Turkey, an outstanding country that has landed on two continents, is in a geopolitical location. In addition, there are a lot of opportunities in many business environments. The country is open to and supportive of new economic developments. Therefore, Turkey is frequently preferred by foreign investors with its rapidly developing economy.
In this post, we’ll look at the benefits of having a business in Turkey for foreign investors and explain why this country is a good place to start a company. If you are interested in starting a business in Turkey below is the list of benefits of establishing a business in Turkey (Turkiye).
- Consumer Spending is Up
- Local Manufacturers
- Turkish Citizenship
- Low Operating Costs
- The Turkish Government has Provided Incentives
- Equal Rights
- Local Workforce
- Fair Legislation
- International Cooperation
- Special Economic Zones
1. Consumer Spending is Up
Consumption volume is progressing rapidly, both globally and on a country basis, without slowing down. This leads to the expansion of the market area of the brands as well as the increase in sales. Doing business in Turkey is mostly preferred rather than in other Mediterranean countries due to tax reductions and the support given to foreign production.
In addition, Turkey, which has a young generation to a large extent, follows current developments closely, making it easier to announce new investments to large masses and encourage consumption.
2. Local Manufacturers
Finding a local manufacturer in the country where you will establish your business will lead to the rapid development of your business and increase the support offered to your business. Domestic manufacturers in many business areas in Turkey support foreign businesses and greatly help their development. Starting a business in Turkey will be the best option for you to invest money.
3. Turkish Citizenship
With the recently amended law in the legislation of the Republic of Turkey, Turkey has approved the right of citizenship to foreign investors who are setting up a business in Turkey. It also shortened the time required for all these citizenship procedures to be completed to less than 3 months. This opportunity attracts the attention of most foreign investors and brings with it many business-based advantages.
Besides that, we would like to remind you that family members will also be able to benefit from the Turkish citizenship that foreign investors will receive as a result of their investments, and this process may take longer depending on the number of family members. Turkish Citizenship right is only given to those who make investments for a certain amount and create a work field for employment. This means that it is necessary to provide employment not only to create a business line and to invest but also to obtain citizenship.
4. Low Operating Costs
Turkey is an investment paradise as a gateway connecting the east and the west. It is one of the countries where you can easily find materials that you need at a low cost. For those who are wondering how to open a business in Turkey, it is a place where the necessary materials for production can be easily found, as well as the workforce, where you can easily find the return on your investment in a short time.
5. The Turkish Government has Provided Incentives
To support foreign investors, the Turkish government offers a great incentive program. This program will help you to minimize the upfront cost and accelerate the investment easily. These Incentives are provided by the Ministry of Industry and Technology. Many businesses such as Bosch, Ford, and Nestle in Istanbul, Turkey benefit from this program. The main goals of the incentives program are to increase production as well as employment in the country.
This certificate reduces the tax from your income and provides Social Security Premium Support, VAT Refund, and many more advantages for investors. If you are interested you need to get Incentives Certificate (IIC) from the Ministry of Trade.
6. Equal Rights
To improve foreign investment in the country Turkey shows a positive attitude toward the investment environment. Plus, it has become a party to many bilateral and multilateral investment agreements. Besides that, the government has also signed double taxation agreements with more than 80 countries to support the investments. Thus, they will have the same advantages in foreign investments in the country as local investments. Due to this arrangement, business opportunities in Turkey have increased after 2019 for foreign investors.
7. Local Workforce
Turkey, which has an increasing workforce with its large young population, continues to support domestic and foreign investors with its local working class. This country, which has a higher unemployment rate compared to Europe, has a skilled but lower-paid workforce. This workforce is also an advantage for those who want to set up business in Turkey.
8. Fair Legislation
Since Turkey has a democratic government, commercial agreements are made by law so this creates a fair market area for investors. Thanks to the fair legislation, you will find the best business in Turkey.
9. International Cooperation
Organized by the International Cooperation Platform (ICP), the 11th Bosphorus Summit with the main theme of “Living in the Age of Uncertainty” was held with the participation of academics, and politicians from all over the world.
In this important event, a trade agreement was signed between Asia Pacific countries and Australia, Brunei, Cambodia, China, Indonesia, Japan, Laos, Malaysia, Myanmar, New Zealand, Philippines, Singapore, South Korea, Thailand, and Vietnam. This deal became the biggest trade block of 2020. At this meeting, Turkish officials stated that they want to be a pioneer in foreign trade and that they are carrying out superior work in this regard. This showed that small business opportunities in Turkey are advantageous for foreign investors.
