Considered Follow Steps for Investor Who Wants To Investing in Turkey

Turkey offers many opportunities to attract the attention of foreign investors. Who want to invest in Turkey offered the opportunity to encourage many states to foreigners. These incentives also allow investors to operate more efficiently and profitably.

So what are the steps to follow for those who want to invest in Turkey?

What are the official documents required to establish a company?

Foreign investor, many people establish a company in Turkey for official permission and must have a certificate.
* Trade chamber registration petition, Trade chamber registration petition example
* The organization notification form, the organization notification form example
* Notarized company main contract, Main contract example
If the foreign partner is a real person, translated notarized passport copy and potential tax number breakdown, Passport example
* If the foreign legal entity is an industrial or commercial chamber containing apostille annex or approved by the Turkish consulate or registered with a competent court, a notarized translation of the register and summary of the registry,
* Translated power of attorney, certified by notary public.

* Signature declaration (registration request) of the Notary approved Authorities under the company title,

* Cash receipted and signed bank receipts, Bank receipt sample
Stamp and signed bank receipt indicating that four of ten of the capital have been deposited into the account of the Competition Authority, Bank receipt example

* Chamber of Commerce Registration Declaration.

(Link administered

What is the Investment Incentive Program?

Turkey’s production and export-oriented growth strategy is aimed with the 2023 vision. For this reason, domestic and foreign investors provide various convenience. In this regard, foreign investors wishing to invest in Turkey should definitely take advantage of these incentives.
Direct companies established in Turkey by legal entities Foreign Investment established according to the law according to the laws of natural persons or foreign countries with citizens of foreign countries, such as companies, Turkish companies with local investors from support under the Investment Incentive Program for that status are entitled to equal conditions.

How to Apply for Incentives?

Investors must have a formal application to be able to benefit from the support provided in the “Investment Incentive Program”. Prior to the application to be made based on certain rules, investors can obtain more detailed information from the Ministry of Economy, General Directorate of Incentive Implementation and Foreign Investments.
* Investment location or alternative investment location designated for the project,
* The sector of the investment project,
* The theme, capacity and approximate amount of the investment project,
* For strategic investments, specifying information such as domestic production capacity and import data for the product to be produced will ensure that the consultation with the Ministry of Economy will be more efficient.

What Documents Are Required For Incentive Application?

* Signed application petitions and signature circulars of the investor himself or his proxy
* Signed and coarse investment of each or every page of the investor himself or his agent
information form and machinery and equipment lists
* In applications to be made to the Ministry, the amount of 400 Turkish Liras
Certificate of investing in account of Revolving Fund Management
* For strategic investments, sectoral, financial and technical
information feasibility report indicating that each of the criteria sought besides the analyzes has been fulfilled
* Depending on the sector, size or incentives of the investment,
Other information and documents that may be requested by the Directorate.

The prepared documents must be sent in person or by mail to the following address:

T. C. Ministry of Economy
General Directorate of Implementation and Foreign Investment
Söğütözü Mahallesi, 2176. Sok. No: 63, 06510 Çankaya / Ankara

What kind of incentives are offered?

Let’s look more closely at the government incentives to the benefit of foreigners who want to invest in Turkey.

VAT Exemption
VAT (value-added tax) is not paid for the machinery and equipment to be purchased from domestic and abroad within the scope of investment incentive certificate.

Customs Tax Exemption
Customs tax is not paid for the machinery and equipment to be purchased abroad from the scope of investment incentive certificate.

Tax Discount
Income and corporation tax; the total deductible tax amount is calculated on the basis of the discount rates up to the rate of contribution contribution. The investment contribution rate refers to the ratio of total fixed investment amount subject to tax deduction.

Social Insurance Premium Support (Workers’ Share)
The share of social security premium workers calculated on the statutory minimum wage for the investment provided by the investment shall be borne by the government. This element applies only to investments to be made in Zone 6 under the investment incentive certificate. There is no upper limit for Social Insurance Premium Support and it is valid for 10 years.

Social Insurance Premium Support (Employer Share)
The employer’s share of the social security premium calculated on the statutory minimum wage for the investment provided by the investment shall be borne by the state.

