Why Should You Invest in Turkey?
Before investing in Turkey, check what are the opportunities that attract foreign investors to Turkey. The coronavirus disease has shown us that the time has come to invest in different countries to reduce dependence on China. The Turkish government offers great incentives to attract foreign investors. The rate of the young population is quite high in Turkey, which means cheap labor! The Turkish government offers many incentives for foreigners who want to invest in Turkey. These incentives continue to enable investors to operate more efficiently and profitably.
If you want to do some research before investing in Turkey, the most useful thing to do is to rent from Cab Istanbul a car with a driver who can speak English. A professional driver who knows the market, a region well will provide you information with the most accurate and at the most advantageous price. After the Cab Istanbul driver meets you at the airport with a sign with your name and performs the Istanbul transfer service, your driver and assistant can take on the task during your stay in Turkey.
What are the steps to follow for those who want to invest in Turkey? Let's check together deeper?
- Firstly foreign investors need to establish a company to invest in Turkey. İt needs to obtain various official permits and documents to establish a company, we can easily prepare these documents for you.
- The documents required for the establishment of the company are written below for information purposes.
How Does a Foreigner Set Up a Company in Turkey?
The conditions for incorporating foreign individuals and companies and transferring shares are the same as those applied to local traders. Accordingly, international investors can establish all types of companies specified in the Turkish Commercial Law (TCL).
For a person who is not a Turkish citizen or a corporation established outside of Turkey, the documents and procedures required for establishing a company in Turkey can be discussed in two parts. Trade tax office transactions and registry transactions
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Matters to Consider Before Setting Up a Company İn Turkey
Before starting the establishment, the title of the company, the scope of its field of activity, the headquarters, who the manager/representative will be, the capital and shares should be determined by the management for each type of company establishment, and especially the company should be consulted on capital.
What is the Investment Incentive Program?
Turkey's growth strategy for production and exports focuses on the goal of becoming the number one integrated into the world. For this reason, it provides various conveniences to domestic and foreign investors. In this context, foreign investors who want to invest in Turkey will definitely need to benefit from these incentives. A foreign company established on foreign direct investment by legal entities in Turkey is considered in the same scope as domestic companies within the scope of the investment incentive program of Turkish and foreign citizens.
What Types of Incentives Are Offered in Turkey?
Let's take a closer look at the government incentives that foreigners who want to invest in Turkey can benefit from.
- VAT Exemption
- Within the scope of the investment incentive certificate, VAT (value-added tax) is not paid for the machinery and equipment to be purchased domestically and abroad.
- Customs Tax Exemption
- No customs duty is paid for machinery and equipment to be purchased from abroad within the scope of the investment incentive certificate
- Tax Discount
- Income and corporate tax; The total reduced tax amount is calculated over the discount rates until the contribution rate to the investment is reached. The contribution rate to investment refers to the ratio of the total fixed investment amount subject to a tax deduction
- Social Insurance Premium Support (Workers' Share)
- Social security premium worker shares calculated over the legal minimum wage for employment provided by investment are covered by the state. This element is valid only for investments to be made in region 6 within the scope of the investment incentive certificate. There is no upper limit for Social Security Premium Support and it is valid for 10 years.
- Social Insurance Premium Support (Employer's Share)
- The employer's share of the social security premium calculated over the
- Income Tax Withholding Discount
- Income tax determined for additional employment provided by investment is not subject to withholding. This element is only valid for investments to be made in region 6. there is no upper limit for income tax withholding and it is valid for 10 years
- Interest Rate Support
- Interest rate support is financial support provided for at least one 1-year investment loan. Up to 70% of the fixed investment amount registered in the investment incentive certificate, a certain part of the interest/profit share to be paid for the loan is covered by the state provided that it is paid for the first five years at most
- Land Allocation
- Investment land is allocated for the investments to be made depending on the availability of land according to the regulations of the Turkish Ministry of Finance.
- VAT Refund
- VAT collected for building-construction expenditures made within the scope of strategic investments with a minimum fixed investment amount of over 500 million TL is refunded.
- R&D İncentive
- R & D centers and 15 design centers present at least in the case of employment of at least 10 staff special incentives for investment in R & D and design projects in Turkey. These incentives are valid until 2024. Some of these incentives are as follows: 100% of R&D expenses are deducted from the tax base. Stamp tax is not paid for documents to be issued. Customs duty is not paid for products imported within the scope of R&D projects.
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Environment and Recycling Industry
Taking necessary steps to eliminate the damage caused by industrialization, prevent global warming, and eliminate the factors causing environmental pollution has made the environment and recycling sector an important sector. Turkey in the EU accession process and Kyoto gives great importance to recycling as an issue for countries that have adopted the protocol. This way Turkey in the near term waste management and recycling sector is expected to invest between 7 and 9 billion euros. Turkey will invest in the recycling field for domestic and foreign investors, value-added tax, customs duties, investment allocation, interest support, support is given to many issues such as tax breaks.
Textile and Wear Industry
China hit the mark on the world textile market in response to Turkey's product quality, geographic location, and logistics of the textile and apparel market and can easily say that it is one of the serious players in terms of material resources. 8. moment that the world's largest apparel exporter in the textile and apparel sector in Turkey of the future will not say the wrong offer very good deals.
The textile and garment industry, which is currently benefiting from many incentives, has the opportunity to benefit from new incentives along with the new incentive program expected to come into force in 2018. Accordingly, many extra incentives will be given to domestic and foreign investments to be made especially in the eastern provinces of the country in the field of textile