İzmir Free Zone was founded in 1984 by Leather Industry Building Cooperation. An area of 163 hectares at Maltepe Village of Menemen District of İzmir is specified according to the resolution of İzmir Governorship as "suitable for the field of activity of the industry".
In 2011, due to the increase in potential, the area was opened to other industries and named as Izmir Free Zone- IZBAŞ.
İzmir Free Zone covers an area of 1.620.000 m². As of April 20232, in İzmir Free Zone there are;
- 168 local
- 17 international
- 12 local and international partnerships
making a total of 197 companies and employing 6.000 personnel.
Leather manufacturing and trade is the major industry with the advantage of Leather Specialized Customs, as well as
- Chemical Manufacturing and Trade,
- Electricity - Electronics,
- Plastic Pipe, Profile and Plastic Goods,
- Marble/Ceramic and Natural Stones,
- Elevator Lifting and Handling Equipment,
- Medical Equipment,
- Composite Wind-Blades
which are the other industries invested in İzmir Free Zone.
Activity License Types
Companies that will operate in the Free Zones can apply for an "Activity License" by the following field of activity
Production: All activities including the purchase of raw materials and intermediate goods used in production, the sale, branding, packaging, labeling, and display of the produced goods.
Trading: Selling, storing, labeling, packaging, and exhibiting the traded goods.
Assembly – Disassembly: Assembly - Disassembly of machinery and equipment.
Maintenance – Repair: Maintenance and repair of machinery and equipment
Rental of Open Stock Area: There are stock area rental options if requested by the users.
Warehouse Rental: There are indoor or warehouse rental options starting from 200 m2 with loading and unloading services.
Rental of Equipment and Personnel: In addition to the equipment rental service that will provide optimum benefit to the users, it is also possible to provide support with its expert professional team.
Conference Room Rental: Designed with all the details in mind, the conference hall, which has a seating capacity of 200 people, is at the service of the users and companies outside the region with the appropriate rental option for various meetings, seminars, and conferences.
Benefits and Advantages
Benefits of the Location
Turkey in the Global Market
Turkey's geopolitical position, strong logistics infrastructure, cost-effective-qualified workforce, and liberal investment climate, which is on its way to becoming the new Headquarters of the global supply chain, provide a suitable environment for international companies and continue to serve as a trade bridge between Asia and Europe. Due to production delays, increasing freight costs, and container crises, European companies are turning to Turkey, which has a strategic location advantage for supply and is a stable center. The exponential increase in long-distance transportation costs continues to select Turkey, which offers location and cost advantages for many foreigners.
Foreign investors' interest in Turkey in the last 20 years markedly increased.
Izmir; Turkey's New Trade Center
Izmir is one of the world's oldest modern life and trade centers. It is the 3rd largest metropolis in Turkey and the 2nd largest commercial center. Izmir Alsancak Port is one of the most important production and logistics centers not only in the Aegean Region but also in Turkey. In addition, it is an important port city together with Aliağa Port and Çandarlı Port, which is the closest to this region.
The contribution of Izmir to industrial production in Turkey is 7%. The Izmir International Fair and other fairs, host many sectors every year and bring together producers and investors. Having a strong logistics infrastructure and industrial capacity, Izmir's new investment plans continue to grow with a determined perspective.
Financial and Investment Advantages
Companies producing in İzmir Free Zone are exempt from Corporate Tax.
If they export 85% or more of their production within the same year, their employees are exempt from Income Tax.
Since the Free Zones are considered a part of the Customs Union treaty between Turkey and the European Union, the products produced in the Izmir Free Zone can be sent to EU member countries freely if an A.TR certificate is issued.
In addition, no customs duty is applied to products from countries outside the Customs Union that are subject to customs duty in Turkey at the time of entry to the Izmir Free Zone.
However, products originating from third countries can be sent to European Union countries by paying customs duty to the Free Zone Customs Directorate at the rate specified in the Common Customs Tariff, and after the free movement is started, an A.TR certificate can be issued.
Possibility of Planning the Future in the Medium and Long Term
A building plot can be provided for the investors who will make production to deliver the title deed immediately. - 15 years for tenant-user companies leasing ready-to-use workplaces, - 20 years for manufacturer-tenant-user companies leasing ready-to-use workplaces, - 30 years for investor-user companies that build their own business, - 45 years for manufacturer-investor-user companies that build their own business, an operating license is issued. In addition, lands and buildings that are privately owned by the Treasury can be leased to investor users, or servitude rights up to 49 years can be established on them.
