Not only is Turkey a popular tourist destination, the Turkish market is in demand among international investors. Every year, more and more foreigners invest in the Turkish economy. In 2021, the country took first place among European states in terms of the number of direct foreign investments.
Turkey is an optimal country for investment. Here are eight good reasons why you should invest in Turkey's economy in 2023.Advantageous geographical position
Turkey is located at the intersection of three continents - Europe, Asia and Africa, due to which the country plays an important geopolitical role. Turkish companies have access to the markets of Europe, the Middle East, North Africa and Central Asia. The total volume of their GDP is about 26 trillion dollars. International companies increasingly choose the Republic of Turkey as a center of management, export and production.Strong economy
In the last decade, the economy of Turkey has been growing steadily. Thanks to the active work of the country's government, Turkey is one of the main recipients of foreign direct investment (FDI) in the region. From 2003 to 2021, the country received 239 billion FDI.
According to the World Bank's 2021 ranking, Turkey ranked 12th in the world in terms of GDP at PPP (purchasing power parity), rising six positions 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.
Undoubtedly, the catastrophic earthquake that occurred in Turkey in 2023 will affect the country's economy. Experts predict that its potential economic consequences could lead to a loss of up to 1% of the country's gross domestic product in 2023. Agricultural lands suffered the greatest losses, the spread of losses to other sectors of the economy is limited.
Also, Turkey is a member of the G20, as a result of which it has a great influence on global economic processes. That is why potential investors can see long-term prospects in the state's economy.Programs for attracting foreign investors
The Turkish government has developed a comprehensive investment promotion program that helps accelerate investment returns and minimize risks. The country's leadership also provides a number of support services for business: funding for employee and staff training, business consulting, and assistance in setting up operations in the country.
Turkey has approved several tax incentives for companies investing in the country's economy: reduced corporate tax rates, exemption from value added tax (VAT) on equipment and machinery imported for investment projects and exemption from customs duties on raw materials imported for production.
During the first seven to twelve years, the Turkish Ministry of Trade will cover the social insurance contributions paid by foreign companies to Turkish workers.
For some investment projects, such as investments in solar energy or the production of microcircuits, it is possible to obtain the right to allocate land.The possibility of obtaining Turkish citizenshipThe Turkish Citizenship by Investment program
allows the main applicant and their family members to obtain Turkish citizenship in exchange for foreign investment. Usually, the registration process takes 6-8 months. The minimum amount of investment is from $400,000. Five investment options are available: buying real estate, government bonds or shares in investment funds, placing a deposit in Turkish banks or starting a business.
Do you want to learn more about obtaining residence permit or citizenship through real estate investment in Turkey? Follow this link
.Skilled and competitive workforce
The population of Turkey is 84 million people, of which 33.3 million people are the working population. Turkey is the third largest country in Europe in terms of labor force. Also, the fastest growth of the labor force in Europe is recorded here, this happened due to the increase of universities in the state. Currently, about 8 million students study at Turkish universities, and 900,000 graduates receive diplomas every year.High level of development of transport infrastructure
The Turkish government allocates funds for the development of the country's transport system. Turkey now has a well-developed transport network with a modern highway system and an extensive railway network, including high-speed trains between Ankara and Istanbul.
The country's two major airports, Istanbul Ataturk Airport and Ankara Esenboga Airport serve international airlines. Turkish Airlines is among the ten largest airlines in the world in terms of fleet size, ahead of such well-known airlines as British Airways, Air Canada, Air France and Emirates.
In addition, Turkish Airlines flies to most countries of the world. Turkey is connected by direct flights with Japan, Singapore, China, South Korea, Mexico, USA, Canada and Brazil.Moderate cost of doing business
The costs of doing business in Turkey can be much lower than in most European countries. This is largely due to the devaluation of the Turkish currency, the Turkish lira (TRY). Despite Turkey's linear economic growth over the past decade, the U.S. dollar has risen in value by more than 400 percent in the past five years against the Turkish lira, as has the euro.
Therefore, Turkey is a good option for foreign investors, because the country's economy is actively developing, the government is working to create favorable conditions for investors, and the country also has a reliable infrastructure and a highly qualified workforce.