Having a Turkish passport offers a lot of advantages. Such as easy access to E1 – E2 visas of USA and being able to open a no questions asked bank account. However these are not why you should invest n Turkey. In this article we have briefly listed reasons to invest in Turkey, aside from its warm hearted people and delicious cuisine.
1. Logistics and travel safety
Turkey has a strategic location that is commonly referred to as the bridge of Eurasia. With its two feet, one in Europe and other in Asia, Turkey connects Western Europe with Middle East. This is why Turkey is a perfect location for international transactions. Consequently, an advantagous reason to invest in Turkey.
Moreover, Turkish Airlines connects 323 destinations in 127 countries. Due to Turkey’s central location, it is convenient for travelers to prefer Turkish passport as their first choice. More importantly, Turkey has 229 diplomatic missions (embassies, consulates etc.) in 166 different countries worldwide. In other words, in case of an unpleasant situation during your travel, your Turkish passport is there to help you.
2. Free trade area and growing economy is why you should invest in Turkey
In addition to its central location, Turkey is a party to customs union with EU. This creates a wide free trade area to Turkish passport holders, as it allows direct access to EU market. That is to say, you can easily reach 995 Million consumers in 28 countries, with a Turkish passport.
When you look at the trade picture between EU and Turkey, the advantages prove itself. Turkey is EU’s 6th biggest trade partner as of 2020. In fact, trade with Turkey represents 3.6% of EU’s total trade in goods with the world. Moreover, EU is Turkey’s largest import and export partner. In 2020, 33.4% of Turkey’s imports came from EU and 41.3% of Turkey’s exports went to the EU. Which means a total trade in goods for €132.4 billion.
Consequently, Turkey has become the 11th largest economy by GDP in the world as of 2020.
3. Young population and skilled workforce is there to assist when you invest in Turkey
Turkey has favorable demographics, as half of its population is younger than 33 years old. The young generation creates the perfect ground for a dynamic labor force and growing business opportunities for investors.
4. Ease of doing business
Turkey has been working on business friendliness for years. As of the early 2000s, number of days to setting up a company has been significantly decreased. There is less paperwork and more helpful chamber of commerce structure. In fact, it only takes a couple of days to start a business in Turkey.
Establishing a company in Turkey by foreign real and legal entities is subject to the same rules as domestic investors. Moreover, Turkey has bilateral investment protection treaties with 82 countries and double taxation agreements with 87 countries.
Turkey is a party to the World Trade Organization’s Agreement on Trade Related Investment Measures. It’s also party to United Nations Convention on Contracts for the International Sale of Goods and the Energy Charter Treaty.
5. Fast International Dispute Resolution and Mediation
As long as there is an arbitration clause in your investment agreement, you can benefit from domestic or international arbitration. Istanbul Arbitration Centre was established in 1 January 2015. Istanbul Arbitration Center serves its clients in Turkish, English, French and German languages. It allows faster dispute resolution. For instance, if value of the claims and counterclaims does not exceed TRY 300,000, dispute is solved with fasttrack procedure. To clarify, it only takes 3 months and a sole arbitrator to settle the issue.
Most importantly, Istanbul Arbitration Centre’s arbitral awards are enforceable in all countries that are party to the New York Convention.
Turkey offers lucrative incentives in many sectors and instruments. Tax deductions and exemptions for manufacturers, payroll and training supports for employers are just some of them. Likewise, tax exemption and deduction is also possible for research & development and innovation areas. Various incentives depending on the business sectors and areas of investment, calls investors all around the world to Turkey.
7. Sectoral opportunities
Turkey is one of the leaders in the automotive, electrical equipment, aerospace, energy, machinery, agriculture and food sectors worldwide. In fact, Turkey has become 14th largest manufacturer in the World and 4th in Europe in the automotive sector. Market value of the automotive sector is $13 billion. Another great sector is machienery and electronical equipments with a market value of $34 billion. In fact Turkey is the biggest TV & white goods producer in Europe.
In short, with its young and energetic population and proximity to major markets, Turkey is a vital center of the world economy. It has one of the highest GDP rates per capita among other countries that offer citizenship by investment programs. Therefore, it sure is an advantageous country for investors to consider its passport and invest in Turkey!
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