With its fast-growing economy, Turkey offers many motives for foreign investors to make investments in different industries in the country.
We can review these motives in 7 different categories as follows:
> Strong Economy: The gross domestic product of Turkey was 231 billion US dollars in 2002 whereas it increased by 857 billion US dollars in 2016. Between 2002 and 2016, the annual growth rate of gross domestic product was 5,6%.
> Population: According to 2017 Turkish Statistical Institute (TÜİK) figures, the population of Turkey is over 80 million. Again, according to the same figures, the rate of population in working age is 67,9%. Besides, with its 8,3% rate of elderly populations, Turkey has Europe’s youngest population. All these statistics imply that Turkey has a young and dynamic population.
> Qualified Labor: According to statistics of The Council of Higher Education (YÖK), approximately 800,000 students graduate from university per year. Furthermore, in Turkey, vocational high schools and technical high schools have become more important and training qualified laborers in certain industrial fields has been started from high school.
> EU-Turkey Customs Union Agreement since 1996: In addition to customs union with the European Union, Turkey has made Free Trade Agreement with 27 different countries.
> Low Taxes and Incentive Opportunities: The rate of Corporation Tax has been reduced from 33% (2004) to 22% (2018). Furthermore, total or partial exemption is possible for technology development zones, industrial zones, and free trade zones. For instance, in technical development zones, income from software, design and research and development is not liable to income tax or corporation tax. Once again, in these zones, Ministry of Finance supports 50% of social security contributions of employees.
- In free trade zones, incomes obtained from sales of assets produced in these zones are exempt from income tax and corporation tax. Providing the exportation of 85% of annual production, wages of employees working at these zones are not liable to income tax. Products and services provided to these zones are exempt from VAT.
- Additionally, Turkey provides incentives for strategic, large-scaled and regional investments.
> Energy Corridor and Terminal: Due to its strategic location, Turkey is an energy corridor and terminal linking Europe to energy lines in the north and east.
> Central Location: Due to its geographical location, Turkey may serve as an entrance to the markets in Europe, Eurasia, Middle East, and North Africa. Turkey provides transportation to over 60 countries and markets involving 1,5 billion people by approximately 4-hour flights.