When we talk about Turkey, it comes to mind a country with enormous cultural, political and economic wealth for various reasons. Taking into account that it is located between Eastern Europe and the entrance to the Middle East, this country is considered as the gateway that divides both regions. 

After being the epicentre of important empires throughout history such as the Greek, Roman, Persian, Ottoman, among others, in the twentieth century, Turkey began a process of modernization that would allow them to grow politically and economically in a world that was going through two world wars and then, the Cold War. 

Nowadays, Turkey has been one of the countries with the highest economic growth in recent years, opening the doors to foreign investment in various areas that could provide them with stable economic strength. 

There are numerous tax advantages for a foreign investor in Turkey, as well as the fact that expropriations would not take place unless it is a case of public interest to protect foreign investments. 

Not to mention that a foreign investor can hire foreign staff to make an investment in Turkey and thus enjoy the tax advantages offered by this country, having a rather liberal economic system that favours foreign capital. 

The interesting thing about this country is that it has several sectors where it is profitable to invest, such as:

-Real Estate

-IT Technology 

-Energy and Natural Resources 

-Environment and Recycling 

-Textile Industry

Real Estate 

Over the course of the last two decades, the real estate market in Turkey has grown exponentially due to the fact that many foreigners are willing to invest in this market because of the advantages offered by the properties in terms of price/value ratio.

Compared to other countries in Europe, given the very favourable climatic and geographical conditions that Turkey has, it is normal to see the growth that this country has had in this field. However, even in 2021, good prices can still be found in this market. 

The fact that Istanbul is one of the most popular cities in the world, and that Turkey is so close to regions with abundant natural and energy resources, as well as the world business epicentre, makes the real estate business quite attractive. 

You can buy property in Turkey if you are a citizen of any country in the world, except for Syria, Armenia, Cuba, Israel, and Cyprus, and if the amount of land does not exceed 300,000 square kilometres. 

However, foreign investors (with the exception of citizens of the aforementioned countries) are required to apply to land registry offices to formalise the purchase of a property. If this office approves the transaction, then the investor can move forward. 

Another reasonable restriction when investing in real estate is if the property is located in the military territory, and this also applies to inheritance, where the owner has the right to transfer his real estate property to an heir, with the restrictions of military territory and the countries mentioned above.

Payment methods vary from investor to investor, however, in Turkey there are a variety of payment ways to facilitate foreign investment, ranging from the use of cash, bank transfers and loans, as well as the use of cryptocurrencies (typically bitcoin).

This has allowed the growth of flexibility and movement of capital within Turkish territory through the acquisition of real estate, as bitcoin is a method of payment that has gained some popularity in recent years globally. 

However, the most popular way to pay for a real estate acquisition is through financing. The Turkish government, amidst its liberal economic proposals, have promoted foreign investment by granting various loans that require a series of steps such as the following: 

1.Appraisal: generally this process takes a few days, it occurs after a bank approves a loan for the acquisition of a property, and proceeds to the appraisal process to determine the value and legal status of the property.

2.Pre-contract financing form: after the appraisal, this form must be signed, which contains all the fiscal and financial information regarding the property transaction, such as payment schedule and all the information about expenses. 

3.The signing of the contract: this usually takes about a week after signing the form, and results in the financial institution being obliged to prepare the guarantees. 

IT Technology 

The modernisation process in Turkey has led to the promotion of technological advances from the educational level so that the best universities in this country have specialised in this field by having specific departments for it. 

The advantage of this is that by investing in this field, it would be relatively easy to get specialised and trained manpower to carry out big projects related to IT Technology. 

Turkey is a favourable country for those aiming to invest in software development, biotechnology and electronics. Even though there are already numerous companies in this field, there are still latent opportunities waiting to be exploited by foreign investors. 

Energy and Natural Resources

Natural and energy resources will always be on top of the agenda of the modern world, especially because everything related to any industry depends on their proper functioning. 

However, Turkey's energy deficit exceeds $130 million, so the government has been quite open to investing in this sector to close the gap. This makes the time ripe for investors willing to invest in this sector. 

The government is willing to offer tax advantages in order to encourage foreign investment in areas such as solar energy, wind energy, natural gas, bio-energy, among others related to energy resources. These tax advantages are: 

-Tax Discount up to 40%

-VAT Exemption 

-Interest Support

-Custom Exemption 

Environment and Recycling

Turkey, as a signatory to the Kyoto Protocol, is attaching great importance to the issue of environmental protection and reducing the damage caused by industrialisation to the planet. Turkey also has a political interest in the European Union, as they want to become a Member State of it.

The Turkish government also gives priority to foreign investors whose interest is to promote the environmental care and recycling industry. These tax advantages are similar to those promoted in the area of natural resources and energy. 

This country has always been keen to maintain a correct image in regards to the environmental agenda, as well as being open to policies that favour this sector, and its investors.

Textile Industry

The textile sector in Turkey has great advantages given the country's geographical location, as they are close to the countries that demand the most clothing in both Europe and the Middle East, even assuming that the giant of the textile market is China. 

However, this geographical advantage makes Turkey an attractive country for investment in this industry, as well as having better economic conditions and advantages than a country like China can offer. 

Moreover, all the necessary materials for the production of this type of product are easily found within Turkish territory, so no further effort would be required to import raw materials from other countries.

Taxation

Property taxes are related to real estate, in cases such as buildings and land. These taxes are paid annually and depending on the condition of the property, a certain amount is paid as follows: 

There is a 4% title deed registration fee. Property tax is either 1% or 18%, depending on the location and the dimension of the apartment, however if it is a first property purchase in Turkey and the buyer doesn't have a residence permit, he/shey can apply for a tax refund.

On the other hand, the corporate income tax had been decreed at 22% for the years 2018, 2019 and 2020, however, for the year 2021, they decided to reduce it to only 20%. 

Taking all this information into account, it is easy to understand why Turkey has been growing steadily in recent years, especially in areas such as real estate and IT Technology. 

However, people can also note the Turkish government's interest in encouraging and facilitating foreign investment in areas related to environmental care and natural resources, granting tax advantages to those willing to undertake this type of business. 

Despite the growing development in those areas, it isn’t too late for investors to enter this market.