How to Invest in Turkey?

Located on two different continents, Turkey acts as a bridge between the East and West, and North and South axes. This feature of the country provides a significant advantage in terms of logistics and workforce. Turkey is a cost-effective investment center for emerging markets. Turkey is an ideal country to invest in, thanks to its population of more than 80 million and its qualified and young workforce. Conveniences such as incentives, tax reductions, and free land allocations provided to foreign investors also make it attractive to invest in Turkey. There are some critical sectors in Turkey. These important sectors can be classified as agriculture and food, automotive, tourism, real estate, health, mining, transportation, and logistics. Depending on these sectors, technology, ready-made clothing, energy resources, Turkish stocks, construction, and real estate are important profitable investment areas. Turkey’s business environment offers many advantages, including those related to, for example, a company’s registration process. International entrepreneurs do not have to deal with seemingly complicated bureaucratic procedures. A fast commercial establishment is possible. The business establishment process for investment in Turkey has been simplified over the last few years to attract as many investors as possible.  A limited company is the most admired and used business form due to the lack of strict registration regulations in Turkey.

What should you know before Investing in Turkey?

First of all, those who will invest in Turkey should know that there is a competitive, qualified, and dynamic workforce in Turkey and this is an important advantage. As a country with strong entrepreneurial business partners, a growing economy, strategic location, and foreign direct investment incentives, Turkey is also safe. Investors should know these advantages before investing in Turkey and they can make their investments with confidence without hesitation. The most common way to buy a Turkish company is to buy shares. Share purchases are generally unlimited. Also, in some regulated sectors such as banking, capital markets, and energy, authority approval may be required for share purchase. However compared to most other countries, Turkey has a lot of flexibility in this regard. An alternative way of investing is to buy an asset (Property Istanbul) or business. Turkey is a country of opportunities for foreign investors. Turkey’s advanced regulatory and legal regime makes it attractive.

What are the most Profitable Sectors to Invest in Turkey?

Investing in Turkey is one of the first choices of investors from all over the world due to its strategic location and great returns. It is an excellent country for investment with its young, dynamic and skilled workforce in the country. In addition, State Incentives, tax exemptions, and free land allocations have made Turkey even more attractive to investors. The best investment option for foreigners in Turkey that offers high returns and are known as the most profitable investments are technology, textile, and ready-to-wear clothing, energy and natural resources, Turkey stocks, construction and real estate, industry, health, tourism, and gold-silver investment. All of these sectors are constantly growing and have high potential in Turkey. These sectors are also the most profitable sectors for this reason.

1. Technology

Turkey attaches great importance to technology development in recent years. A large budget has been allocated for this. At the same time, serious assistance and incentives are provided to everyone and every institution interested in this subject. Many Turkish universities have technology departments and these departments facilitate the investment process for investors to enter this sector. Turkey is very advantageous in terms of investment, especially for investors who want to invest in software development, biotechnology, nanotechnology, and electronics. Although there are many domestic and foreign companies operating in the Information and Technology sector, there are many market gaps and opportunities offered by this sector. It is an excellent area for investment as there is a great need in this regard.

2. Textile and Ready-to-Wear Clothing

The Turkish textile and apparel industry has many advantages. High quality, the richness of raw materials, meeting special requirements, flexibility, originality, and the advantage of Turkey’s position in connection with the great demand of Europe and the Middle East are very important advantages for those who want to invest in this field. For these reasons, the textile market in Turkey is always lively and interesting for investors.

3. Energie and Natural Resources

The energy sector is very important in terms of sustainability for all economic activities and investments in Turkey. In this context, the sector is an indicator of Turkey’s interest in this field, with extensive incentives given to investors on energy and natural resources. Investors can benefit from extensive incentives for hydroelectric power, wind power, solar power, natural gas, bioenergy, and geothermal energy. VAT exemption, customs exemption, tax deduction (40%), Employer’s Social Security Contribution, and Interest Support are effective.

4. Turkey Stocks

The easiest way to invest in the Turkish stock market is to invest in a broad market index. This can be managed at a low cost in Turkey. In Turkey the economy has continues continued to provide a safe platform for investors, therefore, becoming the safest hub for foreigners who may be interested in investment opportunities. The Istanbul stock market is a market where transactions take place through a broker. Patience, experience, knowledge, and some important strategies are required to be successful in this market. It is important to invest and gather information in many areas and a few companies in the stock market. In this context, the Istanbul stock market offers high returns to investors with the right moves. Forex is one of the other best options for investing in Turkey on a currency basis. You can open an account at any brokerage house you want to trade in the Forex market. Then, with the money you deposit, it is possible to trade wherever there is the internet.

