Located in Western Asia and on the Balkan Peninsula, Turkey presently ranks among the world’s fastest growing economies. The country’s geopolitical position, its promising growth opportunities, its thriving economy and its young population make it a fertile business environment for investors around the world. If you’re planning to expand your business in Turkey, this article is for you.
Low Operating Costs
One advantage featured by the establishment of a business in Turkey proves to be the low operating costs. Compared with how cost it may be to establish a business in other countries such as US or UK, Turkey is clearly a great chance. As a matter of fact, the country has a young population and around a million students obtain their diplomas every year in Turkish universities. Then most of them, instead of creating their businesses, start looking for jobs. Due to this, the cost of labor and the starting salaries is low. Likewise, the suppliers’ cost is relatively low too, in spite of the fact the service and the quality of the goods is still high.
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For the businessman you are, low operating costs appear to be a great benefit because you won’t have to worry as far as your business’ starting cost is concerned.
Heavy Consumer Spending
Another advantage related to Turkey is the volume of the citizens’ expenses. The country’s young people are fond of trends, as they get their favorite brands and generally spend without thinking a lot. With the right marketing strategy and business plan, you are sure to create a successful business on the Turkish soil according to the young population’s needs. If you follow the most recent trends and practice them in your business, it will be easy for you to attract consumers, especially young people in Turkey.
Local Manufacturers
In business, it is important to locate manufacturers near your business hub. The Turkish territory has a lot of local manufacturers eager to support and help investors. Then, if you get an idea and wish to run it leaning on a local manufacturer, you’re sure to have someone to assist you. Likewise, local manufacturers are ready to take minimum orders, contrary to big providers. This is a great advantage for an investor creating a business in Turkey.
Incentives given by the Turkish Government
The Government of Turkey encourages both foreign and local investors by lowering investment costs and enabling an investor-friendly environment. The Turkish Government’s new investment incentives system reduces the investors’ expenses. Foreign investors who succeed in obtaining the IIC (Investment Incentive Certificate) are given the following incentives: tax deduction, interest rate support, custom duty exemption and VAT, social security premium support, VAT refund, land allocation, as well as income tax that withholds support.
Turkish Citizenship
Since 2017, foreign investors have the possibility to get Turkish citizenship as well as its combined benefits. To become Turkish, as a foreign investor, you need to make a minimal capital investment of 500 thousand dollars or establish at least employment for 50 persons. Another option is to buy immovable property having a value of 250 thousand dollars.
Likewise, to obtain Turkish citizenship, you can keep a minimal deposit of 500 thousand dollars in a bank in Turkey for at least 3 years. A last trick for being considered as a Turkish is to buy government debt securities having an amount of at least 500 thousand dollars, provided that the debt securities are kept during 3 years.