10. Special Economic Zones
Turkey has three different types of special economic zones where foreign investors can do business or start a firm. The first of these facilities is the Technology Development Zones. These areas are reserved for investment in and support of high technology-related activities.
The second special area is Organized Industrial Zones. These zones enable new companies to operate in an investor-friendly environment and benefit from ready-to-use infrastructure and social facilities.
Finally, the Free Zones category is designed to increase the number of export-oriented investments. It is a free zone located close to the EU and Middle East markets and offers many opportunities. These special economic zones increase small business opportunities in Turkey.
Is Investment in Turkey a Good Idea?
Yes, investment in Turkey is a good idea. Turkey, which has a largely young and qualified population, would be an excellent country to invest your money in new businesses. In addition, many taxation advantages for foreign investors will also satisfy you in investing and establishing a business. Let’s have a look at the details of investment in Turkey.
If you are planning to establish a small business in Turkey, we need to remind you that thanks to the growing economic and industrial fields all foreign investors are welcomed in the sector. 5 main sectors in Turkey are rapidly growing. These are IT and Technology, Construction and Real Estate, Textile and Ready to Wear Clothing, Energy and Natural Resources, and the last Environment and Recycling. If you want to establish your business in related fields, you will have lots of small business opportunities in Turkey.
Due to its location, Turkey has landed in both Asia and Europe, which provides easy access to both continents, that is, it has a market environment that can dominate both continents. This creates a positive environment for small business ideas in Turkey.
What are the Best Business and Investment Opportunities in Turkey?
Turkey is a country that is constantly developing and provides outstanding support and citizenship to both local and foreign investors. In this sense, there are foreign investors and foreign investment business opportunities in Turkey.
Here are the most demanded and supported business opportunities in Turkey.
- Information and Technology: With the increase in Turkey’s interest in the field of technology recently, the opportunities reserved for foreign investors in the field of technology have been greatly increased. Turkey has become an excellent option, especially with the support provided to those who want to establish a business in the field of software and biotechnology.
- Construction and Real Estate: Construction is one of the greatest business fields in the marketplace of Turkey due to the increasing population and demand for real estate. In addition, these long-lasting sectors will always continue to exist and meet the demands. Since 2017, foreigners’ interest and investment in real estate and houses in Turkey have increased considerably since foreign nationals can acquire Turkish citizenship as property owners in Turkey. For example, by buying a shop in Turkey, you can consider opening a restaurant easily and become a citizen at the same time.
- Textile: Thanks to the geographic proximity, Turkey has a great advantage in finding raw material resources as well as meeting the demand on time. We can say that it continues its duty as an intermediary conveying the resources of the east to the west, in textiles as in other fields. It also has an assertive place in this sector with its working-class specially trained for this field. Besides that, it is a country that is primarily preferred for textile investment because it provides foreign investors with all the rights offered to local investors in this sector.
- Energy and Natural Resources: Energy and Natural Resources are a very significant business sector in Turkey. Lately, to close the gap in the energy field Turkey spent almost 130 billion dollars in investment. This expenditure shows how seriously Turkey takes this sector. For investors to use components that do not harm nature such as hydroelectricity, wind energy, solar energy, and natural gas, Turkey provides a 40% Tax Reduction, and 7 Years of Employer Contribution SSI Premium 70 USD support.
- Environment and Recycling: Environment and recycling are one of the most important fields of work in Turkey, working to reduce the effects of nature pollution and global warming. In addition, Turkey is a member of the European Union membership process, so it attaches great importance to recycling. For the waste management and recycling sector, Turkey has made 7 and 9 billion Euros investments and will provide more business opportunities in this sector to both local and foreign investors shortly.
Is It Easy to Do Business in Turkey?
Starting a business in a foreign country brings with it an extraordinary amount of jobs and income. However, your company, which will emerge within the framework of the laws of that country, requires you to go through a tiring process, whether small or large. For this reason, those who want to do this job should not underestimate the process and work with devotion. In this sense, Turkey encourages foreign investors to facilitate their work and to invest here with the grant funds and support packages it offers to its investors.
How Much Money Do You Need to Start a Business in Turkey?
