With its warm climate, dynamic and developing structure, Turkey is a focal point for foreign investors. Turkey is one of the countries preferred by foreign investors due to its rapidly growing young population, qualified workforce, and geographical and geopolitical location. Moreover, to take advantage of these special opportunities immigrant You don't have to be!
With the law enacted in 2003, the number of foreign investments and companies in Turkey has increased and continues to increase. Thanks to this law, obstacles in front of foreign investors have been removed and many advantages have been provided to investors. According to the law, Turkish investors living abroad can also benefit from these advantages. Professionally managing all investment opportunities for you Outlook Turkey It is possible to get more detailed information by contacting the company.
On the other hand, there is no incentive for foreign investors in indirect investments made by purchasing stocks or bonds!
What kind of advantages are offered to foreign investors?
directly investment Foreigners can benefit equally from the opportunities provided to domestic investors. Direct investment, on the other hand, is made in the form of opening a company, branch or becoming a partner in an existing company in Turkey. Foreign investors can freely transfer their profits from their activities in Turkey, in return for sales, liquidation and compensation, license, management and similar agreements abroad.
In addition to all these, foreigners who want to invest in Turkey; They can benefit from tax deductions, investment location allocations, insurance premiums and similar government incentives.
Can Foreign Investors Get Turkish Citizenship?
With the regulation that entered into force on January 12, 2017, foreign nationals who invest in Turkey may have the right to Turkish citizenship.
Accordingly, the right of Turkish citizenship was granted to foreigners who invested more than a certain amount in Turkey and created employment or held deposits.
Foreign investors can acquire Turkish citizenship if they meet the following conditions.
- Investing at least US$500,000 in capital,
- Purchasing real estate worth at least $250,000 US dollars,
- To create employment for at least 50 people,
- To keep deposits of at least $500,000 million in banks operating in Turkey for at least 3 years,
- Purchasing government debt instruments of at least US$ 5000,000 on condition that they hold for three years,
Foreign investors who meet any of these conditions can acquire Turkish citizenship upon the proposal of the relevant ministry and the decision of the Council of Ministers.
How Will Tax Regulations and Avoiding Double Taxation Be?
There are joint agreements with various countries in order to prevent foreign investors from paying taxes both to their own countries and to Turkey.
Some of the countries that Turkey has agreements with under the double taxation agreement are: USA, Germany, Azerbaijan, People's Republic of China, France, South Korea, Georgia, Iran, Qatar, TRNC, Malaysia, Pakistan, Russia, Singapore and Jordan.
A French citizen investing in Turkey only pays taxes to Turkey due to his activities in Turkey. It does not pay taxes to France for these activities.
What Kind of Companies Can Foreign Investors Establish?
Foreign investors have the opportunity to establish joint stock, limited and ordinary companies in Turkey. Even though private companies that do not have an institutional structure such as ordinary companies provide some advantages due to their ease of establishment and low cost, foreigners investing in Turkey mostly prefer limited liability and joint stock companies.
When establishing a company, the title, headquarters, director and capital structure of the company should be determined. Then, the notarized company documents must be recorded in the central registry system and applied to the trade registry directorate. Documents prepared outside of Turkey must be approved by the consulate or notary public. In addition, potential tax numbers must be obtained for company partners who are not Turkish citizens.
In addition, foreign companies can open branches or liaison offices in Turkey. These branches do not have any capital investment debt at the establishment stage, but this branch must also be registered with the trade registry directorate.
What is Taxation for Foreign Investors?
Corporate tax for limited and joint stock companies in Turkey is 20%. In addition, individuals are obliged to pay income tax on their earnings during the year. The personal income rate is between 15% and 35%.
Turkey is a party to agreements that prevent a foreign investor from paying double tax both to his home country and to Turkey. The number of countries that are party to this agreement is increasing and it is getting easier to invest in Turkey.
In addition, tax exemptions are offered to foreign investors by the state at various periods.
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