FDI Facilitation  -  Europe  -  European Free Zone

European Free Zone

Europe

The foundation of European Free Zone(EFZ), one of the largest private sector industrial projects of Turkey, was laid on 8 August 1998. The official opening was made by Prime Minister Recep Tayyip Erdoğan in 2003, and thanks to the investments ASB rose to the 4th rank among the free zones in Turkey by exceeding the annual 2 billion dollars in trade volume in a short period of time.

EFZ, founded on a land of 2 million square meters in Çorlu/Tekirdağ which is located in the center of istanbul, Europe and major transport networks, has currently 200 active companies. Over 3 thousand people are employed, and the production of the world’s leading brands takes place in the zone.

European Free Zone whose project was drawn by one of the largest architectural groups of America, Swanke Hayden Cornell Project, gives all the infrastructure services as electricity, water, natural gas, waste water, sewage, roads, communication, etc, to its investors with the assurance of 5 separate quality certificates.

In addition to infrastructure services, construction-contracting, catering, information technology, insurance, maintenance and repair, loading / unloading, warehousing, consulting, private security, conference room, etc. services are also provided.

Lands with ready infrastructure, general and private warehouses, offices and open stock areas, ready production facilities are offered to the investors in EFZ with leasing or title deed ownership.

For more information and business setup at European Free Zone please contact MABS Consulting, the International Service Provider of EFZ.

Advantages and Incentives of doing business at European Free Zone.

  • 100% Tax Exemption: Companies that settle in the free zone are 100% exempted from corporate tax or income tax through their profits generated from production activities until Turkey’s main entry to European Union. (Corporate tax ratio in Turkey is 20 %.)
  • Customs related tax exemptions: Companies operating in free zone are exempt from Value Added Tax, and all sorts of customs duties.
  • Income Tax exemption over salaries paid to employees: Production companies who sell at least 85% of their production to other countries than Turkey are 100% exempt from income tax payable over salaries of the employees, which differs between 15% and 35% according to the salary level.
  • Money value control: As the transactions within the zone are performed with convertible foreign currencies, domestic inflation rate will not influence purchasing and selling activities, inventory control and accounting procedures in general.
  • Free Profit Transfer: The companies settled in free zone can transfer their profits and earnings to other locations in Turkey or abroad without any permission

Commercial Advantages

  • Since the sales from Turkey to free zone is considered as export, companies in the free zone have the advantage of buying products at export prices, which are usually lower than domestic prices.
  • There is no prohibition against selling from the free zone to domestic market for raw materials, semi products and industrial goods.
  • The goods produced in free zone have the right for free circulation in European Union Countries since Turkey is a member of European Customs Union.
  • Transit and barter trade is possible in the free zone. The faulty goods can easily be returned to its origin.
  • There is no time limitation in the free zone for keeping stock. These goods can be delivered to Turkey and abroad partially.

Investment Advantages

  • Ready Infrastructure: Infrastructure such as electricity, natural gas, telephone, water, sewage and purification system are ready to be installed in factories.
  • Equal Treatment to Foreign Capital: The companies operating in free zone can be 100% foreign capital. There is no minimum capital requirement.
  • Ownership: Foreigners may acquire land within the free zone. They may sell such lands and buildings to third parties. There is no buying-selling tax in free zone as it is in Turkey (3%).
  • Simplified Procedures: Required formalities for investments are minimal. Incentive certificates are not required for investments because a more expansive, limitless incentive is granted at the free zone.
  • High and Good Quality Employment potential: The existing industrial settlement in the region offers a large pool of qualified employees. Thrace is the most densely and reasonably industrialized region in Turkey. The community therefore has an industrial culture and stable business life.
  • Free Entrance to 2nd hand machines: The investor companies may bring used machines to free zone without any restriction or tax.

Europe

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