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    Is Turkey Safe for Investment?: Six Advantages to Grow Your Business in Turkey

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    Is Turkey Safe for Investment?: Six Advantages to Grow Your Business in Turkey

    I.Introduction

    Six advantages to grow your business in Turkey will be analyzed in this paper. Of course, Turkey has a growing economy, with a rapidly increasing young population and a growing number of large companies. Above all, the below-mentioned advantages are of great importance in attracting sustainable foreign direct investments (FDI).

    1. Fast Growing Economy

    It is critical to note that Turkey is recognized as being in the top 20 economies in the world. Therefore, the Turkish country attracts numerous foreign investors from every single region. Besides, Turkish authorities attach a high priority to the encouragement of foreign investment. The Country provides a broad range of initiatives for FDI.

    2. High Youth Population Rates

    Compared to 10.6 percent of the European Union, despite a slight decrease, Turkey’s youth population  constitutes 15.3% of total population.[1] This makes Turkey a good place for large-scale investments.

    For more detailed information regarding additional advantages of investing in Turkey through, for instance, property purchase, see our article on “Turkish Citizenship by Investment

    3. High Workforce Rates

    According to main indicators, the labor force participation rate for young people was %41.7 percent.[2] These numbers clearly mean that foreign investors have a great chance to benefit from flexible employment opportunities.

    More information about Main Labor Force Indicators 2021 is available online here https://data.tuik.gov.tr/Kategori/GetKategori?p=Employment,-Unemployment-and-Wages-108, accessed 20 May 2022.

    4. Increasing Value of Foreign Currencies

    Before making the decision to invest and  establish business operations, investors keep in mind the value of domestic currency and foreign currencies. Particularly, increasing value of foreign currencies and decreasing value of Turkish lira play a vital role in reducing the cost of the institution of necessary infrastructure for investments including any kind of production.

    5. Excellent Geographic Location

    Turkey offers a business-friendly environment, a deep talent pool and global market access at the nexus of Asia and Europe. Hence, the Turkish environment is very close to the properly functioning markets from the east and west.

    6. Tax Advantages

    a.What about income tax commitments in Turkey?

    The question of how foreign investments are taxed in Turkey is open to discussion. In that respect, it is significant to note that the Turkish taxation system is based on residency.

    In accordance with the Law on Income Tax, natural persons who are not resident in Turkey are only taxed on their earnings generated in Turkey.

    Full text of the Law on Income Tax(No:193) is available (in Turkish) online here.

    Taxation rules dramatically change if the relevant natural or legal person has a permanent residence in Turkey.

    Our comprehensive article on changeable taxation rules about foreign rental income (in Turkish) is available online here.  

    Also, there are regulations and  international agreements preventing double taxation and promoting trade in Turkey.

    b.What about corporate income tax commitments in Turkey?

    In accordance with the Law on Corporate Tax, that is also the case for legal entities. In this sense, foreign companies are only taxed on their earnings generated through their operation in Turkey.

    Full text of the Law on Corporate Tax(No:5520) is available (in Turkish) online here.

    II. Conclusion

    In the light of the aforementioned considerations, this article highlighted six advantages to grow your business in Turkey. To sum up, the growing economy, high youth and workforce rates, increasing value of foreign currencies, amazing geographical point, tax exemptions on foreigners makes Turkey a very attractive place for investors.  Consequently, it is really worth investing in Turkey. Nevertheless, there is no doubt that every investment carries certain risks. Accordingly, companies and individuals investing in Turkey need a comprehensive legal guide and strategic advice. Such assistance may be very instrumental in taking the right steps. Particularly avoiding high-level risk factors through a full-fledged consultation is very important in investing in Turkey.


    [1] Official website of Turkish Statistical Institute,  Youth in Statistics 2021, https://data.tuik.gov.tr/Bulten/Index?p=Youth-in-Statistics-2021-45634&dil=2, accessed 20 May 2022.

    [2] Official website of Turkish Statistical Institute,  New Main Labor Force Indicators 2021, https://data.tuik.gov.tr/Kategori/GetKategori?p=Employment,-Unemployment-and-Wages-108, accessed 20 May 2022.


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    Pi Legal Consultancy is an international law firm based in Ankara (Turkey) that offers legal consultancy and advocacy. We deliver legal services in key legal areas, among others, employment, international trade, healthcare, real estate, citizenship, corporate governance, banking and finance, energy and mining. Based on a detailed overview of our client profiles and our service quality together with our marketing and branding efforts, Pi Legal Consultancy has been recently chosen by the London-based Prestige Awards Group as the international law firm of 2022/2023. Pi Legal Consultancy provide legal and business consultancy to leading French companies under the umbrella of Association in Emerging Nations, based in Paris.

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