Investment in Turkey
Why Invest in Turkey?
- Low property prices are sometimes compared to property prices in Spain in the 1980s
- Low standard of living
- Mediterranean climate with warm summers and mild winters. Some of the most beautiful coastal landscapes in Europe, especially in the south-west at the confluence of the Mediterranean Sea by the Aegean Sea
- Turkey’s strong economic growth over the last few years has helped to achieve the EU’s growth. Turkey has been a member of the Customs Union since 1996 and has been a member state since 2005
- Short flights from European cities – Many flights to Turkey’s famous southwestern resorts are in winter and summer
- The reform of the mortgage system in 2008, which provides for the first time real estate loans with appropriate benefits and this step will open the market for investors and buyers of Turkish and foreign real estate.
Some of the specific benefits of buying a property in Turkey include:
- The strong growth of real estate investment is expected to Turkey as a center for the manufacture of vacations and flights, which increases the related tourism activities.
- The increasing demand for real estate in many areas of Turkey is affected by an increase in population to 70 million, which shows us that the market will witness a significant increase in property prices.
- In fact, it is expected that in the next ten years will be needed for 7 million housing units.
- Turkey enjoys a strong economy. In 2005, it became the sixth in global domestic production and a growing economy in 2008, and the growth rate of 6% is readily available.
- A booming economy; GDP more than tripled to US $ 720 billion in 2015, up from US $ 231 billion in 2002 (TurkStat)
- Stable economic growth through an average annual growth rate of real GDP averaging 4.7% between 2002 and 2015 (Turkish Statistical Institute “TurkStat”)
- A promising economy with a promising future, as it is expected to become one of the fastest growing economies among the OECD members during the period 2016-2017, with an average annual growth rate of real GDP of 3.8% (OECD, June 2016)
- The world’s seventeenth largest economy and the sixth largest economy compared with the European Union in 2015 (PPP GDP, IMF – World Economic Outlook)
- An enterprise-based economy, with US $ 151 billion in direct foreign investment (CBRT) in the last 10 years.
- A dynamic and mature private sector with exports worth US $ 144 billion and an increase of 400 per cent between 2002 and 2015 (Turkish Statistical Institute)
Turkey’s population is 78.7 million (2015, Turkish Statistical Institute)
- Turkey is the largest in terms of the number of young people among the population compared to the European Union (EU official statistics institution “Eurostat”)
- Half of the population under the age of 31 (2015, Turkish Statistical Institute)
- Enjoy a vibrant, highly educated and multicultural population of young people
- Competent and competitive manpower
- More than 29.7 million young professionals with a high level of education and enthusiasm (2015, Turkish Statistical Institute)
- Increasing labor productivity
- Approximately 733 thousand students graduate annually from more than 193 universities (2015, CoHE)
- More than 950,000 high school graduates, about half of whom are graduates of vocational and technical schools (2015, Ministry of National Education)
- Liberal and reformed investment climate
- The second largest climate of reform among the OECD countries in terms of restrictions on foreign direct investment since 1997 (Organization for Economic Co-operation and Development (OECD) Foreign Direct Investment FDI Index 1997-2012)
- An encouraging business environment with an average of 6 days to set up a company, while the average for OECD member countries is 11 days (World Bank Doing Business 2014)
- Highly competitive investment conditions
- Strong culture in industry and services
- Equal treatment for all investors
- 41,397 foreign capital companies in 2014 (Ministry of Economy)
- International Arbitration
- Ensure that transfers are implemented
- New high-tech infrastructure for transportation, telecommunications and energy
- Advanced and low-cost sea transport facilities
- Rail transport feature for Central and Eastern Europe
- Direct delivery methods and direct delivery mechanism to most EU countries
- Central location
- A natural bridge linking the eastern and north-western axes, thus creating an efficient and cost-effective outlet for major markets
- Easy access to 1.6 billion customers in Europe, Eurasia, Middle East and North Africa
- Multi-market gateway to $ 24 trillion of GDP
- Station and corridor for energy transmission to Europe
- An important transit station for energy transmission in Europe linking East and West
- Located close to more than 70% of the world’s proven primary energy reserves, while the largest consumer of energy, Europe, is sticking to Turkey from the west, making Turkey an important link in the energy transmission chain and an important energy port in the region.
8. Incentives and low taxes
- Reducing corporate income tax from 33% to 20%
- Tax incentives and benefits in technological development areas, industrial zones and free zones include full or partial exemption from corporate income tax, in the form of a grant on employer’s share of social insurance, as well as land allocation
- Act to support innovation and R & D
- Incentives for strategic investments, for large investments and regional investments
- Customs Union with the European Union since 1996
- Establishing the Customs Union with the European Union since 1996, and FTAs with 27 countries (Ministry of Economy)
- More FTAs are on their way to conclusion
- Negotiations for EU membership
- A huge local market
- 48.6 million broadband subscribers in 2015, up from 0.1 million in 2002 (ICTA, Turkish Statistical Institute)
- 73.6 million mobile phone subscribers in 2015, up from 23 million in 2002 (Turkish Statistics Institute)
- 58 million credit card users in 2015, up from 16 million in 2002 (Turkish bank card issuing center)
- 181 million airline passengers in 2015, up from 33 million in 2002 (Turkish Institute of Statistics)
• 35.6 million international tourists arrived in 2015, up from 13 million in 2002 (Turkish Statistical Institute)