Introduction
Six advantages to grow your business in Turkey will be analyzed in this paper. Of course, Turkey has a growing economy, with a rapidly increasing young population and a growing number of large companies. Above all, the below-mentioned advantages are of great importance in attracting sustainable foreign direct investments (FDI).
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Why Investing in İstanbul?
Is Turkey safe for investment? Yes, there is a growing recognition that investing in Istanbul and large cities provide a peaceful environment to grow business. The available research will provide six advantages to grow your business in Turkey.
Is It Safe to Invest in Turkey for and beyond 2024
At this stage, we should bear in mind main benefits of investing in Istanbul and other cities of Turkey. All business lawyers or investment advice providers needs to be aware of the most updated progress at the international scene and domestic level. Indeed, in terms of investment, the 2024 FATF Decision on Turkey has recently played a pivatol role upon attracting foreign direct investments to Turkey. Besides the digital participation banking system was recognized by Turkish lawmakers in Turkey.That was compounded by a landmark era of a Digital Wallet Era in Turkey. Last but not least, the Law Numbered 7518 Amending the Turkish Capital Markets Law Numbered 6362, mainly known as Crypto Law of Turkey enters into force following its publication in the Official Gazette dated July 2, 2024.
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Is Turkey a Good Investment Because of Fast Growing Economy?
It is critical to note that Turkey is recognized as being in the top 20 economies in the world. Therefore, the Turkish country attracts numerous foreign investors from every single region. Besides, Turkish authorities attach a high priority to the encouragement of foreign investment. The Country provides a broad range of initiatives for FDI.
Is Turkey a Good Investment through High Youth Population Rates
Compared to 10.6 percent of the European Union, despite a slight decrease, Turkey's youth population constitutes 15.3% of total population. This makes Turkey a good place for large-scale investments.
For more detailed information regarding additional advantages of investing in Turkey through, for instance, property purchase, see our article on Turkish Citizenship by Investment.
Expand Your Business through High Workforce Rates
According to main indicators, the labor force participation rate for young people was %41.7 percent. These numbers clearly mean that foreign investors have a great chance to benefit from flexible employment opportunities.
More information about Main Labor Force Indicators 2021 is available online. accessed 20 May 2022.
Increasing Value of Foreign Currencies
Before making the decision to invest and establish business operations, investors keep in mind the value of domestic currency and foreign currencies. Particularly, increasing value of foreign currencies and decreasing value of Turkish lira play a vital role in reducing the cost of the institution of necessary infrastructure for investments including any kind of production.
Investing in İstanbul because of Excellent Geographic Location
Turkey offers a business-friendly environment, a deep talent pool and global market access at the nexus of Asia and Europe. Hence, the Turkish environment is very close to the properly functioning markets from the east and west. Investing in İstanbul is seen as a gateway between different continents by business lawyers and entrepreneurs.
Is Turkey a Good Investment In Terms of Income Tax Commitments?
The question of how foreign investments are taxed in Turkey is open to discussion. In that respect, it is significant to note that the Turkish taxation system is based on residency.
In accordance with the Law on Income Tax, natural persons who are not resident in Turkey are only taxed on their earnings generated in Turkey.
Full text of the Law on Income Tax(No:193) is available (in Turkish) online
Taxation rules dramatically change if the relevant natural or legal person has a permanent residence in Turkey.
Our comprehensive article on Tax Guide is available online.
Also, there are regulations and international agreements preventing double taxation and promoting trade in Turkey.
In accordance with the Law on Corporate Tax, that is also the case for legal entities. In this sense, foreign companies are only taxed on their earnings generated through their operation in Turkey.
Full text of the Law on Corporate Tax(No:5520) is available (in Turkish) online.
Why Do You Need an Investment Advice While Investing in İstanbul?
Turkey has been located in very special territory connecting three continents, economic regions and numerous people. Turkey offers a cost-effective environment to entrepreneurs. Thus, several Turkish companies are interested in growing their business and extending their investments inside or outside the country. Turkish markets offer a business-oriented environment together with low employment and facility costs. An embracing investment advice can be very useful to maximize all aforementioned advantages. Turkish investment lawyers can be very useful to improve a proper investment plan in Istanbul.
What Is the Significance of Help by Turkish Business Lawyers in Turkey?
Legal framework and implementation requires a great deal of knowledge in every single country. Every single investment project needs an embracing analysis of applicable Turkish norms. Commercial activities such as company formations, opening a branch, mergers and acquisitions, franchising system must be managed through an efficient legal guidance by foreign investors. Turkish business lawyers provide in-depth services to large, middle or small scale of corporations and|or individuals for their upcoming investment activities.
Conclusion
In the light of the aforementioned considerations, this article has highlighted six advantages to grow your business in Turkey. To sum up, the growing economy, high youth and workforce rates, increasing value of foreign currencies, amazing geographical point, tax exemptions on foreigners makes Turkey a very attractive place for investors. Consequently, it is really worth investing in İstanbul. Nevertheless, there is no doubt that every investment carries certain risks. Accordingly, companies and individuals investing in Turkey need a comprehensive legal guide and strategic advice from business lawyers. Such assistance may be very instrumental in taking the right steps. Particularly avoiding high-level risk factors through a full-fledged consultation is very important in investing in Turkey.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
