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

The Young Entrepreneur Support incentive program, which is of close interest to young people wishing to start their own business and constitutes one of the greatest sources of motivation for entrepreneurship, underwent a significant legislative update as of 2026.

Pursuant to Law No. 7566 published in the Official Gazette dated December 19, 2025, the 12-month Bağ-Kur social security premium support for young entrepreneurs was abolished. However, the income tax exemption policy remains in effect.

How then do the changes within this law affect young entrepreneurs? We have detailed all the information for you in this article.

What is the Young Entrepreneur Support?

Young Entrepreneur Support is a state incentive jointly implemented by the Social Security Institution (SGK) and the Ministry of Treasury and Finance. When the required conditions are met, it enables new entrepreneurs to start and grow their own businesses while being exempt from Bağ-Kur social security premiums and income tax.

What are the Eligibility Conditions for the Young Entrepreneur Support?

• Entrepreneurs must be between 18 and 29 years of age.

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

• The company type to be established must be a sole proprietorship or an ordinary partnership. Other company types are not eligible for the young entrepreneur support incentive.

• Applicants must have their initial Bağ-Kur registration created after June 1, 2018. Individuals who have a sole proprietorship or ordinary partnership established in their name after June 1, 2018, cannot benefit from this support.

• The entrepreneur must set up tax liability for the first time to work as a self-employed professional or run commercial activities.

• You must qualify for the earnings exemption under *Article 20 of the Income Tax Law.

*What Does Article 20 State?

Young entrepreneurs who satisfy the terms of the Young Entrepreneur Support incentive;

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

• During 3 tax periods from the date of starting operations,

• Do not pay income tax on their earnings up to the limit determined for each year.

Scope of the 2026 Entrepreneur Support

There are two different incentives within the scope of young entrepreneur support, and these measures have been revised as of January 2026. Here is the revised status and details of these benefits:

Bağ-Kur Premium Support

One of the young entrepreneur incentives is the Bağ-Kur premium support. It is provided for a period of 12 months from the date of company formation. Under this incentive, the Bağ-Kur premiums of individuals establishing an ordinary partnership or sole proprietorship are covered by the state for one year based on the minimum Bağ-Kur (insurance) premium rate.

Bağ-Kur (insurance) premium support has been abolished in 2026. Those who have established tax liability and qualified for the support by December 31, 2025, may continue to benefit from this incentive under acquired rights.

Income Tax Exemption

Another young entrepreneur incentive is the income tax exemption. Under this incentive, tax exemption is granted for revenue over a period of 3 years starting from the calendar year in which operations began as a young entrepreneur (under the age of 29, not previously registered as a taxpayer). 

This incentive is still active in 2026 and provides a major tax benefit for young entrepreneurs. 

Under the Young Entrepreneur Earnings Exemption (income tax exemption), the annual exemption limit for 2026 is 400,000 TRY. Within this incentive, young entrepreneurs are exempted from tax on their earnings up to 400,000 TRY.

To explain this exemption more clearly, we have illustrated it below with two scenarios:

How to Apply for the Young Entrepreneur Support?

You can apply for the Young Entrepreneur Support individually by visiting the Tax Office, or you can submit an online petition through the digital Interactive Tax Office. If you are eligible for the Young Entrepreneur Support, you will receive a document indicating "Eligible for Young Entrepreneur Support." By submitting this document to the Social Security Institution Directorate of your residential address, you will complete the final step of your application.

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