the construction of infrastructure, administrative buildings, and incubation centers. These funds are often grants, not loans, drastically reducing capital expenditure (CAPEX) for operating companies.

PART SIX: Tax Exemptions and Exceptions

This section is mandatory reading for every CFO and tax advisor. (Note: While the original text cites older dates, subsequent amendments have extended these deadlines to December 31, 2028).

Fiscal Advantages

ARTICLE 37 – (1) The key regulations are:

• Corporate Tax: Profits derived from software and R&D activities within the Zone are exempt from corporate tax.
• Income Tax for Personnel: Salaries of R&D personnel (researchers, software developers) are exempt from income tax.
• Support Personnel: Staff in support functions (e. g., HR, Finance) can also be tax exempt, but this is capped at 10% of the total number of R&D personnel.
• VAT (Value Added Tax): Deliveries of software and services produced in the Zone are exempt from VAT.

The “2% Rule” Trap: Recent amendments introduced a requirement for companies with annual exemptions exceeding 1 million TL. You must invest 2% of those exempted earnings back into the ecosystem (e. g., into a Venture Capital fund or an incubator startup). Failure to do so can result in losing a portion of your tax benefits. This is a critical detail when structuring your company finances.

Remote Work (The 2026 Shift)

A pivotal point in Article 37 (e): R&D personnel are allowed to spend time outside the Zone and still retain their tax exemption if the activity is directly related to the project (e. g., lab tests, field trials). Crucially, recent legal updates now allow up to 75% of work time to be spent remotely (home office) without losing status. For specific informatics roles, Presidential decrees have the power to increase this to 100%, making Turkey highly competitive for digital nomads and tech teams.

PART SEVEN: Final Provisions

ARTICLE 41 – This Regulation originally entered into force on April 1, 2014, and has been updated by subsequent decrees.

APPENDIX: Feasibility Report for Technology Development Zones

The Regulation’s annex mandates the structure of the Feasibility Report, requiring detailed data on:

• Academic Potential: Number of Master’s and PhD graduates in the province.
• Industrial Potential: Existing R&D centers and industrial structure.
• Financial Plan: Investment costs for the first three years and projected revenue sources (rents, TTO income).

If you are planning to establish a presence in Turkey, understanding Law No. 4691 is your first step. It provides the framework to combine innovation with maximum cost efficiency, but it requires strict adherence to compliance rulesespecially the “continuity of projects” and the “2% investment” rule.