Turkish Citizenship Through Industrial or Commercial Investment

• Among the countries of the Middle East and North Africa, Turkey is one of the leading countries in heavy industry, electronics manufacturing, and technology industries, and it is distinguished by high capabilities, major resources, and abundant natural wealth. Turkey encourages industrial investment through a regulatory framework, tax facilitations, and comprehensive support services for investors, which makes it very suitable for industrial investments.

• We will cover the most important and useful points regarding industrial and commercial investment, according to the following table of contents:

  -The Most Important Advantages of Industrial and Commercial Investment in Turkey and the Necessary Requirements, the Most Important and Famous Industrial Cities

  -The Conditions for Industrial Investment in Turkey

  -The Advantages of Industrial Investment in Turkey

• -The Most Important Advantages of Industrial and Commercial Investment in Turkey and the Necessary Requirements, the Most Important and Famous Industrial Cities:

• · Since the publication of the additional articles to Law No. 5901 on January 12, 2017, foreign nationals investing in Turkey have been granted the right to apply for Turkish citizenship — including investors in Turkish industry.

• · Industrial investment in Turkish industries is one of the best and strongest types of investment, especially for new investors. The Turkish state has organized industrial cities in most cities, granting advantages to investors in these cities in terms of infrastructure and the services available there. Since Turkish society is a young population, this means the availability of cheap labor for the production chain. Let's not forget the tax exemptions when purchasing land, industrial facilities, and real estate.

• · As a result of the above, Turkey has become a destination for many foreign investors and manufacturers, whether to open branches in Turkey or to start a small or medium-sized project in Turkey.

• · Industrial production and Turkish exports make up 29% of the total national income, and around 20% of the workforce in Turkey is employed in it.

• · Industrial cities are distributed across almost all Turkish cities, and there is competition between industrial cities to provide the best services to manufacturers and investors in the industrial fields. There are around 280 industrial cities spread across Turkish territory. For example, the city of Izmir is distinguished by car and auto parts manufacturing. The city of Kayseri is distinguished by home furniture and furnishings manufacturing in general. Gaziantep and Istanbul are distinguished by textile and ready-made clothing industries. The Turkish city of Sakarya has a mixed industrial city with ready-made kitchens and other industries.

• · Support and the abundance of raw materials and cheap, skilled labor have led to the flourishing of industries in Turkey. Let's not forget the Turkish state's support for industries and its efforts to transform the Turkish economy into an industrial economy.

• · The most important advantage of investing in Turkey is obtaining Turkish citizenship for all family members, whether through a real estate investment worth 400,000 US dollars, a bank deposit worth 500,000 US dollars, or industrial investment once the conditions are met — conditions that are very simple and easy for a genuine investor, in terms of a certain number of employees and a certain capital starting from 500,000 US dollars.

• -The Conditions for Industrial Investment in Turkey:

• These are simple conditions, or rather just the routine legal procedures carried out by the citizen or foreigner wishing to invest, whether in real estate, industry, banking, or other fields:

• 1-Obtaining an official residence permit in Turkey, regardless, as a starting point, of its type.

• 2-Obtaining proof of ownership or the title deed (tapu) in the case of real estate investment, or the bank deposit certificate in the case of bank investment, or the factory rental contract or factory sale contract in the case of industrial investment.

• 3-Starting work with the necessary licenses to begin operating legally (click here for company establishment).

• 4-Starting the process of issuing the work residence permit.

• 5-The passport, translated into Turkish and certified at the notary.

• 6-Obtaining the personal tax number.

• 7-Some businesses require special approvals from the relevant ministries, depending on the industrial activity.

• Under Turkish law, the foreign investor and the Turkish citizen investor are treated the same, without discrimination, especially with regard to facilitations related to financial and tax matters.

• Due to the numerous facilitations in the field of industrial investment, in recent years many investors have been observed turning to Turkey, drawn by the advantages of Turkey's central location, ease of exporting, and the state's encouragement of exports.

