Subject:
Investment Incentives and General Supports for the Pharmaceutical and Pharmacy Sector
Reading Time:
10 Min
Date:
Dec 8, 2025
What is the Pharmaceutical and Pharmacy Sector?
The pharmaceutical sector encompasses an industry that produces chemical substances derived from herbal, biological, animal, and synthetic sources used for preventive, therapeutic, and diagnostic purposes in veterinary and human medicine, in accordance with pharmaceutical technology.
1. What Are the General Supports for the Pharmaceutical and Pharmacy Sector?
There are various supports provided by KOSGEB, TÜBİTAK, and the Ministry of Trade for the pharmaceutical and pharmacy sector. Supports for the pharmaceutical and pharmacy sector are divided into project-based and general supports. Details of the supports provided for the pharmaceutical and pharmacy sector are provided below.
TÜBİTAK Project-Based Supports
A) TÜBİTAK 1501 - Industrial R&D Project Support Program
Within the framework of the 1501-Industrial R&D Support Program, projects with R&D qualifications that are carried out in the scope of innovation definition regarding the production of a new product, the development and improvement of an existing product, the enhancement of product quality or standards, or the development of new techniques and production technologies of a cost-reducing nature are supported. The support rate of the program is applied at 75%.
Supported Expenses | Support Duration |
Personnel Expenses | 75% |
Travel (Transportation Only) Expenses | |
Equipment, Tools, Software, and Publication Purchase Expenses | |
R&D Service Expenses | |
Domestic and Foreign Consultancy Expenses | |
Material and Consumable Expenses |
*There is no budget limit.
*A feasibility study is required for investments over 5 million.
B) TÜBİTAK - 1507 - SME R&D Startup Support Program Call
Supports provided within the scope of the 1501 Industrial R&D Support Program aim to support project-based research, technology development activities, and innovation activities of Small and Medium-Sized Enterprises (SMEs).
Supported Expenses | Support Duration |
Personnel Expenses | 75% |
Travel (Transportation Only) Expenses | |
Equipment, Tools, Software, and Publication Purchase Expenses | |
R&D Service Expenses | |
Domestic and Foreign Consultancy Expenses | |
Material and Consumable Expenses |
*Applicable for projects up to 1,200,000 TL.
KOSGEB Project-Based Supports
A) KOSGEB Technology Investment Program
https://odsdanismanlik.com/tr/kosgeb-kobi-teknoyatirim-destek-programi/
B) KOSGEB Foreign Market Program
https://odsdanismanlik.com/tr/kosgeb-yurt-disi-pazar-destek-programi/
C) KOSGEB R&D Product Development Program
https://odsdanismanlik.com/tr/kosgeb-arge-urge-ve-inovasyon-destek-programi/
KOSGEB General Supports
SUPPORTS OF BUSINESS DEVELOPMENT SUPPORT PROGRAM | SUPPORT UPPER LIMIT (TL) | SUPPORT RATE |
1- Domestic Fair Support | 100,000 | 60% |
2- Foreign Business Trip Support* | 90,000 | |
3- Qualified Personnel Employment Support** | 50,000 | |
75,000 | ||
4- Design Support | 75,000 | |
5- Industrial Property Rights Support*** | 100,000 | |
6- Certification Support**** | 300,000 | |
7- Testing and Analysis Support***** | 300,000 | |
8- Energy Efficiency Electric Motor Replacement Support****** | 80,000 | |
9- Independent Evaluation Support | 20,000 | |
10- Model Factory Support | 100,000 | |
11- Technical Consultancy Support******* | 40,000 | |
50,000 |
For detailed information; https://odsdanismanlik.com/tr/hibe-ve-destek-yonetimi-danismanligi/
What Are the Sectors Supported by KOSGEB for the Pharmaceutical and Pharmacy Sector?
Pharmaceutical;
NACE REV 2 CODE | SECTOR NAME | NACE TYPE |
21 | Manufacture of basic pharmaceutical products and pharmaceutical materials | C |
21.1 | Manufacture of basic pharmaceutical products | C |
21.10 | Manufacture of basic pharmaceutical products | C |
21.10.2001 | Manufacture of basic pharmaceutical products (to utilize pharmacological properties in the production of medicines like antibiotics, vitamins, salicylic acid, etc. with active substances, blood products, secretions, hormones, etc.) | C |
21.20.02 | Production of adhesive bandages, gauzes, and similar medical materials (sterile surgical gauzes, tampons used with pharmaceutical substances, hydrophilic cotton, gauze, bandage, etc.) | C |
21.20.04 | Manufacture of other pharmaceutical preparations (antisera, antidotes, vaccines, hormonal and spermicidal chemical contraceptive preparations, diagnostic reagents, and other pharmaceutical preparations) (including those for animal health) | C |
22.19.01 | Manufacture of hygienic and pharmaceutical products from rubber | C |
23.19.06 | Manufacture of laboratory, hygienic, or pharmaceutical glass items and glass ampoules (excluding those used in packaging and transport) | C |
46.18.05 | Intermediaries wholesaling products related to pharmacy based on payment or contracts | G |
46.46 | Wholesale trade of pharmaceutical products | G |
46.46.02 | Wholesale trade of basic pharmaceutical products and pharmaceutical preparations | G |
47.73 | Retail trade of pharmaceutical products in stores dedicated to a specific good | G |
47.73.01 | Retail trade of pharmaceutical products intended for human health in stores dedicated to a specific good | G |
Project-Based Supports of the Ministry of Trade
A) Global Supply Chain (GSC) Project
Support Amount: 15,000,000 TL
Support Rate: 50%
Support Duration: 2 Years
What Sectors Can the Global Supply Chain (GSC) Support Project Be Applied In?
