The regulation on foreign investments in our country has been made with the Foreign Direct Investments Law No. 4875. Turkey's basic policy on foreign investment have been created with this law.
The purpose of this Law is to encourage foreign direct investments, to protect the rights of foreign investors and to comply with international standards in investment and investor definitions and to regulate the principles for increasing foreign direct investments.
Foreign Investor
Foreign investors are defined in Article 2 of the Foreign Direct Investment Law. According to the Article, foreign investors are people who direct foreign investments in Turkey. However, these persons may consist of real persons holding the citizenship of foreign countries, Turkish citizens residing abroad, 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
Refers to the following transactions made by a foreign investor.
1) Brought from abroad;
- cash capital in the form of convertible money that purchased and sold by Turkey's Central Bank,
- company securities (except government bonds),
- machinery and equipment,
- Industrial and intellectual property rights,
2) provided domestically,
- Profit, revenue, money receivable or other rights related to investment with financial value used in reinvestment,
- Through economic assets, such as rights to exploration and extraction of natural resources;
a) Establishing a new company or opening a branch,
b) It refers to becoming a shareholder of an securities exchanges through the acquisition of shares outside of the stock exchanges or acquisitions that provide at least 10% of the shares or the same voting rights from the stock exchanges.
Rights of Foreign Investors
Foreign investors are free to make direct investments in Turkey and has the same terms as domestic investors.
These investors net profit, dividends, sales, liquidation and compensation, amounts to be paid in return for licenses, management and similar agreements, and foreign loan principal and interest payments, arising from the activities and operations in Turkey, sent abroad by banks or private financial institutions.
Foreign investors may apply to national or international arbitration or other dispute resolution methods in order to resolve their disputes subject to private law, provided that the conditions stipulated in the relevant legislation are met and on the condition of the parties.
Companies established in accordance with foreign country law can open liaison offices, provided that they do not engage in commercial activities.
