Manuel Garrido
Imagine investing in a country with a thriving real estate market, top tourism sector, and endless opportunities to grow your wealth. Welcome to the ultimate guide on why you should invest in Turkey.
Beyond tourism, Turkey is a rising hub for tech startups, real estate, and renewable energy, offering investors a diverse and dynamic market. Whether you’re looking for high returns, government incentives, or strategic global access, Turkey presents a wealth of opportunities.
In this guide you will learn about:
Why Invest in Turkey
1. Strategic location
Turkey is strategically located at the crossroads of Europe, Asia, and the Middle East. It has a strong geopolitical location, bordering eight countries. The country offers the ideal location for companies that want to tap into new markets and take advantage of regional cooperation.
2. Pathway to citizenship
The Turkish government have put measures in place, attracting foreign direct investment FDI from across the globe, including with the Turkey citizenship by investment program.
The Turkey citizenship by investment program allows main applicants and their family members to obtain Turkish citizenship in exchange for foreign investment.
3.Tax breaks for companies
Taxes in Turkey provide several tax breaks to businesses investing in the country, including:
- Reduced corporate tax rates
- Exemption from Value Added Tax (VAT) on equipment and machinery imported for investment projects
- Exemptions from customs duty on raw materials imported for production.
4.Government support
The Turkish government provides a range of support services for businesses, including financing for employee and personal training, and business advice and assistance with setting up operations in the country.
5. Strong growing economy
Turkey is a fast-growing major economy. The International Monetary Fund (IMF) notes that Turkey has a high investment rate, which has contributed to its rapid growth in recent years. As a G20 member, Turkey holds influence in global economic decisions, making it an attractive destination for long-term investment.
6.Social security contributions
The Turkish Ministry of Trade will cover social security premiums payable by foreign businesses for Turkish employees for seven to twelve years.
7.Land allocation
Certain investments, such as those in solar energy or chip manufacturing, may be eligible for land allocation.
8.Skilled and competitive workforce
With a population of over 84 million, Turkey offers a skilled and cost-effective workforce, particularly in industries like tech, manufacturing, and engineering.
9.Good infrastructure
Turkey has invested heavily in transportation and infrastructure, developing modern highways, rail networks, and high-speed train services, such as the Ankara–Istanbul route. These improvements enhance logistics and business operations.
10.Cheaper business costs
Operating costs in Turkey are significantly lower than in Western Europe and the US, making it an attractive option for real estate development, service industries, and tech startups.
Best Investment in Turkey for Foreigners
Invest in Turkish real estate
Turkey’s real estate market is booming, offering foreign investors opportunities at a fraction of the cost compared to the US and Europe.
Whether in residential properties, rental markets, or commercial real estate, investors can find high-yield options across the country.
Buying property in Turkey is a fantastic way to start your Turkish investment portfolio.
Invest in the Turkish stock market
As one of the world’s top 20 economies by GDP, Turkey’s stock market attracts foreign investors looking for growth opportunities.
One of the easiest ways to enter the market is through exchange-traded funds (ETFs), offering broad exposure to Turkish industries. However, consulting an investment specialist is recommended to tailor stock selections to your portfolio.
Invest in the Turkish tourism sector
Turkey is one of the most visited countries in the world, ranking fourth in 2022. Thanks to the over 500 Blue Flag beaches, stunning landscapes, and thriving tourist hotspots, Turkey is the ideal location for tourism investment.
Some of the best tourism investment options in Turkey include:
- Accommodation: Growing demand for accommodation in Istanbul, Antalya, and Cappadocia.
- Restaurants: Turkish cuisine attracts both locals and tourists.
- Experiential Tourism: Opportunities in yacht charters, eco-tourism, adventure travel, and cultural excursions.
- Retail: From bustling bazaars to luxury malls, the retail market thrives in Turkey’s many tourist hotspots.
Invest in the Turkish energy sector
Turkey’s energy sector offers a range of attractive investment opportunities, driven by the country’s strategic location, growing demand, and focus on renewable energy.
Popular options include solar, wind, and geothermal power, with the Turkish government offering incentives like tax breaks for renewable projects. Solar and wind energy are rapidly expanding, making them prime areas for long-term investment.
Turkey is considered a regional energy hub, creating huge investment potential in natural gas infrastructure. This includes options like pipelines that are vastly expanding throughout the country.
Whether you want to invest in thriving startups, an already established company, or start something of your own, there are various options for investing in the Turkish energy sector.
