Subject:
Investment Incentives and Supports for the Medical Sector
Reading Time:
10 Min
Date:
Dec 8, 2025
What is the Medical Sector?
The medical sector is a field that encompasses a wide variety of products. Within its broad product range, there are many items including bandages, needles, nanotechnology products, and cell engineering devices.
The Situation of the Medical Sector in Turkey and Worldwide
Some of the key components of the medical sector include the pharmaceutical sector and the healthcare sector. In Turkey, the medical devices sector has been working to reach advanced levels of production and research over time. There are thousands of manufacturing companies and distributors in the sector related to this field in Turkey. Approximately 38% of the companies in the sector are located in Istanbul, 31% in Ankara, and 5% in Izmir. The remaining 26% operate in other provinces, primarily Adana, Kayseri, and Konya.
Considering the dynamic nature of the sector and its potential for rapid growth worldwide, it is anticipated that the situation of the medical sector will grow in the coming periods. When examining the market share distribution of the medical devices sector, which plays an important role in healthcare expenditure, it is noted that it holds a significant proportion of the income earned. The growth of the sector is expected to increase this proportion as well.
Leading Companies in the Medical Sector
1 | MEDTRONIC |
2 | DEPUY SYNTHES (JOHNSON & JOHNSON) |
3 | THERMO FISHER SCIENTIFIC |
4 | PHILIPS HEALTHCARE |
5 | GE HEALTHCARE |
6 | FRESENIUS |
7 | ABBOTT LABORATORIES |
8 | CARDINAL HEALTH |
9 | SIEMENS HEALTHINEERS |
10 | STRYKER |
1. What are the General Supports for the Medical Sector?
What are the General Supports for the Automotive Sector?
There are various supports provided for the medical sector by KOSGEB, TÜBİTAK, and the Ministry of Trade. The supports provided for the medical sector can be classified into project-based and general supports. The details of the supports provided for the medical sector are given below.
TÜBİTAK Supports
A) TÜBİTAK 1501 - Industrial R&D Project Support Program
Within the framework of the 1501-Industrial R&D Support Program, projects that involve the production of a new product, the development and improvement of an existing product, the enhancement of product quality or standards, or cost-reducing techniques and new production technologies are supported. The support rate of the program is implemented at 75%.
Supported Expenditures | Support Duration |
Personnel Expenses | 75% |
Travel (Transport Only) Expenses | |
Equipment, Tools, Software, and Publication Acquisition Expenses | |
R&D Service Expenses | |
Domestic and Foreign Consultancy Expenses | |
Material and Consumable Expenses |
*There is no budget limit.
*Feasibility is required for investments above 5 million.
B) TÜBİTAK - 1507 - SME R&D Startup Support Program Call
The 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 Expenditures | Support Duration |
Personnel Expenses | 75% |
Travel (Transport Only) Expenses | |
Equipment, Tools, Software, and Publication Acquisition 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 Technological 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
BUSINESS DEVELOPMENT SUPPORT PROGRAM SUPPORTS | SUPPORT UPPER LIMIT (TL) | SUPPORT RATE |
1- Domestic Fair Support | 100,000 | 60% |
2- Overseas 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/
Which Sectors Does KOSGEB Support for the Medical Sector?
NACE REV 2 CODE | SECTOR NAME | NACE TYPE |
26.6 | Manufacture of devices related to radiation, electro-medical, and electro-therapy | C |
26.60 | Manufacture of devices related to radiation, electro-medical, and electro-therapy | C |
26.60.01 | Manufacture of devices related to radiation, electromedical, and electrotherapy (electrocardiograph devices, hearing aids, radiology devices, x-ray devices, devices based on the use of X, alpha, beta, gamma, ultraviolet, and infrared radiation, etc.) | C |
33.13.02 | Maintenance and repair of radiation, electromedical, and electrotherapy equipment | C |
47.74.01 | Retail trade of medical and orthopedic products in stores dedicated to specific goods (including other medical products except for glasses) | C |
Ministry of Trade Project-Based Supports
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
• Space / Aerospace
• Electrical / Electronics
Other sectors may also be evaluated if they meet the requirements.
What Items Will be Supported Within the Scope of the Global Supply Chain (GSC)?
• Machinery, equipment hardware
• Software acquisition
• Training, consultancy
• Certification, test analysis, and product verification expenses
For detailed information; https://odsdanismanlik.com/tr/ticaret-bakanligi-kuresel-tedarik-zinciri-programi/
General Supports of the Ministry of Trade
• Support for Market Entry Documents -4,000,000 TL (50%)
• Overseas Market Research Support-100,000 TL per trip
• Support for Participation in Domestic and International Fairs (within upper limit)
• Overseas Promotion Support 4,000,000 TL 50%
• Overseas Trademark Registration Support 750,000 TL (50%)
• Overseas Unit Support 2,000,000 TL (50%)
• Market Entry Project Preparation Support 200,000 TL (50%)
• Support for the Purchase of a Brand Owned by a Foreign Company or a Company Based Abroad 3,000,000 TL 50%
For detailed information; https://odsdanismanlik.com/tr/hibe-ve-destek-yonetimi-danismanligi/
