Investment Conditions in Turkey 2023 - 2024

Many investors are seeking information about investment conditions in Turkey due to its strong economy, strategic geographic location, rich history, diverse nature, and cultures, making it an attractive destination for foreign investors.

The Turkish law provides a competitive and fair investment environment, where foreign investors enjoy equal rights and obligations as local investors. In this article, we will discuss the investment conditions in Turkey, types of investments, advantages of investing in Turkey, and provide tips on investment and frequently asked questions. Stay tuned with us.

Investment Conditions in Turkey

The Turkish law requires foreign investors to meet the following conditions for investing in Turkey:

• Possession of a valid passport: Foreign investors must hold a valid passport for at least six months.
• Submission of investment application: Foreign investors must submit an investment application to the relevant Turkish authorities.
• Obtainment of investment approval: Foreign investors must obtain investment approval from the relevant Turkish authorities.
• Freedom to invest in all sectors: Foreign investors can invest in all economic sectors in Turkey, including real estate, industry, tourism, manufacturing, and energy.
• Low taxes: Turkey has a favorable tax system for foreign investors, with a corporate tax rate of only 20%.
• Fair treatment: Foreign investors enjoy equality with local investors in rights and obligations.

It's worth noting that investment conditions in the Republic of Turkey vary depending on the type of investment.

Types of Investments in Turkey

Foreign investors can explore investment conditions in Turkey in various sectors, including:

Real estate investment

Buying residential, commercial, or touristic properties in Turkey.

Industrial investment

Investing in the Turkish industrial sector, which includes profitable areas such as automotive, textile, and technology industries.

Services investment

Investing in the services sector in Turkey, including tourism, financial services, and logistics services.

Infrastructure investment

Investing in Turkish infrastructure, such as roads, railways, and airports.

Energy investment

Investing in the Turkish energy sector, including renewable and traditional energy sources.

Technology investment

Investing in the rapidly growing Turkish technology sector.

Education investment

Investing in the Turkish education sector, which is experiencing increasing demand.

Healthcare investment

Investing in the Turkish healthcare sector, which is also growing rapidly.

Advantages of Investing in Turkey

Turkey offers many investment advantages. In addition to its favorable investment conditions, there are unique advantages to investing here, including:

Strategic Geographic Location

Turkey's strategic location between Europe and Asia connects it to vast markets. This unique location provides extensive business opportunities for foreign investors, allowing easy access to both European and Asian markets.

Strong Economy

Turkey's economy enjoys robust growth and financial stability. In 2022, the Turkish economy grew by 7.3%, the highest growth rate among G20 countries. Additionally, Turkey has a balanced public budget and strong external reserves. These factors make Turkey an attractive investment destination.

Advanced Infrastructure

Turkey has advanced infrastructure, including roads, airports, and digital infrastructure. This sophisticated infrastructure facilitates business operations for companies and foreign investors in Turkey.

Skilled Workforce

Turkey has a skilled and abundant workforce, with a population of approximately 84 million people and a relatively low unemployment rate. These factors make Turkey an attractive source of skilled labor.

In addition to these advantages, Turkey also offers many investment incentives for foreign investors. These incentives include tax exemptions and government support for investment projects.

Turkey provides a competitive and fair investment environment with many investment advantages. All these factors make Turkey an attractive destination for foreign investors.

Investment Tips in Turkey

Here are some tips that every investor should know when investing in Turkey:

• Research the Market: Before making an investment decision in Turkey, it's essential to conduct thorough research on the Turkish market. This includes information about the Turkish economy, promising economic sectors, and the laws and regulations governing foreign investment in Turkey.
• Seek Legal Advice: It's important to obtain legal advice from a financial advisor specializing in Turkish investment law. A financial advisor will help you better understand the potential risks and rewards of investing in Turkey.
• Start Small: If you are new to investing in Turkey, it's best to start small. This will help you minimize potential risks.
• Be Patient: Investing in Turkey requires patience as it can be a long-term process. It's important to expect to see returns on your investment in the long run.

In addition to these general tips, here are some tips specific to the type of investment:

• Real Estate Investment: When investing in real estate in Turkey, it's important to choose a good location. Also, make sure that the property is legal and properly registered.
• Industrial Investment: When investing in the Turkish industrial sector, it's important to choose a specialized field. Also, make sure that you have experience in this field.
• Service Investment: When investing in the service sector in Turkey, it's important to choose a successful sector. Also, make sure you have a good business plan.

Most Frequently Asked Questions About Investment Conditions in Turkey

One of the most common questions regarding the conditions for foreign investment in Turkey is:

"What are the steps to start investing in Turkey?"

Here are the steps:

• Conducting Market Research: Before making any investment decision in Turkey, it's important to conduct thorough research on the Turkish market. This includes studying the Turkish economy, identifying promising economic sectors, and understanding the laws and regulations governing foreign investment in Turkey.
• Consulting with a Financial Advisor: It's important to seek legal advice from a specialized financial advisor familiar with Turkish investment laws. A financial advisor can help you better understand the potential risks and rewards of investing in Turkey.
• Choosing the Type of Investment: There are various types of investments available in Turkey, including real estate investment, industrial investments, and investments in services. It's essential to choose the type of investment that aligns with your financial goals and expertise.
• Developing a Business Plan: Each investment should have a specific business plan outlining investment objective and the strategies to achieve them.
• Obtaining Investment Approval: Foreign investors must obtain investment approval from the relevant Turkish authorities.
• Implementing the Investment: After obtaining investment approval, foreign investors can proceed with implementing their investment plans.

In conclusion, Turkey offers a competitive and fair investment environment with many advantages. With its strategic geographical location, strong economy, advanced infrastructure, and skilled workforce, Turkey is an attractive destination for foreign investors. However, it's crucial to be familiar with the investment conditions in Turkey before making any investment decisions. The steps to obtain investment approval may vary depending on the type of investment.

If you're interested in receiving advice from specialists in Turkish investment, Skyline Holdings will assist you in understanding the potential risks and rewards of investing in the country.