Strategic Growth Journal | Issue 4: Does Your Business Know the Incentives It Qualifies For?
Incentives, Grants and Support Programs — The 2026 Updated Panorama and Practical Guide
Executive Summary: The Right Support, the Right Timing, the Right Structure
Key message of this issue: The right support does more than provide financing; it strengthens the timing, scope and return of an investment. Yet success begins not with applying to a program, but with accurately defining the company’s needs.
Türkiye offers businesses a broad support ecosystem spanning entrepreneurship, R&D, capacity expansion, exports and green transformation. The ecosystem has been fundamentally renewed over the past two years: the investment incentive system was rebuilt in 2025 by Presidential Decree No. 9903; KOSGEB raised the ceiling of its Entrepreneur Support Program to TL 2 million in 2026; and TÜBİTAK TEYDEB calls continue on a regular calendar.
Despite this, many companies discover the right program too late, miss call calendars, or fail to present their projects in the language of the support mechanism. Incentive management is not merely a question of “which institution gives how much?” The real task is to bring the company’s strategic goal, investment plan, technical capacity and financial readiness together in a single project structure. KOSGEB, TÜBİTAK, the investment incentive system, development agencies and Ministry of Trade supports each answer different needs; the components of the same investment can be structured with complementary instruments.
01 — Choosing the Right Program for Your Needs
Support programs share a common goal — strengthening competitiveness — but not every institution targets the same type of expenditure or the same project maturity. The first step, therefore, is to define the company’s need not as a “financing request” but as a measurable transformation goal. “We want to buy new machinery” is not a goal; “raising capacity by 40% while cutting unit cost by 12%” is — and it is precisely that sentence that determines which institution’s door you should knock on.
| Program / Institution | For which need? | Project focus |
|---|---|---|
| KOSGEB | Startup, capacity, digitalization, competitiveness | Business model, machinery, personnel, software, services |
| TÜBİTAK / TEYDEB | R&D, technology development, innovation | Technical uncertainty, original solution, measurable R&D output |
| Investment Incentive Certificate | New investment, expansion, modernization | Supporting fixed investment with tax and cost advantages |
| Development Agencies | Regional priorities and local development | Call-based financial/technical support, feasibility |
| Ministry of Trade | Export readiness and internationalization | Market entry, fairs, branding, promotion, e-export |
| Green transformation tools | Energy, resource efficiency, sustainability | Baseline analysis, roadmap and transformation investments |
The right question: Instead of “which support can we apply for?”, ask: “Which strategic transformation do we want to achieve in the next 12–24 months, and which parts of it are supportable?” The difference between these two questions is the difference between companies that benefit from supports and those that do not.
02 — KOSGEB 2026: Financing from Startup to Scale-up
KOSGEB’s renewed Entrepreneur Support Program raised the bar in entrepreneurship financing in 2026: a business can receive up to TL 2 million by combining Business Establishment and Business Development supports. The program has three components:
| Component | Type / ceiling | Key conditions |
|---|---|---|
| Business Establishment Support | Non-repayable | Establishment grant (TL 20,000 for incorporated companies) + conditional personnel support for 3 years; additional amounts for priority groups. |
| Business Development Support | 80% · Repayable | Up to TL 1.5 million (TL 1.65 million for priority groups); personnel, machinery, software and service procurement. |
| Interest / Profit Share Support | 50% of credit cost | Working capital loans of up to TL 1 million through contracted banks; maximum 36-month maturity. |
Two structural changes stand out: Business Development Support is now repayable (4 equal installments after a 6-month grace period), and evaluation is two-staged — committee + jury. Only the top 500 projects nationwide and the top 3 per province are funded; application quality is now a directly competitive factor.
The portfolio for scaling SMEs
Beyond entrepreneurship, KOSGEB runs programs on capacity development, global competitiveness, digital transformation and green industry. Four criteria are critical:
- SME status and activity code: Operating in the NACE codes targeted by the program.
- Expense timing: The expenditure must not predate the application.
- Program priorities: Alignment between the call’s thematic focus and the project.
- Records discipline: Social security premium days and up-to-date financial data.
