Investment in Turkey

Investment in Turkey, whatever it is, leads to great success and ample profit. That is not surprising because the Turkish Republic has been able to set itself as a regional power, and it is a powerful candidate to join the European Union, which enhances its strength.

Turkey derives this strength and leadership from its ancient history and civilization, its strong economy, and its unique geographical location that connects the East and West, contributing to the success of investment projects of all kinds.

In this article by Binaa Investment, we discuss the most prominent investment areas in the Turkish states and highlight the investment in the real estate sector. Besides investment advantages and why it is at the fore in the economic scene in the country.

How to choose your investment?

At the present day, you can invest in almost everything. However, choosing the correct investment for you is more challenging than it looks like because you need to know nearly everything about the investment that you’re willing to make.

The required knowledge about most investing fields can be measured by years of experience. That’s why investing with Binaa Investment is considered one of the safest investments.

The Pros & Cons of real estate investments

Pros:

Investing in real estate is a risk-free investment and has multiple profit sources by renting and reselling the property.

Cons:

Long-term investment so you have to wait sometimes years to collect your profit but you can also start collecting your investment income by renting the property until you decide to resell it again at a higher price.

What to know before investing in real estate?

Before investing in real estate, you have to maintain a reputable source of information that provides price indexes and reports about the property prices as well as the necessary consulting to assist you while proceeding with the buying decision.

In Binaa investment we provide you with everything you need to make the best buying decisions in real estate by our consulting services and the best services on the market.

Why invest in Turkey?

There are several reasons that make Turkey the best choice for investment, the most important of which are:

1.    Strategic location

Turkey enjoys a privileged strategic location. It is surrounded by seas on three sides, the Mediterranean Sea from the south, the Black Sea from the north, and the Aegean Sea from the west. That facilitates the access of about 1.6 billion customers in Europe, Asia, the Middle East, and North Africa.

Not to mention Istanbul, the capital of trade, finance, business, and tourism in the country, is located between the Asian and the European continents, through which you can get anywhere.

2.    A long history

Turkey is also famous for its ancient civilization, history, and rich cultural heritage, which makes all Turkish cities a destination for tourists from all over the world, thus foreign investments inflows.

3.    Political and social stability

Turkey is one of the most politically stable countries worldwide, besides the vibrant social life, which makes the investment very popular for foreign businessmen, since it gives them a suitable environment for investment and getting Turkish residency and citizenship.

4.    Booming economy

The Turkish economy ranks 13th among the largest economies worldwide due to the continuous growth in the average GDP annually, which amounted to about 56 percent between 2016 and 2002.

Turkey comes after Germany and Italy as the third-largest exporter of textiles globally. It is also one of the largest producing countries of agricultural materials, clothing, cars, ships, transportation equipment, building materials, and home electronics.

5.    Low taxes

Partial or total exemption on corporate income tax in Turkey has been among the most significant factors that continually helped to stimulate the various areas of investment.

6.    Investment Incentives

That is in addition to the incentives of the Turkish government for strategic investments, regional investments, and large-scale investments.

Investment areas in Turkey

There are many areas of the investment sector in Turkey, which harbor supportive investment elements, the most important of which are:

·       Real estate investment in Turkey

Real estate ownership is one of the most popular investments in Turkey. Although it is long-term, it is the safest.

The options for real estate investment in Turkey are many. They vary between residential apartments, hotel apartments, lands, houses, and villas, besides ready and under-construction properties, which contribute to the varying real estate prices in line with all financial potentials.

Investors from all over the world are attracted by the government's support, facilities, and resolutions, that support this type of investment.

·       Tourism investment in Turkey

Turkey is an excellent tourist country thanks to its tourist and historical attractions, natural resorts, and picturesque beaches. Some described Turkey as 'God's Paradise on Earth'. It has become a destination for tourists and investors from all countries.

Diversity in the tourism sector has helped attract more tourism investments in Turkey. There are recreational tourism, religious tourism, as well as pioneer medical tourism, which is the result of the great boom that Turkey has achieved in the health sector.

Antalya, Istanbul, Trabzon, Mugla, Bursa, and many others are among the most significant tourist cities in Turkey.

·       Industrial investment in Turkey:

Turkey is abundant with large industrial areas distributed in all parts of the country, which holds countless industrial investments.

