Turkey is not only a popular tourist destination, but the Turkish market is also in demand among international investors. Every year, more and more foreigners are investing in the Turkish economy. In 2021, the country ranked first among European countries in terms of foreign direct investment.
Türkiye is a good country for investment. Here are eight compelling reasons to invest in Turkey in 2023.
Favorable geographical location
Turkey is located at the crossroads of three continents—Europe, Asia, and Africa—making it a significant geopolitical player. Turkish companies have access to markets in Europe, the Middle East, North Africa, and Central Asia. Their combined GDP is approximately $26 trillion. International companies are increasingly choosing the Republic of Turkey as a hub for management, exports, and production.
Strong economy
Turkey's economy has been growing steadily over the past decade. Thanks to the government's proactive efforts, Turkey is one of the region's leading recipients of foreign direct investment (FDI). From 2003 to 2021, the country received $239 billion in FDI.
According to the World Bank's 2021 ranking, Turkey ranked 12th in the world in terms of GDP at PPP (purchasing power parity), moving up six places compared to 2018.
The GDP of the Republic of Turkey has grown almost 3.5 times over the past 20 years: in 2002 – 236 billion against 819 billion in 2021.
The catastrophic earthquake that struck Turkey in 2023 will undoubtedly impact the country's economy. Experts predict that its potential economic consequences could lead to a loss of 11,000,000 rubles of the country's gross domestic product in 2023. Agricultural land suffered the greatest losses, with limited spillover to other sectors of the economy.
Türkiye is also a member of the G20, exerting significant influence on global economic processes. Therefore, potential investors see long-term prospects in the country's economy.
Programs to attract foreign investors
The Turkish government has developed a comprehensive investment incentive program that helps accelerate return on investment and minimize risks. The country's government also provides a range of support services for businesses, including funding for employee and staff training, business consulting, and assistance in establishing operations in the country.
Türkiye has approved several tax incentives for companies investing in the country's economy: a reduction in the corporate tax rate, an exemption from value-added tax (VAT) on equipment and machinery imported for investment projects.
For the first seven to twelve years, the Turkish Ministry of Trade will cover the social security contributions that foreign companies pay for Turkish employees.
For certain investment projects, such as solar energy or microchip development, land allocation rights may be available.
Possibility of obtaining Turkish citizenship
The Turkish Citizenship by Investment Program allows the main applicant and their family members to obtain Turkish citizenship in exchange for foreign investment. The application process typically takes 6-8 months. The minimum investment is 4,000,00$. Five investment options are available: purchasing real estate, government bonds, or investment fund shares, depositing funds in Turkish banks, or starting a business.
Want to learn more about obtaining a residence permit or citizenship through investment in Turkish real estate? Follow this link .
A skilled and competitive workforce
Turkey has a population of 84 million, of which 33.3 million are of working age. Turkey is the third-largest country in Europe by labor force size. It also has the fastest labor force growth in Europe, thanks to the expansion of the country's institutions. Currently, approximately 8 million students are enrolled in Turkish universities, with 900,000 graduating annually.
High level of development of transport infrastructure
The Turkish government is allocating funds to develop the country's transportation system. Turkey currently has a well-developed transportation network with a modern highway system and an extensive rail network, including high-speed trains between Ankara and Istanbul.
The country's two major airports, Istanbul Atatürk Airport and Ankara Esenboğa Airport, serve international flights. Turkish Airlines is among the top ten largest airlines in the world by fleet size, ahead of such renowned airlines as British Airways, Air Canada, Air France, and Emirates.
Turkish Airlines also flies to most countries worldwide. Turkey has direct flights to Japan, Singapore, China, South Korea, Mexico, the United States, Canada, and Brazil.
Moderate cost of doing business
The cost of doing business in Turkey can be even lower than in most European countries. This is due to the devaluation of the Turkish currency, the Turkish lira (TRY). Despite Turkey's linear economic growth over the past decade, the US dollar has appreciated by more than 400 percent over the past five years compared to the Turkish lira.
Türkiye is a good option for foreign investors, as the country's economy is actively developing, the government is working to create favorable conditions for investors, and the country has reliable infrastructure and a highly skilled workforce.