03 — TÜBİTAK TEYDEB: Turning an Idea into an R&D Project
TÜBİTAK TEYDEB programs provide 75% grants for private-sector research, technology development and innovation activities. Four programs stand out in the 2026 call period:
| Program | Support rate | Budget ceiling | Duration | Who is it for? |
|---|---|---|---|---|
| 1501 Industrial R&D | 75% grant | No ceiling | 24 months (36 with extension) | Experienced firms, consortia |
| 1507 SME R&D Starter | 75% grant | TL 3.5 million | 18 months | SMEs running their first R&D projects |
| 1505 University-Industry Collaboration | 75% / 60% | TL 2.3 million TÜBİTAK contribution | 24 months | Companies co-developing technology with universities |
| 1707 Order-Based R&D | Contribution model | TL 10 million | 24 months | Suppliers doing R&D for a customer organization |
Anatomy of a strong TEYDEB application
Winning files under 1501 and 1507 do more than describe a product idea; they jointly demonstrate the five elements reviewers look for:
- The technical problem to be solved: An uncertainty, proven by literature and patent screening, showing why current methods fall short.
- Novelty level: How the solution differs from existing approaches — comparative technical argument, not generic statements.
- Work packages and method: Input-output relationships, risks and defined alternatives (Plan B) for each work package.
- A competent team: Researcher and technician profiles capable of carrying the project’s technical risk.
- Verifiable outputs: Measurable targets such as prototypes, test reports, publications, patents or a commercialization plan.
Support rates by program: KOSGEB Business Development leads at 80%, TÜBİTAK and UR-GE stand at 75%, while Ministry of Trade supports are mostly in the 50% band.
04 — The Investment Incentive System: A New Era under Decree No. 9903
The Decree No. 9903 on State Aid for Investments, published on 30 May 2025, rebuilt the incentive architecture. The 2012/3305 system was repealed; the new structure is organized into three main categories, and applications will be accepted until 31 December 2030:
| Category | Scope and highlights |
|---|---|
| Türkiye Century Development Move | Technology Move, Local Development Move and Strategic Move programs; project-based evaluation, a strong support package and the new machinery support instrument. |
| Sectoral Incentive System | Priority Investments and Target Investments; a sector-focused, predictable support framework. |
| Regional Incentives | Employer’s social security premium share support by investment region; additional premium support in Region 6. |
Support elements that change investment feasibility
| Support element | What it provides |
|---|---|
| VAT Exemption & Customs Relief | Upfront cash advantage on investment goods and machinery; elimination of customs duty on imported equipment. |
| Tax Reduction | Corporate tax applied at a reduced rate (up to 60%) until the investment contribution amount is reached. |
| Interest / Profit Share Support | Coverage of investment loan financing costs within defined limits. |
| Machinery Support (new) | 25% of the price of machinery-equipment with a unit price of TL 2 million or more paid from the budget; capped at 15% of fixed investment and TL 240 million. |
| Employer’s SGK Premium Share | 12 years in Region 6, 8 years elsewhere; in Region 6, an additional 10-year premium support after the completion visa. |
| Investment Site Allocation | Reduced entry costs through land allocation in industrial zones for eligible projects. |
Minimum fixed investment amounts were set at TL 12 million for Regions 1–2 and TL 6 million for other regions; these figures are updated annually by the revaluation rate (approximately TL 15.1 and 7.5 million for 2026, respectively). The timing of the application relative to machinery orders and the start of spending is critical: expenditures made before the certificate may fall outside the support scope. Certificate revisions, realization tracking and completion-visa processes must be managed with discipline throughout the investment.
05 — Development Agencies and Export Supports: Opportunity Areas
Development agencies: projects anchored to regional priorities win
Development agencies provide financial support, technical assistance, feasibility support and investment advisory in line with regional plans. Programs are call-based; scope and co-financing vary each period. Projects should be explicitly anchored to regional priorities.
