10 reasons to start business in Turkey.

Turkey offers business opportunities
business in Turkey

Why is Turkey so attractive to foreign investors? If you are thinking about your own business abroad, you should definitely consider the benefits, provided by investing money in Turkey. In this article, our professional lawyers in Turkey have researched and listed the most important of them.

  1. Successful Economy.
    • - Turkey's economy is growing rapidly, it is proven by the size of the total GDP, which has amounted to 231 billion dollars in 2002, and in 2014 increased by 3 times reaching $ 800 billion (according to Turkish Statistical Agency TÜİK)
    • - Stable economic growth. Between 2002 and 2014, the average growth of the real GDP has reached 4.7% each year. (According to Turkish Statistical Agency TÜİK).
    • - With the average annual real GDP growth by 3.6% between 2014 and 2016, Turkey's economy is going to be one of the fastest growing and most promising among the OECD countries (Organization for Economic Cooperation and Development).
    • - In 2013, the national economy of Turkey has become 16th largest economy in the world and 6th largest economy in the euro area. (At purchasing power parity, IMF World Economic Outlook).
    • Over the last 10 years, the size of direct foreign investment attracted to the Turkish economy has reached 144 billion US dollars.
    • - The dynamic and developed private sector with the large volume of export, which has grown by 250% between 2004 and 2014 and reached the amount of 158 billion US dollars. (According to Turkish Statistical Agency TÜİK).
  2. Young population.
    • Rapidly growing population, 77.7 million according to the Turkish Statistical Agency TÜİK 2014.
    • The largest number of the young population in the euro area. (Euro statistics).
    • According to the statistical agency TÜİK of Turkey in 2014, half of Turkey's population is under the age of 30.7 years.
    • Young, dynamic society with a high level of culture and education.
  3. Skilled and competitive labor force.
    • Over 29.2 million young, educated, professional and motivated staff. (TÜİK data Statistical Agency of Turkey).
    • Dynamically growing productivity.
    • Every year, about 610,000 young professionals graduate from more than 183 universities. (Data for 2012, the center for the selection and distribution of students ÖSYM).
    • Each year, about 700,000 specialists graduate from vocational schools, there are. (Turkish Statistical Agency TÜİK, 2012).
  4. The liberal investment environment open to innovations.
    • From 1997 to present days, Turkey is the second reformer country among OECD member countries on the issues of direct foreign investment restrictions. (FDI Regulatory Restrictiveness Index 1997-2012).
    • The average term of the company registration in Turkey is only six days, which makes Turkish economy a favorable environment for business. For comparison, the average time of the enterprise registration in OECD countries is over 11 days. (World Bank Doing Business Report).
    • Highly competitive investment conditions.
    • Developed Industry and service culture.
    • According to the statistics data of 2014, there are about 41,397 foreign companies in Turkey. (Turkish republic Ministry of Economy).
    • International arbitration.
  5. Developed infrastructure.
    • Developed infrastructure and technology in the fields of transport and communications, as well as in the energy sector.
    • Extremely advanced and cost-effective maritime transportation.
    • Easy transport connections to Central and Eastern Europe, the advantage of having the railway tracks.
    • Well organized transportation possibilities, the mechanism of direct deliveries to the most countries of the European Union.
  6. Perfect geographical location.
    • Due to its advantageous geographical location, Turkey is an efficient and economically attractive transportation hub, connecting the most important markets by acting as a bridge between all four sides of the world.
    • The ability to attract more than 1.5 billion of new customers from Europe, Middle East and North Africa.
    • Active cooperation between Turkey and the world's largest markets.
  7. Turkey-European energy corridor.
    • Turkey is one of the most important energy centers linking the east and the west together.
    • Turkey is an energy corridor, located between the major countries-owners of primary energy sources and countries-consumers of this energy.
  8. Low taxes and the possibility of obtaining grants from the government.
    • Income tax reduced from 33% to 20%.
    • In the areas of technology development, industrial zones and free trade zones there are certain tax benefits, such as full or partial exemption from income tax, support for social insurance payments (employer's share). For types of investment, there is the possibility of obtaining public land in free use.
    • Research and Development Act (Araştırma ve Geliştirme kanunu) is valid in the territory of Turkey. Thus, companies that invest in research and development are entitled to receive subsidies from the state.
    • Strategic investments, large-scale investment, regional investment is also encouraged by government subsidies.
  9. The customs union with Europe from 1996 to the present days.
    • Turkey is a member of the Customs Union of the euro area has a Free Trade Agreement with 20 countries.
    • The projects of free trade agreements with new countries are reviewing.
    • The negotiations on Turkey's accession to the European Union are in process.
  10. Large domestic market.
    • Between 2002 and 2014, the number of broadband Internet connection subscribers has increased from 0.1 million to 39.9 million. (TÜİK Statistical Agency of Turkey, BTK).
    • Between 2002 and 2014, the number of mobile operators’ subscribers has increased from 23 million to 71.9 million. (TÜİK Statistical Agency of Turkey).
    • Between 2002 and 2014, the number of credit card users has increased from 16 million to 57 million (Interbank Settlement Center).
    • Between 2002 and 2014, the number of airlines passenger increased from 33 million to 166.5 million. (TÜİK Statistical Agency of Turkey).
    • Between 2002 and 2014, the number of foreign tourists has increased from 13 million to 35.9 million

You cannot but agree, that the facts we have listed are quite persuasive and business in Turkey can become a great and profitable idea if you act legally competently. However, starting business in a foreign country is always a kind of risk and many foreign investors make mistakes at early stages, which are difficult to correct later. To avoid this, we recommend getting advice from highly qualified lawyers in Turkey before you start implementing your business plan.