Equity Incentives for Startups: Türkiye Moves Closer to the Global Startup Language

Article 3 is particularly important for technology startups.

The proposal expands the income tax exemption for share-based incentives granted to employees of technostartup companies and makes the holding periods more practical.

In the modern startup world, talent is not retained through salary alone. Developers, engineers, product leaders and early team members increasingly want to share in the company’s upside.

That is why stock options and equity-based incentives are core tools of the global technology ecosystem.

In Türkiye, this area has long remained limited due to tax and implementation uncertainties. The new proposal may help close that gap.

If applied effectively, it could:

• slow talent migration,

• improve employee retention in startups,

• create a more familiar structure for foreign investors,

• and strengthen exit culture.

Although technical in appearance, this article may represent a meaningful mindset shift for Türkiye’s startup ecosystem.