Turkey is a perfect country for Investment due to a young, dynamic and skilled workforce in a country of almost 80 Million people. Besides that the Governmental Incentives, Tax Exempts and Free land allocations are making Turkey even more appealing to Investors.
IT and Technology
Recent years Turkey has been showing great importance in researching and developing technology. Today many of the Turkish universities have a technology department and these departments are making it easier for investors to enter this market.
Turkey is a very favorable location for investment especially investors willing to invest in software development, biotechnology, nano technology and electronics. Although there are many national and foreign companies operating is this sector, there are still many market gaps and opportunities that the IT and Technology sector offers.
Construction and Real Estate
Construction and real estate sectors are among the most important sectors that keep the Turkish economy alive. The real estate and construction sectors in Turkey are very lively, especially due to the increasing population and urban transformation projects throughout the country. For this reason, we can say that the construction and real estate sectors will be attractive options for investors for a long time.
As of September 2020, 12% of the house sales in Turkey were made to foreign investors. This rate is expected to increase. In addition, there is no residence permit requirement for foreign investors to purchase real estate in Turkey. Investors who purchase real estate for at least 400 thousand dollars are also entitled to Turkish citizenship.
Textile and Ready-to-Wear
The textile sector has a long and deep-rooted history. With the accompanying developments in technology, the demand for textiles has increased considerably. This means both employment, export, and investment incentives for Turkey. The textile sector, which is intertwined with the industry and agriculture sectors due to the materials used, is an area that has managed to attract the attention of many investors. In terms of regional investments, the rate of support received increases when investments are made in priority regions. For example, as of 2020, the amount of investment made in the 6th region, which includes Adıyaman, Ağrı, Ardahan, Batman, Bingöl, Bitlis, Diyarbakır, Hakkari, Iğdır, Kars, Mardin, Muş, Siirt, Şanlıurfa, Şırnak and Van, in the ready-made clothing sectors has exceeded 2.7 billion Turkish liras.
Energy and Natural Resources
In recent years, Turkey has been one of the fastest-growing energy markets in parallel with economic growth. There are many targets for the energy sector in Turkey for 2023. These include goals such as establishing an energy Exchange, increasing the share of renewable energy to 30%, and making full use of water energy. According to OECD data, Turkey’s annual growth rate of the energy sector has been 5.5% since 2002; which is recorded as ‘the fastest growth’ in the OECD. In this regard, Turkey is also a suitable country for investments in terms of the energy sector.
Investors in; Hydroelectric power, wind energy, solar energy, natural gas, bio-energy and geothermal energy can take advantage of the following incentives;
- VAT Exception
- Customs Exemption
- Tax Discount (40%)
- Employer’s Share of Social Security Contributions (7 Years)
- Interest Support ( Max. 700.000TL)
Environment and Recycling
The serious steps that are undertaken to eliminate the destruction caused by industrialization, the prevention of environmental pollution and global warming are making the Environment and Recycling sector more important and interesting. Turkey that is still in negotiation regarding the entry to the EU and having signed the Kyoto agreement is showing how important this subject is to the country. The Government has announced to invest between 7 to 9 Billion Euro to this sector because the subject is important for all of us.
In this regard, Turkey will support domestic and foreign investors in recycling by reducing value added tax, customs tax, investment in allocation, interest support, tax relief and many other supports.