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EUROPEAN FREE ZONE

• Free zones are defined as special sites within the country but deemed to

be outside of the customs borders and they are the regions where the valid

regulations to foreing trade and other financial and economic laws are not

applicable.

• Free zones are also the regions where more convenient business climate

is offered in order to increase trade volume and export for industrial and

commercial activities as compared to the other parts of country.

Free Zone Concept

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EUROPEAN FREE ZONE

FREE ZONE DEFINITION

• Semi-Private Free Zones

In these free zones, the land is owned by state and operator company can

rent places and operate the zone.

• Private Free Zones

In these free zones, the land is owned by the operator company and along

with the operation of the zone, operator company can sell places to it’s

investors.

European Free Zone is a private free zone and operated by Sahinler

Holding, which is one of the most reputable and reliable companies in

Turkey.

Free Zone Concept

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EUROPEAN FREE ZONE

FREE ZONE TYPES

Free Zone Concept ORGANIZATION CHART

Customs

Directorate

Customs

Control

Directorate

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EUROPEAN FREE ZONE

Ministry of

Economy

General

Directorate of Free

Zones, Overseas

Investments and

Services

Free Zone

Director

Free Zone

Founder &

Operator Co.

(ASB)

Free Zones In Turkey SOME KEY NUMBERS IN TURKISH FREE ZONES

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EUROPEAN FREE ZONE

19 Free Zones

22,65 Billion $ Trade volume of Turkish Free Zones

650 Number of FDI companies

866 Production Companies

54.022 Number of directly employed people

3.205 Approx. Number of companies

Operation Types

Any kind of operation can be done in free zone such as;

Production

Assembly-disassambly

Trade

Services (logistics etc.)

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EUROPEAN FREE ZONE

Advantages & Incentives MONETARY ADVANTAGES

• Corporate Tax (Income Tax) Exemption :

The manufacturer companies are 100% exempt from corporate tax

over their profits.

20 % (Corporate Tax Ratio in Turkey)

• Free Transfer of Profits:

The profits gained at free zone can be transfered to Turkey or other

countries without any permission.

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EUROPEAN FREE ZONE

Advantages & Incentives MONETARY ADVANTAGES

• Income Tax Exemption over Salary :

The manufacturer companies are 100% exempt from income tax over the

salaries of their employees if they sell minimum 85% of their production to

abroad.

15 - 35 % (Income tax ratio over salaries in Turkey)

ASB investors who will apply for regional incentive shall also benefit from

social security employer’s share primium exemption over min. Salary for 3-

7 years

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EUROPEAN FREE ZONE

Social cuts over min. salary

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EUROPEAN FREE ZONE

01.07.2013-31.12.2013

FOR AGE OVER 16

CALCULATION OF NET WAGE TL/MONTH EUR/MONTH

MINIMUM OFFICIAL WAGE (GROSS) 1.021,50 408,4

SOCIAL SECURITY PREMIUM (14%) 143,01 57,2

UNEMPLOYMENT INSURANCE FUND 1% 10,22 4,08

INCOME TAX 15% 56,84 22,73

VAT FIX REFUND 73,40 29,36

STAMP TAX 6,6%o 7,75 3,1

TOTAL DEDUCTIONS 217,82 87,128

NET MINIMUM WAGE 803,68 321,47

COST TO EMPLOYER TL/MONTH EUR/MONTH

MINIMUM OFFICIAL WAGE (GROSS) 1.021,50 408,4

SOCIAL SECURITY PREMIUM (14,5%) EMPLOYER'S

SHARE 148,12 59,24

UNEMPLOYMENT INSURANCE FUND 2%

EMPLOYER'S SHARE 20,43 8,17

TOTAL COST TO EMPLOYER 1.190,05 476,05

Advantages & Incentives CUSTOM RELATED TAX EXEMPTIONS

• Since free zones are out of customs borders of Turkey, while goods

staying within free zone, custom related taxes and regulations are not

applicable. Such as;

Value Added Tax

Customs Duties

RUSF Tax (6%)

• By keeping their stocks at free zone in a tax free environment, trader

companies may decrease their finance costs and can make re-export,

transit trade, packaging, labeling etc…

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EUROPEAN FREE ZONE

Advantages & Incentives ONE STOP SERVICE

Free enterance of 2nd hand machinery into the zone

Free Circulation of Goods in EU Market

Lower construction costs (exempt from VAT)

100% foreign investment allowed. No minimum capital required

Book keeping and accounting can be in foreign currency

Sales to domestic market is allowed

Easy to get work permits for expats

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EUROPEAN FREE ZONE

Customs Applications CUSTOMS DUTY PAYMENTS

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EUROPEAN FREE ZONE

EU Countries

& Turkey

Compensating Duty

(Free Movement

Certificate) EU Countries

& Turkey

Other

Countries Other

Countries

Free Zone Fund

Free Zone fund is payable to government accounts by manufacturing

companies over the goods’ value on below mentioned directions.

