New Regulatory Developments On The Horizon For The Technology And Investment Ecosystem

The Draft Law on Amendments to Certain Laws (the “Draft Law”), submitted to the Grand National Assembly of Türkiye on 5 May 2026, includes noteworthy provisions affecting the technology startup ecosystem, venture capital investments, and the Istanbul Finance Center (“IFC”).

The Draft Law generally aims to strengthen employee incentive mechanisms for technology startups, promote the use of alternative financing instruments, and enhance the competitiveness of the IFC regime.

Tax Incentives for Employee Equity Compensation

In Türkiye, employee equity incentives have long been subject to various practical challenges and uncertainties, particularly regarding the timing of taxation, employee liquidity considerations, and the adaptation of equity-based incentive models to Turkish law.