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Investment Law in Türkiye for Foreigners of 2022

01/12/2023 Investment in Turkey 577 Investment Law in Türkiye for Foreigners of 2022

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 Investment in Turkey is increasing and thriving thanks to the advanced business environment that is very suitable for investors. All investments of all types, local and international, have achieved fundamental success, specifically in the last ten years! Yes, we tell you that Turkey not only raised the level of standards, but also raised the level of hosting investments tremendously, and was able to provide new businesses, technologies, and stimulating visions to attract investments to it to a greater extent. 

What is the investment law in Turkey 2022? What are the conditions and advantages that arise from it? Also.. What are the best investment areas in Turkey ? Damas Turk Real Estate has prepared an article for you that includes the answer to these questions and more. Not only that, we will discuss in detail what are the incentives and restrictions on foreign investment in it, and does the Turkish state provide support for that? 

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What is the Investment Law in Turkey for Foreigners 2022?

The Foreign Direct Investment Law, which was approved by Parliament from 2003 to the present day, represents many opportunities for investment lovers in the world. Important steps and laws have been taken to attract the largest number of global investors to it. What are the most prominent of them? 

  • All the same laws apply to local and foreign investors, of course 
  • Distinctive treatment for foreign investors in government departments and institutions
  • Investors enter Turkey without the need for a visa or prior permission 
  • Tax exemptions in several areas that the local investor may not obtain

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  • Facilities, incentives, and direct support from the government to the investor in several areas, which we will come to later
  • This is just the tip of the iceberg regarding the steps and laws that attract investment to Turkey, but when we delve deeper into other areas, we will certainly see more than that. I will now turn with you to knowing what are the most prominent advantages of investment in Turkey?

What are the most important advantages of investing in Turkey ?

  • First, the vibrant and strong economy. The Turkish economy achieved record growth between 2003 and 2020, rising from the 18th largest economy in the world in 2003 to 11th in 2020, and then to 19th in 2022.
  • Secondly, the strategic location... Turkey is effective and suitable for large markets through its location that provides access to global markets at the intersection of Europe, Asia and Africa easily and certainly at a lower cost, and it also connects Asia and Europe via the city of Istanbul .
  • Third, the young environment that Türkiye enjoys. . Turkey has a large population of 82 million, most of whom are young people. It is also a large consumer market, and this is a point to be reckoned with. 

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  • Fourth, the strong workforce in Turkey.. Turkey is the third largest workforce in Europe, with the number of workers in it reaching 33.3 million people, which is one of the most important factors in Turkey’s growth and the increase in its ranking above its competitors.
  • Fifthly, Turkey is a country of free investment . The Turkish government presents a set of legislation to stimulate investment in Turkey , the most important of which is equality for all citizens and local investors.
  • Sixthly, there are many opportunities in most sectors in Turkey ... such as the automobile industry, the energy fields, the defense aircraft industry and others, also the fields of nutrition, investments in infrastructure, and finally real estate investment in Turkey.

What are the general conditions for investment in Türkiye?

Investment conditions in Turkey for foreigners 2022

  • The Foreign Investment Law, as we mentioned previously, is based on a main principle, which is the basis of reciprocity, meaning that all the same rights and duties that restrict the local investor apply to all foreign investors and in all investment fields, and this is one of the important and main incentives that attracted most of the current investors in Turkey. 
  • There are no specific general conditions for investment in Turkey, but for each field there are conditions and laws enacted by the Turkish government to manage and work in it, and this is what we will detail for you in the investments that most attract foreigners to Turkey, which are the real estate, agricultural and commercial fields. 

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Conditions for real estate investment in Turkey for foreigners

  • The conditions that any foreign investor must not violate when investing in real estate are: 

First, the value of real estate in Turkey for foreigners must not exceed an area of ​​30 hectares in most cities in Turkey.

Secondly , you must verify the cities that grant foreigners the right to own property. There is an area in which ownership is prohibited (military and other). 