2. What are the Investment Incentives for the Medical Sector?
INVESTMENT REGIONS | 1st Region | 2nd Region | 3rd Region | 4th Region | 5th Region | 6th Region | |
VAT Exemption %18 | YES | YES | YES | YES | YES | YES | |
Customs Duty Exemption %2 | YES | YES | YES | YES | YES | YES | |
Tax Reduction | Tax Reduction Rate | 50% | 55% | 60% | 70% | 80% | 90% |
Investment Contribution Rate(%) | 15% | 20% | 25% | 30% | 40% | 50% | |
Investment period tax reduction | NO | 10% | 20% | 30% | 50% | 80% | |
Operational period tax reduction | 100% | 90% | 80% | 75% | 50% | 20% | |
Employer’s Share of Insurance Premium Support | Application Duration | 2 Years | 3 Years | 5 Years | 6 Years | 7 Years | 10 Years |
Maximum Amount of Support (Ratio of Support Amount to Fixed Investment Amount) | 10% | 15% | 20% | 25% | 35% | 50% | |
Allocation of Investment Sites | YES | YES | YES | YES | YES | YES | |
Interest Support | Domestic Credit | NO | NO | 3 Points | 4 Points | 5 Points | 7 Points |
Foreign / Foreign Indexed Credit | NO | NO | 2 Points | 2 Points | 2 Points | 2 Points | |
Maximum Support Amount (Million TL) | NO | NO | 1 Million | 1.2 Million | 1.4 Million | 1.8 Million | |
Insurance Premium Support | NO | NO | NO | NO | NO | 10 Years | |
Income Tax Withholding Support | NO | NO | NO | NO | NO | YES | |
Construction-Property Tax Exemption | YES | YES | YES | YES | YES | YES | |
Property Tax Exemption | YES | YES | YES | YES | YES | YES | |
Stamp Tax Exemption | YES | YES | YES | YES | YES | YES | |
*Investments aimed at the production of products or parts developed as a result of R&D projects supported by the Ministry of Science, Industry and Technology, TÜBİTAK, and KOSGEB.
*Even if implemented in the 1st, 2nd, 3rd, and 4th Regions, supports applied in the 5th Region have been provided. In the case of investments carried out in the 5th and 6th Regions, the supports applied in their own regions are provided.
In 2022, medical devices (medical products) manufacturing investment issues that are valid for that year have been included in the Priority Investments scope. (Annex: RG-8/4/2015-29320) According to the cabinet decree published in the Official Gazette (Presidential decree), a minimum of 5th region incentive is given for the manufacturing of products with national code 97 code 33. While the national 97 sector code has a broad range of production, it includes devices with X-ray, alpha, beta, or gamma rays, electro-diagnostic devices used in medicine, devices using ultraviolet or infrared rays, and other devices and instruments used in dentistry, surgical, laboratory sterilizers, syringes, needles, catheters, cannulas, and similar instruments, medical instruments related to ophthalmology, among others, are provided with at least 5th region incentives for investments aimed at the production of medical products.
What is the Minimum Investment Amount for the Medical Sector?
• 3 million TL in the 1st and 2nd regions,
• 1,500,000 TL in the 3rd, 4th, 5th, and 6th regions.
The regions;
1st Region | 2nd Region | 3rd Region | 4th Region | 5th Region | 6th Region |
Ankara | Aydın | Adana | Afyonkarahisar | Bayburt | Adıyaman |
Antalya | Balıkesir | Burdur | Aksaray | Çankırı | Ağrı |
Bursa | Bilecik | Düzce | Amasya | Erzurum | Ardahan |
Eskişehir | Bolu | Gaziantep | Artvin | Giresun | Batman |
İstanbul | Çanakkale | Karaman | Bartın | Gümüşhane | Bingöl |
İzmir | Denizli | Kırıkkale | Çorum | Kahramanmaraş | Bitlis |
Kocaeli | Edirne | Kütahya | Elâzığ | Kilis | Diyarbakır |
Muğla | Isparta | Mersin | Erzincan | Niğde | Hakkâri |
Tekirdağ | Karabük | Samsun | Hatay | Ordu | Iğdır |
| Kayseri | Trabzon | Kastamonu | Osmaniye | Kars |
| Kırklareli | Rize | Kırşehir | Sinop | Mardin |
| Konya | Uşak | Malatya | Tokat | Muş |
| Manisa | Zonguldak | Nevşehir | Tunceli | Siirt |
| Sakarya |
| Sivas | Yozgat | Şanlıurfa |
| Yalova |
|
|
| Şırnak |
|
|
|
|
| Van |
9 PROVINCES | 15 PROVINCES | 13 PROVINCES | 14 PROVINCES | 14 PROVINCES | 16 PROVINCES |
What is the Minimum Investment Amount for the Medical Sector?
It covers all investments outside of non-supported investment issues. Regardless of regional distinction; these investments are not included under the non-supported investment topics or other incentive practices, and meet the specified minimum fixed investment amount condition. In the General Incentive System, the minimum fixed investment amount is;
3 Million TL in Regions I. and II.
1.5 Million TL in Regions III, IV, V, and VI.
What are the Medical Sector Investment Incentives?
• VAT Exemption
• Customs Duty Exemption
• Income Tax Withholding Support (6th Region)
Support Elements | 1st Region | 2nd Region | 3rd Region | 4th Region | 5th Region | 6th Region |
VAT Exemption | YES | YES | YES | YES | YES | YES |
Customs Exemption | YES | YES | YES | YES | YES | YES |
How Can ODS Assist You with Medical Incentive Consultancy?
We have successfully completed over 100 medical sector projects in categories such as grant incentives, R&D/Design, and investment incentives to facilitate the integration of the production capacity of the medical industry with technology. Our expert team plays an active role in all processes such as analysis, project writing, project development, and project management tailored to your companies.
