The 5 most ideal sectors to Invest in Turkey
Turkey is a perfect country for Investment due to a young, dynamic and skilled workforce in a country of almost 80 Million people. Besides that the Governmental Incentives, Tax Exempts and Free land allocations are making Turkey even more appealing to Investors.
Now lets look at the most profitable and reliable fields for investment in Turkey since the first quarter of 2018.
1) IT and Technology
Recent years Turkey has been showing great importance in researching and developing technology. Today many of the Turkish universities have a technology department and these departments are making it easier for investors to enter this market.
Turkey is a very favorable location for investment especially investors willing to invest in software development, biotechnology, nano technology and electronics. Although there are many national and foreign companies operating is this sector, there are still many market gaps and opportunities that the IT and Technology sector offers.
2) Construction and Real Estate
The Construction and Real Estate market are the most important sectors that keep the Turkish economy up and running. The main reasons for the construction and real estate sector to be so lively is due too a rapid population growth and the city renovation projects. Therefore the construction and real estate sector are still very interesting and profitable for investors for another while.
6% of the real estate sales since September 2017 are from foreign buyers. It has been expected to increase. Besides this foreign investors do not need a residency permit to be able to purchase any real estate. Foreign investors that invest a minimum amount of 250.000 USD have the right to apply for Turkish Citizenship.
3) Textile and Ready to Wear Clothing
Firstly we have to accept the fact that China has the majority of the textile market in the world. However the Turkish textile and ready to wear sector also has a lot of advantages; the quality that is being presented, the richness in raw materials, meeting special requirements, flexibility and the advantage of Turkey’s location in connection with the major demand of Europe and the Middle East. For these reasons the textile market will always be vibrant and interesting for investors.
In addition to the current incentives, a new incentive program is also been expected to take effect in 2019 for those willing to invest in the textile sector. Besides this investors that are especially investing in textile in the eastern provinces of the country shall be given extra more incentives for encouragement.
4) Energie and Natural Resources
The Energy sector, is a very important sector for almost all economic activities in terms of endless execution. In this respect, the Turkish energy deficit is 130 billion dollars and Turkey is expected to invest in this field to close the deficit. By the comprehensive incentives given to investors in the energy and natural resources sector is showing the interest of Turkey in this field. Investors in; Hydroelectric power, wind energy, solar energy, natural gas, bio-energy and geothermal energy can take advantage of the following incentives;
- VAT Exception
- Customs Exemption
- Tax Discount (40%)
- Employer's Share of Social Security Contributions (7 Years)
- Interest Support ( Max. 700.000TL)
5) Environment and Recycling
The serious steps that are undertaken to eliminate the destruction caused by industrialization, the prevention of environmental pollution and global warming are making the Environment and Recycling sector more important and interesting. Turkey that is still in negotiation regarding the entry to the EU and having signed the Kyoto agreement is showing how important this subject is to the country. The Government has announced to invest between 7 to 9 Billion Euro to this sector because the subject is important for all of us.
In this regard, Turkey will support domestic and foreign investors in recycling by reducing value added tax, customs tax, investment in allocation, interest support, tax relief and many other supports.
