Investment in Turkey

Turkey has emerged as an attractive investment destination, enjoying a strategic location at the crossroads of Europe and Asia, a growing economy, and a favorable business environment. With its rich cultural heritage, modern infrastructure, and diverse sectors, Turkey offers a wide range of investment opportunities for both local and foreign investors. This article provides an overview of investment in Turkey, highlighting its strengths and key sectors with great potential.

Why invest in Turkey

Six advantages will be analyzed that explain why invest in Turkey is the right step in the right direction.
Turkey has a growing economy, with a rapidly growing young population and a growing number of large companies. Above all, the advantages mentioned below are of great importance in attracting sustainable foreign direct investment:

1- A strong economy

One of the fastest growing economies in the world with an average annual GDP growth rate of 5.4% over the period 2003-2021

2- Large local and regional markets

The large domestic market, in addition to the regional markets with free trade agreements, allows access to 1.3 billion consumers.

3- Strategic location

Regional headquarters for multinational corporations with seamless global connectivity.

4- The abundance and strength of skilled manpower

An educated and competitive workforce that helps in high productivity

5- Free investment climate

There are no barriers to foreign direct investment, and strong investor protection

6- Lucrative incentives and abundant opportunities

A diversified economy with lucrative opportunities in many sectors

Real estate investment in Turkey

Real estate investment in Turkey is a popular choice for both local and foreign investors. Here are some of the main points that make it a favorite destination for many investors looking for success and development:

1.Market Growth: The real estate market in Türkiye has witnessed great growth in recent years. The demand for residential, commercial and tourist real estate is increasing due to factors such as population growth, urbanization and increasing foreign investment.

2.Affordable real estate prices: The real estate market in Türkiye has witnessed great growth in recent years. The demand for residential, commercial and tourist real estate is increasing due to factors such as population growth, urbanization and increasing foreign investment.

3.Diverse real estate options: Turkey offers a wide range of options, including apartments, villas, commercial buildings, and land. Whether you are looking for residential properties for rental income or commercial properties for business purposes, there are many options available to suit your investment strategies and budget.

4.Favorable Laws and Regulations: The Turkish government has implemented many laws and regulations to encourage real estate investment. Foreign investors are allowed to purchase real estate in most parts of the country with relatively few restrictions, which makes the process easier and more transparent.

5.Rental income: Turkey’s growing tourism sector and increasing population contribute to an increase in rental income. Popular tourist destinations, such as Istanbul, Antalya and Bodrum, attract visitors throughout the year, creating opportunities for real estate owners to generate rental returns.

6.Citizenship and residency programs: Türkiye offers citizenship and residency programs for real estate investors. By investing in certain types of real estate, investors may be eligible to obtain Turkish citizenship or long-term residence permits, which provides additional benefits and opportunities.

7.Strong economic fundamentals: Turkey’s strong economic growth, strategic location and vibrant business environment contribute to the overall stability and potential for real estate investment. The country’s increasing integration with global markets and ongoing infrastructure projects enhance its attractiveness as an investment destination.

Obtain Turkish citizenship by investment in Turkey

The Turkish Nationality Law gives foreigners the opportunity to obtain Turkish citizenship by investment in Turkey. There are several options for obtaining Turkish citizenship by investment, according to the current Turkish citizenship law.
Here are some common options:

1. Real estate investment: Turkish citizenship can be obtained by purchasing a property with a value of no less than 400,000 US dollars and keeping it for three years without selling it, and the property must be approved by the relevant authorities in Turkey.

2. Investment in Business: Turkish citizenship can be obtained by investing in a business in Turkey with a value of at least 500,000 USD, and creating job opportunities for Turkish citizens.

3. Investing in financial assets: Turkish citizenship can be obtained by purchasing Turkish government bonds with a value of no less than 500,000 US dollars and keeping them for three years, or depositing capital in Turkish banks with an amount of no less than 500,000 US dollars and keeping them for three years.

Do not hesitate to obtain a detailed consultation from a legal advisor for detailed updated information regarding the conditions for obtaining Turkish citizenship by investment.

Reasons to Invest in Turkey

There is no doubt that the future of real estate investment in Turkey is promising making it one of the biggest reasons to invest in Turkey, based on the following factors:

1- Continuous economic growth: Turkey has achieved strong and continuous economic growth over recent decades. This growth reflects the diversity of economic sectors and the availability of investment opportunities in various industries.

2- Economic reforms: Türkiye is working to implement economic reforms and encourage foreign direct investment. These efforts contribute to enhancing the investment climate and attracting more capital to the country.

3- Housing demand: Türkiye has a large population and continuous population growth. The increase in population increases the demand for residential, commercial and tourist real estate, which enhances the chances of return on investment.

