Government support for investment in Turkey – Investment incentives in Turkey
The Turkish government provides support in many areas of investment for foreign investors in Turkey. Moreover, it provides them with facilities and services. Therefore, in this article from Ebla Real Estate, we will talk about the government support for investment in Turkey.
What is government support for investment in Turkey?
It is a system adopted by the Turkish government with the aim of encouraging foreign investments in Turkey by providing incentives, tax-exempts, and other benefits to investors.
Objectives of government support for investment in Turkey for foreigners:
- Improving the financial condition of the people by accelerating growth of the economy.
- Providing capital to finance new industries and enhance existing industries and boosting infrastructure and productivity.
- Boosting exports from other countries.
- Boosting the manufacturing and services sector which results in the creation of jobs and helps to reduce unemployment rates in the country.
- Receiving access to the latest financing tools, technologies, and operational practices from all across the world.
- Contribute to the prosperity and development of some areas that are not popular with foreigners.
Means of government support for investment in Turkey:
The Turkish government provides foreign investors with many incentives, including:
- VAT exemption
- Customs duty exemption
- Income tax deduction
- Social security premium support (Employee’s Share)
- Social security premium support (Employer’s Share):
- Income tax withholding discount
- Interest rate incentives
- Land allocation
- VAT refund
Investment sectors that receive government support in Turkey:
- Livestock development projects.
- Aquaculture and apiaries.
- food factories.
- Textile factories.
- Factories of bags, shoes, and leather products.
- Paper products projects.
- Investment projects in chemical products.
- Building materials production projects.
- Factories of home furniture and children’s toys.
- Investments in hotels, student housing and tourism facilities.
- Nursing homes.
- plastic houses.
- Education facilities such as schools and kindergartens.
- Renewable energy projects and others.
Government support for real estate investment in Turkey:
Real estate investment in Turkey is one of the most profitable investment sectors due to the rapid population growth in Turkey, especially in large cities like Istanbul, Bursa, Ankara, and Antalya, the modern infrastructure, and luxury projects.
The Turkish government is working hard to attract foreign investors to the real estate investment market in Turkey. It provides real estate investors with many incentives, including:
- Tax reduction.
- Exemption from value added tax.
- Social Security support.
- Allowing the investor in the real estate sector to obtain Turkish citizenship, in return for buying a property worth 400,000 US dollars.
- Granting real estate residency in exchange for buying a property worth 50,000$ in small areas and 75,000$ in major cities.
- Facilitating real estate ownership transactions in Turkey.
- Infrastructure development to suit urban expansion.
Thus, the foreign investor in the real estate sector benefits from the guarantee of profits and the legality of investment due to the government’s partnership in it.
Edited by: Ebla Group Real Estate
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