REASONS FOR INVESTING IN TURKEY

REASONS FOR
INVESTING IN
TURKEY

Strong Economy

Ranking of Economies by GDP at PPP*

The Turkish economy, from 2003 to 2023, has posted record growth and climbed from 18th place to 13th globally.

Source: International Monetary Fund World Economic Outlook, April 2019 (IMF WEO)
*PPP: Purchasing Power Parity (2023 estimated)

The Turkish economy, from 2003 to 2023, has posted record growth and climbed from 18th place to 13th globally.

● Bulgaria
Bulgaria: 3.3
Source: IMF WEO

Wide Domestic And Regional Markets

Per Capita Income (GDP per capita, current prices)

Turkey’s economic development performance, while national per capita income in 2002 3.581 US dollars to 9632 US dollars level in 2018 has led to the rise.

Source:  TURKSTAT

GDP Per Capita in Countries With Population Over 50 Million – 2018

Turkey, population is the 11th largest economy in terms of GDP per capita among countries with over 50 million.

Source:  IMF World Economic Outlook Report

Automobile Stock (million passenger cars)

Turkey’s economic growth has provided increased purchasing the emergence of a large middle class with power.

Source:  TURKSTAT

Urbanization

More than 23 urban centers, each with populations of over 1 million, support Turkey’s thriving domestic market

through their production of goods and services. In terms of population, Istanbul is the largest city in Europe.

Source: TurkStat

Access to Markets

Source: Eurostat, population as of 2017, Ministry of Trade

72 million broadband internet subscribers in 2018, up from 0.1 million in 2002 (ICTA, TurkStat)
80.6 million mobile phone subscribers in 2018, up from 23 million in 2002 (TurkStat)
66.3 million credit card users in 2018, up from 16 million in 2002 (Interbank Card Center)
211 million airline passengers in 2018, up from 33 million in 2002 (General Directorate of State Airports Authority)
45.6 million international tourist arrivals in 2018, up from 13 million in 2002 (TurkStat)

Strategic Location

The Turkish economy, from 2003 to 2023, has posted record growth and climbed from 18th place to 13th globally.

Proximity to major markets

Turkey, a 4 hour flight radius in Europe, the Middle East and North Africa region, and a total population of 1.5 billion in Central Asia and offers easy access to a market worth US $ 24 trillion.

Same day access to major markets

Turkey’s strategic location, from Tokyo to New York offers easy access to markets in 16 different time zones.

Global connection

Turkish Airlines flies to 255 destinations in 122 countries.

Suitable Population

Investors are faced with major challenges such as aging and declining population in Europe, Turkey’s young and well-educated population are considered to be a significant advantage.

Turkey, a strong labor market and young form the basis of the strong domestic market, offers unique opportunities with a dynamic and growing population.

Turkey Statistical Institute (TUIK) in 2018. In 2023, Turkey’s population of 82 million with 86.9 million, and is expected to reach 100.3 million in 2040. It is predicted that the population will continue its growth momentum and reach its peak of 107.6 million in 2069.

Qualified And Cost Effective Work Force

Turkey constitutes Europe’s third-largest labor pool with the 32.7 million-strong workforce.

Turkey has a young population of the country as the most important factor in the growth of the labor force has contributed to getting top position compared to competitors. Turkey also has realized the highest growth in the labor force compared to EU countries.
The young population and a large labor force in the rapidly growing number of universities in the country by providing the increase in the number of university graduates in Turkey is to ensure the conversion of skilled labor.

Over 6.7 million students in higher education
Approximately 800,000 graduates per year from universities
World-class engineering education

Uninterrupted Reform Process

The Turkish government has always prioritized reforms for qualified workforce, innovative production, sustainable growth, a sustainable environment and international cooperation for development.

The comprehensive reform process that started in the early 2000s continues today.

While the average number of days required to establish a company was 38 in 2002, this number was reduced to 6.5 in line with the reform process.

Liberal Investment Environment

Turkey’s investment legislation, it offers equal treatment for all investors and simplicity of conformity to international standards.

Foreign Direct Investment (FDI) Law

The purpose of the Foreign Direct Investment (FDI) Law No. 4875 is as follows:

Promoting foreign direct investments in the country
Protecting the rights of investors
To bring investor and investment definitions to international standards
Establishing a notification-based system for foreign direct investments instead of a consent-based system
To increase the volume of foreign direct investments through established policies and procedures

The FDI Law provides a definition of foreign investors and foreign direct investments. In addition, this law; It also explains the important principles of foreign direct investments such as freedom of investment, national treatment, expropriation and nationalization, free transfer of profit, national and international arbitration and alternative dispute resolution methods, valuation of non-cash capital, employment of foreign personnel and liaison offices.
The procedures and principles regarding the issues included in the FDI Law are specified in the FDI Law Implementation Regulation. The goal of the FDI Law on work permits for foreigners:

To regulate the work carried out by foreigners
To determine the terms and conditions regarding the rules on work permits granted to foreigners.

Bilateral Agreements on Promotion and Protection of Investments

Bilateral agreements for the promotion and protection of investments have been signed since 1962 with countries that have the potential to develop mutual investment relations. The main purpose of mutual investment agreements is to create a favorable environment for economic cooperation between the contracting parties by setting the treatment standards for investors and investments within the borders of the said countries. These agreements aim to provide a stable investment environment by increasing the flow of capital between the contracting parties. In addition, these agreements with international arbitration provisions reveal the most effective ways to resolve disputes that may arise between investors and the host country. Turkey has signed Bilateral Investment Treaties with 98 countries. However, Turkey It is a dualist country that needs to be ratified and published in order for an international agreement to become part of the national legal system. In this context, 81 of the 98 Bilateral Agreements in question have entered into force so far.

