“…If God wanted to build a golf course – he'd probably build it in Turkey…”
Why Turkey , The Property Market By European standards, Turkey is huge – around half as large again as France. When it joins the EU in the next ten years or so, it will in fact become the largest member state – so when it began its application for membership last year, it witnessed a flurry of foreign investment, particularly from Dubai, which will help boost its already fast-improving infrastructure.With a steady increase in annual tourism, Turkey is experiencing an unprecedented level of international exposure and this is, in turn is creating more tourist interest and increasing demand for Turkish property. The value of Turkish property is expected to appreciate in beach front areas by as much as 50% initially, with forecasts for the next two to three years reaching 100%.These promise to be fascinating times: all this increased investment will stimulate the Turkish economy and – given their relatively modest starting point – capital growth rates should fare very well, particularly along the Aegean and Mediterranean coasts, where Brits are most likely to invest. The area around Dalaman and Antalya are particularly popular amongst Turkey property investors as the Turkish government is improving the tourism infrastructure in an attempt to make these areas the most popular of Turkey’s top tourist attractions.Dalaman is seeing enormous investment including the expansion of Dalaman airport, the building of three marinas and the areas first golf course. Antalya is now the second most invested city in Turkey after Ankara and Istanbul, with new road networks, golf courses and hotels. As this investment programme is only in its early stages, property prices have not yet reacted. This is certainly an area of great potential to property investors.
The number of Britons owning property in Turkey recently jumped by more than 200 per cent in one 18-month period, and what’s more, it is now possible for foreigners to get a local mortgage, which will further encourage this ripening market. In addition to growing political optimism, buy-to-let investors are relishing a tourism boom: a total of 21 million visitors came to Turkey in 2005, a massive 22-per-cent increase on 2004. This year, the government’s target is 26 million. The lion’s share of those 26 million will be visiting west- and south-coast resorts, which are becoming increasingly famous and fashionable.Given Turkey’s prospects for the years to come, investment is looking like the sensible thing. And thanks to its size, it won’t run out of coastline for a while yet. 10 Reasons to purchase a home in Turkey Property prices are still lower than equivalent European hot spots Cost of living is 1/3rd of that in the UK The Mediterranean coast offers an all round season for good holiday rental opportunities. Excellent property investment growth is predicted with holiday operators and airlines increasing capacity. Low property acquisition and ongoing taxes Fastest going economies attracting large corporate investments Rich in cultural history and ancient historical ruins Excellent road and air networks providing good infrastructure around the country Turkey has some of Europe’s attractive and stunning beaches making it a very popular holiday destination Voted 3rd in the A Place in the Sun television programme to buy property (2005) and 4th most popular as a destination by the A Place in the Sun reader (2006)
Business Legislation Turkey offers a simple business legislation system with international standards through which all investors enjoy equal treatment. Recent amendments to the existing law will assist Turkey even further with its present improvements in the investment environment. Turkey offers: 1. Legal Framework for Foreign Direct Investment 2. Bilateral Agreements, Double Taxation Prevention Treaties and Social Security Agreements 3. Bilateral Free Trade Agreements Legal Framework of Foreign Direct InvestmentThe aim of Foreign Direct Investment Law is: • To encourage FDI’s in the country • To protect foreign investors’ rights • To bring the investors and investments in line with international standards • To establish a notification-based rather than approval-based system for FDI’s • To increase the volume of FDI’s through established policies The Foreign Direct Investment Law provides a definition of foreign investors and foreign direct investments. Additionally, it explains the important principles of FDI’s such as freedom to invest, national treatment, expropriation and nationalization, transfers, access to real estate, dispute settlement, valuation of non-cash capital, employment of expatriates, and liaison offices. The Regulation for the implementation of the Foreign Direct Investment law consists of:• Specifying the procedures and principles of the issues that are laid down in Foreign Direct Investment (FDI) Law. The target for the new FDI law on work permits for foreigners is:• To regulate the work carried out by foreigners • To stipulate the rules about working permits given to foreigners BILATERAL AGREEMENTSBilateral Agreements for the Promotion and Protection of InvestmentsSince 1962, Turkey has developed an impressive Bilateral Agreements network including 79 countries. The main purpose of these agreements is to promote the investment flows between the parties, to ensure a more stable investment environment, to provide economic and legal assurance to foreign investors and to establish a favorable atmosphere for economic cooperation.
Double Taxation Prevention TreatiesTurkey signed Double Taxation Prevention Treaties with 68 countries which enables offsetting tax paid in one of two countries against the tax payable in the other, in this way preventing double taxation. The following list includes the countries with which Turkey has DTT agreements. Europe (34)Africa (7)Asia (18)Middle East (8)Americas (1)Turkey continues to expand the coverage area of the Double Taxation Prevention Treaty by adding more countries on continuous basis. Social Security AgreementsTurkey signed Social Security Agreements with 22 countries which ease the movement of the expatriates between countries. The number of these countries will increase parallel to the enlarging spectrum of the FDI origin. Bilateral Free Trade AgreementsTurkey has 11 Free Trade Agreements (with EFTA, Israel, Macedonia, Croatia, Bosnia and Herzegovina, Palestine, Tunisia, Morocco, Syria, Egypt and Albania) which forms a levy-free environment in intra-trade on an agreed list of goods. This framework explains why many global companies are now using Turkey as the second supply source, not only for EU and rapidly growing Turkish market, but also for Middle East, Black Sea and North Africa, with the added advantage of relatively cheaper but well-educated labor force, coupled with cost-effective transportation. Turkey is carrying out negotiations to include Gulf Co-operation Council, Jordan, Lebanon, Georgia and Faroe Islands to the existing network in order to attract investors.