Incentives and Guidance for Foreign Investors in Turkey
Turkey, with its strategic location, young population and dynamic economy, offers attractive opportunities to foreign investors with the incentives in Turkey. In this article, we will discuss the incentive systems offered for foreign investors in Turkey, how to use these incentives, and important points to consider during the investment process.
Investment Environment in Turkey
Turkey serves as a bridge between Europe, the Middle East and Asia due to its geographical location. This feature makes the country a strategic center for both regional and global trade. Turkey has become increasingly attractive to foreign investors thanks to reforms and sound economic policies in recent years.
Incentives Priorities for Foreign Investors in Turkey
Turkey has always been an attractive destination for foreign investors with its strategic location, young population and dynamic economy. The country aims to further increase this attractiveness by offering various incentives to investors. So, which areas are prioritized in these incentives?
Importance of Strategic Sectors:
The government offers special incentives to foreign companies that will invest in areas such as high technology, renewable energy, automotive and biotechnology. These sectors play critical roles in Turkey’s economic growth and serve the goal of increasing its global competitiveness.
Emphasis on R&D Investments:
Since investments in Research and Development (R&D) activities are aimed at strengthening the country’s innovation capacity, incentives are specifically supported for foreign investors in Turkey. These incentives encourage foreign companies to develop innovative projects by collaborating with local talents.
Export Oriented Projects:
Investments aimed at increasing exports make significant contributions to Turkey’s foreign trade balance. Therefore, export-oriented projects are supported with special incentives and facilities.
Regional Incentives:
Turkey aims to reduce the imbalance between regions that differ in terms of economic development. For this purpose, investments made in priority provinces for development, such as the Eastern and Southeastern Anatolia regions, are supported with additional incentives.
Projects that Promote Employment:
Projects with high employment potential both provide employment opportunities to local people and support economic growth. Such projects are among the priority incentives, especially in regions with high unemployment rates.
Environmentally Friendly Investments:
Environmentally friendly, green energy and sustainable projects are gaining special importance in Turkey in parallel with the increasing environmental awareness around the world. Incentives in Turkey for foreign investors for such projects contribute to the country’s sustainable development goals.
The incentives Turkey offers for foreign investors not only accelerate economic growth, but also support progress in important areas such as sustainability, innovation and regional development. While these incentives offer foreign investors the opportunity to fully benefit from the country’s potential, they also strengthen Turkey’s position in the global economy.
Incentives for Foreign Investors in Turkey and Their Areas of Use
Investment incentives are designed specifically for foreign investors who plan to invest in certain sectors and regions. Priority sectors include energy, mining, tourism, real estate, agriculture and technology. Additionally, investing in Turkey’s developing regions such as Eastern and Southeastern Anatolia may bring additional incentives.
Incentives for Foreign Investors in Turkey and 4 important points?
Obtain detailed information about local laws and regulations.
Conducting sectoral analyzes and market research.
Working with local partners and consultants.
Understanding cultural factors and ways of doing business.
Incentives and Advantages for Foreign Investors in Turkey
Turkey is a strategically and economically rich country that offers many opportunities for foreign investors.
Strategic Location: Turkey has a strategic location between Europe, Asia and the Middle East, making the country an ideal hub for both regional and global trade.
Large and Young Population: Turkey’s young and dynamic population provides both a qualified workforce and a large consumer market.
Advanced Infrastructure: Turkey attracts attention with its developed transportation network, modern ports and logistics infrastructure.
Liberal and Reformist Investment Environment: Turkey constantly improves its investment environment with liberal laws and economic reforms for foreign capital and investors.
Strong Business Partnerships: Turkey offers a wide network and opportunities for both local and international collaborations.
7 Important Investment Incentive Opportunities for Foreigners in Turkey
Tax Incentives: Investors are offered income or corporate tax reductions and exemptions, subject to certain conditions.
Customs Exemptions: Customs duty exemptions may be provided for raw materials and semi-finished products in some investments.
Land Allocations: The state can allocate land under favorable conditions, especially for investments in strategic sectors.
Interest Support: For some projects, support may be provided on loan interest rates.
Employment Incentives: There are various employment incentives for investments that create new jobs and increase employment.
Research and Development (R&D) Supports: Various grants and supports are offered for investments in R&D activities.
Regional Incentives: Extra incentives and supports are available for investments in developing regions of Turkey.
Difficulties Encountered and Solutions
Project Planning: Details of the investment must be clearly planned and documented.
Determining the Appropriate Incentive Program: It is important to choose the most appropriate incentive program according to the type and location of the investment.
Official Application: Official investment and incentive applications are made to the relevant government institutions.
Providing Documents and Conditions: Providing all necessary documents and fulfilling the incentive conditions.
These advantages and incentives offered to foreign investors in Turkey increase the country’s investment attractiveness and ensure it has a competitive position in the global business world.
If you need support regarding the Investment Incentive System for Foreigners in Turkey, you can contact us via the contact form below.