  • These conditions that we mentioned are set by the Turkish government, but what we will mention later are conditions that must be taken into consideration in order to protect your real estate investment and preserve its value, which are: 
    • First , there must be a consultant or real estate company that ensures that you obtain the property in a safe manner, reduces fraud and…
    • Secondly, research the property’s record and history to ensure that it is free of foreclosure, seizure, etc 
    • Third, choosing the property in the right place ensures that it maintains its value and increases its price, and this definitely requires a real estate expert
    • Fourth, general matters that must be considered regarding the property’s finishes, age of construction, and... 
    • Certainly, choosing a reliable company with a good reputation is the right choice for a successful real estate investment in Turkey. Damas Turk Real Estate is an agent for more than 300 points and projects in Turkey, projects that have been carefully and carefully selected to be a successful future investment that we offer to our dear clients in Turkey. 

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Conditions for agricultural investment in Türkiye for foreigners 

  • Turkey has succeeded in proving itself in the field of agricultural investment over the past ten years, and according to global statistics, Turkey was ranked first in 2019 with the best agricultural economy in Europe, and in the same year it also ranked tenth in the best agricultural economy in the world.
  •  Turkey is known as one of the leading countries in the field of agriculture and food, in light of its geographical conditions, favorable climate, vast agricultural lands and abundance of water resources. It is also characterized by a strong agricultural and food industry, employing about 18% of the country’s working population in 2020 and representing 6.6% of the country’s workforce. Turkey's GDP.
  • The Turkish government has launched a platform through which any investor wishing to invest in agriculture can inquire and ask about how to start and launch his project, whether with regard to suitable climate, types of soil, abundance of water, and other basic matters.
  • The Turkish government supports all foreign investments, specifically in the field of agriculture, especially the presence of all the climatic factors that ensure successful agricultural investment. Therefore, it breaks all routine and other procedures for investors and facilitates them through the following conditions: 
    • First , it is necessary to establish a limited liability company with a capital of no less than one hundred thousand Turkish liras
    • Secondly, the area of ​​agricultural land must be at least one thousand square meters in one of the cities suitable for agricultural investment
    • Thirdly , it is very important to present an economic feasibility or vision for the agricultural project that will be started
    • Fourth , providing sources for irrigation of crops by digging wells and extracting groundwater

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Conditions for business investment in Türkiye for foreigners 

  • Commercial investment in Turkey is broad in scope and is not limited to just one business, including importing products to Turkey and exporting goods from Turkey, especially with the presence of a huge Turkish market with multiple products, most notably Turkish clothing, sewing and embroidery tools, as well as fabrics and other goods.
  • Agricultural and food products have a large share of exports in Turkey. Industrial machinery and electric cars are a new door that Turkey has opened to the whole world. Military industries and others. Any foreign investor who wants to expand his business also comes to Turkey and displays his products due to the large consumption there.
  • All of these types of trade require establishing a company in Turkey to conduct and facilitate business, whether import, export, shipping operations, distributing products in Turkey, or establishing factories to manufacture products, etc. How do I establish a company in Turkey? Damas Turk helps you with this through the following steps:

First, establishing a limited liability company is the most suitable for business 

Secondly, extract a tax number through the General Tax Administration platform

Thirdly, the presence of a valid passport with translation and authentication by a notary public 

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Fourth , the value of the capital is not less than one hundred thousand Turkish liras 

Fifthly, 25% of the capital must be deposited in Turkish banks 

Sixth: 4 biometric personal photos taken within the last six months 

After preparing the necessary papers and establishing the company contract through a chartered accountant who carries out all work through the agency, any investor can practice trade in Turkey and obtain a work permit that enables him to acquire Turkish citizenship after renewing it for a period of five consecutive years and not leaving for more than 180 days outside the borders of Turkey.

As an investor, how can I protect my rights in Türkiye? 

The Turkish government has prepared a document that is considered a legal guide to protect investors in Turkey, and aims to help them in the form of individuals or institutions as well. This guide contains information about many legal issues that must be taken into consideration, which are as follows:

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  • First , protecting foreign investments in general
  • Secondly , protecting commercial investment according to commercial laws in Turkey 
  • Third, labor rights in Turkey 
  • Fourth, ownership rights to real estate, companies, and others
  • Fifthly , enhancing access to opportunities such as financing and others
  • Sixth, protecting personal data in accordance with Turkish laws 

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  • Seventh, protecting the investor from competition and speculation within the laws and regulations found in the Turkish Constitution

Are there restrictions on investing in Türkiye?

