Terms and conditions of investment in Turkey for foreigners

Read at Imtilak Real Estate and learn about the conditions and investment law in Turkey for foreigners in 2024.

Terms and conditions of investment in Turkey for foreigners

What is the investment law in Turkey for foreigners in 2024?

The Investment Law for Foreigners in Turkey is a set of legislation and laws regulating foreign investment operations in Turkey, which define the conditions, facilities, and everything related to foreign investment in the country, as the Turkish Constitution includes detailed articles on foreign investment in Turkey.

Turkey is one of the leading countries in the field of facilitating the flow of foreign investment to the country, by providing packages of government support, facilitation of procedures, and various guarantees, with additional attractions based on an environment with a developed and modern infrastructure with the availability of roads, transportation, ports and airports for transport, export and import operations.

The Turkish government gives great offers to foreign investors to encourage them to invest in Turkey, starting with tax discounts and value-added tax exemptions and reaching the point of granting them Turkish citizenship and permanent residence in the country with the exercise of the right of citizenship.

Foreign investment in Turkey is subject to general rules in favor of the foreign investor:

Investing freely in all areas and reciprocity

As the foreign investor has the right to invest in all areas inside Turkey, the legal procedures followed with him are equal to the procedures taken against the Turkish domestic investor.

Read also about: The most important investment sectors in Turkey 2024

شروط الاستثمار في تركيا للأجانب 2022

Remittances and transfer of funds

A foreign investor in Turkey is free to transfer money abroad from his net profits or investment returns without legal obstacles and impediments.

Confiscation or nationalization

In Turkish law, there is no confiscation of public property or nationalization of any property of either a Turkish citizen or foreign investor unless there is a court order resulting from a breach of the law, in which case the owner of the property is compensated for the value of the confiscated property.

Foreign investment in Turkey is based on several types, the most important of which are:

Investment in real estate

Turkish law allows foreigners to own real estate within Turkish territory, with the exception of citizens of 4 countries, namely Syria, Cuba, North Korea, and Armenia, in accordance with the law of reciprocity.

A foreigner can own property in Turkey in general and is treated like a Turkish citizen regarding legal procedures and receipt of the title deed. By owning the property, he is granted legal residence inside the country under that property, and he renews this residence every one or two years.

Foreign investors in the real estate sector in Turkey have the opportunity to obtain Turkish citizenship, through the law on granting Turkish citizenship to foreign investors, which provides for the granting of Turkish citizenship to the foreigner who buys a property or group of properties in Turkey worth $250,000.

Investing in bank deposits

Foreign investors are allowed to invest in the Turkish banking sector, through bank deposits, and profit rates vary according to the policies of the bank in which they are deposited, and the bank deposit program in which the investor participates.

Turkish law grants the foreign investor in the banking sector Turkish citizenship in the event of depositing an amount of $500,000 for three consecutive years.

Establishing companies

This includes all productive institutions, whether in the service sector or factories and laboratories, as Turkey provides an ideal environment to attract investors wishing to invest in this aspect, as the country has cheap labor and ready infrastructure with transport and export services through a modern and advanced network of transportation and ports Airports, railways and roads.

Foreigners have the right to invest in Turkey by opening up companies or branches of their foreign companies. The most important feature of Turkey is its acceptance of start-ups and small firms with small capital, with a limit of about $2,000, which encourages new investors and innovators to take the experience of investing easily in an economically active environment, an open market for all and guarantees decent competition rights.

Buying government bonds

Many investors around the world consider government bonds as a safe haven and a secured investment portfolio through which money can be saved and profits with the possibility of liquidation and return of money with ease.

Turkey allows foreign investors to invest in its government bonds offered in the market by buying those bonds, and Turkish law encourages foreign investors in this matter through the possibility of granting him Turkish citizenship if the foreigner buys government bonds worth $500,000 without selling them for a period of three years.

Investment conditions in Turkey for foreigners in 2024

Despite the facilities provided by the Turkish government to foreign investors in the country, this does not prevent the existence of limitations and conditions regarding foreign investment in Turkey.

These conditions are as follows:

  • A foreigner investing in Turkey must have his investment within the legal determinants and legislative regulations for the type of investment in Turkey, and his failure to do so exposes him to losing his full rights, confiscation, and deportation.
  • The presence of an accredited legal advisor or an office for legal consultations in Turkey is a condition that the foreign investor must abide by when he opens it to companies or institutions in Turkey, in order to preserve his legal interests and settle his governmental affairs from obtaining licenses and others.
  • The foreign investor must deposit 25% of the capital of his company in a Turkish bank.
  • In the case of foreign investment in the real estate sector, it must be free of any legal impediment, and its area should not exceed 30 hectares throughout Turkey.
  • Priority is required in employment for Turkish citizens in the foreign investor's facility, and employment of foreigners is not allowed unless they meet certain conditions and obtain permission from the Turkish Ministry of Labor.

Is the foreign investor treated the same as the Turkish investor?

In general, Turkish law does not differentiate in the investment aspect between a foreigner and a citizen. The terms, duties, obligations, and rights that fall on the foreign investor fall on the internal investor represented by the Turkish citizen. In many cases, the foreign investor gains additional advantages due to the quality and size of the investment.

Regarding some laws that pertain to Turkish citizens, it must be noted in the first place that the foreign investor in many sectors is legally entitled to obtain Turkish citizenship, and therefore is a Turkish citizen, and is legally treated as a Turkish citizen.

Does the foreign investor pay the same taxes as the Turkish investor?

All investors are equal in Turkish law in terms of the value and rates of taxes payable, whether the investor is a foreigner or a Turkish citizen, and the percentage of these taxes is determined annually by the Turkish government, and the foreign investor is treated according to Turkish law like the internal investor in the rates of exemptions, and discounts on taxes.

Also, learn about the most important investment tips in Turkey.

قانون الاستثمار في تركيا للأجانب 2022

Does the Turkish government provide support for foreign investments?

The Turkish government provides support in many areas of investment for foreign investors in Turkey, especially those areas that are qualitative or that constitute great successes.

Government support for foreign investments inTurkey comes in the form of tax discounts and exemptions and sometimes amounts to government participation for large and strategic investments, where the government participates with foreign businessmen in large projects, and thus the foreign investor benefits from the guarantee of profits and the legality of investment due to the government's partnership in it.


Edited by Imtilak Real Estate©

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