There are many areas of industrial investment in Turkey, including electrical and electronic industries, technical, sports, and medical industries, furniture, textile industries, and others, which have been successful with ample profits.

It is noteworthy that due to the robust infrastructure, incentives, and government facilities, industrial investment ranks second after real estate investment in terms of safety and the chance to achieve satisfactory financial returns for investors.

·       Agricultural investment in Turkey:

Turkey has many fertile lands and fields suitable for growing different kinds of crops.

However, before starting agricultural investment in Turkey, you need to see how prosperous agriculture is, also the most significant crops on Turkish lands.

·       Investing in Health in Turkey:

Within a short period, Turkey recorded big successes in the medical sector, most notably: plastic surgery, dental implants, and hair transplantation, at competitive prices to European countries.

That prompted investors to enter the health investment field in Turkey and establish hospitals and specialized centers with the latest equipment with the help of the most qualified medical personnel.

·       Livestock investment in Turkey

Livestock investment in Turkey is highly viable due to diverse livestock, including cows, sheep, and poultry farms.

Livestock production represents about 30% of the total agricultural income in Turkey and is a significant element for achieving food security, especially animal protein available in meat, milk, and eggs.

The facilities provided by the Turkish government to investors

1. Exemption from customs duties

If the foreign investor is a dealer of equipment and machinery; He will get a complete exemption on the value-added fees for the sale. The exemption also includes everyone who purchases such equipment from a foreign country.

2. Reducing taxes on real estate purchases

The Turkish government has reduced the real estate taxes imposed on foreign investors, due to the increase in the investment rate in Turkey, according to the total amount of fixed investment.

3. Supporting social security premiums in Turkey

The Turkish state policy in support of social insurance premiums applies, as it bears the amount of the workers’ share of the Social Insurance Institution premiums. That is done by calculating the legal minimum wage for the worker paid to him by the organization of the foreign investor. The support period extends up to 10 years.

4. Get financial support

After purchasing the property, the foreign investor can pay it back within five years. The Turkish government has allowed him to get financing support through loans, thus covering the costs of his project by approximately 70%.

5. Facilitating VAT

Each investment scope in Turkey that exceeds the amount of 500 million Turkish liras is given a facility to return the amount of value-added tax resulting from construction fees.

6. Getting Turkish citizenship through investment

The Turkish government has passed a law to grant Turkish citizenship to foreign investors when buying a property worth no less than $250,000, in the condition of keeping the property no less than three years.

Advantages of real estate investment in Turkey

Real estate investment is one of the best types of investment in Turkey. It is greatly affected by the state economy and stability, thus achieving guaranteed investment returns, and the reason behind this is:

1. Turkey is the second most attractive market in the world.
2. Turkey ranks among the major global markets concerning real estate price growth.
3. The diversity of real estate in Turkey compared to the demand in international markets.
4. Real estate prices in Turkey are steadily rising due to the increase in foreign demand.

Binaa Investment Company tips for a successful real estate investment

• Choose a property that suits you. In the real estate investment in Turkey, finding the right property in terms of location and required specifications is the most significant rule. For this process to occur properly, you can utilize the Binaa Investment team to help you choose the desired location with the specifications that suit you.
• Think and define your goals. Binaa Investment Company recommends you purchase the right property for your needs and budget. Therefore, common sense must be used when choosing your real estate unit.
• Pay attention that your property is not far from critical public facilities. It is the most crucial advice to be considered when buying a property, as this plays a role in determining its value, besides the importance of the property's proximity to schools, shops, and various means of transportation.
• Choose the location of your investment very carefully. The more active the real estate site is, the higher your profit rate is. That is a significant feature of a successful and real estate investment.
• Distinguish your property before buying. Ready-to-move-in properties in Istanbul are safer than others because you conduct a full inspection of the apartment before purchasing to ensure the quality of the finishes and materials.
• The property under construction is better for a profitable future investment. You can benefit from its high price, as it is a safe and risk-free investment.

Finally, if you are thinking of investing in Turkey, contact the team of Binaa Investment to get a free consultation on everything related to investment areas in the country.

If you decide to own real estate in Istanbul or other states, our team will show you a package of selected properties in many Turkish states that suit your budget. Then, they will help you get your real estate residency or Turkish citizenship for free after completing the ownership procedures. Contact us now.

Edited by: Binaa Investment ^©