Population 83.6 Million
GDP per capita USD.8.548
CPI 19.25 %
PPI 45.52 %
Exports USD.169.7 BN
Imports USD.219.5 BN
C/A Balance % of GDP 5,1 %
Budget Balance % of GDP 3,40 %
Government Debt to GDP 39.5 %
External Debt Stock USD.448.4 BN

Business in Turkey

Turkey's regulatory environment is extremely business-friendly. Irrespective of nationality or place of residence, a person can establish a business in a single day.

According to the World Bank's "Doing Business Database, 2007", Turkey ranks well ahead of all its competitors such as the Czech Republic, Hungary, Italy, Poland, and Spain, and ahead of the OECD average.

How simple is the legal framework in Turkey for FDI?

Turkey has one of the most liberal legal systems for FDI of all the OECD countries.

The new FDI law focuses mainly on the protection of investors' rights.

The main principles are as follows:

• Equal Treatment for domestic and foreign capital companies.
• No pre-entry or pre-establishment screening requirements.
• No need for notification to the Undersecretariat of the Treasury of Turkey.
• No obligation to choose a specific company name.
• Unrestricted foreign ownership.

Rights of international investors:

• Free transfer of funds.
• Acquisition of real estate.
• Dispute settlement either in local courts or international arbitration bodies.
• Valuation of non-cash capital.
• Work permits for expatriates.
• Opening a liaison office.

How simple is the Turkish tax system?

Turkey has one of the most competitive corporate tax rates in the OECD region.

There are three types of tax:

Taxes on income

• Corporate income tax
• Withholding tax on certain payments of resident corporations
• Withholding tax on certain payments of non-resident corporations
• Individual income tax
• Social security premiums

Taxes on expenditure

• Value added tax
• Stamp tax
• Customs duty

Taxes on wealth

• Inheritance and gift tax
• Real estate tax
• Motor vehicle tax

Tax incentives

Major corporate tax exemptions and allowances 

How good is the infrastructure in Turkey?

Turkey's strategic location is very attractive for investors. It has a relatively new and highly developed technological infrastructure in transportation, telecommunications, and energy.

Will I find qualified people to work with in Turkey?

Turkey offers investors competitive labor costs with a workforce of over 24.7 million young, talented, motivated, and skilled people. Committed workers, flexible working hours, and a low absenteeism rate have enabled Turkey to achieve remarkable productivity levels.

Labor and social security laws contribute to the formation of an investor-friendly environment. Expatriates from countries that have bilateral social security agreements with Turkey have the choice to stay within their own national social security schemes.

Will I receive government support in Turkey?

The Turkish government provides incentives to encourage, support, and orient investments that are in line with international commitments.

In general, a combination of tax and non-tax incentives are granted to domestic and foreign investors on an equal basis. This equal treatment is guaranteed and reaffirmed by the FDI Law.

The investment incentives in Turkey can be classified mainly under the following headings:

• General investment incentive program
• Incentives for priority development regions
• Incentives granted to SMEs
• Research and development support
• State incentives for export and for agricultural activities

Will I have any additional advantages in the special investment zones in Turkey?

Special investment zones are created in order to provide an investor-friendly environment with proper infrastructure and various incentives.

There are four types of special investment zone in Turkey:

How simple is the legal framework for customs in Turkey?

Turkey joined the Customs Union with the EU on January 1st, 1996 and has amended its customs code and legislation in line with those of the EU Customs Code. Since then, Turkish customs laws have been harmonized with those of EU customs practices.

Tariff and non-tariff barriers were removed between the two parties with the establishment of the Customs Union for industrial and processed agricultural products. Turkey adopted the EU's Common Customs Tariff for imports from third countries.

Turkey offers two advantages to international manufacturing and trade investors:

Turkish free zones

There are 20 free zones in Turkey that operate close to the EU and Middle East markets, that are adjacent to major Turkish ports on the Mediterranean, Aegean and Black Seas, and that have easy access to international trade routes.

Free zones serve as investment centers, with their advanced infrastructure and low rental and sale rates.

Inward processing regime

The aim of the inward processing regime is to enable exporters to supply materials for the production of their exports without being subject to customs duties, including VAT.

Some Web Links of Turkish Goverment Associations

Republic of Turkey Prime Ministry Undersecretariat of Treasury

Central Bank of the Republic of Turkey

Turkish Statistical Institute

Undersecretariat of the Prime Ministry for Foreign Trade

Rebuplic of Turkey Ministry of Finance

Republic of Turkey Prime Ministry Investment Support and Promotion Agency