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

The Young Entrepreneur Support incentive program, which concerns young people who want to start their own business and is 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 December 19, 2025, the 12-month Bağ-Kur premium support for young entrepreneurs was abolished. However, the tax exemption practice continues.

So how do the changes under this law affect young entrepreneurs? We explained all the details for you in this article.

What is Young Entrepreneur Support?

Young Entrepreneur Support is a state incentive implemented jointly by the SSI (Social Security Institution) and the Ministry of Treasury and Finance, allowing new entrepreneurs to establish and develop their businesses exempt from Bağ-Kur premiums and income tax, provided certain conditions are met.

What are the Conditions for Young Entrepreneur Support?

• Entrepreneurs must be between the ages of 18-29.

• Entrepreneurs must be starting commercial activities by establishing a company for the first time.

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

• Those applying for support must have made their first Bağ-Kur entry after June 1, 2018. Those with a sole proprietorship or ordinary partnership established after June 1, 2018, cannot benefit from this support.

• For engaging in freelance work or commercial activities, the entrepreneur must first register for tax liability in their name.

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

*What does Article 20 Say?

Young entrepreneurs who meet the conditions for Young Entrepreneur Support;

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

• Within 3 taxation periods starting from the commencement date,

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

Scope of 2026 Entrepreneur Support

There are two different supports within the scope of young entrepreneur support, and these supports have been revised as of January 2026. Here are the revised statuses and content explanations of the supports:

Bağ-Kur Premium Support

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

Bağ-Kur (insurance) premium support was abolished in 2026. Those who established their liability and gained rights by December 31, 2025, can continue to benefit under acquired rights.

Income Tax Exemption

Another of the young entrepreneur supports is the income tax support. Within the scope of this support, young entrepreneurs (under 29, not yet tax liable) are provided tax exemption from their income for 3 years starting from the calendar year they start their business.

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

Within the scope of the Young Entrepreneur Income Exemption (income tax exemption) for the year 2026, the annual exemption amount is 400,000 TL. This support provides tax exemption on the income of young entrepreneurs up to 400,000 TL.

We have illustrated for you with two scenarios to make this exemption more explanatory:

How to Apply for Young Entrepreneur Support?

You can make your Young Entrepreneur Support application individually by going to the Tax Office or create it by preparing a petition through the digital Interactive Tax Office. If you qualify for Young Entrepreneur Support, you will have the document stating "Can benefit from young entrepreneur support." You complete the final step of your application by submitting this document to your local Social Security Institution Directorate.

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To correctly plan your company establishment process in light of the 2026 legislative changes, apply for free company establishment, and benefit from accounting services, you can contact us.

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