0,1 % Over CIF value 0,9% Over FOB value

No Fund No Fund

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EUROPEAN FREE ZONE

Licences other than manufacturing are not subject to this fund

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EUROPEAN FREE ZONE

European Free Zone One of the biggest and modern industry parks of Turkey.

Total Area : 2,000,000 m² Establishment Year : 1999

Employment : 3000

Company number : 150

Trade Volume : 2,365 Billion$

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EUROPEAN FREE ZONE

EUROPEAN FREE ZONE

2011 %10-11 2012

EGE 5.747.500 - 9,14 5.221.937

MERSĠN 2.693.049 % 42,30 3.832.246

ĠST-DERĠ 3.603.223 -% 10,63 3.220.084

EFZ 2.059.462 % 14,83 2.364.905

ĠST-AHL 2.241.525 -% 6,15 2.103.566

BURSA 1.571.579 -% 2,50 1.532.317

ĠST.TRAKYA 1.533.749 -% 5.88 1.443.596

ANTALYA 731.252 %2,52 749.707

KAYSERĠ 700.713 -% 0,53 696.971

KOCAELĠ 549.607 %34,33 738.265

ĠZMĠR/MENEMEN 356.553 -% 8,42 326.535

ADANA-YUMURTALIK 265.654 %11,35 295.816

TUBĠTAK-MAM TEK. 196.787 % 5,70 208.007

SAMSUN 118.377 -% 40,75 70.139

GAZĠANTEP 112.053 -% 8,38 102.659

TRABZON 90.204 -% 22,31 70.029

DENĠZLĠ 67.694 %6,79 72,293

RĠZE 4.565 -% 12,12 4.012

MARDĠN 2.628 -% 100 0

TOTAL 22.646.175 1,80 23.053.135

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AVRUPA SERBEST BÖLGESİ

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EUROPEAN FREE ZONE

ASB (Logistics) LOCATION

Europe

GDP - $ 18.3 Trillion

Population – 660 Million

Russian Federation

GDP - $ 1,2 Trillion

Population – 142 Million

Central Asia & Caucasus

GDP - $ 230 Billion

Population – 80 Million

Middle East & North Africa

GDP - $ 2,4 Trillion

Population – 602 Million

ASB (Logistics) ON EUROPEAN MOTORWAY

Distances

Istanbul Atatürk Airport 110 km Çorlu 15 km

Greece (İpsala) 125 km Çerkezköy 15 km

Bulgaria (Kapıkule) 125 km Silivri 35 km

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EUROPEAN FREE ZONE

TEM Motorway

E-5 Motorway

ASB (Logistics) SEA PORTS

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EUROPEAN FREE ZONE

Distance

Akport 45 km

Ambarlı 80 km

ASB (Logistics) MOTORWAY DISTANCES TO EUROPE

Distance

Sofia 550 km

Burgas 450 km

Constanta 720 Km

Buchaest 650 km

Varna 570 km

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EUROPEAN FREE ZONE

1-7 days road distance to

all Europe including Russia

ASB (Logistics) SEAWAY DISTANCES TO BLACKSEA PORTS

Distance

Varna 216 Mile

Constanta 263 Mile

Odessa 410 Mile

Novorossiysk 525 Mile

Poti 656 Mile

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EUROPEAN FREE ZONE

11 hrs - 2 days distance

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EUROPEAN FREE ZONE

ASB (Logistics) FAST TRAIN PROJECT – TRACE REGION - DISTANCES

Total Length: 230 km

Speed (Vp):

250 km/hr

Journey Duration

65 mn.

