As Kaya Legal we think that there are facts necessary to know before deciding to invest in Turkey.

Seeing those services as a whole firstly, apart from the investment itself, there needs to be an evaluation to decide the needs of the work and the investment in general and to determine the differences between needs according to the type of investment.


Although Turkey is regarded as a potential investment area for the foreign investors, it doesn’t mean that every business idea would work in Turkey. For example, growing swine to produce meat had been tried several times but failed to succeed.

This fact is valid for all the countries about different investment types.

Keeping in mind that there is no official declaration, when the data from the Chamber of Commerce of İstanbul is observed, following facts can be reached.

Regarding the foreign investors, among the companies that decide to invest in Turkey

  • The rate of deciding to end up the investment is below 0.5%. This meas that only 1 out of 200 countries give up investing in Turkey
  • The rate of companies that go to bankruptcy is much less, which is 1/6250.
  • The rate of loss among the companies that use the build-operate-transfer model is below 10%. The biggest rate of loss was in 2005, 9.6%. The global crisis was also felt in Turkey in 2005. In 2005, the rate of transferring the investment was 6%. Among the companies that transfer their investments, 9.6% of them had transferred because of loss.


Although Turkey is among the countries that petroleum products are not produced, it is 16th on the Purchasing Power Parity(PPP) chart. (Source: Wikipedia


In addition, taking into account that Turkey has close commercial relationships with, the quality of products is above the European standards.

Turkey’s most important speciality is its geographical position. İstanbul, the capital of commerce, is at the end of a 3 hour distance where you can reach the 25% of the world population.

A point including the Scandinavian Peninsula and the Britain and in the south the whole Arabian Peninsula that includes Yemen. In the west, an area that starts with the North Africa and goes through Kazakhstan therefore the 65% of Russian population can be reached.

Through İstanbul, you can reach this area in a few hours. The total population within this area is a little more than 2 million. Only 27 EU countries make 500 million. ( 495.920.715 )

In addition, Turkey is an Islamic country. In an area where the half of the 2.5 million Muslims live, Turkey is the only country that circulates its economy with production. The other non-producing Islamic countries can be market for Turkey.

These are opportunities of Turkey.

Similarly, there are hundreds of opportunities that don’t exist in other countries. Above listed some concrete examples.

These should be known by the investors.


This topic should be observed under a few different headings. Issues about Analysis and Strategic Planning are two main headings and there are sub-headings.


  • Sector analysis
  • Competitor analysis
  • Location analysis
  • Sociological analysis
  • Legal analysis

Strategic Planning

  • Revenue model – What to do with the revenue and how to transfer it abroad.
  • Expense model – Distributing expenses to get the maximum benefit.
  • Support model – Evaluation of the foreign investor’s project and providing of the support.
  • How the business structure should be – Evaluating expectations and the results


The details below are regarded as summary and basic and do not involve all the details. Only a few concrete examples.

There is the System of Taxation upon Statement in Turkey

Governmental supervision is provided after. Therefore, a single fault on accounting and its penal sanction may be encountered 10 years after the structuring.

Therefore the transactions about statement to the government(registration of the accounting system) should be made with reliable consultants. Neglecting this may cause harmful results. The minimum compensation starts from $300 per transaction and there is no upper limit. Along with the monetary compensation, there may come out penal sanctions that could limit the personal freedom.

The accountant cannot be held responsible. The business owner would be under obligation of performance.

Future Delivery of the Purchase Price is Common in Turkey

Therefore the revenue expense balance should be planned according to a strategy. This means dozens of strategies to be planned including all the purchases and sales. Therefore sector analysis and competitor analysis is strongly advised.

If the investment is planned upon a revenue model based on the sale of a product, the sector and competitor analysis can be directive before the investment decision.

Legal Analysis of the Investment in Turkey

Along with the Turkish Commercial Code there are 50 laws, 15 regulations and 3 directives.

In case of a conflict between the employer and the employee, even if the investor has no authority nor responsibility; according to the ‘’Responsibility without fault’’ principle, he may be held responsible. Therefore the employment contracts should be prepared carefully.