How Turkey Is Using Tax Policy to Accelerate Its Game Industry Growth

How Turkey Is Using Tax Policy to Accelerate Its Game Industry Growth

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Turkey’s rise as a global mobile gaming hub hasn’t happened by accident. Alongside strong entrepreneurial talent and breakout studios, government-backed incentives are playing a quiet but decisive role in shaping the country’s game development ecosystem.

During a presentation at PGC San Francisco, Tuğbek Ölek, Head of the Advisory Board at TOGED, outlined how Turkey’s tax framework and incentive programs are designed to attract investment, retain talent, and help local studios scale globally.

A Growing Global Games Hub

Turkey is already home to internationally recognised studios such as Dream Games, Peak, and Rollic. Roughly half of the country’s game studios are based in Istanbul, making it Europe’s second-largest gaming hub after London, while Ankara has emerged as a strong secondary center.

What distinguishes Turkey, however, is how aggressively public policy supports this growth.

Zero Capital Gains Tax for Game Investments

One of the most impactful advantages is Turkey’s absence of capital gains tax on gaming investments. According to Ölek, this creates a clear incentive for both local and international investors.

In practical terms, a $10 million exit remains a full $10 million, with no capital gains tax applied. For venture capital and angel investors, this significantly improves return profiles and reduces friction around exits.

Income Tax Exemptions for Developers

The incentives extend beyond investors. Game designers and developers working in qualified studios are exempt from income tax, increasing take-home pay without raising studio costs.

This policy strengthens Turkey’s position in the global talent market, helping studios attract and retain skilled developers while maintaining competitive cost structures.

Direct Financial Support for Studios

Turkey also provides targeted operational support to game developers:

  • 50% salary support for two development staff members, capped at $50,000

  • Coverage of up to 80% of costs related to international events, including travel, accommodation, and booth fees

  • Platform commission reimbursements for publishers, covering 50% of Apple and Google’s 30% commission, up to $100,000

These programs reduce early-stage risk and make international expansion more accessible for smaller studios.

Why This Matters

Combined, these incentives create a rare environment where:

  • Investors benefit from tax-free exits

  • Developers keep more of their earnings

  • Studios receive direct help with hiring, marketing, and global exposure

Rather than focusing on a single lever, Turkey’s approach supports the entire lifecycle of a game studio, from formation and funding to scaling and exit.

The Bigger Picture

Turkey’s gaming success is often attributed to strong founders and hit-driven execution. But as highlighted at PGC San Francisco, policy design is a major force multiplier.

By aligning tax, talent, and growth incentives, Turkey has positioned itself not just as a place where games are made—but as a country actively competing to be a long-term global center for game development.

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