Stations:

1.Halkalı 2.Çatalca 3.Çerkezköy 4.Büyük Karıştıran 5.Lüleburgaz 6.Babaeski 7.Edirne 8.Kapıkule

HALKALI -

KAPIKULE HATTI

MARMARAY and

ANKARA-ĠSTANBUL

FAST LINE

PLANNED

BANDIRMA-ĠZMĠR

LINE

TREN FERĠBOTU

TEKĠRDAĞ -

B.KARIġTIRAN LINE

BULGARIA & GREECE LINES

Workforce

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EUROPEAN FREE ZONE

TEKĠRDAĞ CITY POPULATION

Towns Total

Total Men Women

Merkez 167.704 88.714 84.448

Çerkezköy 164.220 92.301 85.141

Çorlu 252.974 136.307 128.620

Hayrabolu 35.242 18.787 17.030

Malkara 54.315 28.148 26.623

Marmaraereğlisi 20.950 11.085 9.994

Muratlı 25.944 13.106 12.904

Saray 46.351 23.793 22.946

ġarköy 30.409 15.211 15.075

TOTAL 829.873 427.452 402.421

• In the region there are 2 universities (4.800 graduates/year)

Trakya University-Edirne

Namık Kemal University-Tekirdağ

• 29 vocational & technical high schools (3.000 graduates/year)

• Some of the branches in technical education are;

Computer Engineering

Electronics Engineering

Industrial Electrics

Industrial Electronics

Computer Science

Industrial Automation

Workforce

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EUROPEAN FREE ZONE

EDUCATION

• Working hours

Max 45 hours/week

• Over time Rates

Normal Days 50% more

Holidays 100% more

Max. 11 hours /day

• Legal Paid Vacation (Annual Leave)

14 workdays/year for the first 5 years of service period

20 workdays/year between 5-15 years of service period

26 workdays/year over 15 years of service period

Working Law

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EUROPEAN FREE ZONE

Common

application in

Turkey is the

employee will

arrange the

transportation(

by servis

buses appr. 3

TL/person/day

meal

2.80$/person

Avarage Salaries

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EUROPEAN FREE ZONE

Min(TL/Mth

)net

Max(TL/Mth)n

et

Blue Collar 810 +5-10 %

Experienced Blue Collar 900 2.000

Shift Supervisers 2.000 3.000

Quality Department 1.500 2.500

HR and Administration 1.500 2.500

Purchasing Department 1.500 2.500

Engineers 2.500 3.500

Finance and Account 1.000 1.800

IT Department 1.000 2.5000

Officers 1.300 2.200

Technicans 1.750 2.500

Managers 5.000 10.000

Residence CITY CENTER ( TEKĠRDAĞ)

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EUROPEAN FREE ZONE

Parasailing in Tekirdağ

Residence ÇORLU TOWN

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EUROPEAN FREE ZONE

20 km. from European Free Zone,

100 km. From Istanbul (Mahmutbey) with an area of 899 km², It is one of the largest towns in the province of Tekirdag with 225,000 inhabitants.

Emerging business areas in Corlu cause high migration numbers from other regions.

Therefore the city is expanding and new housing units are being completed.

Today there are a lot of housing units in and around the city, either rental or for sale.

Residence ÇERKEZKÖY TOWN

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EUROPEAN FREE ZONE

Çerkezköy’s population is about 131.000. Located east of the zone.

It is 15 kms away from European Free Zone and 80 kms from Istanbul

Mahmutbey).

Even though Cerkezkoy is not as big as Corlu, industrial areas are

considerably large.

ASB (Services) READY BUILDINGS – WAREHOUSES

Warehouses for rent or sale (240 m² and multiples)

Open stock area

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EUROPEAN FREE ZONE

ASB (Services) READY BUILDINGS – OFFICES AND PRODUCTION AREAS

Offices for rent

Production units

for rent

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EUROPEAN FREE ZONE

ASB (Services) LANDS

Ready infrastructure

Full ownership

No tax for title deed transfer

CONSTRUCTION PRINCIPLES

Minimum 2.500 m² lands

BSR (Base Space Ratio) : 55-60 %

Max. Height : 19 m.

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EUROPEAN FREE ZONE

Infrastructure: Electricity, communication,

water, road, natural gas etc…

Loading & Unloading

Catering

24 hours security

Construction and maintenance services

under

DIN ISO 9001-2000,

ISO 22000

ISO 14001

OHSAS 18001

international quality standarts

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EUROPEAN FREE ZONE

ASB (Services) QUALITY CERTIFICATES

Application

Operating License Fee : 5000$

Duration of the licenses :

Applications are made to Ministry of Economy, General Directorate of

Free Zones, Overseas Investments and Services

Applications are evaluated and licenced just in 1 month.

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EUROPEAN FREE ZONE

INVESTOR TENANT

PRODUCTION 45 20

OTHERS 30 15

Investors

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AVRUPA SERBEST BÖLGESİ

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EUROPEAN FREE ZONE

Velimeşe Mevkii, Çorlu / TEKĠRDAĞ / TR

T. +90 282 691 10 10

F. +90 282 691 10 26

E. info@asb.com.tr