A Guide to Foreign Investment in Turkey

Advantages of Investing in Turkey for Foreign Investors

Strategic location: Turkey is a country that connects two continents, Europe and Asia, with access to the Black, Aegean and Mediterranean seas. The strategic position of the country contributes to Turkey's greater involvement in the world economy and its integration into the world community: Turkey is a member of the UN, NATO, OECD, and G20, and claims to join the EU.

Growing economy: Turkey is one of the fastest-growing economies in the world. Rapid GDP growth and a wide range of industries offer promising opportunities for investors. The export industry is at its peak thanks to exchange rate fluctuations and government support for manufacturers and investors.

The Increase Rate of the Youth Population: According to the Turkish Institute of Statistics, Turkey's population will exceed 100 million by 2040. The country is also characterized by a high birth rate and a large proportion of young people in the population. Almost half of Turkish families have at least one minor child, and more than 15% of families have two or more children. This trend creates a dynamic and potentially buying market, as well as access to labor resources.

Skilled and Competitive Workforce: Turkey has an extensive base of highly qualified professionals in various industries. This provides foreign investors with access to a competent workforce and promotes innovation and business growth.

Large Domestic Market: Over the past decade, Turkey has shown impressive economic growth. Therefore, it also showed significant growth in terms of the purchasing power of the population. According to the data, the country has risen from 20th to the top 10 in the world rankings. The country is ahead of Spain, the UK, and Italy, ranking 4th in terms of the number of tourists.

There are several free economic zones operating in the country, which are in major seaports such as Izmir, Mersin, Trabzon, Istanbul, Antalya, and Adana, as well as technological development zones such as "technoparks". They house the production of foreign companies that contribute to the movement of capital and job creation, supporting the national economy.

Good Infrastructure: Turkey is investing heavily in infrastructure development, including roads, airports, railways and communication networks. This facilitates the easy movement of goods and services, facilitates business and attracts investment. The newest megaproject, which will become the second strait between the Black and Marmara Seas - the Canal Istanbul - will create an additional advantage for the country both in terms of investment and importance in the global economy.

The Flexibility of the Investment Atmosphere in Turkey: Turkey's investment climate is positively influenced by a growing economy and a strategic geographic location that provides access to regional markets. The country is an island of stability in a turbulent region, making it a popular hub for regional operations.

Turkey actively attracts foreign investment and seeks to provide a favorable investment environment. Foreign investors enjoy flexibility in legislation and have equal rights with local investors.

Incentives for Foreign Investment: Turkey offers various incentives for foreign investors, including tax exemptions, subsidies, property rights protection and passport programs.

Many foreign and local investors consider it reasonable and profitable to invest in Turkey based on economic forecasts. Russians are annually among the three most active investors in the country, following the residents of the Persian Gulf countries and China. Market growth predicted by international agencies, as well as loyal legislation, also contributes to an increase in the number of transactions.

Low Costs of Taxation in Turkey: Turkey offers attractive tax rates and incentives for entrepreneurs and investors that increase profits and create a competitive business environment. For example, the standard VAT rate in Turkey is 18%, however, rates of 8% and 1% may apply to certain goods and services. The standard income tax rate for companies in Turkey is 20%, and property tax is from 0.1% to 0.6% depending on the location and type of property.

Why Do Foreigners Prefer Investing in Turkish Real Estate?

Excellent Returns Increase Over Time

One of the main characteristics of real estate investment is the possibility of receiving passive income and investing funds at any time, regardless of the season, political and economic situation. Regardless of the current market situation, the investor has the opportunity to securely and profitably invest his funds. In the most sought-after regions, real estate prices are not falling due to the constant growth in demand, which means that the cost of housing and income from it will continue to grow in the future.

Possibility to Obtain Turkish Citizenship

After making a transaction with a cadastral value of at least $400,000, the investor gets the opportunity to obtain Turkish citizenship. This gives him full citizen rights in Turkish society, including access to state medical and social services, as well as the opportunity to receive education in state educational institutions. Having a Turkish passport allows you to visit more than 100 countries without a visa, obtain a Schengen visa for up to 5 years and obtain B-1 / B-2 and E-2 visas to visit the United States. The investor can also keep their original citizenship without renouncing it and obtain a Turkish passport for their spouse and children under 18.

Turkish Government Support for the Real Estate Sector

The citizenship program for the purchase of real estate and obtaining a residence permit for owning real estate in areas open for foreigners’ residency remains the main attractive aspects of investing in Turkey. In addition, the government offers favorable conditions for mortgage lending with average annual rates of about 8%, which contributes to the growth of real estate sales on credit.

As part of the social housing construction program, the government plans to implement several projects, including cooperation with investment companies.

Support for developers from the Turkish government contributes to the emergence of new projects on the market, and thanks to strict state control over the housing market, the interests of buyers are protected.

The Turkish Real Estate Market is Full of Promising and Distinguished Opportunities

The Turkish real estate market offers many promising opportunities for investors. Due to the rapid economic growth and development of the country, promising projects and unique properties can be found in Turkey. 

Real Estate Prices that are Cheaper Than in Europe

Buying real estate in Europe in order to obtain a residence permit or citizenship requires significant costs. Turkey offers much more attractive prices and offers compared to European countries.

On the other hand, although property prices in many countries are starting to fall, property owners in the European country do not want to offer discounts, and the cost of the most attractive properties (for example, located in central areas or by the sea) is on the contrary increasing.

5 Tips for Success to Foreign Real Estate Investors

Research the Real Estate Market and Legal Framework

Before investing your money, do thorough research on the real estate market in Turkey. Please check the local laws and regulations to understand the restrictions and requirements for foreign investors. This will help you make an informed decision and avoid potential problems in the future.

Time The Investment Wisely

Choosing the right time is essential to a successful real estate investment. The purchase of real estate in Turkey currently provides investors with the reliability of financial investments and the prospect of obtaining a stable income in the future. Unlike a fluctuating stock market, real estate has a more stable character. There is no need to expect the best price here, as the time to buy is right now, which will help you get the most out of your investment portfolio.

Understand the Tax Implications Diversify Your Investments

Study tax laws and rates in Turkey to assess potential expenses and include them in your financial plans. In addition, you should not put all eggs in one basket, it is better to diversify your investment portfolio to reduce risks and ensure the stability of your income.

Work with a Local Real Estate Professional

It is important to work with a licensed real estate agency TERRA Real Estate for the best deal progress. Our experienced team has a deep knowledge of the market and a local understanding, which allows us to provide professionally qualified advice and support the client at every stage of the transaction.

Use a Dual-Lingual and Dual-Qualified Lawyer

We also recommend using our legal support service by specialists with knowledge of foreign languages, Turkish and international law and dual qualifications. We are ready to provide you with expert legal support in your native language, as well as guarantee the protection of your interests and the security of the transaction.

Invest in Turkish real estate with TERRA Real Estate - your trusted partner for a successful investment!

We offer a wide range of real estate in Turkey, including apartments, villas, and commercial properties. Our company has deep knowledge of the market and offers an individual approach to each client. We will help you to choose the most profitable investment opportunities, taking into account your goals and needs. Invest in the promising Turkish real estate market with us and get a stable income and capital growth.