General Terms and Conditions for Foreigners Investing in Turkey

The Turkish Foreign Investment Law is a set of laws and regulations regulating foreign investment activities in Turkey, which stipulates the conditions, facilities and everything related to foreign investment in the country, because there are detailed provisions on foreign investment in Turkey in the Turkish Constitution.

Turkey is one of the leading countries that facilitate the inflow of foreign investment into the country's fields by providing a package of government support, procedural facilitation and various guarantees, with additional attractiveness based on the environment with the availability of developed and modern road infrastructure for transportation , means of transport, ports and airports for import and export business.

The Turkish government offers foreign investors a host of incentives to encourage them to invest in Turkey, from tax rebates and VAT exemptions, to granting Turkish citizenship and exercising citizenship rights for permanent residence in the country.

Foreign investment in Turkey is subject to general rules in favor of foreign investors:

Free investment in various fields, mutual benefit

Since a foreign investor has the right to invest in any field within Turkey, the legal procedures against him are the same as those for domestic investors in Turkey.

Wire transfers and wire transfers

Foreign investors in Turkey are free to transfer funds out of their net profits or investment income abroad without any legal barriers and hindrances.
expropriation or nationalization

Under Turkish law, there is no confiscation of public property or nationalization of property belonging to Turkish citizens or foreign investors, unless there is a court order based on a violation, in which case the property owner will be compensated for the value of the confiscated property.

Foreign investment in Turkey is based on various types, the main ones are:

Real Estate Investment

According to the law of reciprocity, Turkish law allows foreigners to own real estate in Turkey, except for citizens of 4 countries: Syria, Cuba, North Korea and Armenia.

Foreigners can generally own property in Turkey and will be treated as Turkish citizens for legal procedures and obtaining title deeds. Owning the property gives him legal residency on the land under the property, and he renews this residency every year or two.

Foreign investors in the Turkish real estate sector have the opportunity to obtain Turkish citizenship through the Law on Granting Turkish Citizenship to Foreign Investors, which grants Turkish citizenship to foreigners who own a property or a group of properties in Turkey. $250,000.

Invest in Bank Deposits

Foreign investors are allowed to invest in the Turkish banking sector through bank deposits, with profit margins varying depending on the policy of the depositing bank and the bank deposit scheme the investor participates in.

Turkish law grants Turkish citizenship to foreign investors in the banking sector if deposits reach USD 500,000 for three consecutive years.

Set up a Company

This includes all production establishments, whether it is the service sector or factories and laboratories, as Turkey offers an ideal environment to attract investors who wish to invest in this area, as the country has cheap labor and ready infrastructure through which modern and advanced Transportation and export service network and ports airports, railways and roads.

Foreigners have the right to invest in Turkey by opening a company or a branch of a foreign company. The most important feature of Turkey is the acceptance of start-ups and small companies with small capital, with a limit of around USD 2,000, which encourages new investors and innovators to experience an open market with ease in an economically active environment, invest in all and secure a decent right to compete.

Buy Government Bonds

Many investors around the world look to government bonds as a safe haven and a safe investment portfolio that saves money and generates profits with the possibility of liquidation and return of funds hassle-free.

Turkey allows foreign investors to invest in its government bonds issued in the market by purchasing these bonds, Turkish law encourages foreign investors on this issue to give the possibility of Turkish citizenship, if a foreigner buys government bonds worth $500,000, then Not for sale for a period of three years.

Investment conditions for foreigners in Turkey in 2023

Although the Turkish government provides convenience to foreign investors in the country, this does not prevent restrictions and conditions on foreign investment in Turkey.

These conditions are as follows:

• A foreigner who invests in Turkey must invest within the legal regulations and legal regulations of the type of investment in Turkey, if he does not do so, he risks losing all rights, confiscation and deportation.
• Having a certified legal advisor or legal consulting office in Turkey is a condition that foreign investors must comply with when opening to any company or institution in Turkey, in order to protect their legitimate interests and obtain government licenses, etc.
• Foreign investors must deposit 25% of their company's capital in Turkish banks.
• For foreign investments in the real estate sector, they must have no legal barriers and must not exceed 30 hectares in the whole of Turkey.
• Employment of Turkish citizens in a foreign investor's facility needs to be given priority, and foreigners are not allowed to be employed unless they meet certain conditions and are licensed by the Turkish Ministry of Labor.

Are foreign investors treated the same as Turkish investors?

In general, Turkish law does not distinguish between foreigners and citizens when it comes to investments. The conditions, duties, obligations and rights of foreign investors fall on domestic investors represented by Turkish citizens. In many cases, foreign investors gain additional benefits from the quality and size of the investment.

With regard to some of the laws affecting Turkish citizenship, it should first be noted that foreign investors are legally entitled to Turkish citizenship in many areas, i.e. are Turkish citizens and are legally considered Turkish citizens.

Do foreign investors pay the same taxes as Turkish investors?

According to Turkish law, all investors are equal in terms of tax payable and tax rate, regardless of whether the investor is a foreigner or a Turkish citizen, the percentage of these taxes is determined annually by the Turkish government, foreign investors are exempt from tax rates under Turkish law as internal investors and tax rebates.

Does the Turkish government support foreign investment?

The Turkish government supports foreign investors in Turkey in many investment fields, especially in qualitative or very successful fields.

Government support for foreign investment in Turkey comes in the form of tax rebates and tax exemptions, sometimes equivalent to government participation in large strategic investments, where the government cooperates with foreign businessmen in large-scale projects, thus allowing foreign investors to benefit from profit guarantee benefits and due to government participation leading to the legitimacy of the investment.