Complete Guide to Investing in Türkiye in 2024

Türkiye continues to stand out as a highly attractive investment destination in 2024, offering a combination of strategic geography, a young and skilled workforce, modern infrastructure, and a government committed to supporting foreign investors.

In this in-depth guide, we explore everything you need to know about investing in Türkiye — from understanding the economic landscape to identifying key sectors and navigating the investment process step-by-step.

Why Invest in Türkiye?

Türkiye is uniquely positioned at the crossroads of Europe, Asia, and the Middle East — a fact that has historically made it a hub for trade, logistics, and cultural exchange. In recent decades, this geographical advantage has been reinforced by strong economic policies, investment-friendly legislation, and aggressive infrastructure development.

Key Reasons to Consider Türkiye for Investment

Strategic Location: Direct access to more than 1.3 billion people across Europe, Eurasia, the Middle East, and North Africa within a 4-hour flight radius.
Economic Potential: One of the world’s top 20 economies by GDP, with aspirations to become a high-income country.
Business-Friendly Reforms: Ranked 33rd in the World Bank’s Ease of Doing Business Index (2020), thanks to regulatory simplification and digital transformation.
Young, Educated Population: Over 65% of the population is under 40, with a median age of 32.7.
Competitive Labor Costs: Offers a skilled workforce at lower operational costs compared to the EU and U.S.
Modern Infrastructure: High-speed rail, modern airports, world-class ports, and robust internet connectivity.
Free Trade Agreements: Türkiye has FTAs with over 20 countries and a customs union with the EU.

Economic Overview

Türkiye’s economy has proven to be resilient, dynamic, and adaptive in the face of global challenges. Despite geopolitical tensions, inflationary pressures, and pandemic-related disruptions, the country continues to attract foreign direct investment (FDI) and maintain a forward momentum.

Key Economic Indicators

GDP Growth: Averaging 4-6% annually over the past decade, with strong rebounds post-pandemic.
Population: Over 85 million, making it one of the largest markets in Europe and the Middle East.
Inflation Management: Efforts underway to stabilize inflation and currency volatility through monetary reforms.
Export Capacity: Türkiye exported goods worth over $250 billion in 2023, reflecting a strong manufacturing base.

Investment Opportunities in Türkiye

Foreign investors can tap into a wide range of sectors across Türkiye’s diverse economy. The government actively supports strategic industries with incentives and policy backing.

High-Potential Sectors for Foreign Investment

1. Manufacturing

Türkiye has become a manufacturing powerhouse, producing goods for global giants across automotive, machinery, textiles, and electronics.

Leading automotive production hub (Ford, Toyota, Hyundai, Fiat)
Competitive costs and access to EU markets
Strong supplier ecosystems

2. Technology and Startups

The Turkish tech scene is booming, with a vibrant startup ecosystem and a growing number of unicorns like Trendyol and Getir.

Government-supported R&D centers
Tech parks and incubation zones across major cities
Skilled software engineering talent

3. Energy and Renewables

Türkiye’s strategic energy corridor status and commitment to sustainability make it an energy investment hotspot.

Growing investment in solar, wind, and hydroelectric power
Energy infrastructure modernization (pipelines, smart grids)
Feed-in tariffs and incentives for renewables

4. Real Estate

From residential developments to commercial projects, Türkiye offers excellent real estate investment opportunities — especially in metropolitan areas like Istanbul, Ankara, and Izmir.

Citizenship by investment program
High rental yields in tourist and business districts
Urban transformation projects

5. Tourism and Hospitality

Türkiye is one of the world’s top tourism destinations, attracting over 50 million tourists annually.

Growing demand for boutique hotels, resorts, and experiential tourism
Investment opportunities in underserved regions
Health and medical tourism boom

6. Healthcare and Pharmaceuticals

The country’s healthcare system is rapidly modernizing, with increasing private sector participation.

Medical city developments
Pharma manufacturing and export potential
Growing domestic demand

Government Incentives for Investors

The Turkish government provides extensive support to both local and international investors. These incentives are tailored based on region, industry, and project size.

General Incentive Programs

VAT Exemption: No VAT on imported machinery and equipment.
Customs Duty Exemption: Relief from customs duties on imported inputs.
Tax Reductions: Corporate tax reductions based on investment region and size.
Social Security Premium Support: Employer share covered for a specific period.
Land Allocation: Government may allocate land for strategic investments.
Interest Support: For loans used in investment projects.

Special Investment Zones

Organized Industrial Zones (OIZs): Offer ready infrastructure, tax advantages, and streamlined processes.
Free Zones: Customs-free trade areas with special regulatory frameworks.
Technology Development Zones: Ideal for R&D and innovation-driven companies.

Step-by-Step Investment Process

Investing in Türkiye is a straightforward process thanks to its investor-friendly regulations and digital systems. Here’s a step-by-step roadmap:

1. Conduct Market Research

Understand your industry’s dynamics in Türkiye
Analyze competitors, customer behaviors, and regulatory environment
Identify potential local partners or suppliers

2. Choose the Right Legal Structure

Limited Liability Company (Ltd. Şti.): Most common structure for SMEs
Joint Stock Company (A.Ş.): Ideal for larger operations or public offerings
Branch or Liaison Office: Suitable for testing the market

For a detailed guide on setting up your business in Türkiye, check out our comprehensive Business Setup Guide.

3. Company Registration

Prepare articles of association
Register with the Trade Registry Office
Obtain tax identification number and potential licenses

4. Obtain Necessary Permits and Licenses

Environmental and operational permits (if required)
Sector-specific regulatory approvals
Work permits for foreign staff

5. Operational Setup

Set up local bank accounts
Recruit and onboard talent
Build supply chains and vendor relationships
Implement local accounting and tax compliance systems

Challenges to Be Aware Of

While Türkiye offers immense opportunities, it’s important to approach the market with a clear understanding of the local landscape.

Potential Risks

Currency Volatility: The Turkish lira has seen fluctuations; hedging strategies are advised.
Regulatory Shifts: Policies can change quickly; ongoing legal advice is essential.
Cultural Differences: Business etiquette and negotiation styles may differ from Western norms.

Mitigation Strategies

Work with a local partner or consultant
Stay updated with regulatory changes through legal counsel
Consider joint ventures or minority stakes to reduce exposure

Case Study: Successful Foreign Investment in Türkiye

Company: Siemens
Sector: Energy and Automation
Investment: Over €300 million in manufacturing and R&D
Outcome: Türkiye serves as Siemens’ regional hub for the Middle East and North Africa.

This is just one example among many multinationals that have found long-term success in Türkiye through well-planned investments and strong local integration.

Investing as an Individual: Real Estate and Citizenship

Individual investors looking for lifestyle, returns, or citizenship benefits can consider Türkiye’s property market.

Citizenship by Investment Program

Foreign nationals can acquire Turkish citizenship by investing in real estate worth at least $400,000.

Requirements:

Hold the property for at least 3 years
No resale or transfer allowed during this period
Property must be purchased from a Turkish citizen or a Turkish company

Contact FDI Consultancy for personalized guidance on your investment journey in Türkiye.