- Is the Turkish Economy Truly Suffering? How can foreign investors get the maximum advantage of the current inflation?
To answer the question, we should explain some crucial details that would determine the absolute true answer:
- First, the geographical location of Turkey, which is located in the heart of the world:
The entire world is witnessing a global economic crisis due to the Coronavirus that is sweeping the whole world. Because of the virus, life progressing stopped working for a long time in the last past two years, now the entire globe suffers from the imbalance in global supply chains, and supply problems appeared on the surface in international attempts to recover the global economy from the devastating effects of the Coronavirus. Here the story began, goods worldwide filled the ports, millions of commercial containers were standing waiting for their turn to dock in the harbor.
Secondly: the world suffered a significant loss of workforce in both shipping companies and ports, and therefore even when the goods arrive, there is not enough workforce to transport goods To its owners, but the situation in Turkey is entirely different, given the excellent geographical location on several waterways on its coast in several cities, which is in the middle of both the continents of Europe and Asia, the most important of which are:
Therefore the Turkish President Recep Tayyip Erdogan recently announced the opening of one of the largest commercial ports in Europe. All this is in the interest of Turkey and the Turkish economy.
meanwhile that we are witnessing a significant decline in the value of the Turkish currency, in conjunction with the increase in the value of Turkish exports to the world, that approximately equal 121 billion US dollars during the first seven months of the beginning of this year, equivalent to 10.9%, at a time when the world is still suffering from the impact of Corona on the economy except for Turkey, despite the devaluation of its currency, did not stand in the way of the prosperity of the Turkish economy
Secondly: it is worth mentioning that at the beginning of 2017, Turkish President Recep Tayyip Erdogan banned the sale and purchase in the real estate market in Turkey in foreign currencies. This decision came for two reasons:
1 - To protect the rights of the Turkish citizen and to keep their ability to buy and sell their real estate in the first place
2 - To attract foreign investment, because when the Turkish president fixed the value of the property in Turkey and prevented trading for both buying and selling except in the local currency, by implanting this law, he drew the attention of the foreign investor by proposing and implementing the tax exemption law from the value-added tax (VAT/KDV) only when the foreigner investor will transferring cash liquid from out of Turkey in foreign currency and in a legal way, to Turkey to buy the property.
in this case, the foreign investor will be able to take advantage of the low value of the Turkish lira vs. foreign currencies such as the US dollar and the euro, in terms of clarification:
If the foreign investor intends to invest in the real estate sector in Turkey with a value of 100,000 US dollars, he will benefit from the devaluation of the Turkish lira, equivalent to at least 16% of its value
Now, the 100,000 US dollars is equivalent to 970,000 Turkish lire; at the same time, the property in Turkey is still price fixed according to the value of the local currency and is not linked according to the US dollar price.
All of this made investing in Turkey for foreigners a profitable deal for both parties (win/win deal), and here an additional benefits that the foreign investors can gain:
1- Tax exemption from value-added tax (VAT/KDV)
2 - The return on investment in the long term in Turkey, given the high value of the property, which achieves long-term profit through resale
3- Obtaining Turkish citizenship if 250,000 US dollars are invested. It is worth mentioning that the Turkish passport will give you freedom of entry to more than 100 countries around the world without a visa, and 25 other countries grant you access upon entry. All this comes within the framework of a deal A (win-win) for all parties, for you and your family as well.
And because we in TURKEY'S ADVISOR always strive to BE the best, the best you deserve, we will always be ready to answer all your questions, contact us And we promise that you will get what you deserve