The Regulation Amending the Regulation on the Allocation of Parcels in Organized Industrial Zones Wholly or Partially Free of Charge (“Regulation”), drafted by the Ministry of Industry and Technology (“Ministry”) has been published in the Official Gazette, dated 4 April 2024 and numbered 32510, and entered into force on the same day. The Regulation introduces certain amendments to the procedures and principles regarding the allocation of parcels in organized industrial zones to real persons or legal entities wholly or partially free of charge.
The key amendments introduced in the Regulation are as follows:
- In Organized Industrial Zones (“OIZ”) where infrastructure constructions have been completed with their own means in the planned area and Ministry loans have not been used, and in OIZs where infrastructure constructions have been completed and the loan debt has been paid, the provision allowing the allocation of unallocated parcels in whole or in part free of charge to real persons or legal entities who undertake investments that envisage employment of at least 10 people, in case of a decision by the enterprising committee or general assembly, has been removed. In addition, an amendment was made to the provision regarding the granting of an additional period of maximum one year on a project basis by the OIZ upon the request of participants that cannot initiate production despite the completion of eighty percent of their investment. Therefore, participants will be able to initiate production by complying with the deadlines and investment conditions specified in Articles 58 and 60 of the Organized Industrial Zones Implementation Regulation and the minimum number of employments specified in the Regulation. Thus, for parcels up to 5000 m2, a minimum of 10 employees are required, for parcels larger than 5000 m2 up to 10000 m2, a minimum of 20 employees are required, for parcels larger than 10,000 m2 up to 20000 m2, a minimum of 30 employees are required, and for parcels larger than 20000 m2, a minimum of 50 employees are required.
- Furthermore, the Ministry has lifted the regulation concerning the payment of parcel prices allocated from OIZs where infrastructure constructions have been completed without utilizing Ministry credit. Similarly, this regulation has been lifted for OIZs where infrastructure constructions have been completed and the credit debt has been paid off.
- Finally, Article 14, previously titled “Annotation to be placed on the title deed,” has been revised to “Granting of title deed”. Following the amendments, participants will have the opportunity to request the transfer of the title deed of the parcel from the OIZ allocating the parcel to them. This can occur after the employment limit is fulfilled and after three months of production following the receipt of the workplace opening and working license of the investment. This investment must be made in accordance with the conditions in the Organized Industrial Zones Implementation Regulation, Investment Commitment Letter, and Parcel Allocation Agreement.
Furthermore, if a title deed is requested before commencing production on a parcel allocated either fully or partially without charge, provided that a building permit has been obtained, a notation will be placed in the remarks section of the title deed registry during the transfer process. Until this notation is removed, the property cannot be transferred, mortgaged, or used as collateral in any way, nor can it be subject to bankruptcy, composition, or any other real or personal rights. Upon confirmation of compliance with the conditions following an inspection and audit by the OIZ, the notation will be removed from the title deeds by the OIZ with the request of the relevant OIZ and the permission of the Ministry.
You can access the full text of the Regulation via this link. (Only available in Turkish)
