Investing in Turkey, why?
Investing in Turkey is an attractive option for foreign investors due to the country’s large, young, educated, and multicultural population. With over 29.2 million motivated young professionals, Turkey offers a highly skilled workforce for businesses seeking international expansion. The government’s commitment to promoting the technology sector, privatizing state-owned enterprises, and attracting foreign investment further supports this proposition.
Foreign direct investment in the private sector in Turkey is unrestricted, and investors must inform the relevant administrative and tax authorities to operate legally in the country. Recent regulations on antitrust and intellectual property protection provide transparency and better protection for holders of such rights. Turkey has also signed bilateral agreements against double taxation with many European and non-European countries, including Italy, ensuring no tax discrimination against foreign investors.
Turkey’s large and growing domestic market, mature and dynamic private sector, high-quality and low-cost labor force, well-developed infrastructure network, customs union with European countries, competitive tax regime, and free and safe environment are the primary factors that attract foreign investment to the country.
To promote the development of strategic sectors, foster urban and rural integration, support exports, high technology, and sustainable development, the government offers numerous incentives and benefits for foreign private investment in specific sectors and geographical areas. To benefit from these incentives, investors must obtain an investment incentive certificate from the Ministry of Economy. The investment value must not be less than 1.5 million Turkish liras, depending on the investment’s geographical area.
The main benefits of the government’s investment incentives include exemptions from customs duties and VAT, reductions in corporate income tax and employer social security contributions, concession of land rights, contributions to interest payments on loans, and VAT refunds for investments made in a predetermined geographical area.
In conclusion, Turkey’s strategic location, competitive business environment, dynamic and growing economy, and skilled workforce make it an attractive destination for foreign investment. With the government’s commitment to promoting foreign investment and offering numerous incentives and benefits, Turkey is an excellent destination for international investors seeking to expand their business.