Prevention of Double Taxation Agreements

Turkey is a tax which is paid in one of any two countries with 85 countries, to be deducted from the tax payable in the other, and thus double that allow taxation prevention Avoidance of Double Taxation Treaties (DTT) has signed.
Turkey, the Avoidance of Double Taxation adding new ones to the countries which are party to this agreement continues to expand the coverage of the Agreement.

Social Security Agreements

Turkey has signed Social Security Agreements with 30 countries, these agreements make it easier to move between countries are working outside their own country. The number of these countries will increase due to the expanding range of FDI source countries.

Profitable Incentives

Turkey, both greenfield investments and also offers a comprehensive program to support the acceleration of investment incentives to minimize start-up costs and return on investment for

These incentives can also be adapted for projects in priority sectors classified as important areas for technology transfer and economic development. Republic of Turkey to investors; In addition to the support programs it offers for R&D and innovation projects and additional employment, it also supports exporters through various grants, incentives and loans.

One Of The Most Competitive Investment Incentive Systems In The Developing Markets.

Comprehensive Packages Designed For Zero Investment And Expansion Investment Projects In Manufacturing, Service And R&d.

Equal Treatment Of International And Domestic Investors.
Incentives Offered By Different Sectors And Scales.

Continuously Increasing Ease Of Access To Incentives And Tax Discounts. In 2018, 333 Investment Incentive Certificates Were Drowned For International Investors, With A Total Investment Amount Of 42.5 Billion Tl. In This Scope, 22,440 People Are Enabled To Employ.

Advantage R&D Ecosystem

The Turkish government aims to increase the share of R&D investments in the total public budget to 2%. This share, which exceeded 1% as of 2018, is expected to reach 2% in the next few years.
extensive R & D incentives in Turkey, well-educated and skilled workforce is supported by many global companies that operate in the market and competitive cost advantages. All of these elements come together, provide a dynamic ecosystem to occur in Turkey.
Today, more than 100 leading global companies, the competitive R & D incentives in Turkey and benefit from evolving ecosystem.

Citizenship Application With Fixed Capital Investment

With the “Regulation on the Amendment of the Regulation on the Implementation of the Turkish Citizenship Law” published in the Official Gazette dated 19 September 2018 and numbered 30540, foreign nationals determined by the Ministry of Industry and Technology to have made a fixed capital investment of 500,000 USD or equivalent foreign currency or Turkish Lira With the proposal of the Ministry of Interior and the Decision of the President, it was decided that citizenship can be granted.

Application and Evaluation Process

1. Foreign real persons, who will apply for citizenship based on a fixed capital investment1 of USD 500,000 or equivalent foreign currency or Turkish Lira, make a written application to the Ministry of Industry and Technology with the following documents.

A. Attached to the application petition signed by the applicant; a. The fully filled investment information form in ANNEX-1

B. Photocopy of passport pages containing identification information and residence document, if any

C. Signature Circular (In case of company partnership)

D. Sample power of attorney in case of application by proxy to.

E. If the fixed capital investment underpinning the application is made by a legal entity, the trade registry gazette showing the shareholding structure and capital amount of the legal entity making the said fixed capital investment.

F. Special purpose report approved by YMM of which a sample is given in Annex-2 showing the fixed capital amount (Fixed capital investments made in a maximum period of 3 years before the date of preparation of the report will be considered within the scope of the report). Notarized Share Purchase Agreement for the purchase of shares in case the investment is realized by purchasing the shares of an existing company or by becoming a shareholder to a certain extent (It is essential to pay the amount specified in the share purchase agreement through the bank, the original receipt of the payment will be submitted)

2. If the application is determined by the Ministry of Industry and Technology, General Directorate of Incentive Application and Foreign Capital, the applicant will be sent a letter of eligibility to the Ministry of Interior Directorate General of Migration Management and General Directorate of Population and Citizenship Affairs. For applications made with missing information and documents, applications that cannot complete the missing information and documents within 1 month following the written notification date to be made to the applicant are removed from the process.

Descriptions

A. In case the foreign investor completely buys a non-public company or becomes a shareholder to a certain ratio; The amount corresponding to the ratio corresponding to the partnership share purchased by the foreign investor must be at least USD 500,000 or its equivalent in foreign currency or Turkish Lira. In these cases, a company valuation report may be requested from the applicant, from the authorized institutions regarding the determination of the market value of the company purchased / partnered.

B. While calculating the fixed capital expenditures, maximum 3-year past expenditures will be taken into account.

C. In case of additional fixed capital investment to an existing investment, the increase in the fixed capital investment amount and the foreign investor’s share of the company in the company will be taken into account. In other words, if the foreign investor is a shareholder in a certain ratio of the company making the investment; The amount that will result from multiplying the ratio corresponding to the partnership share of the company making the investment with the total additional investment amount must be at least USD 500,000 or its equivalent in foreign currency or Turkish Lira.

D. Natural persons who are entitled to acquire citizenship by making fixed capital investments cannot transfer their shares in the company to another natural or legal person for at least three years.

E. The process of citizenship transactions of the applicants who are determined by the administration to which they applied with a false and misleading document in terms of content are suspended. The aforementioned determinations about people who have acquired citizenship and situations where the fixed capital investment was transferred before three years and below the minimum amount are notified to the Ministry of Interior. The applications to be made at a later date by the persons who apply with false and misleading documents are not considered even if they meet the relevant conditions.

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