Türkiye has reduced the withholding tax rate on payments related to nuclear power plant construction and repair works to ease financing pressures and accelerate strategic energy investments.

The decision, announced by a decree published in the Official Gazette Tuesday, sets the withholding rate on progress payments for contractors in nuclear projects at 1%, bringing them in line with preferential rates already applied to selected transport infrastructure projects such as railways, metros, tramways, and shipbuilding and repair works.

The change is part of a policy framework designed to support high-capital, long-term infrastructure investments and strengthen energy security.

Previously, a separate decree issued in March 2025 had already reduced withholding taxes to 1% for strategic transport projects, while maintaining a 5% rate for other long-term construction and repair works.

The latest amendment extends similar treatment to nuclear energy projects, described as capital-intensive and critical for diversifying energy supply and reducing external dependency.

The move is said to be intended to lower financing costs, speed up project timelines and improve the international competitiveness of nuclear investments in Türkiye.

The policy is also expected to enhance the viability of large-scale energy infrastructure projects, which often require extended construction periods and complex financing structures.

Türkiye has been expanding its energy infrastructure investments in recent years as it seeks to increase domestic production capacity and reduce reliance on imported energy sources.

It considers nuclear power as one of the main pillars of this strategy alongside renewable energy expansion and natural gas diversification.

Türkiye's first nuclear power plant, Akkuyu, is scheduled to come online in the coming months.

The 4.8-gigawatt, four-reactor plant is being constructed by Russia's state atomic energy corporation Rosatom in the Mediterranean ⁠province ‌of Mersin under a 2010 accord ⁠worth about $20 billion.

Once fully operational, it is expected to generate around 10% of Türkiye's electricity.

Türkiye aims to reach 7.2 gigawatts (GW) of nuclear capacity by 2035 and 20 GW by 2050. It plans to complement the conventional nuclear plants with small modular reactors.

Ankara is also in talks with South Korea, China, Russia and the United States on two additional nuclear plants it plans to build in the Black Sea province of Sinop and the Thrace region.