Things to Know for Foreigners to Invest in Turkey
Turkey is among the countries that many foreigners want to visit due to its geographical location, climate, historical sites, and natural beauties. However, the number of foreign nationals who want to invest in Turkey and settle here is remarkably high, too.
Those who consider living and working in Turkey are granted greater opportunities than before, thanks to the newly introduced law.
A foreigner who buys a property worth an average of $150,000 stays in Turkey for about 4 months. During their stay, they meet all their needs, including shopping or health-related ones, and when they return to their home countries, they act as a volunteer ambassador.
Antalya, a popular town among tourists and vacationers, is the second city where the highest volume of house sales made to foreigners is achieved.
The number of investors who invest in Turkey and apply for Turkish citizenship reached 15,176 as of July 1. In 2020, $6 billion worth of real estate was sold to foreigners, a figure that experts expect to increase to $20 billion.
The citizenship acquisition by investment program paves the way for real estate sales to dramatically rise. Foreigners who buy a property worth $250,000 can obtain Turkish citizenship. If you want to have more detailed information about obtaining Turkish citizenship, you can work with Realista team.
Top 10 Factors To Invest in Turkey
- Steadily growing economy
- Large youth population
- Qualified and competitive workforce
- A reformist investment climate
- Highly developed infrastructure
- Geopolitical location
- Europe’s energy corridor and terminal
- Low taxes
- EU customs union
- A big local market
All of these attract foreigners who are considering investing in Turkey.
When compared to Europe, Turkey has the largest young population. A youthful, dynamic, educated, and productive community contributes to the country’s development each passing year. The dynamic population structure paints a promising picture for foreign investors who will invest in Turkey.
Approximately 800,000 students graduate from universities every year, creating a qualified workforce with great potential.
In addition, Turkey is the 13th biggest economy in the world and 5th biggest economy in Europe.
Turkey is at a 3-hour flight away from many significant destinations in Europe, servings as a bridge between East-West and North-South while also providing opportunities to enter big markets with affordable costs.
There are 1.7 billion customers in Europe, Eurasia, Middle East, and North Africa, which means easy access to several markets worth a total of $27 trillion GDP.
More than 70% of the primary energy resources in the world are located in close proximity to Turkey. It is also the key area in energy transferring to Europe, the biggest energy consumer in the world.
Turkish Airlines flies to 255 destinations in 122 countries, offering easy access to a $24 trillion market and 1,5 billion population in the Middle East, North Africa, and Central Asia.
Rich History and Culture
Because the first civilizations in history were established here, these lands connecting Asia and Europe have many sites waiting to be discovered.
Our country, where there are natural monuments and historical cities, reflects a combination of the East and the West. Uniting different civilizations and religions, Turkey is a unique location with a long and renowned history.
You can find historical artifacts bearing traces of different civilizations, sometimes at a mountain top, sometimes on the coastal line.
Make sure you include in your travel plans visiting historical locations you are yet to see.
Universal Healthcare System
Turkey is globally renowned, thanks to the healthcare reforms introduced in the past years. The country is a great example of a powerful social state with a robust infrastructure and free healthcare services provided during the pandemic.
For example, CNN International reporters displayed how a busy intensive care unit in Cerrahpaşa Medical Faculty fight against the Coronavirus better than the USA and Europe and informed the audience on the treatment modalities. The British broadcaster BBC published a similar report, too.
The law enforces Turkey to provide healthcare services to all citizens, as can be seen in the provision “Everyone, as a member of society, has the right to social security.” Healthcare services provided by both private and state hospitals are affordable and accessible.
The quality services available to 1.5 billion people after a 4-hour flight, along with the country’s location and warm climate, make Turkey a remarkable destination for medical tourism.
Low Taxes for Investment in Istanbul
Turkey offers a comprehensive incentive program that supports fast ROI and low costs both in new and expanding investment projects for those who will invest in Turkey.
Technology Zones, Industrial Zones, and Free Zones grant tax benefits and incentives regarding tax exemption, SSI premium support, and land allocation.
In addition, the recently introduced law on R&D and innovation support allows investors to benefit from additional incentives for strategic and big-scale investments.
Special Tax Regulations
There are taxation agreements signed between Turkey and various countries to prevent foreign investors who will invest in Turkey from paying double taxes. For instance, a French citizen who invested in Turkey only pays taxes to the Turkish government for his/her activities in Turkey and is relieved from paying tax to the French government.
Some of the countries that signed taxation agreements with Turkey are as follows: Germany, the USA, Russia, Azerbaijan, China, France, South Korea, Georgia, Iran, Qatar, TRNC, Malaysia, Pakistan, Singapore, and Jordan.
Foreign investors can start a joint-stock company, limited company, and limited partnership company. Even though limited partnership allows low costs and easy establishment, foreign investors who will invest in Turkey mostly prefer limited and joint-stock companies.