What is the foreign investment law in Turkey in 2022?
The investment law for foreigners in Turkey is defined as the set of laws and legislations regulating foreign investment procedures in Turkey.
The Turkish government provides many facilities and offers to attract investors and increase foreign flows. The facilities start by supporting exemptions from value-added tax, offering tax discounts, and granting permanent residence and Turkish citizenship.
Foreign investment in Turkey is subject to general rules that support the foreign investor:
Investing freely in all areas and reciprocity:
The foreign investor is treated the same as the Turkish domestic investor and is equally subject to legal procedures. Therefore, the reign investors can invest in various fields in Turkey.
Remittances and money transfers
A foreign investor in Turkey can transfer funds abroad without any legal impediment, provided the funds are from his net profits or investment returns.
Confiscation or nationalization
Turkish law does not provide for the confiscation or nationalization of public property for any person, whether a Turkish citizen or a foreign investor, except for cases resulting from a violation of the law. Here, the property owner is compensated for the value of the confiscated property.
Among the most critical types of foreign investment in Turkey:
Investing in real estate
Foreigners in Turkey can own real estate within the Turkish state, according to the investment law for foreigners in Turkey, except for citizens of Syria, Cuba, North Korea, and Armenia, according to the law of reciprocity.
A foreign investor in Turkey can own property, and he is treated like any Turkish citizen regarding legal procedures and title deed issuance.
Foreign real estate owners can obtain Turkish citizenship, provided the value of the purchased property is 400 thousand US dollars.
Investing in bank deposits
Foreign investors can benefit from bank deposits to invest in the Turkish banking sector. Turkish citizenship is granted to this type of investor if 500,000 US dollars is deposited for at least three consecutive years.
The profits of the bank in which the deposit was made vary according to the bank’s policies and the bank deposit program in which the investor participates.
Turkey has an excellent work environment for those wishing to invest in this field. The Turkish work environment embraces labor with an infrastructure equipped with all services for transport and export, modern road and transportation networks, and various means of transportation.
The Turkish government is working to support start-ups and small companies with little capital, which amounts to about two thousand US dollars. It attracts many new investors and allows them to experience investment in an active economic environment, with a labor market open to all, and ensures fair competition.
Buying government bonds
Foreign investors in Turkey can invest in government bonds on the market. The Turkish government is working to attract investors in this field by offering opportunities to obtain Turkish citizenship, provided government bonds worth half a million dollars are purchased and not sold for three years.