5. Construction and Real Estate

It is very important to invest in the right real estate for a high return investment. The first purpose of making a smart investment is to save assets and use them to make a profit. If there are other investments, it is the number one investment tool to finance other investments or make purchases to meet your unexpected needs. Real estate investment in Turkey is both a high-yield and low-risk investment. This investment method is ideal for both making a profit and protecting its value in Turkey. At the same time, the fact that it is convertible into cash is an important factor. Foreigners who increase their real estate and house sales in Turkey are given the right to citizenship by purchasing real estate worth over 400,000 USD. Turkish citizenship can be obtained by purchasing all kinds of real estate such as flats, detached houses, villas, commercial units, shops, offices, and land anywhere in Turkey with a value of  400,000 USD. Moreover, by purchasing a property below this price, you can obtain a residence permit in Turkey and You can come to Turkey without a visa. After purchasing an apartment in Turkey, foreigners can also rent it out.

How to Invest in Real Estate in Turkey?

Real estate is the land along with any permanent improvements attached to the land, including water, trees, minerals, buildings, homes, fences, and bridges. There are several ways to invest in real estate. These are homeownership, rental properties, and house flipping. Real estate investment in Turkey is an excellent investment to buy an affordable vacation home or as a profitable investment for rental income and future resale. With the $400,000 real estate purchase, the investor in Turkey qualifies for Turkish Citizenship. Turkey has become one of the most desirable destinations for finding a second home in the world. Turkish Citizenship by Investment Program is one of the most cost-effective worldwide programs and second citizenship can be obtained in just two months. Investors can purchase a single property or multiple properties to create the required value. There is no limitation in this regard.

The number of foreign investors looking for a quiet apartment, villa, or penthouse by the sea as an alternative summer residence in locations such as Bodrum, Fethiye, and Antalya is high. Many investors looking at long-term capital growth potential see Istanbul as their primary choice. Istanbul and Izmir are important cities for long-term investments. In this respect, Istanbul and Izmir are the best destinations for both Turkish and overseas buyers who want to enter Turkey’s main real estate market. While the real estate market continues to grow from year to year, there is also a stable supply of new buildings, including luxury developments, throughout Turkey. For these reasons, investment in the real estate market in Turkey is always profitable and can be made with confidence in Realty Group. The way to invest in real estate includes purchasing shares of a real estate investment trust, owning a home as a primary residence, and purchasing a single-family rental property.

What are the Benefits of  Investing in Real Estate in Turkey?

A productive and qualified workforce, liberal and innovative investment environment, strategic location, uninterrupted reforms, demographic advantage, huge domestic and regional markets, and extensive Incentive programs are the advantages of investing in Turkey (Turkiye). These advantages provide many benefits to investors.

Turkey ranks higher on the list than many countries regarding the highly educated and competitive workforce it has. This quality workforce is an important benefit that makes a difference for the investor. Investment regulations by international standards in Turkey encourage foreign direct investments. It protects the rights of investors. This creates an environment of trust. One of the most important factors for a foreign investor is trust. Various laws and practices provide an environment where all investors have equal rights. Turkey is a regional hub for international companies aiming to expand into different markets. Its geopolitical and strategic location allows this. Half of Turkey’s population is under the age of 32, which means a young workforce with strong potential. Compared to EU countries, Turkey has the highest young population, which is a beneficial factor for all sectors. In the country where the Uninterrupted Reforms are built, both the environment of trust is strengthened and the risk perception for the future appears positively.

With its expanding domestic market, Turkey is an area where free trade agreements are made. With the support of these agreements, access to approximately 1 billion consumers is provided in the regional market. This is one of the important benefits of investing in Turkey. In Turkey, it is possible to benefit from low taxes. This is an important benefit for foreign investors. In addition, quite comprehensive incentive programs are offered for investors. Hundreds of the world’s leading companies in the automotive, energy, and retail sectors benefit from research and development incentives. In addition, companies established in Free Zones in many regions of Turkey are exempt from tax.

In which City should the Investment be made in Turkey?

Real estate investment is one of the most profitable investment types. There are some points to consider when choosing the investment type. Especially the conditions and potential of the investment area should be taken into consideration. It is necessary to pay attention to the location, structure, and economic developments of the cities. First of all, it is important to research, examine and evaluate the investments that bring high profits. For example, while the profit income of the residents is high in some provinces in Turkey, in some provinces commercial enterprise investments offer the chance to bring more income. The right choice ensures a solid investment. Especially for foreigners who want to invest in Turkey, closely following the growing trends of the cities will provide them with an important preference advantage before investing.

