Invest in Turkey in 2024: Ultimate Guide for Expats

Are you considering investing in emerging markets but unsure where to start? Look no further than Turkey. Several factors make Turkey the optimal country to invest in, including economic growth, a strategic location, a highly qualified workforce, and easily accessible markets. 

In this ultimate guide, you will learn about:

• Why you should invest in Turkey
• Investment in Turkey for foreigners in 2024
• The top sectors to invest in Turkey and more

Why You Should Invest in Turkey

Several factors make Turkey a great place to invest. These include diverse investment options, such as property and sustainable energy, a robust infrastructure for development, and a well-educated population.

The Turkish government have put measures in place, attracting foreign direct investment from across the globe, including with the Turkey citizenship by investment program.

Programs like this have made it a lot easier for overseas investors to do business, and lucrative investment opportunities in the Turkish economy are on the rise.

Here are several reasons why you should consider investing in Turkey in 2024:

1.Strategic location

Turkey is strategically located at the crossroads of Europe, Asia, and the Middle East. It has a strong geopolitical location, bordering eight countries: Bulgaria to the northwest; Greece to the west; Georgia to the northeast; Armenia, Azerbaijan, and Iran to the east; and Iraq and Syria to the south.

This is a solid recipe for growth and means it is the ideal location for companies that want to tap into new markets and take advantage of regional cooperation.

2.One of the strongest economies in the world

Turkey has been one of the world’s fastest-growing economies for the past decade. According to the World Bank ranking in 2023 of GDP at PPP (Purchasing Power Parity), Turkey was the 11th largest economy in the world, moving it up six places from 2018.

This is a testament to Turkey’s resilience and perseverance through significant challenges such as high inflation set by the Central Bank of Turkey, natural disasters, and political conflict in neighboring countries.

Turkey is a member of the G20, comprising of the world’s 20 largest economies. As a result, Turkey has a lot of influence on global economic decisions. Turkey is also a member of NATO and has been an important ally in the fight against terrorism. Consequently, investors see long-term value in the economy.

3.Tax breaks for companies

Turkey provides several tax breaks to businesses investing in the country, including reduced corporate tax rates, exemption from Value Added Tax (VAT) on equipment and machinery imported for investment projects, and exemptions from customs duty on raw materials imported for production.

4.Government support

The government provides a range of support services for businesses, including financing for employee and personal training, and business advice and assistance with setting up operations in the country.

4.Social security contributions

The Turkish Ministry of Trade will cover social security premiums payable by foreign businesses for Turkish employees for seven to twelve years.

5.Land allocation

Certain investments, such as those in solar energy or chip manufacturing, may be eligible for land allocation.

6.Turkish citizenship

The Turkey citizenship by investment program allows main applicant and their family members to obtain Turkish citizenship in exchange for foreign investment.

Although many of these incentivized investments require substantial capital, it demonstrates Turkey’s aggressive directive to push economic development.

7.Skilled and competitive workforce

Turkey’s population boasts a skilled and competitive workforce that is ready to take companies to the next level. With a population of over 84 million and a strong cultural emphasis on gaining skills in various cornerstone industries, such as the tech and manufacturing industries, the republic has a large pool of educated workers to choose from.

In addition to the well-educated population, Turkey’s significant geostrategic importance has meant that it has built strong links to Europe and countries in the European Union. Turkey’s skilled and knowledgeable workforce is highly sought after by companies and clients in the European private sector looking for a reliable and cost-effective option.

8.Good infrastructure

In recent years, to further push growth, the government has carried out major projects in infrastructure, with significant funding allocated to transportation. Turkey now has a well-developed transportation network, with a modern highway system and an extensive railway network, including a high-speed train service between the city of Ankara and Istanbul.

The country’s two major airports, Istanbul Ataturk Airport and Ankara Esenboğa Airport, both serve international airlines. Turkish Airlines is in the world’s top ten airlines by fleet size, putting it ahead of well-known airlines such as British Airways, Air Canada, Air France, and Emirates.

Turkey’s good infrastructure extends to its expansive country-wide fiber network. The OCED stats for fiber broadband subscriptions put it ahead of countries like the US, the UK, Germany, and Canada.

9.Cheaper business costs

The cheapest cost to do business is on every investor’s agenda. Whether it’s property development, companies in service sectors, or the tech industry, the cost of doing business in Turkey can be much cheaper than in western countries.

This is largely down to the devaluation of Turkish currency, the Turkish Lira (TRY). Despite Turkey’s linear economic growth over the last decade, the US Dollar has gained more than 400 percent in value over the last five years against the TRY, and it’s a similar story for the Euro.

Top Turkey Investment Sectors

Invest in Turkish real estate

One of the best investment options for foreigners in Turkey is real estate acquisition. The property market in Turkey is flourishing, offering foreigners the opportunity to invest in Turkish property for a fraction of the cost compared to the US and other European countries. 

