Benefits of Expanding your Business in Turkey
Is Turkey a safe place to invest? Benefits of Expanding your Business in Turkey
There’s a growing economy in Turkey, with a young population and large companies. But is it safe for business investments? FDI (Foreign Direct Investment) has been in high demand in Turkey for a few years now, and that trend will continue into 2023.
Even a novice investor looking at the Lira exchange rate can see the natural benefits of doing business in Turkey. There needs to be more stuff to buy. Aside from that slightly misleading perspective, here are a few things you’ll get when you move your business to Turkey.
A booming economy
- Turkey is one of the biggest economies in Europe and the Middle East. As a result, Turkey attracts tons of immigrants, tourists, and foreign investors.
- The Turkish government has a lot of incentive programs that investors can take advantage of with little red tape.
- The Turkish Citizenship by Investment Program is one of the most successful. It’s the international gold standard for “Golden Visa” programs.
- Turkey’s economic philosophy and programs like these are very bullish in the long run. Turkish growth is booming at the most fundamental levels, despite what the local exchange rate might suggest.
Turkey is very open and welcoming, so it can take advantage of its unique geography and cultural dynamism.
The population of young people is high.
- Among Turkey’s key metrics is its unique and vital population rate. The young, working population (ages 18-34) in Turkey makes up 26% of the total population, compared to 20% in France, 21% in Germany, 22% in the UK, and 18% in Italy. The rate is 27% in Istanbul, Turkey’s biggest city and economic engine.
- In the coming generations, Turkey could be a big economic force. Taking advantage of this generation of unprecedented immigration and crisis management. The education rankings for this generation rank 31st. Thanks to technology and advancement, the younger Turkish generation will shatter that ceiling.
Today, most developed countries have to decline, and in some cases sharply declining, birth rates and rising population ages.
The workforce rate is high.
Young people’s labor force participation rate was 41.7 percent, according to the main indicators. Turkey has an overall participation rate of 53%. Globally, it’s ahead of India and just behind Spain. A large pool of experienced workers and flexible employment opportunities make this a great place for foreign investors.
Currencies are getting more valuable.
- Investors need to consider the value of domestic and foreign currencies before investing or setting up business operations.
- The value of foreign currencies is going up, and the Turkish lira is going down, which lowers the cost of building infrastructure for investments like production; when it comes down to the nitty-gritty of running your business, the exchange rate matters even though it doesn’t influence macro growth.
A great location
- Located at the nexus of Asia and Europe, Turkey offers a business-friendly environment and a deep talent pool. Thus, the Turkish environment is close to properly functioning markets in the east and west. Our earlier post talked about GDP levels within the three regions Turkey occupies.
- It is the only country with the economic size of Turkey that can serve multiple global markets as easily.
Benefits of taxation
Are there any income tax commitments in Turkey?
- We’re open to discussing how foreign investments are taxed in Turkey. That’s why it’s important to know that Turkish taxes are based on residency. According to the Income Tax Law, foreigners are only taxed on their earnings generated in Turkey. In Turkey, tax rules change dramatically if you’re a natural or legal person. In addition, there are regulations and international agreements to prevent double taxation.
What’s the deal with Turkish corporate income taxes?
It’s the same for legal entities under the Law on Corporate Tax. It means that foreign companies are only taxed on their earnings in Turkey.
Having a strong entrepreneurial community
- There are many startup co-founders and founders in Turkey, especially in Istanbul. There’s a lot of room for partnerships and networking. All types of startups can participate in events, accelerator programs, conferences, co-working spaces, and hackathons centered around entrepreneurship.
- Hybrid and new digitized programs and events allow entrepreneurs across the country to learn from each other, create something new, and get together. Regarding the business melting pot, Istanbul is right with London and Paris in Europe. It sets the stage for the free exchange of ideas and commerce on a cultural and economic level.
Having a good infrastructure
Infrastructure and low transportation costs are two things that make foreign investors want to invest anywhere. Turkey has boomed in basic infrastructure, like transportation, communications, power, and technical infrastructure, making it a magnet for foreign investment.
In conclusion
- Turkey’s history, culture, and heritage make it a beautiful and unique country. This country isn’t just known for that. Investors from around the world can invest in Turkey. There’s youth, vitality, and opportunity in this burgeoning world power. It has important international relationships with G20 powers, NATO allies, and Middle East Brethren.
- There’s nothing else like it geographically, politically, or culturally. Ancient commerce and human progress were centered in its biggest city. The same shining light shines in Istanbul today and will shine even brighter.
We would be happy to assist you with your inquiries.