Turkey is one of the most growing economies in the world from its geographical location, diversified economy and ease of investment compared to many other countries. Strategically situated at the crossroads of Europe, the Middle East, and Central Asia, Turkey offers great opportunities for investors.
Turkey is a significant source for foreign investors with its always developing economy. If you are wondering what are the advantages of investing in Turkey, you are in the right place.
Developed Economy with a Bright Future
According to the Organization for Economic Cooperation and Development (OECD), Turkey is expected to be among the fastest growing economies in 2012-2017, according to IMF data. In 2013, Turkey became the 6th largest economy in Europe and 16th in the world, attracting more than $ 135 billion in foreign investment over the past 10 years. During this period, exports increased by more than 245%. The Turkish economy was 5th largest economy compared with the European Union and 13th among the world’s largest economies in 2016. Turkey has a promising economy with a promising future as it is expected to become one of the fastest growing economies among the OECD members during 2017-2020 with an average annual real GDP growth rate of 5.4 percent.
Advantages of Foreign Investors
There are some barriers to identify foreign investments in many countries. However, Turkey, who is a member of the OECD, has begun to eliminate these obstacles for foreign investors since 1997. Today, Turkey is in a point where a company is established every 6 days and the government deals with all investors equally. That’s why there are a lot of companies with foreign capital in Turkey. Moreover, international courts are reviewed in Turkey to solve the problems that foreign investors are facing. That is also one of the reasons why foreign investors are attracted to invest in Turkey.
Strategic Location
Turkey’s central location, connecting the two continents made it an important point. Istanbul is the only city that lies on two continents, Asia and Europe, and it is a hub where you can reach anywhere from. Turkey has many significant commercial routes through its location. Seas encircle Turkey on three sides: the Black Sea to the north, the Aegean Sea to the west and the Mediterranean Sea to the south. This makes it possible to reach around 1.6 billion people in Europe, Asia, Africa and the Middle East.
Low Taxes and Incentives
One of the most significant reasons of the ease of investing in Turkey is the reduced taxes. For promoting investors to invest in Turkey, Corporate Income Tax, applicable to foreign investors, has reduced to 20% from 30%. Foreigners are even exempt from this tax partially or totally, in some instances. Moreover, there are tax benefits and incentives in Industrial Zones, Technology Development Zones, and Free Zones.
Membership in the European Customs Union
Turkey has been a member of the European Customs Union since 1996. There are a continuing customs agreement with the EU and free-trade agreements with 21 countries. New free-trade agreements are being worked on and trade relations are increasing each passing day.
The High Percentage of Young Population
If you are going to invest in a place, it requires qualified and skilled young population. Turkey has a very large young population compared to European countries. It is the most populous country in Europe making investors sure that if they establish a project in Turkey, they will not suffer from the employment and labor problem.
All these factors above are the advantages of investing in Turkey, which makes it an important place of attracting foreign investors. Today, Turkey is among the most reasonable countries for foreign investments compared with other countries of the world.
