New Era for Project-Based Investments: Minimum Threshold Increased

Significant amendments have been introduced to the regulation governing state aid for project-based investments. The Presidential Decree was published in the Official Gazette and has entered into force. With the new regulation, the criteria for large-scale investments have been revised.

Accordingly, the minimum fixed investment amount required to benefit from project-based incentives has been increased from TRY 500 million to TRY 1 billion. This amendment will enter into force as of July 1, 2022.

In addition, a new provision has been introduced regarding the transfer of supported investments. The transfer of an investment will now be subject to the permission of the Ministry and the approval of the President, within the timeframes and conditions specified in the Support Decision. This provision has been effective since April 21, 2022.

Furthermore, the principles regarding the repayment of certain supports in cases where the incentive certificate is canceled or partially sanctioned have been clarified. Any excess payments made for qualified personnel support, energy support, and grants will be reclaimed from the investor together with legal interest calculated based on the applicable default interest rates from the date of each payment. This regulation has been effective retroactively as of November 26, 2016.

The amendments are considered to aim at strengthening the financial structure of project-based investments and establishing a stricter supervisory framework.