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Türkiye is preparing to widen a set of tax incentives beyond the Istanbul Financial Center (IFC), aiming to attract foreign companies considering reshaping their operations amid regional instability during the Iran war, the report suggests.
The Treasury and Finance Ministry is working on legislation that would extend selected advantages currently limited to the IFC across the country, the sources told Bloomberg.
The draft is expected to reach parliament in the coming weeks, though officials confirmed only that preparations are ongoing without detailing the content.
At the center of the proposal sits a tax break already available to IFC-based firms.
Companies would be allowed to deduct 50% of income earned from selling or intermediating goods sourced abroad without bringing them into Türkiye, the report said.
Authorities see the Iran conflict as opening a narrow window to reposition Türkiye as a safer regional hub. Gulf countries have come under the shadow of potential retaliatory strikes, while Istanbul has so far remained outside the conflict’s direct impact.
That contrast is prompting renewed interest from firms that had previously favored hubs such as Dubai, with officials arguing that shifting risk perceptions could redirect investment flows toward Türkiye, the report added.
Opened in 2023 to position Istanbul as a global financial hub, the IFC hosts key institutions, including the Central Bank of the Republic of Türkiye (CBRT) and major state lenders.
Companies in the IFC receive a broad set of incentives, including a 75% corporate tax deduction on financial services export income, exemptions from banking and insurance transaction taxes, and income tax cuts of up to 80% for certain employees. Lease agreements in the center are also tax-exempt.
Recent outreach signals rising momentum, with IFC CEO Ahmet Ihsan Erdem telling Reuters that over 40 companies—mostly from East Asia and the Gulf—have met with the center over the past month, indicating growing interest in relocating or expanding operations in Türkiye.
Discussions span sectors including fintech, finance, Islamic finance, and insurance, involving firms from Malaysia, Japan, Singapore, South Korea, and Hong Kong, he added.
President Recep Tayyip Erdogan said on Monday that Ankara is stepping up efforts to reposition Türkiye as a regional hub for global business, noting that war-driven global strains could create new openings for the country.
"Our economic team is making an intensive effort to position Türkiye as a strong regional management center for multinational companies, transform it into a global hub for transit trade, and turn the Istanbul Finance Center into one of the world’s leading financial centers," he said.
Echoing that outlook, he added, "We sincerely believe that this global crisis will open new doors for our country."
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