• -The Advantages of Industrial Investment in Turkey:

• Turkey's distinctive, central geographic location and its proximity to Arab, European, and Asian countries. The abundance and variety of transportation and shipping methods, and air, land, and sea crossings. Lower investment costs compared to other countries. Diversity of projects and industries, and a rich, diverse economy. State support for exports. Sound infrastructure. The availability of cheap, trained labor. We list the other most important advantages as follows:

• 1-Turkish Industrial Cities in Most Cities:

• One of the most important factors attracting investors to Turkey is the industrial cities, which have the complete infrastructure needed to begin production — electricity, water, gas, communications, waste treatment, and connection to main roads — along with the state's encouragement to operate within them. Industrial cities are distributed across all Turkish cities, numbering close to 280 or more industrial cities. Among the facilitations the state offers to both foreign and Turkish investors alike:

• · Exemption from value-added tax when purchasing land.

• · Exemption from property tax for five years when establishing an industrial facility.

• · Lower costs of water, electricity, and industrial gas compared to other countries.

• · Exemption of industrial facilities from municipal taxes.

• · Exemption of solid waste from municipal taxes if the factory is inside an industrial city that does not use municipal services.

• · Tax refunds and discounts on the export of industrial products.

• · Once the industrial investment amount exceeds 500,000 US dollars, or you officially employ 50 Turkish citizen workers, you can obtain Turkish citizenship for yourself and your family members. After obtaining Turkish citizenship, if you achieve exports worth more than 1 million US dollars within a period of less than two years, you get the special passport that allows you to enter the European Union with an electronic visa, and the US visa as an investor without any difficulties.

• 2-Infrastructure and Supply and Export Lines:

• Strong infrastructure is the first and most important point when starting an industrial project — the type and quality of services provided, the support and exemptions offered by the Turkish state, the distinctive geographic location linking East and West, and the abundance of land, sea, and air crossings.

• The availability of raw materials and trained, inexpensive labor.

• 3-Some Statistics and Reasons for the Success of the Turkish Economy:

• The previous factors — facilitations, strong infrastructure, cheap skilled labor, supply and export lines, and the variety of export methods and mechanisms — combined with state support for everything mentioned above, led to the rise of the Turkish economy and its dominance in certain fields. Turkey is considered among the 20 strongest economies in the world. Now, some statistics regarding the Turkish economy in previous years.

• · The rise of Turkey's GDP from 230 billion in 2002 to 800 billion in 2014.

• · An increase in Turkish exports of 250% from 2002 to 2014.

• · Turkey's entry among the world's largest economies.

• · A notable increase in the number of foreign investors.

• Turkey has become a destination for many investors due to the notably growing Turkish economic strength over the past years.

• 4-Some of the Strongest Fields for Investment in Turkey:

• Turkey has the advantage of diversity across investment and industrial fields, but it should be noted that these are just the most well-known fields available for investment — bearing in mind the need for adequate study of the projects and the investment — and this is not a specific recommendation of our own. As Tayeb Company, [we say that] starting any business or investment requires a sufficient and thorough study of the market and its requirements, the raw materials, and the potential customer, etc. Investment advice from Hallak Company: conduct feasibility studies for the projects, secure supply chains for raw materials and outlet markets, and cover all investment-specific details before starting.

• · Investment in the textile and ready-made clothing industries.

• · Investment in the auto parts and automobile manufacturing industry.

• · Investment in the electronics manufacturing industry.

• · Investment in the food industries.

• · Investment in heavy industries, iron, and steel.

• · Investment in furniture and furnishings manufacturing.

• 5-The Most Famous Industrial Cities in Turkey:

• We will mention a number of the most famous industrial cities, without any particular order or recommendation — do your own prior research, as this list is not a recommendation; each industrial field has its own priorities by which the best choice is made.

• · The Organize (OSB) zone in the Turkish city of Kayseri, where home furnishings and furniture manufacturing is mostly concentrated.

• · The TOSB industrial city, located in the Turkish province of Bursa, where fabric and thread manufacturing is concentrated.

• · The İTOSB industrial city in the Turkish city of Istanbul, where certain medical industries, fabrics, home furniture manufacturing, paper industries, and other various industries are concentrated.

• · The SÖSİB industrial city, located in the city of Sakarya, known for plastics manufacturing, technical industries, and electrical, medical, and sporting-goods factories.

• · The OSTİM industrial city, the largest of the industrial cities, located in the city of Ankara, containing textile factories, auto parts factories, and sporting-goods factories.