NO TAXES, NO TARIFFS, NO DUTIES: ESBAS is an International Free Zone. Because Free Zones are defined as special sites within Turkey, they are deemed to be outside its customs territory … therefore there are NO Taxes, NO Tariffs and NO Duties levied on goods imported into the Zone from abroad.

UNLIMITED WAREHOUSING; SELLING TO TURKEY: It is possible to stock goods for an unlimited time within the Zone. Unlike many Zones, Turkish Zones are allowed to then sell into the host country, and need only pay required duties, etc., for the type and amount of goods sold.

A FAVORABLE BUSINESS CLIMATE: The Turkish Government established Free Zones in 1985. The objective was to create a favorable business climate that would attract foreign investment; increase foreign trade; and accelerate development and employment in selected regions of the Country. In addition to the above customs benefits, they have over time legislated additional financial incentives and made certain adjustments to them to reflect changing realities.

A PLUS FOR MANUFACTURER USERS: Companies coming into the Zone after June 2, 2004 are exempt from income or corporate taxes until the end of the tax year that Turkey becomes a full member of the European Union. (They do have to pay worker income tax however from start.) However, the wages of the workers employed by the users that export at least 85% of the FOB value of the goods they produce in the Free Zone are exempt from income tax. The Council of Ministers can reduce this threshold to 50%. The transactions and arranged documents related to the activities carried out in the zone by manufacturer users are exempt from stamp duties and fees.

EARNINGS AND REVENUE REPATRIATION: Free Zone earnings and revenues can be transferred to any country, including Turkey, freely and without prior permission.

LENGTHY LICENSES ASSIST LONGER TERM PLANNING: The validity period of an operating license is 15 years for tenant users; 20 years for manufacturer-tenant users; 30 years for users building their own working premises; and 45 years for manufacturer-investor users.

UNLIMITED CAPITAL INVESTMENT: There is no limitation on the proportion of capital participation in investments within the Zone.

AN INFLATION HEDGE: Currencies used in the Zone are convertible to foreign currencies dealt by the Central Bank of Turkey.

REDUCED BUREAUCRACY: Red Tape and Bureaucracy have been minimized during application and operation.

NO DUTIES TO THE EUROPEAN UNION: Since Turkish Free Zones are part of the Turkish-EU Customs Territory certain advantages will accrue to Zone Users. This means no customs duty for goods sent from Turkish Free Zones to the European Union.

NO VALUE ADDED TAX: Since the Trade conducted between Turkey and the Free Zones is subject to Foreign Trade Regulations, Free Zone Users can purchase goods and services from Turkey without paying the value added tax. On the other hand, trade between free zones and third countries is not subject to the Turkish foreign trade regime.

ESBAS strongly suggests that International Companies considering locating in the the Zone, check with both the IZMIR INVESTMENT AGENCY (IZKA) and with the TURKISH INVESTMENT & PROMOTION AGENCY (ISPAT), to learn if they qualify for beneficial promotions and incentives, or if special incentives are available at a specific time.