• Istanbul: Istanbul is one of the best cities for residential investment in Turkey. Istanbul ranks first compared to other provinces in terms of culture and arts activities, tourism, transportation, and education, which are at the heart of the Turkish economy. Turkey’s largest and most successful construction projects come to life in Istanbul. There are also great opportunities in terms of job opportunities in Istanbul. Continuous investments also bring employment opportunities. Millions of tourists from all over the world come to Istanbul, which has historically hosted different civilizations for centuries. Some of these tourists acquire Turkish citizenship by purchasing housing in their favorite city. Istanbul, the center of all commercial investments, is among the most developed cities in the world. It is considered one of the metropolises with its population exceeding 16 million, and its historical texture and beauty. It can be done in almost any district of Istanbul, one of the most prestigious investment platforms, and the value of each investment increases and provides a return. The industry is the sector the most competitive in Istanbul. In addition, the manufacturing industry is an industry sub-branch with intense competition. In addition, wholesale and retail trade are among the areas where competition is intense in the city. The information and communication sector, broadcasting, and television broadcasting are among the competitive areas that are important. Another sector that stands out in Istanbul, where the competition is intense, is the service area. Entrepreneurs can earn high and continuous income if they operate in these sectors where the competitive power is high.
• Izmir: Izmir is one of the important tourist cities. With its ancient cities, natural beauties, beaches, and city activities, it is one of the most suitable locations for rising investment in terms of the economy. It is a place where the real estate market has high potential. Due to its location, it is a place where job opportunities and investment opportunities abound. The sectors with high competitive power in Izmir are the industry. In the field of industry, there are many areas developed in the city. Food and beverage production, clothing manufacturing, basic metal industry, electricity generation and distribution, coal and petroleum products manufacturing, and electronic products manufacturing are other sectors where competition is high. These areas are at the forefront of investment.
• Mugla: Having an amazing location between The Mediterranean and The Aegean Sea, Mugla keeps being one of the most successful tourist cities with Bodrum, Marmaris, Fethiye, Datca, Milas, Koycegiz and so many more beautiful districts. The sectors in which businesses operate most in Mugla are accommodation and food services, wholesale retail and trade, and construction sectors. At the same time, the sectors that come to the fore in the city are education, transportation and storage, and manufacturing sectors. The sectors with high competitive power in Mugla are tourism, agriculture, and mining sectors.
• Antalya: Many foreign tourists who came to Antalya, the tourism paradise, for a holiday, decided to buy a house in Antalya and returned to their country. In the following years, they bought a house in Antalya. Especially in the real estate sector, Antalya is one of the leading cities for foreigners. Kemer, Manavgat, Alanya, and Side are among the most preferred places in Antalya.
• Mersin: Mersin is one of Turkey’s most popular tourist destinations, and ex-pats are flocking to live there. It is located on the Mediterranean Sea’s southern shores, with Adana on the east, Antalya on the west, the Taurus Mountains and Konya on the north, and the Mediterranean Sea on the south. The nice weather and 321-kilometer coastline of Mersin make it ideal for lounging on its golden sands. The appeal of the city has spread throughout the real estate market, especially in the last ten years.
• Aydin: The city of Aydin is located in the Aegean region of Turkey. Kusadasi, Soke, and Didim are among the important places of Aydin, which is another tourism paradise. They are very suitable investment areas for real estate investment. The first three sectors in which businesses operate the most in Aydin are wholesale and retail trade, manufacturing and construction sectors. After these sectors, the most active sector is the enterprises operating in accommodation and food services.
• Ankara: One of the cities of great importance among Turkey’s commercial investment cities is Ankara, the capital of the Republic of Turkey. Ankara offers many universities and industrial zones. The most important public institutions, ministries, and international organizations are also located in Ankara. The city of Ankara is one of the leading cities in the field of software in Turkey. Software companies opened in the city stand out as the right investment. The food sector is a sector with a high potential for entrepreneurs who want to produce in the city of Ankara. It is possible to earn income by taking part in the electronics sector in Ankara. Cement and materials used in construction are produced in Ankara. It is possible for entrepreneurs to buy products from manufacturing companies and sell them throughout Turkey, or to sell their products by producing construction materials. For entrepreneurs who want to sell without producing, it is possible to get rid of production costs and earn income.
• Bursa: Bursa is a city on the coast of the Marmara Sea, adjacent to Istanbul. Just like Istanbul, it has been a popular destination for civilizations. It has been the capital of many states in its history. For this reason, there are many historical mosques, walls, tombs, and other ancient ruins in the city. Bursa is also known as a green city due to its nature. Bursa is one of the cities that foreign tourists flock to. Uludag, one of the symbols of Bursa, covers the city at an altitude of 2543 meters. It is very important for the winter tour of the region. It has an international reputation. In addition, waterfalls, mountains, and caves attract the attention of foreign tourists. Bursa is an economically strong province with its developed industry. There are also various comfortable housing projects in the city. It is an important city for investors with its advantages in industry, tourism, and real estate.
• Sakarya: Sakarya is one of Turkey’s most beautiful and tranquil cities, and a visit there will undoubtedly be a wonderful experience for anyone. Numerous attractions in the city might draw people in and make them fall in love with it. Sakarya has a multitude of natural green attractions in addition to its sandy beaches on the Black Sea, historical monuments, mineral waters, old cities, cafes, and other attractions. All of this comes with a slew of new company prospects, job openings, and well-thought-out educational plans. Many residential developments try to offer a variety of options and features, such as location, views, designs, and pricing ranges.
• Balikesir: Balikesir is one of the important Marmara and Aegean cities in Turkey, which draws attention with its growth rates. Balıkesir has shores to both seas. After the announcement that the Canakkale Strait bridge would pass over Balikesir, Balikesir gained even more importance. In the city, which is also developing in terms of industry, large investments are also made, especially in the Organized Industrial Zone.
• Tekirdag: Tekirdag, one of the closest cities to Istanbul, is an ideal city for both long-term and short-term investments. The result of Istanbul’s increasing population and growth needs, are a few of the reasons that make Tekirdag even more important. Potential investment areas in Tekirdag are food, agriculture, livestock, tourism, service, education, and textile.
• Gaziantep: The city of Gaziantep is located in the Southeastern Anatolia region of Turkey. Gaziantep city is the 9th most populous city in Turkey. The first 3 districts with the highest population in Gaziantep are   Sahinbey, Sehitkamil, and Nizip. It will be easier for investors to find young personnel for the businesses they will establish in Gaziantep. At the same time, in Gaziantep, where young people are concentrated, businesses established for young people provide income. The sectors in which the enterprises operate the most are manufacturing, wholesale retail and trade, and construction sectors. Accommodation, health services, transportation, and storage sectors have a large share in the city. Textile, plastic, and food sectors in the city are sectors with high competitive power.
• Kayseri: The city of Kayseri is located in the Central Anatolia region of Turkey. The sectors in which the enterprises operate the most are manufacturing, wholesale retail and trade, and construction sectors. Transportation, accommodation, and administrative services are among the developed sectors in Kayseri. Furniture manufacturing, metal product manufacturing, and food products manufacturing are among the sectors with high competitive power in the city.
• Black Sea Region: The Black Sea region is one of the most fertile regions of Turkey. The region is a region with business opportunities and options. The Black Sea region, which has become very attractive with state support in recent years, has a substructure for profitable investments as a result of research and feasibility on investment areas. Fish farming is the most popular business among investors in the Black Sea region. Aquaculture and processing facilities lead the way in the most profitable businesses. The Black Sea region is an extremely favorable region for organic fertilizer production facilities. While those who want to invest generally tend towards these sectors, real estate investment in the Black Sea region has come to the fore recently. The Black Sea Region is a region where circulation is intense. There are profitable real estate investments in suitable locations. Amasya, Karabuk, Trabzon, Rize, Artvin, Samsun, Ordu, and Sinop are suitable cities for investment in the Black Sea Region.