The fee required to start a business in Turkey varies according to the type of company you will establish. For this, you need to decide whether you will establish a limited company or a corporate company.
Then, to certify the existence of the company, you need to confirm it with the trade registry, tax office, and other necessary official institutions. The circular signature must be notarized in the presence of a sworn translator.
To complete all financial requirements, your organization will need a bank account. Although it is a simple process, you should know the requirements of Turkish banks and get help from your accountant. Considering the above transactions, the legal fees of establishing a company in Turkey are between 2000 and 3000 USD, excluding the service fee, according to 2022 data.
How to Invest in Turkey?
Foreign investors who want to invest their money in Turkey will be protected by the “Mutual Protection and Promotion of Investments Agreements”. This agreement also suits Foreign Direct Investments. Turkey has so far signed MMPI agreements with 80 countries and 64 of these agreements are in force.
Foreign investment can be defined as contributing welfare of the invested country or it can be also, established investment under the laws of foreign countries. In Turkey, there is freedom of investment and equal treatment for both domestic and foreign investors. Thus, it has a market area with equal opportunity for foreign investors. Small business sales in Turkey have recently increased thanks to these legal protections.
Here is a list of how to invest in Turkey.
- Be a partner in a company
- Buy real estate in Turkey
- Establish a brand-new company
- Open a new branch of your brand
- Open a liaison office
Can You Get Passive Income by Investing in Turkey?
Yes, you can get passive income by investing in Turkey. All the investments you will make in Turkey to create passive income can be associated with real estate. So, buying real estate can get you a passive income. At this stage, real estate is the top business in Turkey.
One of the most important advantages of buying real estate in Turkey as a foreigner is the high returns. For apartments in residential complexes, landlords demand high rents from tenants all year round, and rents are often paid every month. These rental incomes can be increased by a certain percentage annually and is an attractive opportunity for long-term investment. For this passive income, you can set a certain budget for yourself and evaluate the wide range of real estate in Turkey.
Is Purchasing a Property in Turkey Good Investment?
Yes, purchasing a property in Turkey is a good investment. Buying real estate in Turkey offers you many benefits, from citizenship to passive income. You can use this real estate for investment as well as for holiday purposes with your family.
Turkey is an important tourist resort that attracts tens of thousands of tourists annually, and it is a country that attracts everyone’s attention with its rich history. In addition, the suitability of real estate is one of the reasons why it is preferred by foreign investors. The properties you will buy will also benefit you to do business online in Turkey.
What are the Best Areas to Buy Property in Turkey?
If you are thinking of purchasing a property in Turkey, let’s examine the best areas to buy property in Turkey as listed below.
- Istanbul: The uniquely beautiful historical city that combines two continents, with its modern texture and special structures, maybe a perfect option for you. This city is Turkey’s most touristic city and has a special structure that combines the new and the old. This special city, where you will experience all 4 seasons in a year, is also famous for its nightlife. Istanbul, the most populous city in Turkey, is also a cosmopolitan city where the most investments are made. By buying property in Istanbul, you can have a house where you can wake up with a view of the Bosphorus or a nice villa with a forest view at an affordable price.
- Bursa: Bursa is one of the great places in Turkey. It is famous for its lush greenery. Also, the city of Bursa has an important place in history due to its great role in the Ottoman Empire. Bursa was the Capital city before the conquest of Constantinople. Thus, this historic city attracts people from all over the world. Besides that, it has beautiful Uludag mountain which is a popular skiing destination. Bursa is a city where a lot of investment is made because it is the most developed industrial and manufacturing region after Istanbul. It is the second preferred city because real estate prices are more affordable than in Istanbul.
- Antalya: Antalya is the most popular holiday destination in Turkey. Therefore, it has the most number of luxury hotels in Turkey. In addition, it has a great range of real estate options in the city. You can find beautiful villas as well as apartment flats at great prices. Thanks to its warm weather, it is a special city with a structure that is appealing to tourists from many different countries.
- Izmir: Izmir is outstanding with art, live events, numerous new properties, and the best place to discover nightlife. However, we have to remind you that, the properties in Izmir are sold very rapidly so you have to take action immediately to buy them. If you want to buy a house in this beautiful and different city with famous summer holiday destinations, hurry up. Turkey, which has many more beautiful places, will create an excellent opportunity for you and your family as well as great business opportunities.