Investment conditions for foreigners in Turkey 2022
Despite the government facilities for foreign investments in Turkey, there are special laws and conditions for foreigners to invest in Turkey. Therefore, in this article from Ebla Real Estate, we will talk about the investment conditions for foreigners in Turkey.
Table of contents:
- What is the investment law in Turkey for foreigners?
- The most prominent forms of foreign investment in Turkey.
- Investment conditions in Turkey for foreigners 2022
- Government support for foreign investments in Turkey.
What is the investment law in Turkey for foreigners?
The Investment Law for Foreigners in Turkey is a set of legislation and laws regulating foreign investment operations in Turkey. It defines the conditions, facilities, and everything related to foreign investment in the country; As the Turkish Constitution includes detailed articles on foreign investment in Turkey.
Through these laws, investment conditions, criteria, and facilities provided by the government to support foreign investment projects in Turkey are determined; As investment is one of the pillars of the economy in Turkey, and it raises the nation to the highest levels of the civilization hierarchy.
In general, foreign investment in Turkey is subject to rules in favor of the foreign investor.
In short, foreigners are allowed to invest in various sectors in Turkey. Moreover, the legal and administrative procedures towards the foreign investor are equal to the procedures followed with the Turkish investor.
The most prominent forms of foreign investment in Turkey:
Investment in real estate:
Turkish law allows foreigners to own real estate in Turkey, with the exception of citizens of 4 countries, Syria, Cuba, North Korea, and Armenia, in accordance with the law of reciprocity.
Thus, foreigners can own property in Turkey in general. Moreover, they are treated like a Turkish citizen regarding legal procedures, the title deed and the real estate appraisal document.
Furthermore, the Turkish government grants foreigner many privileges such as real estate residency. Additionally, foreigners have the right to obtain Turkish citizenship by buying a property or a group of properties worth 400.000 $.
Investing in bank deposits:
Foreign investors have the right to invest in Turkish banks, through bank deposits, and profit rates vary from one bank to another.
Moreover, the Turkish law grants the foreign investor in the banking sector Turkish citizenship in the event of depositing an amount of $500,000 for three consecutive years.
Buying government bonds:
Turkey allows foreign investors to invest in its government bonds offered in the market by buying those bonds.
Many foreign investors consider this form of investment a secured investment portfolio to save money and make guaranteed profits.
In addition, the Turkish government encourages the investors by granting them Turkish citizenship if they buy government bonds worth $500,000 without selling them for a period of three years.
Establishing companies in Turkey:
Turkish laws allow foreigners to establish companies and open branches of their foreign companies in various fields, whether industrial, commercial, service and others.
Establishing companies in Turkey has many advantages, including:
- The availability of solid infrastructure with advanced transport and export services.
- The country also has cheap labor.
- In addition, investors can establish small firms with small capital.
Investment conditions in Turkey for foreigners 2022:
There are many limitations and conditions regarding foreign investment in Turkey, including:
- The foreigner must abide by the legal determinants and regulations for each type of investment.
- Moreover, the presence of a legal advisor or an office for legal consultations in Turkey is a condition to open a company in Turkey.
- The foreign investor must deposit 25% of the capital of his company in a Turkish bank.
- The investor in the real estate sector must abide by laws related to the real estate. For example, the real estate area should not exceed 30 hectares throughout Turkey.
Government support for foreign investments in Turkey:
The Turkish government provides support in many areas of investment for foreign investors in Turkey. Moreover, it provides them with facilities, services and features, the most prominent of which are:
- The Turkish government grants foreign investors legal residence in Turkey.
- It also grants foreign investors Turkish citizenship through investments.
- Foreign investors are entitled to apply for loans from Turkish banks.
- In addition, it provides investors with tax exemptions.
- Treating the foreign investor as the Turkish investor in terms of rights and duties.
- Ease of transferring money from abroad to Turkey and vice versa, without legal obstacles and impediments.
Edited by: Ebla Group Real Estate
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