On the contrary, there are facilities for investment in Turkey, and we have seen them in the Turkish market for ten years or more, and we will mention to you the most important of them:

  • First, the foreign investor is treated exactly like the Turkish investor, with the rights and duties he has 
  • Secondly, there are continuous incentive mechanisms that attract investments to Turkey, through launching tenders and offering them to investors with distinctive investment return rates provided by the Turkish government.
  • Third, the tax exemptions enjoyed by the foreign investor, but not the Turkish investor 
  • Fourth, special discounts for investors on customs duties and exemptions for certain investments 

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  • Fifthly , there are special offices affiliated with the Investment Office directly by the Presidency of the Republic that serve and help investors in obtaining good and appropriate investments for them.

Do foreign and Turkish investors pay the same taxes?

  • In general, all taxes due to the Turkish investor are shared with the foreign investor, but as we mentioned previously there are tax exemptions specific to foreigners, such as the purchase of the first property for a foreign investor that is exempt from value-added tax at a value of 8% of the total value of the property.
  • Also, for example, the commercial investor concerned with exporting Turkish products abroad is completely exempt from taxes and customs duties for exporting them, and this is in order to encourage the export of Turkish products in a plan undertaken by the government to conquer the world with Turkish products.
  • So the answer to the question here is that the foreign investor is distinguished from the Turkish investor by having better and better privileges as well

Everything you want to know about how to obtain Turkish citizenship in exchange for purchasing real estate

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  • Obtaining Turkish citizenship by purchasing a property in Turkey is a double investment.. What does this mean? Firstly, the applicant obtains Turkish citizenship, and secondly, he earns a profit of 30% of the total value of the property after at least 3 years, of course, if he chooses the appropriate area and property, and this requires very deep consultation and calculations.
  • One of the most important items in the updates to the decision issued on September 18, 2018 is the value of the real estate purchase allowance, which was reduced from one million dollars to at least 250 thousand US dollars!! Yes, this is the value that applies to this day and it is a great opportunity for those interested in this. Certainly there are conditions for that. What are they?

- The value of the property or properties must be no less than 400,000 US dollars

- Properties must be seized for a period of three years and a pledge must be made not to sell under any circumstances, otherwise citizenship will be withdrawn

The purchase must be made exclusively from a Turkish entity, whether it is a legal person or a company, and any property whose owner is of foreign nationality is not accepted 

- Only husband and wife with children under 18 years old also obtain Turkish citizenship.

The duration of obtaining Turkish citizenship  by purchasing a property in Turkey is often between 90 and 120 days.

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After we have learned about the conditions, we will come to the most important documents required to complete the process successfully, which are as follows:

- Translation of original passports and authentication by a notary public

- A copy of the title deed “Tabu”

- Real estate evaluation document “DEĞERLEME RAPORU”

- Receipts of the purchase price from both parties

- Money Disbursement Document DÖVİZ ALIM BEGESİ

- Personal photos with biometric standards

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- Birth certificates translated and certified by the Ministry of Foreign Affairs and the Notary Public.

- Family booklet if the applicant is married 

- Citizenship application form “Form for data”

- Certificate of Conformity: This is issued exclusively by the Land Registry Directorate 

The most important advantages that a real estate investor obtains after obtaining Turkish citizenship are:

- Any applicant for Turkish citizenship can retain the original nationality of the mother in which he has the right to citizenship

Turkish citizenship is granted to the wife and children under the age of eighteen to all persons applying for Turkish citizenship 

- Holders of Turkish citizenship can participate in the elections and run as well

Today, the Turkish passport is ranked 40th according to international passport ranking sites. This passport has allowed its holder to travel without a visa to about 111 different travel destinations in most countries of the world.

Damas Turk Real Estate Company has many investment opportunities in several areas mentioned in the article here. Do you want to benefit from them? All you have to do is click here  to communicate with the most important consultants in the company. It provides you with complete economic feasibility with a definitely profitable investment, and documented with numbers and analyses.. Contact us and do not hesitate.

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