Ministry of Trade: an instrument for every stage of exporting
Decrees No. 5973 (Export Supports) and No. 5986 (E-Export Supports) offer a broad menu from market research to branding (ceilings updated annually):
| Support | Rate | Scope |
|---|---|---|
| Market entry documents | 50% | Certification, testing, licensing and registration (~TL 15.3 M/year in 2025). |
| Overseas market research | 50% | Transport and accommodation; up to 5 per year, 20 in total. |
| International fairs | 50%+ | Space rent, stand, shipment; raised ceilings for prestigious fairs. |
| Trademark registration & promotion | 50% | Overseas trademark registration; country-based promotion (4 years). |
| Unit rent | 50% | Rent and fit-out of overseas stores, offices, warehouses, showrooms. |
| UR-GE | 75% | Clustering projects; needs analysis, training, consultancy, marketing (3+2 years). |
| TURQUALITY® / Brand | 50% | A holistic program from branding roadmap to employment; 5+5 years per target market. |
| E-export supports | 50%+ | Marketplace promotion, online store, order fulfilment, commission and integration expenses. |
Expert view — not isolated spending, but a market plan: Rather than isolated expenditures unlinked to an export strategy, a holistic plan covering target country, customer segment, channel, budget and expected sales impact delivers far stronger results. Fair + market research + entry documents + promotion, structured toward the same target market, amplify each other’s effect.
06 — Green Transformation: Turning Compliance Costs into Support
Green transformation is no longer merely an environmental compliance issue; it is a matter of access to export markets, energy costs, supply-chain adequacy and access to finance. As the EU Carbon Border Adjustment Mechanism (CBAM) enters its financial obligation period, measurement, reporting and abatement investments have become a commercial necessity in carbon-intensive sectors.
On the support side, three instruments work together:
- The Responsible® Program (Ministry of Trade): Aims to build companies’ Green Deal alignment capacity through baseline analysis and sustainability roadmaps.
- KOSGEB green industry tools: Transformation projects targeting energy efficiency, resource use and low-carbon production.
- The investment incentive system: Under Decree No. 9903, investments in electricity generation, storage and distribution meeting defined conditions can benefit from priority-investment supports; green transformation investments also feature in the decree’s special programs.
07 — Layered Structuring: One Investment, Four Supports
The craft of support management lies in matching the components of a single investment program to the right instruments. Example: a capacity expansion + product development + export opening investment in manufacturing can be structured in four layers:
| Component | Instrument and scope |
|---|---|
| Machinery & plant investment | Investment Incentive Certificate — VAT exemption, customs relief, tax reduction, SGK and, where relevant, machinery support |
| Product / process R&D | TÜBİTAK TEYDEB — 75% grant under 1501 / 1507; prototyping, testing and validation expenses |
| Business transformation | KOSGEB — Digitalization, software, consultancy and capacity development expenses |
| Export opening | Ministry of Trade — Market research, fairs, market entry documents, promotion and UR-GE |
The golden rule of this model is the prohibition of duplicate funding: the same expense item cannot be supported by two different programs. Layering is done by separating expenses at component level and structuring each in line with its own legislation. Programs’ special conditions — for instance, that machinery support and interest support cannot be used together — must always be observed at the structuring stage.
08 — From Application to Result: A 6-Step Roadmap
- Needs analysis: The strategic goal is clarified; the transformation need is translated into measurable targets. Output: a one-page “investment/project card”.
- Program screening: Institutions, call calendars, support elements and eligibility criteria are mapped; the layered structure is designed.
- Project structuring: Budget, work packages, timeline and performance indicators are written; co-financing and cash flow are modeled.
- Application: Document consistency (proposal–budget–work packages) is checked; the file is submitted ahead of the deadline, with its evidence.
- Implementation: Compliance with procurement rules, evidence-file discipline, notification of changes to the institution and revision management.
- Monitoring and closure: Periodic reports, progress payment tracking, completion visa and the transition plan to subsequent programs.
The 5 most common mistakes
- Adding ineligible expenses to the budget, or making the expenditure before the application.
- Describing the project’s innovative side in generic terms; setting no measurable targets.
- Leaving inconsistencies between the proposal, budget and work packages.
- Starting the project without accounting for co-financing and cash flow.
- Failing to notify the institution of post-approval changes; setting up evidence and reporting discipline too late.
Conclusion: Turn Support into a Growth System
For companies, the real gain is far more than a one-off grant: the right program selection, disciplined project management and a strong reporting culture create sustainable growth capacity. Türkiye’s renewed 2026 support architecture offers prepared companies a wider field than in previous years; what will make the difference is seeing the opportunity before the calendar does — and writing the file in the institution’s own language.
Call to Action
To identify the supports your company qualifies for, design a layered incentive structure and strengthen your application file, talk to the MerSar team.
This newsletter is for general information purposes only; before investment or application decisions, the current legislation of the relevant institutions, Official Gazette announcements and call documents shall prevail. Figures and rates in this issue are compiled from public sources as of the publication date and may change periodically.