Investment Opportunities in Turkey
Protection of Foreign Investment
- Bilateral Investment Conventions Signed By Turkey
- Turkey has signed bilateral conventions with nearly 80 countries. In the Mediterranean basin, Turkey has signed bilateral conventions with Algeria, Egypt, Israel, Spain, Greece, Lebanon, Morocco, Portugal and Tunisia. 44 conventions can be downloaded on the UNCTAD website: click here to download these conventions. They define the framework of protection for foreign investment in Turkey for each of the signatory countries.
- International Controversies Registered By UNCTAD
- One in the field of mining and one in that of electricity production.
- Organizations Offering Their Assistance in Case of Disagreement
ICSID , International Center for settlement of Investment Disputes
ICCWBO , International court of arbitration, International chamber of commerce
- Member of the Multilateral Investment Guarantee Agency
- Yes. Signatory to the Convention of the MIGA.
Country Comparison For the Protection of Investors
|Turkey||Eastern Europe & Central Asia||United States||Germany|
|Index of Transaction Transparency*||9.0||6.3||7.0||5.0|
|Index of Manager’s Responsibility**||4.0||4.0||9.0||5.0|
|Index of Shareholders’ Power***||4.0||6.2||9.0||5.0|
|Index of Investor Protection****||5.7||5.5||8.3||5.0|
Source: Doing Business
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
Procedures Relative to Foreign Investment
- Freedom of Establishment
- Acquisition of Holdings
- Obligation to Declare
- Foreign investors only have to inform the General Directorate of Foreign Investment (GDFI) through the under-secretariat of State to the Treasury.
- Competent Organization For the Declaration
- Requests For Specific Authorizations
- In some sectors considered to be strategic such as petroleum, the media (radio and TV) and tourism, acquisitions are limited to a certain amount (law n° 6326 of 1954).
Office Real Estate and Land Ownership
- Possible Temporary Solutions
- There are several temporary solutions: domiciliation of the company at the private address of the director, domiciliation and/or lodging in a business center, lodging in relay-workshops, company "incubators" and renting professional premises.
- The Possibility of Buying Land and Industrial and Commercial Buildings
- Yes, on one condition, that the buyer's country applies the principle of reciprocity.
- Risk of Expropriation
- Foreign investors are entitled to compensation if they are victims of expropriation.
- Forms of Aid
- Companies benefit from a tax reduction of 40% for any amount invested. Exporting companies benefit from exemption from Customs duties, VAT and partial exemption from Corporate tax. The
Treasury is the organization in charge of promoting international investment. It must be contacted for full information about the framework of investment in Turkey.
Within the framework of its rapprochement with the European Union, Turkey has begun a process of harmonization of its financial incentives with the requirements of Brussels. Thus, the main aim of encouraging investment is to reduce regional imbalances.
- Privileged Domains
- There are 23 technoparks in Turkey ( Teknoloji Gelistirme Bölgeleri - TGB) managed by the General Directorate of Research and Development, itself attached to the Ministry of Commerce and Industry. R&D activities as well as research activities in the IT field, carried out in these areas of technological development, are exempted from IS until the end of 2013.
- Privileged Geographical Zones
- There is also aid for regional industrial development. The country has classified its regions in three categories: developed regions, regions called normal, and those whose development is judged to be a priority.
The General Directorate of Incentives and Implementation (GDII), a department of the Undersecretariat to theTreasury based in Ankara, accords notions of special importance to more particular areas.
- Free Zones
- There are 20 free zones in Turkey, 7 of which are in the region of Marmara, and each one has a determined sector of activitiy.. Fiscal incentives in these zones have been in effect since February 2004. Companies which have set up business there benefit from 100% exemption from duties, taxes and VAT linked to import operations and total exemption from IS.
- Organizations Which Finance
Undersecretariat to the Treasury
French Development Agency
- The Key Sectors of the National Economy
Turkey has a wealth of natural resources: boron, coal, iron, zinc, chromium, copper, silver. The exploitation of these resources is still under-developed and presents many opportunities. This could also lead to opportunities in heavy industry. Engineering works can also offer a good number of opportunities. The agri-food and textile sectors are also looking for equipment. On the other hand, among the key sectors are automobiles, and especially the market for supplying automobile equipment, and health which is facing certain development. Finally, we should remember that the Turkish market is made up of 70 million consumers.
Tourism is one of the country's key sectors, even if it is already well developed on the Mediterranean coast, in the region of the capital and Cappadocia. In spite of its present development, the tourist sector still has large potential. Finally, Turkey's geographical position offers good perspectives in the fields of logistics, transport and insurance.
- High Potential Sectors
- - Chemistry - Plasturgy
- Building and Public Works/Finishings
- Industrial subcontracting
- Privatization Programs
- Consult the website of the Turkish Undersecretariat for Privatization
- Tenders, Projects and Public Procurement
IHALE, Public Procurements
Tenders Info, Tenders in Turkey
Globaltenders, Tenders & Projects from Turkey
DgMarket, Tenders Worldwide
Sectors Where Investment Opportunities Are Fewer
- Monopolistic Sectors
- Transport, postal services, railway network (TCDD)
- Sectors in Decline
- Textile, agriculture.
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Turkish Commercial Law No: 6762 has been amended on January 2011. The New Turkish Commercial Law No: 6102 will come into force on 01 July 2012.
Bicak Law Firm on 31 May 2012 related to Investment Opportunities in Turkey