Income Tax Withholding Discount
The income tax for additional employment provided by the investment shall not be subject to withholding tax. This applies only to investments to be made in Zone 6. There is no upper limit for Income Tax Withholding Discount and it is 10 years.

Interest Rate Support
Interest rate support is a financing support provided for investment credits with at least 1 maturity. A portion of the interest / dividend to be paid for the credit used up to 70% of the fixed investment amount registered in the investment incentive certificate shall be borne by the state for a maximum period of five years.

Land Allocation
According to the Ministry of Finance regulations, investments are allocated for the investments to be made depending on the land allocation.

VAT Invoice
Minimum fixed investment amount VAT charged for building-construction expenditures realized within the scope of strategic investments above TL 500 million is returned.

R & D incentive
R & D centers and 15 design centers present at least in the case of employment of at least 10 staff special incentives for investment in R & D and design projects in Turkey. These incentives are valid until 2024. Some of these incentives are:

*100% of R & D expenditure is deducted from tax base.
*No stamp tax is paid on documents to be arranged.
*Customs duties are not paid for products imported under R & D projects.

Investment Zones and Incentives to be Implemented

There are 4 different types of incentives in the new incentive system that went into effect on 1 January 2012. These types of incentives also vary widely across the country in six different investment regions. These incentives are as follows;
1. General Investment Promotion Practices
2. Regional Investment Promotion Practices
3. Large-scale Investment Promotion
4. Strategic Investment Promotion Practices
There are 6 different zones in these incentive applications. The type of incentive varies depending on the region where the investment is desired.
1. General Investment Promotion Practices
The following incentives are offered for domestic and foreign investors investing TL 1 million or TL 500,000 regardless of the region to be invested.

Customs tax exemption
Domestic and foreign investors can not pay customs duties for machinery and equipment products imported from abroad.
VAT Exemption
Domestic and foreign investors can not pay a full 18% value added tax (VAT) for machinery and equipment supplied from abroad or from the domestic market.
2- Regional Investment Promotion Practices
6 regions across Turkey determined to domestic and foreign investors who wish to invest in, according to their choice of several incentives offered. Investors who wish to operate in any region are exempt from customs duties and value added tax. This investor is also allocated land for the state to set up a production facility.

Apart from these, social insurance premium support is given for workers and employers. Particularly attractive incentives are offered to those who want to invest in the 6th region, the eastern provinces where the country needs more development. For example, investors who want to invest in the 6th region receive 10% discount on income tax withholding tax and gain tax reduction of 90%.

There are also some investment areas to be supported by elements of the 5th region, regardless of the region in which they are located. Here are some examples:

* Investments in mining and / or processing.
* Test centers for automotive, aerospace or defense industries, wind tunnel and similar quality investments.
* Turbine and generator production for renewable energy production

* Nursery and day care homes, primary, secondary and high school education investments.

Again, some of the investment areas that will benefit from the 4th region incentives, regardless of where they resemble similarly, are given below.

* Manufacture of agricultural and forestry machinery
* Production of food, beverage and tobacco processing machines
* Manufacture of other organic main chemical substances
* Manufacture of chemical fertilizers and nitrogen compounds
* Manufacture of synthetic rubber and plastic raw materials

3. Large-scale Investment Promotion
Turkey’s technology, large-scale investment stimulus plan for its competitiveness in the international market and R & D investment will increase the capacity of 12 is applied. These are provided by the following incentives.
4. Strategic Investment Promotion Practices
Investments that meet the following criteria are supported under Strategic Investment Promotion Practices.

* The local production capacity for the product to be manufactured with investment should be less than the import of the product.
*The investment should be worth at least TL 50 million.
*The investment should create at least 40% added value. This condition is not required for refinery and petrochemical investments.
* Total import value for the product to be produced should be at least 50 million US dollars in the last 1 year. This condition is not required in non-production goods in Turkey.

Expat Guide Turkey

Expat Guide Turkey is a news website that shares important events in Turkey and news concerning foreigners in Turkey. It also contains a guide to undiscovered places, city and district about Turkey.

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