Buying property in Turkey is a fantastic way to start your Turkish investment portfolio, offering benefits like citizenship by investment if that is something your family is interested in. Additionally, it makes Turkey a standout destination for retirees. 

As more money is invested in the Turkish property market, there is no doubt that the figures are going to increase dramatically. Investments from the Turkish government dedicated to pushing the infrastructure of Turkey are sure to see some major improvements as has been seen in recent years, inviting investors to make Turkey their home. 

Whether you want to invest in the housing market, rental market, or commercial real estate, the options are endless for investing in Turkish real estate. 

Invest in the Turkish stock market

Stock market investment has well and truly become a staple for all investors across the globe. With Turkey ranking in the top 20 countries with the highest GDP it’s no surprise that foreign investors want in on the action. 

The easiest way to invest in the Turkish stock market will be through the broad market index that works through exchange traded funds (ETFs). However, we highly recommend chatting with an investment specialist to know which stock options would best fit your portfolio. 

Invest in the Turkish tourism sector

Turkey has one of the largest tourism sectors in the world, inviting investors to contribute to the thriving Turkish market. 

In 2022, Turkey was the fourth most visited country in the world. Additionally, Turkey ranks as the third highest country for Blue Flag beaches with over 500. The blend of stunning natural scenery, fascinating architecture, and mix of east and west keep visitors coming back year on year. 

Based on this, it’s no surprise that the tourism sector in Turkey is thriving. Foreign investors have a range of options, with top investment options including:

• Accommodations: Hotels, resorts, and holiday homes top the list of options for investing in the Turkish tourism sector. 
• Restaurants: Since the culinary scene in Turkey is so popular and vast, investing in a restaurant or cafe in a popular area can make for a great investment option in 2024. 
• Lifestyle: Investors can also hop on the tourism train, offering visitors a range of enticing activities. Some top options include yacht charters, eco-tourism (hiking tours and watersports), and cultural excursions. 
• Retail: A great option for those looking to retire in Turkey is to consider opening a retail store. From the famous bazaars in Istanbul to the growing malls there are various retail ventures available. 

Invest in the Turkish energy sector

Turkey’s energy sector offers a range of attractive investment opportunities, driven by the country’s strategic location, growing demand, and focus on renewable energy. 

Popular options include solar, wind, and geothermal power, with the Turkish government offering incentives like tax breaks for renewable projects. Solar and wind energy are rapidly expanding, making them prime areas for long-term investment. 

Turkey is considered a regional energy hub, creating huge investment potential in natural gas infrastructure. This includes options like pipelines that are vastly expanding throughout the country. 

Whether you want to invest in an already established company or start something of your own, there are various options for investing in the Turkish energy sector.

Turkey Citizenship by Investment

Turkey offers a citizenship by investment program to individuals and their families interested in becoming Turkish citizens and acquiring a Turkish passport. The program requires a minimum investment of $400,000, which can be through several investment options, such as property purchases, a bank deposit, and job creation.

The best investment in Turkey is generally in real estate as the market is flourishing, yet a Turkish real estate agent can still find deals in highly sought-after locations.

Here are some details for the different types of investment options to acquire citizenship in Turkey:

• Property purchase worth at least $400,000 or invest the same amount in land acquisition. You can invest in multiple properties and still qualify for the Turkey citizenship by investment scheme.
• Deposit at least $500,000 into a Turkish bank account and maintain it for at least three years. The deposit can be in dollars, an equivalent foreign currency, or TRY.
• Contribute at least $500,000 to government bonds. This can be in dollars, an equivalent foreign currency, or TRY.
• Make a capital investment of at least $500,000 into a venture capital investment fund share or real estate investment fund share. The investment can be in dollars, an equivalent foreign currency, or Turkish lira.
• Create full-time jobs for at least fifty Turkish citizens, as stipulated by the Ministry of Family, Labor, and Social Services.

Foreigners considering making an investment in Turkey for citizenship must also pass due diligence checks, such as having a clean criminal record and the ability to prove adequate financial resources to support themselves and their dependents.

Second citizenship in Turkey offers the holder numerous benefits, including the right to live and work in Turkey, access to free emergency healthcare, and a cheap cost of living. Turkish passport holders also enjoy favorable tax treatment, with personal income tax rates as low as 15 percent.

When Is the Best Time to Invest in Turkey?

We have outlined seven solid reasons for investing in Turkey in 2024. From sectors like the expanding tourism industry to the booming real estate market and the improving financial health of Turks, plenty of factors make investing in Turkey an attractive proposition. With a supportive government and business-friendly infrastructure, now is the optimal time to invest in this burgeoning economy.

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

Frequently Asked Questions about Investing in Turkey