Turkey

Why trade or invest in Turkey?

Turkey is becoming an inviting country for foreign investors thanks to its stable growth in economy during the recent years. It has the 6th largest economy in Europe and 16th largest economy in the world. Turkey also signed Double Taxation Agreement with 80 countries, Customs Union Agreement with EU and Free Trade Agreement with 20 Countries (the EFTA States, South Korea, Israel, Chile, Tunisia, etc…). Likewise, its geographical position provides many different opportunities including climatic diversity, low cost transporting or tourism alternatives, in each part of Turkey.

These different opportunities lead to different sectors to invest for foreign investors. The most in demanded sectors by foreign investors are; tertiary sector, business sector, building sector, tourism sector and housing industry.  Especially Istanbul is on the top list of foreign investors coming from Luxembourg, China, Italy, Kuwait, Iran and Saudi Arabia

The other issue that directs the foreign investors to Turkey is the rising of the US Dollar.  Due to this rising the companies and firms can’t afford their debts so they started to sell the companies or get into a partnership with foreign investors.  At the same time those investments are for the benefit of the foreigners because they will be the owner or partner of the companies that already got somewhere.  Many big local firms have been sold or got into partnership with big foreign companies such as Panasonic, SEDCO Holding and Ferrero.

Besides these facts, government also provides extensive laws for the foreign investors in order to encourage development.  Such as, low rated corporate income tax (%20), incentives for the innovative and technological investments, low tax ratios on the Industrial Zones and Free Zones. Besides tax incentives, Turkey has other bench marks that an investor looks for.

Comparing with EU, Turkey has the most crowded young population which provides a huge low-cost and qualified workforce.  Low-cost transporting facilities and proximity to the main markets render Turkey a perfect country for Import-Export Companies and it takes about 6 days to establish a company in Turkey.

The main products that Turkey exports are; farm products like cotton, hazel nut, tobacco, pulse, dry and fresh fruit, textiles, animals and animal products,  furniture and some resources like chromium, copper, quicksilver, boron, iron and salt.  The main products that Turkey imports are; crude oil, medication and chemical products, electronic devices, motor vehicles, weapon, tropical products.

Some particularities of the Turkish legal system you should know

According to Foreign Direct Investment Law, foreign and domestic investors receive equal treatment.   Before the FDI law, foreign investors had to get permission to set up a company or take partnership or open a branch, but now informing is enough.  Foreign Direct Investments can’t expropriate unless public welfare is needed and the price is paid for.

Turkey has a new regulation to prevent real estate fraud.  With the Land Swap' application, the transfer of property title against transfer of money will be guaranteed by blocking the purchase price on a special account opened at the Settlement and Custody Bank. Thus both sellers and buyers will trade safely.

Whom we work for

A-Law Turkish desk has been providing legal support to clients in different areas, such as real estate issues, corporate and civil (family) law, traffic law, private matters, migration law, liability law and debts recovery (bankruptcy, administrative fines).

Furthermore A-Law expert lawyers have been providing legal support to Turkish firms establishing or acquiring (M&A) companies in Europe, Latin America and Africa.

An in-depth approach of the different legal aspects of cross border cooperation and trade, commercial agency, distribution and franchising of a wide variety of products ranging from nutritional supplements and pharmaceuticals to high tech, design interior and fashion objects exported from or imported into Turkey, have been assessed through A-Law dedicated team.