Turkey is a country preferred by foreign investors due to its qualified labour force, fast growing young population, being a junction location of Asia and Europe particularly. Thanks to “Foreign Direct Investments Law” which came into force in 2003, a number of facilities are provided with foreign investors in Turkey.
We will also quote in our writing why foreign investors should invest in Turkey in 8 articles.
1. Customs Duty Exemption
The foreign nationalss who make directly investment can equally take advantage of the chances given to domestic investors. One of incentives provided to the foreign nationals who think to make investment in Turkey is customs duty exemption.
The machinery and equipment imported abroad within the scope of investment incentive certificate are exempted from customs duty.
2. Value Added Tax (VAT) Exemption
No VAT (value added tax) is paid for the machinery and equipment to be supplied within the country and abroad within the scope of investment incentive certificate.
3. Social Insurance Premium Support (Worker Contribution)
For the employment provided through investment , worker contribution of social insurance premium calculated over legal minimum wage amount is met by state. This element is valid only for the investments to be made in Eastern Anatolia and South Eastern Anatolia Regions within the scope of investment incentive certificate. No upper limit exists for Social Insurance Premium Support and valid for 10 years.
5. Land Allocation
For the investments for which investment incentive certificate is issued, land is allocated to investors within the framework of the rules set by Ministry of Finance.
As regard to many incentives and supports we cannot list here, you should definitely visit the website of Prime Ministry Investment Support and Promotion Agency.
5. You can Transfer your Earnings
Foreign investors can freely transfer abroad the earnings provided against agreements of damages, license, management and similar ones and the profit, sale, liquidation developed out of their activities in Turkey.
6. Right for Paying No Double Taxation
With the aim of precluding payment of tax both in their countries and in Turkey by foreign investors, Turkey has made agreement with the countries more than 80. For instance, a Spanish citizen who want to make investment in Turkey pay tax only in Turkey owing to his/her activities in Turkey. No tax is paid to Spain because of his/her activities.
Some of the countries that Turkey has made agreement with them within the scope of agreement on prevention of double taxation are: USA, Germany, Azerbaijan, People’s Republic of China, France, South Korea, Georgia, Iran, Qatar, K.K.T.C., Malesia, Pakistan, Russia, Singapore, Jordan.
7. Right to Acquire Turkish Citizenship
In company with the regulation which came into force on January 12 2017, the foreign nationals who have an investment in Turkey can obtain Turkish citizenship right.
Turkish citizenship right has been recognized to the foreign nationals who make investment more than a certain amount and create employment or keep deposit.
In case they assure the following conditions, foreign investors can gain Turkish citizenship.
- To make capital investment of at least 2 million American dollars,
- To purchase immovable property amounting to minimum 1 million American dollars,
- To create at least 100 person- employment,
- To keep deposit of at least 3 million American Dollars in the banks operating in Turkey for a minimum period of 3 years,
- To purchase government debt securities of at least 3 million American dollars provided that they are kept for three years.
The foreign investors who fulfil one of these conditions may gain Turkish citizenship upon the offer made by relevant ministry and the resolution of Council of Ministers.
8. Ease of Red Tape
As from 2017, “one stop office” system has been put into service for foreign investors. According to this system, a foreign investor will be able to complete his/her all transactions here by going to İstanbul Development Agency when he/she decides to make investment in Turkey.
In other words, all transactions related to certificates, permits, licenses may be handled from single centre. At the same time, it is planned that this system is spread country wide and also cover domestic investors too. In this way, foreign investors will be able to commence their activities in Turkey as soon as possible without being precluded from bureaucratic obstacles.