Is it Possible to get Citizenship by Investing in Turkey?

Yes, it is possible to get citizenship by investing in Turkey. Turkey grants citizenship to foreigners who purchase real estate worth at least $400,000 Turkey, provided that they are not sold for at least 3 years. A foreign investor can obtain Turkish Citizenship for himself and his family within 3 months by purchasing a property with a minimum value of $400,000 or making a capital investment of $500,000 anywhere in Turkey.

According to the decision of the President of the Republic of Turkey, Turkish citizenship can be get via the following investments:

• Real Estate Investment (min. 400.000 USD)
• Deposit Account in Turkish Bank (min. 500000 USD)
• Fixed Capital Investment (min. 500.000 USD)
• Government debt instruments (min. 500.000 USD)
• Employment (min. 50 People)
• Real estate investment fund/venture capital investment fund (min. 500.000 USD)

Can Foreigners Invest in Turkey?

Yes, foreigners can invest in Turkey. So, whether people are a foreigner or not, they have nearly the same rights. So, it means that native people are not privileged. On the contrary, foreign investors have some advantages and some tax exemptions. If foreign investors invest directly, the rights applied to domestic investors are also applied to them. In addition, direct investment also means starting a company or becoming a partner in a company. One of the advantages provided for foreigners is special tax arrangements. It is a type of support made in order to support foreign investors and not to pay taxes where they live and invest in both countries.