Investing in Turkey offers excellent opportunities due to its strategic location, growing economy, and strong workforce. Over the years, Turkey has transformed into a favorable market for foreign investors, ensuring sustainable foreign direct investments (FDI) and a business-friendly environment. Let’s explore some key reasons why Turkey is a safe and promising destination for business investments.
Advantages of Investing in Turkey
1. Rapidly Growing Economy
Turkey is currently the 17th largest economy in the world, and it continues to grow with robust support from its government. The country’s location at the crossroads of Europe, the Middle East, and Asia makes it an appealing destination for foreign investors. Turkey’s economic policies, such as the Citizenship by Investment Program, offer additional incentives, providing foreign investors with an excellent opportunity for growth. Despite fluctuations in the Turkish lira, Turkey’s long-term economic outlook remains strong and promising.
2. Youthful and Educated Population
A significant advantage Turkey has over other European and Middle Eastern countries is its young and dynamic population. With 26% of the population aged 18-34, Turkey boasts a large, youthful workforce that is well-educated and tech-savvy. The country continues to improve its education system, ensuring that future generations are well-prepared to drive economic growth. This young demographic presents a great opportunity for businesses looking to recruit fresh talent.
3. Skilled Workforce and Labor Participation
Turkey’s labor force participation rate stands at 53%, with a significant portion of its youth actively engaged in the workforce. This large labor pool gives foreign investors flexibility and access to a range of skilled professionals across various industries. The country’s labor market, combined with competitive wages, positions Turkey as an attractive destination for businesses seeking to grow.
4. Foreign Currency Advantage
For foreign investors, the rising value of currencies such as the USD or Euro against the Turkish lira has significantly reduced the cost of setting up businesses. This advantage not only makes it cheaper to establish infrastructure but also to maintain operations. As a result, foreign investors can benefit from reduced overheads while still accessing one of the world’s most competitive markets.
5. Strategic Geographic Location
Situated at the crossroads of Europe and Asia, Turkey’s geographic location gives it easy access to numerous international markets. The country’s proximity to the European Union, the Middle East, and Asia offers businesses unparalleled access to customers in various regions. Additionally, with its highly developed transport and logistics networks, Turkey serves as an ideal hub for businesses wanting to operate on a global scale.
6. Tax Benefits for Foreign Investors
Turkey’s tax regulations are designed to encourage foreign investment. The taxation system is based on residency, meaning foreign companies and individuals only pay taxes on income earned within Turkey. This favorable tax policy ensures that businesses can maximize profits while minimizing tax liabilities. Additionally, Turkey has signed international agreements to avoid double taxation, further simplifying the tax landscape for investors.
7. Strong Entrepreneurial Ecosystem
Turkey has developed a vibrant entrepreneurial community, particularly in cities like Istanbul, where startups and innovation hubs are flourishing. The entrepreneurial culture offers countless opportunities for collaboration, networking, and partnerships. Istanbul’s business environment can be compared to leading global cities like London, Tokyo, and Hong Kong, making it an ideal location for startups and established companies alike.
8. Excellent Infrastructure
Over the years, Turkey has invested heavily in its infrastructure. The country’s transportation, communications, energy, and technical infrastructures are among the best in the region, offering a solid foundation for businesses looking to expand. This focus on modernizing infrastructure, combined with lower transportation costs, makes Turkey an attractive destination for industries requiring efficient logistics and supply chains.
Conclusion: Why Turkey is a Smart Business Move
Turkey presents foreign investors with a unique blend of economic growth, strategic location, and a young, skilled workforce. The country’s strong ties with global powers and emerging markets, combined with its attractive tax policies, make it an ideal destination for business investments. For businesses looking to expand into new markets, Turkey offers opportunities unlike any other country.
If you’re considering investing in Turkey, Aegean Locations can help you navigate the real estate market and find the perfect property for your business or personal needs. Contact us today to learn more about the benefits of investing in Turkey and how we can assist you.