2026 Young Entrepreneur Support: Social Security (Bağ-Kur) and Tax Advantages

The Young Entrepreneur Support incentive program, one of the most closely followed initiatives for young people looking to start their own business and one of the biggest sources of entrepreneurial motivation, underwent a significant legislative change as of 2026.

With Law No. 7566, published in the Official Gazette dated 19 December 2025, the 12-month Bağ-Kur premium support for young entrepreneurs was abolished. However, the tax exemption application continues.

So, how do the changes under this law affect young entrepreneurs? In this article, we explained all the details for you.

What Is Young Entrepreneur Support?

Young Entrepreneur Support is a government incentive jointly implemented by SGK (Social Security Institution) and the Ministry of Treasury and Finance, enabling new entrepreneurs to establish and grow their own businesses by being exempt from Bağ-Kur premiums and income tax, provided the required conditions are met.

What Are the Conditions Under Young Entrepreneur Support?

• Entrepreneurs must be between 18 and 29 years old.

• Entrepreneurs must be establishing a company for the first time and carrying out commercial activity.

• The company type to be established must be a sole proprietorship or a general partnership. Other company types are not covered under young entrepreneur support.

• Those applying for support must have been enrolled in Bağ-Kur for the first time after 01.06.2018. Individuals who have a sole proprietorship or general partnership established in their name after 01.06.2018 cannot benefit from this support.

• A tax registration must be opened in the entrepreneur's name for the first time in order to carry out freelance work or commercial activity.

• You must be among those covered by the earnings exemption under Article 20 of the Income Tax Law.

*What Does Article 20 Say?

Young entrepreneurs who meet the conditions of Young Entrepreneur Support;

• If they are starting commercial, agricultural, or freelance professional activity for the first time

• For 3 tax periods from the start date of the business

• They do not pay income tax on earnings up to the amount determined each year.

2026 Entrepreneur Support Scope

There are two different supports under young entrepreneur support, and these supports were revised as of January 2026. Here are the revised status and content descriptions of the supports:

Bağ-Kur premium support

One of the young entrepreneur supports is Bağ-Kur premium support. It is provided for 12 months starting from the company establishment date. Under this support, the Bağ-Kur premiums of those who establish a general partnership or sole proprietorship are covered by the state for one year and are calculated based on the lowest Bağ-Kur (insurance) monthly premium.

The Bağ-Kur (insurance) premium support was abolished in 2026. However, those who established tax registration and became eligible by 31 December 2025 may continue to benefit from the support under vested rights.

Income tax exemption

Another young entrepreneur support is income tax support. Under this support, income tax exemption is provided for 3 years starting from the calendar year in which the young entrepreneur (under 29 and not previously a tax registered taxpayer) starts the business.

This support is still active in 2026 and provides an income tax advantage for young entrepreneurs.

Under the Young Entrepreneur Earnings Exemption (income tax exemption), the annual exemption amount for 2026 is TRY 400,000. Under this support, young entrepreneurs are exempt from tax on income up to TRY 400,000.

To make this exemption clearer for you, we illustrated it with two scenarios:

How Do You Apply for Young Entrepreneur Support?

You can apply for Young Entrepreneur Support individually by going to the Tax Office, or you can create an application digitally via the internet through the Interactive Tax Office by preparing a petition. If you are eligible for Young Entrepreneur Support, you will receive a document stating that you can benefit from the young entrepreneur support. By going to the Social Security Institution Directorate at your registered address and delivering this document there, you will complete the final step of your application.

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