Tugbek Olek, the head of Games from Turkiye advisory board, revealed that Turkish game studios enjoy a tax-free status on their earnings. This attractive incentive is part of the Turkish government’s strategy to support and stimulate the growth of the country’s thriving games industry, which boasts prominent developers like Dream Games, Peak Games, and Rollic.
In addition to exempting game designers and developers from income taxes, the Turkish government offers various investment incentives to further boost the sector. Notably, investing in gaming ventures in Turkey is tax-free, as the country does not impose capital gains tax. This means that profits from investments, such as a $10 million exit scenario, remain untaxed.
Olek highlighted that accessing these incentives is relatively straightforward compared to other countries, with minimal paperwork requirements and swift processing times of three to six months.
The incentives extend beyond tax benefits to include support for developers. The government covers 50% of the salaries for two development staff members up to $50,000 and up to 80% of expenses for travel, accommodation, and participation in global events.
Furthermore, the government provides reimbursement for platform commissions, refunding a portion of fees charged by platforms like Apple and Google, up to $100,000.
Regarding the industry’s growth, Olek mentioned that Turkey now boasts around 850 game studios, with a significant concentration in Istanbul, making it the second-largest games development hub in Europe after London. Ankara also emerges as a prominent games hub within Turkey.
Overall, the incentives provided by the Turkish government aim to stimulate innovation, research, and development in the gaming industry, positioning the country as an attractive destination for game developers and investors.