Ease of Trade
The provisions of the foreign trade regime are applied in the trade between the Free Zones and other parts of Turkey. Goods sold to the free zone from Turkey are subject to the export regime, and free zone users can purchase goods and services from Turkey at the export price (without VAT). On the other hand, the provisions of the foreign trade regime are not applied between the free zone and other countries and other free zones. In addition, to ensure the supply of consumables in the regions as soon as possible, goods with a price not exceeding 5000 USD or equivalent in Turkish Lira may not be subjected to an optional export process.
Possibility of Profit Transfer
Gains and revenues from free zone activities can be freely transferred abroad or to Turkey without any permission.
Reduced Bureaucratic Procedure and Dynamic Operating Management
All kinds of bureaucracy have been minimized during the application and activity. Free zones are operated by private sector companies.
Possibility of Commercial Activity Free of Customs Tax Procedure
Customs duty shall not be paid at the entry of goods of Turkey or EU origin or in free circulation to the free zone to Turkey or EU member countries as the status of being in free circulation does not change. In addition, customs duties are not paid when goods originating in third countries enter the free zone and these goods are sent to third countries other than Turkey or EU member countries. However, for goods originating in third countries that are not in free circulation status sent from the free zone to Turkey or EU member countries, customs duty shall be paid at the rate specified in the Common Customs Tariff.
Possibility of Providing Free Movement Documents Required by EU and Customs Union Criteria
Since the free zones are considered part of the Turkey-EU Customs Union, it is possible to send products originating in Turkey or the EU and products in free circulation in Turkey from the regions to the EU by issuing an A.TR Certificate. Products originating in third countries can be sent to the EU by issuing A.TR Certificate after being released for free circulation by paying customs duty to the Free Zone Customs Directorate at the rate specified in the Common Customs Tariff.
Principle of Equality
All domestic and foreign companies benefit equally from the incentives and advantages provided in the free zone. Operators and users can also benefit from non-tax incentives to be determined by the Council of Ministers during the investment and production phases.
No Time Restriction
The goods may remain in the free zone without time limitation.
Possibility of Realistic Inflation Accounting
All kinds of payments related to activities in free zones are made in foreign currency
Possibility of Commercial Activities to be Freely Determined According to Market Needs and Conditions
Except for the provisions of the legislation on customs and foreign exchange obligations and the demands of the manufacturing enterprises, the powers granted to public institutions and organizations regarding prices, quality, and standards shall not be applied in free zones.
Possibility of Access to All Domestic and Foreign Markets
There is no restriction on the sale of goods from free zones to Turkey and trade between the free zone and other countries. There are no restrictions on the sale of goods from free zones to the country, except for consumer goods and risky goods.
Inexpensive Infrastructure Opportunity Suitable for All Commercial and Industrial Activities
The infrastructure of free zones is of the same standard as their counterparts in developed countries.
Ease of Utilization of Supply Chain Opportunities
Free zones offer uninterrupted supply opportunities with world prices and conditions, especially in the supply of intermediate goods and raw materials to companies producing for export.
Private Trade-Industry Area
İzmir Free Zone is an industrial park and transit loading point that allows a company to enter intense competition in the world market without being subject to various import-export restrictions.
Join IZBAS Let The World Know You
İZBAŞ promotion activities are carried out by the management in Turkey and abroad. In addition to describing İZBAŞ and the free zone in general, companies operating in this free zone are also introduced in these promotional activities. Thus, it creates additional value for the domestic and international promotion-marketing activities of the companies.
Strong Employment Potential
For foreign investors, skilled labor is of great importance. The young, talented, well-educated, and productive labor force in Turkey has brought Turkey to the forefront as the most advantageous country in Europe. Employment in İZBAŞ has increased by 114% in the last 5 years.
Sale of Land and Building with Title Deed
A building plot can be provided for the investors who will make production to deliver the title deed immediately. The provision of title-deeded buildings and land is an essential advantage in the preference of the İzmir Free Zone.
- 15 years for tenant-user companies leasing ready-to-use workplaces,
- 20 years for manufacturer-tenant-user companies leasing ready-to-use workplaces,
- 30 years for investor-user companies that build their own business,
- 45 years for manufacturer-investor-user companies that build their own business, an operating license is issued.
Land and buildings can be leased or servitude rights up to 49 years can be established on them.
There are indoor or warehouse rental options starting from 200 m2 with loading and unloading services.
Landscape and Environmental Cleaning
Environmental cleaning, landscaping works, and domestic garbage collection are carried out with the wide machine park and professional teams of İZBAŞ. In addition, the landscape requests of the users are also met by İZBAŞ. It is among the greenest regions of Turkey with its plant and tree diversity grown in the nursery in this region.
Loading and Unloading
Handling and stacking of goods entering and leaving the region can be provided by İZBAŞ upon request. Loading and unloading operations can be carried out with forklifts and elements in the region.
Photo and Information Source: İZBAŞ