The regulation regarding foreign investments was established with the Foreign Investment Law No. 4875 With this law the basic policy of Turkey regarding foreign investments was established.
This regulation aims to encourage foreign direct investment
Protecting the rights of foreign investors and ensuring compliance with international standards in defining investment and investor
And regulating the principles related to increasing foreign direct investment
foreign investor
A foreign investor is defined in Article 2 of the Foreign Direct Investment Law
According to the article, the person who makes a foreign investment in Turkey is a foreign investor. However, these persons may consist of natural persons with foreign citizenship, Turkish citizens residing abroad, and legal persons established in accordance with the laws of foreign countries and international organizations established in accordance with the laws of foreign countries.
Foreign investment by the foreign investor
1- It was brought from abroad
– Cash capital in the form of transferable funds, circulated by the Central Bank of the Republic of Turkey
The company’s securities (other than government bonds).
Industrial and intellectual property rights
– The machines and the equipments
2- Provided locally
Profits, revenues, receivables, or other rights related to investment with financial value used from reinvestment
– Through economic assets such as rights to prospect for and extract natural resources
a) Establishing a new company or opening a branch
b) Becoming a partner in an existing company through the acquisition of shares other than stock exchanges or acquisitions that provide not less than 10% of the shares or voting rights from stock exchanges.
rights of foreign investors
– Foreign investors are free to make direct investments in Turkey and they have the same conditions as local investors
– Net profit, dividends, sales, liquidation and compensation costs arising from the activities and transactions of these investors in Turkey and amounts to be paid for licensing, management and similar agreements. The main foreign loan payments and interest can be sent abroad through banks or private financial institutions
Foreign investors may apply for national or international arbitration or other dispute settlement methods
On the terms of fulfilling the conditions stipulated in the relevant legislation and subjecting the parties to the settlement of their disputes in accordance with the private law
– Companies established under a foreign law may open a liaison office, provided that they do not engage in commercial activities.
