Jun. 4, 2025 - A new presidential decree entered into force in Turkey on May 31, 2025, comprehensively updating the government investment support system, with a particular focus on the strategic steel sector, according to a statement issued by the Turkish Steel Producers Association (TCUD).

The decree aims to support investments in the steel industry under five main axes, taking into account project size, technology level, geographical location, and environmental aspects.

General support includes basic incentives, including exemption from value-added tax and customs duties, and applies specifically to modernization and expansion projects for small and medium-sized enterprises that meet minimum investment requirements.

Regional incentives vary depending on project locations. In regions such as the Marmara, Black Sea, and Mediterranean regions, where steel industry activity is more developed, investors receive additional benefits, such as tax reductions, insurance premium subsidies, and credit facilities.

Priority investments focus on environmental initiatives, such as energy efficiency, emission reduction, renewable energy and hydropower projects, and waste management. These projects receive an extensive support package, including VAT rebates, long-term social contributions, and tax incentives.

The support system also includes strategic investments aimed at boosting high-tech production, particularly flat and alloy steel production, to reduce dependence on imports. Benefits offered in this framework include land provision, financing support, VAT rebates, and other incentives.

The so-called “super-incentive” is allocated to large-scale projects with high added value, particularly those that rely on integrated production using renewable energy sources and hydropower.

The Turkish government emphasizes that the updated incentive system aims to enhance the sustainability of the steel sector, increase its competitiveness, and make it more compatible with environmental standards.