Nearly all industries open to domestic investment are open to foreign direct investment without screening or prior approval. Some areas, such as the financial and petroleum sectors, do require government approval. Others, such as media and maritime transportation, are only allowed a certain percentage of foreign ownership.

Leading sectors that have flourished as a result of increased foreign direct investment include: banking; trade and retail chain stores; telecommunications; tourism; automotive and transportation equipment manufacturing; food, beverage and tobacco; chemical and petroleum products; electrical machinery and electronics.

Turkey has been experiencing steady economic growth since new reforms have increased investment opportunities in the private sector. What?s more, internal development and investment programs have given way to incentive opportunities of which foreign and domestic business can take advantage. Some of these incentives include:

• Exemption from customs duties and fund levies.
• Value Added Tax exemptions for machinery and equipment purchases.
• Credit allocation from the budget.
• Interest support for small and medium enterprises, R&D and environmental projects and projects in 50 prioritized development provinces.
• Free land, income tax relief, employer?s share for Social Security relief and energy support in some regions.

Turkey has three types of regions that determine the type of incentives available: developed regions; normal regions and priority regions. Throughout these areas, Organized Industrial Zones and Technology Development Zones have been created to promote the domestic economy.  Free trade zones have also been created in some regions to attract more investors.

Visit the Republic of Turkey Prime Ministry Investment Support and Promotion Agency for more detailed information about investment opportunities and incentives in Turkey.

The U.S. Commercial Service?s Guide to Doing Business in Turkey also provides detailed information about leading industry sectors in Turkey for U.S. exporters.

 

Source: Office of the U.S. Trade Representative; Undersecretariat of the Prime Ministry for Foreign Trade?s Export Promotion Center; Republic of Turkey Prime Ministry Investment Support and Promotion Agency