Thanks to both quality and young labour and the population approaching to 80 million, Turkey is an ideal country to invest. Furthermore, the facilities like incentives provided to foreign investors, tax deductions, free land allocations, etc. also make investing in Turkey attractive.
Now let us look at most profitable and best investment areas to be invested in Turkey as of 2018.
Information and Technology
In recent years, Turkey has started to attach great importance to technology based research and development. Today, technology centres are present in a great deal of universities in Turkey and big facilities are provided investors who make technology focused investment.
Especially for the persons who wish to make investment in fields such as software development, biotechnology, nanotechnology, electronics, etc. Turkey is an attractive country. In spite of presence of many domestic and foreign companies which operate in this field, let us indicate that great deficiencies and big opportunities still exist in this area.
Construction and Real Estate
Construction and real estate sectors are among the ones which keep Turkish economy on its foot. Particularly owing to increasing population and urban transformation projects across the country, real estate and construction sectors are very vibrant. Therefore, we can say that construction and real estate sectors will be attractive options for investors for a long time too.
As of September 2017, 6% of the housing sales in Turkey have been made to foreign investors. It is anticipated that this figure will increase gradually. Furthermore, to buy real estate in Turkey, no condition of residence permit is sought for foreign investors. To the investors who purchase real estate of at least 1 million dollars, right of Turkish citizenship is recognized.
Textile and Ready to Wear
It is required to accept that China has a great place in the world textile market However, Turkey has got many advantages on account of the reasons like the quality it offers in textile and ready-made clothing sector, richness in terms of raw material resources, capability of answering special demands, flexibility, geographic proximity to the regions like European Union and middle East at which demand is high, etc. For this reason, we can tell that making investment in textile and ready to wear field in Turkey would be an eligible initiative.
Besides, with new incentive programs waited to come into force in 2018, in addition to current incentives, some new ones have also been presented to those who will make investment in textile area. To the investments to be made for textile area in Eastern provinces of the country particularly, many extra incentives will also be given.
Energy and Natural Resources
Energy sector is very significant sector from the aspect of conducting nearly all economic activities smoothly. In this regard, in order to close its gap in energy field, it is expected Turkey will make 130 billion Dollar investment. Great importance given to this sector by Turkey may be understood from the comprehensive incentives it offers to the person who will make investment in energy and natural resources field. Some of the incentives that investors may benefit in hydroelectric energy, wind energy, solar energy, natural gas, bioenergy and geothermal energy fields are;
- VAT Exemption
- Customs Exemption
- Tax Deduction (40%)
- Employer’s Contribution for SGK Premium (7 years)
- Interest Support (max. 700 thousand TL)
Environment and Recycling
Taking necessary steps to eliminate the devastations that industrialization causes, preclude global warming and eliminate the cases to cause environment pollution has made environment and recycling sector an important sector. Since Turkey is a country which conducts European Union membership process and accepts Kyoto Protocol, it attaches great importance to recycling. It is waited that Turkey will made investment between 7 and 9 billion Euros for waste management and recycling sector in near future.
In this respect, support in many areas like value added tax, customs tax, allocation of investment place, interest support, tax deduction, etc. is given for domestic and foreign investors who will make investment for recycling area in Turkey.