Invest in Turkish technology and startups
The tech and startup sectors have grown dramatically, with investment news from Türki̇ye suggesting foreign investment is at the forefront of this growth.
Some key areas to consider investing into include:
- Fintech: Digital banking and blockchain technology are on the rise.
- E-commerce: Platforms like Trendyol (Alibaba-backed) and Hepsiburada position Turkey as a regional leader.
- Artificial Intelligence (AI): Turkish startups are making strides in AI-powered analytics and automation.
- Gaming: Turkey is a global leader in mobile gaming, with companies like Peak Games and Dream Games reaching billion-dollar valuations.
- Biotechnology: Healthcare startups are thriving, fueled by telemedicine and medical tech innovation.
Turkey Citizenship by Investment
Turkey offers a citizenship by investment program to individuals and their families interested in becoming Turkish citizens and acquiring a Turkish passport.
Investment options include:
- Real estate purchases worth at least $400,000
- Deposit at least $500,000 into a Turkish bank account
- Contribute at least $500,000 to government bonds
- Make a capital investment of at least $500,000
- Create 50 full-time jobs for Turkish citizens
For further information, take a look at our Turkey Citizenship by Investment Guide
How Can Global Citizen Solutions Help You?
Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments.
We guide you from start to finish, taking you beyond your citizenship or residency by investment application.
Frequently Asked Questions about Investing in Turkey
Is investing in Turkey a good idea?
An investment in Turkey is more than worth it and has multiple benefits. Some of these include its strategic location between Europe and Asia, government support for businesses, and thriving sectors like real estate, tourism, and energy.
Can foreigners make investments into Turkey?
Foreigners are welcome to make an investment in Turkey; in fact, many foreign investments in the economy are incentivized to promote economic development, particularly for those in companies carrying out sustainable energy and chip manufacturing projects. You can also make international investments in Turkish companies through the Borsa Istanbul (the Turkish stock exchange).
Furthermore, Turkey offers citizenship by investment for foreign citizens who invest in Turkish property, make a bank deposit, invest in government bonds, or create jobs in Turkey.
How to invest in Turkey as a foreigner?
One of the easiest ways to invest in Turkey is through the citizenship by investment program. Some of the safest investment opportunities in Turkey include real estate, especially in thriving cities like Istanbul, the booming tourism sector, and the country’s emerging startup sector.
How to invest in Turkey's tourism sector?
To invest in Turkey’s tourism sector, you can explore opportunities in hotels, resorts, holiday homes, food and beverage, activities, or take advantage of citizenship by investment programs for added benefits.
How does Turkey’s investment climate compare to other emerging markets?
Turkey’s investment climate offers strong potential, with a large domestic market, strategic location, and a business-friendly FDI regime. While investors can benefit from these advantages, it’s also important to navigate factors such as economic fluctuations and evolving regulatory frameworks to maximize opportunities in this dynamic market.
What are the risks of investing in Turkey?
While Turkey has a thriving economy with many industries on the rise, there are some things to be aware of before investing. The Turkish lira is volatile, with a high inflation rate. Additionally, regulator uncertainty may impact investor confidence. All foreign investment comes with risk and its important that potential investors weigh the pros and cons before making a final decision.
Is investing in Turkey safe for foreigners?
Absolutely! Turkey offers some of the safest investment opportunities for foreign investors. Turkey is a solid choice for a foreign direct investment FDI strategy.
What are the benefits of investing in Turkey?
- Strategic location
- Good investment infrastructure
- Low taxes
- Fantastic workforce
- Tax exemptions
- Successful economy
- Turkish government incentives
What is the minimum investment required for Turkish Citizenship by Investment?
To obtain Turkish citizenship through investment, you must invest at least $400,000 in real estate or $500,000 in options such as bank deposits or investment fund shares.
Can I invest in Turkey remotely?
Yes, foreign investors can invest in Turkey remotely. A legal representative can handle paperwork, property purchases, and bank account setup on your behalf. However, if you are applying for Turkish residency or citizenship, a visit to Turkey may be required.
What are the best investment opportunities in Turkey?
Some of the best investment opportunities in Turkey include:
- Real estate
- Tourism
- Energy
- IT
- Technology
- Automotive
Are there any incentives for foreign investors in Turkey?
Turkey provides a range of incentives to attract foreign investors, including tax breaks, customs duty exemptions, social security premium support, land allocation, and interest rate subsidies. Many of these benefits are available through the Investment Incentive Certificate, designed to encourage investment and economic growth.
