10 REASONS TO INVEST IN TURKEY

ROBUST ECONOMY

DOMESTIC + ACCESSIBLE MARKETS

STRATEGIC LOCATION

FAVOURABLE DEMOGRAPHICS

SKILLED WORKFORCE WITH COST ADVANTAGE

CONTINUOUS REFORM PROCESS

BUSINESS FRIENDLINESS

LUCRATIVE INCENTIVES

BENIGN R & D ECOSYSTEM

SECTORIAL OPPORTUNITIES

11TH LARGEST ECONOMY IN THE WORLD

Turkish Economy
(GDP at current prices, $Billion)

2002
100%
2020
100%

Turkish economy has more than tripled over
the past 18 years and is promising to be on the growing trend

Contribution to GDP
Growth 2002-2020 (%)

Domestic consumption
72%
Investment Expenditures
32%
Exports
21%
Stocks
-1%
Stocks
-24%

Robust domestic market and entrepreneurial private sector spurred investments and exports


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INCENTIVES INSTRUMENTS

VAT Exemption

Value-Added Tax (VAT) is not payable for machinery and equipment to be purchased.

Customs Duty Exemption

Customs duty is not payable for machinery and equipment to be supplied from abroad

Corporate Tax Reduction

Corporate tax is paid with reduction

Social Security Premium Support (Employer’s Share)

The employer’s share of the social security premium calculated for employment will be covered by the government

Social Security Premium Support (Employee’s Share)

The employee’s share of the social security premium calculated on the basis of the legal minimum wage for employment will be covered by the government

Income Tax Withholding Support

The income tax determined for employment will be exempt

Interest Rate Support

A certain portion of the interest to be paid for loans obtained will be covered by the government

Land Allocation

Land is allocated for investment based on the availability, in accordance with the principles and procedures set by the Ministry of Environment and Urbanization

VAT Refund

Value-Added Tax (VAT) is not payable for machinery and equipment to be purchased.

Infrastructure Support

Investor’s infrastructural needs such as electricity, natural gas, etc. can be covered

Energy Support

Energy expenditures will be partially rebated to the investor

Capital Contribution Support

Government can make capital contribution of up to 49% of the investment amount

Purchasing Guarantee

Public purchase guarantee can be provided for products to be produced within the scope of the investment

Facilitation of Authorization/ Permit/ License Procedures

An exception may be introduced by virtue of a presidential decree for authorizations, allocation, permits, licenses and registrations among other restrictive provisions.

Training Support

Daily expenses and eligible training costs will be covered by İŞKUR

Qualified Personnel Support

Gross wages of qualified personnel to be employed for up to 5 years will be covered (up to 20 times the gross minimum wage)

R&D/Design Discount

R&D and design expenditures are wholly deductible from the corporate tax base

Corporate Tax Exemption

No corporate tax is payable

Cash Support

Eligible expenditures are partially rebated by the institution providing support after the expenditures are paid

Credit Support

Credit opportunities with reduced rates are provided to investors to improve exportation

Special Consumption Tax Exemption

Daily expenses and eligible training costs will be covered by İŞKUR

Property Tax Exemption

No property tax is payable for land and buildings

Stamp Duty Exemption

No stamp duty is payable for documents

FINANCIAL SERVICES IN TURKEY

Resilient and
Attractive

The Turkish financial sector proved resilient during the global financial turmoil in 2009 as well as the ensuing economic crisis thanks to the regulatory reforms and structural overhaul that the government implemented in the wake of the country’s own financial meltdown in the early 2000’s. In fact, the reforms in the sector boosted investor confidence so much that financial services has become the preferred sector for FDI, attracting USD 52 billion since 2005.

Strong Banking System

Banking sector dominates the Turkish financial industry, accounting for over 70 percent of overall financial services, while insurance services and other financial activities show growth potential too. There are 51 banks in Turkey* (32 deposit banks, 13 development and investment banks, 6 participation banks). Out of 51 banks, 28 are classified as foreign banks (27% of total assets in the sector are held by foreign investors).

Unsaturated Insurance Sector

The Turkish insurance market is still underpenetrated (1.5% of GDP) compared to peer countries and will provide significant potential as new insurers set up shop and acquire a share of relatively untapped Turkish market. Turkey has seen strong economic growth fueled in part by a young and dynamic population that is increasingly in need of financial products and services.

Favorable Investment
Climate

A key driver of the Turkish financial sector has been its robust economy with a bright future. Over the past 16 years, Turkish economy has been growing with an average annual real GDP growth rate of approximately 5.5 per cent and the growth momentum is expected to continue. Turkey’s sizeable and diversified economy has achieved remarkable growth and became 13th largest economy in the world as of 2018. Turkey’s economic growth has resulted in income growth and a growing robust middle class with increasing purchasing power. As Turkish economy has expanded, it has gradually integrated with the global economy.

Istanbul Financial
Center

Turkey has set specific economic targets to achieve in the near future. One of them is to transform Istanbul into a prominent financial center. Turkey’s large and young population, qualified labor force and rapidly developing markets along with its geo-strategic location appoints Istanbul as ideal candidate for an international financial hub. Since the government launched the project for Istanbul Financial Center, Istanbul has rapidly made progress and is now considered among emerging financial centers in the world.


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