• Mining and Metal
• Chemical Products
• Automotive
• Machinery
• Aerospace/Aviation
• Electrical/Electronics
Other sectors may also be considered under the conditions.
What Items Will Be Supported Within the Scope of the Global Supply Chain (GSC)?
• Machines, equipment, facilities
• Software purchases
• Training, consultancy
• Certification, testing, analysis, and product verification expenses
For detailed information; https://odsdanismanlik.com/tr/ticaret-bakanligi-kuresel-tedarik-zinciri-programi/
B) Design Product Development Project
Support Amount: 5,000,000 TL
Support Rate: 50%
Support Duration: 3 Years
What Sectors Can the Design Product Development Support Project Be Applied In?
• Design companies
• Design offices
• Collaboration organizations
• Firms engaged in commercial and industrial activities
What Items Will Be Supported Within the Scope of the Design Product Development Support?
• Equipment, tools, materials, and software
• Website memberships
• Personnel recruitment (designer, modelist, engineer)
For detailed information; https://odsdanismanlik.com/tr/tc-ticaret-bakanligi-tasarim-ve-urun-gelistirme-programi/
General Supports of the Ministry of Trade
• Supporting Market Entry Documents 4,000,000 TL (50%)
• Foreign Market Research Support - 100,000 TL per trip
• Support for Participation to Domestic and Foreign Fairs (within upper limits)
• Foreign Promotion Support 4,000,000 TL 50%
• Foreign Trademark Registration Support 750,000 TL (50%)
• Foreign Unit Support 2,000,000 TL (50%)
• Market entry project preparation Support 200,000 TL (50%)
• Support for Foreign Companies and Trademark Purchase of Companies based Abroad 3,000,000 TL 50%
For detailed information; https://odsdanismanlik.com/tr/hibe-ve-destek-yonetimi-danismanligi/
2. Investment Incentives for the Pharmaceutical and Pharmacy Sector
SUPPORT ELEMENTS FOR REGIONAL INVESTMENTS | REGIONS | |
Support Elements | Region 5 | |
VAT Exemption 18% | YES | |
Customs Duty Exemption 2% | YES | |
Tax Reduction | Tax Reduction Rate | 80% |
Investment Contribution Rate | 40% | |
Tax Reduction during the investment period | 50% | |
Tax Reduction during the operation period | 50% | |
Employer Share Support for Insurance Premiums | Application Duration | 7 Years |
Maximum Amount of Support (Ratio of Support Amount to Fixed Investment Amount) | 35% | |
Investment Location Allocation | YES | |
Interest Support | Domestic Credit | 5 Points |
Foreign/Currency Denominated Credit | 2 Points | |
Maximum Support Amount (Million TL) | 1.4 Million | |
Insurance Premium Support | NONE | |
Income Tax Withholding Support | NONE | |
Construction-Real Estate Tax Exemption | YES | |
Property Tax Exemption | YES | |
Stamp Tax Exemption | YES | |
* It is a priority investment due to being an investment related to the production of products classified under high technology industrial classification. Investments within the scope of priority sector investments (except in region 6) benefit from region 5 supports. For investment expenditures to be made in 2017-2022, 15 points are added to the investment contribution rate, the tax reduction rate is 100%, and VAT exemption is applied to building-construction expenditures between 01/05/2021 - 31/12/2025.
* It is among the medium-high technology investments that can benefit from region 4 supports. Provinces in regions 1, 2, 3, and 4, except for Istanbul, benefit from region 4 incentive elements. Provinces in regions 5 and 6 benefit from their regional incentive elements. In Istanbul, investments over 5 million TL in organized industrial zones and industrial zones, and investments over 10 million TL outside these regions can benefit from region 1 incentives. For investment expenditures to be made in 2017-2022, 15 points are added to the investment contribution rate, the tax reduction rate is 100%, and VAT exemption is applied to building-construction expenditures between 01/05/2021 - 31/12/2025. Investments over 500 million TL will be considered as priority investment and benefit from region 5 supports (excluding region 6). (4 Million TL Pesticide and other agricultural-chemical product manufacturing are medium-high technology investments that can benefit from Region 4 Supports)
*Other plants used in perfumery, pharmacy, etc. are outside the scope of the support for herbal production 0111.0.24.91
What Are the Minimum Investment Amounts for the Pharmaceutical and Pharmacy Sector?
• 3 million TL in regions 1 and 2,
• 1,500,000 TL in regions 3, 4, 5, and 6.