4. Government support: The Turkish government pays great attention to the real estate sector and provides facilities and incentive measures for investors. These facilities include citizenship and residency programs, and facilities for obtaining permits and licenses necessary for real estate projects.

5. The strength of the internal market: Turkey has a large and active internal market, and this enhances investment opportunities in commercial and retail real estate. There is a strong demand for products and services in Turkey, which creates opportunities for employment and economic growth.

The benefits of investment in lands in Turkey

Real estate investment in Turkey carries many advantages and benefits that make it attractive to investors. Here are some of these features:

1. The growth of the real estate market: Turkey is witnessing continuous growth in the real estate market, whether in the residential, commercial, or tourism sectors. The increasing demand for real estate enhances the sustainability of investment and increases the value of real estate in the long term.

2. Strategic location: Turkey occupies a strategic geographic location between the European and Asian continents, which makes it a center for trade and investment. It also provides international aviation terminals, modern seaports, and a strong infrastructure.

3. Citizenship and residency programs: Turkey offers citizenship and residency programs for qualified real estate investors. By investing in real estate with a specified amount, investors can obtain Turkish citizenship or a long-term residence visa.

4. Rewarding investment returns: Turkey offers opportunities to obtain high returns from real estate investment.

6. Geographical and cultural diversity: Turkey enjoys great geographical and cultural diversity, which means a variety of real estate investment options. Opportunities can be found in major cities such as Istanbul, Ankara, and Izmir, as well as in beautiful tourist and rural areas.

These advantages of real estate investment in Turkey make Turkey a unique and popular destination, but we always recommend contacting VAAL Real Estate to provide a good study and professional advice on the market and local conditions before making an investment decision.

Buying land as an investment

Land investment in Türkiye is divided according to its type:

1- Arazi lands:

It is the agricultural land that did not enter the urban planning, as it is defined by hills, houses, walls, valleys and surrounding trees.

These lands are characterized by being suitable for animal investment, such as raising cows and others, and they are also called Tarla.

2- Arsa lands:

These are the lands that are responsible for planning in Turkey (the municipality) in terms of their construction and organization plan.

The borders of the plot of land shall be clear on the map, and the type and dimensions of construction shall be specified for it.

The types of buildings vary between (industrial buildings, natural and archaeological reserves, commercial buildings, warehouses, building villas…..).

There is also a difference in land prices according to the type.

Land purchases in central areas are very popular as they are the areas where the value of those lands increases over time, as this location allows them to be preferred for the construction of buildings such as housing, hospitals, and shopping malls, and this stands out as the most profitable use of land.

This is in addition to the fact that the investor can use the land to build his own house, or build an apartment or apartment building, and when the owner of the land owns his own site or apartment building, he can earn a large income.

Land can also be leased, and the tenant occupies the land according to what the investor determines, which brings a lot of income to the investor.

Türkiye offers a range of attractive investment opportunities in various sectors. With its strong economic growth, strategic location, solid infrastructure, and government support, the country has positioned itself as an attractive destination for both local and foreign investors.

In conclusion, investing in Turkey has the potential to generate great returns and contribute to long-term growth. By harnessing the country’s strengths, benefiting from market diversity, and fruitful partnerships, investors can take advantage of the many investment opportunities Turkey has to offer.

Investment Conditions in Turkey for Foreigners

Despite the facilities provided by the Turkish government to foreign investors in the country, this does not preclude the existence of restrictions and conditions regarding foreign investment in Turkey’s provision of opportunities for foreigners to invest in the country, and there are some conditions that must be observed.

Some investment conditions in Turkey for foreigners:

1. Permits and licenses: Permits and licenses may be required from the competent authorities in Turkey depending on the type of investment. The presence of an accredited legal advisor or an office for legal consultations in Turkey is a condition that the foreign investor must abide by when opening companies or institutions in Turkey, in order to preserve his legal interests and settle his government matters such as issuing licenses and others.

2. Turkish company: It may be necessary to establish a Turkish company to make the investment. Foreigners can establish a Turkish company with up to 100% foreign ownership in many sectors, unless there are special restrictions on the sector in which the investment relates. Priority in employment is required for Turkish citizens in the foreign investor’s establishment, and foreigners are not allowed to be employed unless they meet certain conditions and obtain permission from the Turkish Ministry of Labor.

3. Bank account: Foreign investors usually need to open a bank account in Turkey to conduct financial transactions related to investment, and the foreign investor must also deposit 25% of the capital of his company in a Turkish bank.

4. Restrictions on Military and Security Zones: There may be some restrictions on investment in specific military or security zones in Turkey.

5. Tax Laws: You must comply with local tax laws regarding investment and financial returns.

Companies are free to acquire immovable properties and limited rights through legal entities resident in Turkey or with the participation of foreign investors, as long as Turkish citizens are permitted to do so..

Edited by : VAAL Real Estate