2026 Young Entrepreneur Support: Tax Break Up, Aid Cut
Türkiye's 2026 support for entrepreneurs under 29 raises the tax exemption limit to 400,000 TL but scraps the 12-month Bağ-Kur premium support.
The 2026 support package for entrepreneurs under 29 who want to start their own business has been finalized. Under the Young Entrepreneur Exemption, the income tax exemption limit was raised to 400,000 TL per year. However, the package also brought an unwelcome surprise: the 12-month Bağ-Kur premium support was scrapped entirely.
The Young Entrepreneur Support, aimed at encouraging young people into business, underwent major changes for 2026. Under the new arrangement, young people setting up a sole proprietorship for the first time will not pay income tax for three years on annual earnings of up to 400,000 TL. This means an entrepreneur will keep about 70,500 TL more per year.
Bağ-Kur support abolished
The Bağ-Kur (4/B) premium support, one of entrepreneurs' biggest advantages and previously paid by the state during the first year, has been abolished. The decision also applies to entrepreneurs whose 12-month period has not yet expired.
2026 Young Entrepreneur Support summary
| Support item | 2026 application |
|---|---|
| Tax exemption amount | 400,000 TL per year (no income tax due) |
| Eligibility period | 3 calendar years |
| Bağ-Kur premium support | Abolished (no longer paid) |
| Age requirement | Under 29 years of age |
Can salaried employees and foreigners benefit?
Under the arrangement, people who set up a sole proprietorship while working as an SGK-registered (salaried) employee elsewhere can also benefit from the tax exemption. Foreign nationals residing in Türkiye can also use the 400,000 TL tax advantage if they meet the conditions.
The change affects everyone starting out with a sole proprietorship, including young entrepreneurs considering setting up an insurance agency: while the tax-side advantage grows, the social security premium burden in the business's first year now falls entirely on the entrepreneur. Prospective founders drawing up a business plan need to factor in this cost.
Source: 2026 Young Entrepreneur Support regulation (Acentehaber compilation).