Türkiye vs Denmark for a software or game company
Denmark pays cash for research losses, 22% of the research part of a negative taxable income up to 5.5 million kroner, which reaches a studio before it has any revenue. Corporate tax sits at 22%, three points under Türkiye's, and the enhanced research deduction climbs to 120% by 2028. Living costs run about 96% above Türkiye's and dividends leave at 27%.
The short verdict
01Where each one wins, 5 measures to 3
Where Türkiye wins
- Dividends at 15%, against Denmark's 27%.
- Advertising, hosting and platform fees, reimbursed at 50% to 70% where Denmark reimburses nothing.
- A cost base about 96% below Denmark's on the Numbeo index.
- Income from customers abroad, untaxed under the export regime.
Where Denmark wins
- A cash payment of 22% of a research loss, up to 5.5 million kroner, which reaches a company with no profit at all.
- A 22% corporate rate, three points under Türkiye's.
- An enhanced research deduction on a published path to 120% by 2028.
- Local purchasing power 97% above Türkiye's, and a games cluster with a long track record.
02How do Türkiye and Denmark compare, line by line?
Of 9 measures, Türkiye takes 5 and Denmark takes 3, with 1 level. Every figure links to its source and carries the date we last checked it.
Public money
| Measure | Türkiye | Denmark |
|---|---|---|
| Cash back on ads, hosting and platform fees | better for the company50% of what you spend, rising to 70% when the customers you are targeting are in one of the twenty countries on Türkiye's target listsource | Nothing comparablesource |
| Support for development costs | Yes, through two separate programmes: TÜBİTAK, which funds defined research projects, and teknopark status, which removes corporate tax on software developed inside a technology parkBoth are applied for separately from the export refund, and a company can hold them at the same time.source | better for the companyAn enhanced research deduction rising to 120% by 2028, and a cash payment of 22% of a research loss up to DKK 5.5 millionsource |
Tax
| Measure | Türkiye | Denmark |
|---|---|---|
| Corporate tax on ordinary profit | 25%source | better for the company22%source |
| Tax on income from software sold abroad | better for the company0% under the IT export regimeApplies to income earned from customers outside Türkiye.source | Taxed the same as any other profitsource |
| VAT or equivalent, standard rate | 20%Exported services are outside the scope, so this matters less to an exporter than the headline suggests.source | 25%source |
| Withholding tax on dividends to a foreign parent | better for the company15%A double tax treaty can reduce it.source | 27%source |
What it costs to live there
| Measure | Türkiye | Denmark |
|---|---|---|
| Cost of living index | better for the company40.2Numbeo index, mid-2026.source | 78.6, 96% higher than Türkiyesource |
| Rent index | better for the company12.3source | 26.6, 116% higher than Türkiyesource |
| Local purchasing power index | 71.8Salaries buy less locally, which is the other side of a low cost base.source | better for staff141.2, 97% higher than Türkiyesource |
03What is it like to run a company in Denmark?
Copenhagen is an hour behind Istanbul and about three and a half by plane. Denmark's research refund is the piece worth understanding, because it turns a development loss into cash in a way most European schemes do not. The rest of the cost base is northern European: 25% VAT, high salaries and a rent index more than twice Türkiye's.
04What does the Turkish programme pay back, and what are the limits?
| What you spend it on | Programme item | Paid back | Annual cap |
|---|---|---|---|
| Ads and player acquisition | Digital product promotion: ads & marketing (up to 10 products/yr) | 50% to 70% | 50 000 000 ₺ ≈ $1,043,841 |
| App store and platform commissions | App store & platform commissions (up to 10 products/yr) | 50% | 20 000 000 ₺ ≈ $417,537 |
| Hosting and servers | Hosting costs | 50% | 5 000 000 ₺ ≈ $104,384 |
What Türkiye would pay back on your spending
Türkiye runs a government programme that refunds part of what a software company or game studio spends on reaching customers abroad. It covers advertising, app store and platform commissions, and hosting. The refund is paid in cash against invoices the company has already settled, so it does not depend on the company making a profit. The standard rate is 50%, and it rises to 70% when the customers being targeted are in one of the twenty countries on the Turkish Ministry of Trade's target list.
Put your own yearly figures in below. The rates and the annual caps come from the same file as our full calculator, and the total updates as you type.
05Questions we get asked
How does a cash payment for a loss work?
A loss-making company can have 22% of the research portion of its negative taxable income paid out in cash rather than carried forward, capped at 5.5 million kroner. For a studio in development with no revenue, that is real money in the year it spends it.
Is the 120% deduction available now?
It rises on a published schedule and reaches 120% in 2028. A deduction above 100% means the company subtracts more than it spent, so at 120% every krone of qualifying research removes 1.2 kroner from the tax base.
What does Denmark cost compared with Türkiye?
About 96% more on living costs and roughly 116% more on rent. VAT is 25% against Türkiye's 20%, though exported services sit outside its scope in both places.
Where this comparison comes from
CyberScope Solutions is an Istanbul consultancy that manages Türkiye's IT export incentive claims for software companies and game studios. We build these comparisons because clients ask for them before deciding, and we keep the rows where the other country wins because a comparison nobody believes is worth nothing.
- Every figure is sourced. Each number links to the page it came from and carries the date we last checked it.
- These pages get rebuilt, not left. Rates and caps come from the same file as our calculator, so when one changes the page changes with it.
- You find out early if it is not for you. The first call is thirty minutes and we will say plainly if your spend pattern does not suit the programme.
Turn that number into money
Send us the rough shape of your spend. You get back what it is worth, what setting it up involves, and how fast the first claim can go in. Companies already operating here treat this as routine, and the six month window means the clock is running on invoices you have already paid.
- A reply from a person within one working day
- No mailing list, no drip sequence
- Thirty minutes, and you keep the numbers either way
Got it.
We will read it properly and reply within a working day. If you would rather get it over with now, pick a time that suits you.
Book a 30 minute call06Where these numbers come from
- https://taxsummaries.pwc.com/turkey/corporate/taxes-on-corporate-income checked 2026-08-21
- https://taxsummaries.pwc.com/quick-charts/corporate-income-tax-cit-rates checked 2026-08-21
- https://cyberscope.solutions/blog/zero-percent-tax-on-it-exports/ checked 2026-08-21
- https://taxsummaries.pwc.com/quick-charts/value-added-tax-vat-rates checked 2026-08-21
- https://taxsummaries.pwc.com/turkey/corporate/withholding-taxes checked 2026-08-21
- https://taxsummaries.pwc.com/quick-charts/withholding-tax-wht-rates checked 2026-08-21
- https://cyberscope.solutions/guides/ checked 2026-08-21
- https://taxsummaries.pwc.com/denmark/corporate/tax-credits-and-incentives checked 2026-08-21
- https://www.numbeo.com/cost-of-living/rankings_by_country.jsp checked 2026-08-21