Istanbul Thrace Free Zone (İSBAŞ)
Operating since 1998 and strategically located in Çatalca İstanbul (3 km to TEM, 12 km to E-5 Motorway), İSBAŞ is a free trade area project aiming to raise Turkey’s production, exportation, and competition power. Built on 450.000 m² of land, İSBAŞ brings many ‘firsts’ to Turkey’s free trade scene.
While benefiting from tax exemption, low-interest credits, cheap labor force, easy profit transfer methods, and minimum bureaucracy, investors can also buy, own, rent, and sell their land or buildings within the area.
Providing health, security, transportation, workforce, maintenance, and general orientation services for its investors, İSBAŞ keeps rewarding both its investors and the Turkish economy with a 20 billion trade volume in the last 10 years...
The main objectives in the establishment and operation of free zones in the Free Zones Law No. 3218:
- - To encourage export-oriented investment and production
- - Accelerating foreign direct investment and technology entry,
- - To direct businesses to export and to develop international trade.
In addition to their contribution to the economies of the countries, they are in, free zones, which provide a modern and developed investment environment for companies that want to turn to foreign trade with their flexible and contemporary administrative structures, increasing their importance in the country as logistics centers.
Free Zone Advantages
100% Corporate Tax Exemption
Companies that produce in the Free Zone are exempted from the Corporate Tax they are obliged to pay at the end of the period in Turkey.
100% Income Tax exemption
Earnings and revenues obtained by real and legal persons as a result of production activities carried out in free zones are not subject to Income Tax.
Withholding Payment Exemption
Since the users who export 85% of their production do not pay income tax for the personnel, 25-40% cheap labor is provided.
VAT Exemption
Since the sales of goods and services from Turkey to the free zone are considered exports, these goods and services are exempt from value-added tax.
Free Profit Transfer
Profits and revenues obtained in the free zone can be freely transferred to any country, including Turkey, in accordance with the foreign exchange legislation, without being taxed.
Customs duty exemption
Goods entering Free Zones are exempt from customs duty.
KKDF Exemption
The 3% Resource Utilization Support Fund applied in imports with acceptance credits is not applied within the free zone.
Cheap Energy Use
Since electricity and fuel are exempt from VAT in Free Zones, cheap energy use is possible.
Minimal Bureaucracy
Bureaucracy is minimized in Free Zones.
Other Exemptions
Price-quality standards are not applied in the entry of goods into the Free Zones.
Location Advantage
With its strategic and ideal location, İSBAŞ offers its investors ease of access and human resources richness in an area of 387.500 m² in Istanbul, Çatalca, which is of logistical importance not only for Turkey but also for the whole world.
Based on its location:
- It is 3 km from TEM (Trakya Highway),
- 30 km from Mahmutbey entrance, 10 km from E-5 highway,
- 40 km from Atatürk Airport,
- 28 km from Emlak Bank Bahçeşehir Residences,
- 8 km from Alkent 2000,
- 20 km from Kumport Port.
Commercial Advantages
Companies from different sectors that will take part in İSBAŞ find the opportunity to trade among themselves and their sub-industries.
Financial Advantage
The manufacturing companies operating in İSBAŞ benefit from the incentives provided by the legislation and use all of the tax advantages - VAT, KKDF, and withholding exemptions.
Corporate Tax or Income Tax exemption is one of the financial advantages of İSBAŞ production license users.
Thanks to these advantages, İSBAŞ users have the chance to reduce their production costs and compete in world markets.
These advantages, explained with the example in the cost table, offer İSBAŞ users a reduction of up to 35% in production costs.
Warehouse
- 6 meters ceiling height
- Steel structures that provide speed and convenience in loading and
- unloading Independent sections ranging from 50-400m²
Source: Istanbul Thrace