Investment in Turkey
Table of Contents
Foreign Investment in Turkey
Turkey’s long-running progressive development in various sectors during the past decade and Foreign Direct Investment in Turkey has established itself as a hub for growth and development within Europe.
Besides being a large-scale global exporter of various commodities and positive trade practices, Turkey has also been a fantastic location for tourism where millions of people flock each year to embrace Turkey’s culture and oomph.
It shouldn’t come as a surprise that Turkey has managed to double its Gross Domestic Product (GDP) which now exceeds Switzerland, it’s because of the significant contribution provided by all the investment in Turkey. It should be noted that the latter is already known as financial heaven for global ex-pats and many other entities, which means the economy of Turkey is becoming stronger per year.
To add to this, the country of Turkey also has several ongoing infrastructure projects that are estimated to boost the real estate market and other sectors with the firm possibility of digitizing the lives of its residents.
In such favorable conditions, Investment in Turkey will be wise, and more so when you learn the added benefits that are offered along with it. These benefits are surely rather diverse as they vary from sector to sector, but they aren’t limited to certain sectors only.
Opportunities for Foreign Investment in Turkey
The growth of Turkey’s economy is backed by capital growth due to trade and investment in Turkey, human capital development, technological development, and many other factors that are witnessed in the following sectors:
Here is an article that might interest you further; “Investing in Turkey: A Golden Opportunity for Foreign Investors.”
Real Estate Investment Incentives in Turkey
The market of real estate in Turkey has risen steadily by 20% in the last decade which is quite lucrative and a marker of further expecting promising gains on capital investment within the upcoming decade.
Because the leasing and ownership of real estate are allowed in Turkey, this enables the purchase of commercial properties, housing projects, and land to its residents as well as to foreign investors. This can be incredibly beneficial when investment in Turkey is pooled constructively for maximizing profits and acquiring assets.
An added benefit that is worth knowing is; for the investors who plan to make real estate investments in Turkey is that they’ll also be allowed to secure Turkish citizenship. This can make them capable of enjoying similar economic benefits as Turkish citizens.
Energy Sector Investment in Turkey
Investment in Turkey within the energy sector should be feasible as Turkey holds 2nd rank in all of Europe in terms of energy production. The potential for farming hydroelectricity, natural gas, bio & geothermal energy, solar & wind energy is significantly appealing because it’s planned to grow four-fold before the end of the upcoming decade.
That is also when Turkey has strategized to reduce greenhouse gas emissions by 20% while still holding the world’s fifth-largest energy producer title.
In addition to these incremental figures, the three business models proposed by Turkey’s government for energy farming make it convenient for various types of investment in Turkey to allow their investors to become a part of the growing landscape of renewable energy in Turkey.
Manufacturing Sector Investment in Turkey
The past decade has also witnessed the growth of steel manufacturing in Turkey by making it the world’s eighth-largest steel producer and second-largest in Europe. It has comparatively ramped up its steel production to generate 7.2 million tonnes of steel which is 26% more than it did during its previous year.
Beyond this, Turkey looks forward to developing more steel plants within the country with help of investment in Turkey by foreign investors to become the largest steel producer in Europe before the end of the decade.
This can be possible for Turkey without great hassle because of its existing staggering imports of 4.8 million tonnes of steel to the Middle East countries in 2019. When we also consider the vast quantities of steel imports to Africa which grew by 41% during the same year, the investment opportunities in Turkey seem too good to be missed.
Other Sectors for Investment in Turkey
Turkey is also actively involved in the development of its IT & Research sector after establishing itself as a center for Research & Development to join the ranks of some of the well-developed European countries.
Their progress spans further into creating innovative software development and electronics which aid the local industries and global demands. This proves that investment in Turkey is also possible in Electronics, Research & Development, and trade-related to these sectors.
Would you like to learn more information about starting a company in Turkey? Check out our other article on; “Establishing a Company in Turkey” and learn more information on the subject.
How to Proceed with Investment in Turkey
The first step would be to get in touch with the Turkish Expats and Turkish Consulates to learn more about the possible ways you could invest in Turkey along with the guidelines and restrictions.
The investors who have invested their capital in certain sectors aren’t only provided freedom of establishment, but they could also practice acquisition of landholding which can grant them other opportunities to request specific authorizations.
The government of Turkey also provides investment aids to the investors to fuel the economy, so as to observe near-even growth in all the sectors. This is also applicable to the Agri-Food, Telecommunications, Automotive, Packaging, and Industrial Subcontracting sectors which aren’t monopolistic as the Media and Transport sectors.
These sectors also hold a high potential for investment because of the growth of labor and manpower within the country of Turkey.
Learning more about the various potential ventures and opportunities should be done by either visiting the country and holding board meetings or by communicating with the pre-established chairman of various industries.
These meetings could also help you spot scenarios where the investment of your capital into their firms could add to both of your portfolios and expectations of profit.
All in all, you must perform your research well and then get in touch with the authorities of Turkey and the government officials besides scouting the opportunities yourself. Doing all of this maximizes your chances to produce a healthy investment in Turkey.
If you need any further information, feel free to contact us or our legal firm in Turkey.
Investment in Turkey 2020
The Covid-19 pandemic health problem dominated the year, causing widespread disruptions that are expected to result in a significant drop in global GDP in 2020. It will take until the second half of 2021 for the global gross domestic product to rebound to December 2019 levels.
Global foreign direct investment (FDI) flows are expected to drop by up to 40% in 2020, according to UNCTAD’s World Investment Report 2020, from a value of $1.54 trillion in 2019.1 For the first time in fifteen years, global FDI would slip below the $1 trillion marks. The year 2022 is expected to be the year of recovery.
Faced with a grim economic situation, numerous governments throughout the world have moved up to announce financial assistance programs in an attempt to mitigate the negative effects of the Covid-19 pandemic. The Turkish government announced a $15.4 billion assistance package in March 2020, shortly after the first Covid-19 case was disclosed.
The package included tax breaks and debt payment extensions. In the months that followed, the employment umbrella package was launched to preserve jobs, which was at the top of the government’s normalization agenda.
The report, Investment in Turkey in 2020, by KPMG Turkey’s Tax Practice, attempts to give a comprehensive overview of the Turkish tax environment for international investors, based on developments through September 2020.2
The publishing of this report has been postponed owing to the ongoing implementation of additional measures since the Covid-19 outbreak began. The material in this book serves as an introduction for international investors interested in learning more about Turkey’s tax and economic climate.
Here is a list of helpful links for foreign investors looking for investment in Turkey: