Legal Framework And Risks For The Investment Procedure In Turkiye For International Investors

In recent years, Türkiye has become a significant market for international investors

International investments are vital tools for economic cooperation and development between countries. However, investors may encounter risks that do not comply with the legal regulations of different countries as they invest in an international platform. For this reason, international investors should follow the legal processes in a proper way and apply preventive legal mechanisms. Because certain countries may introduce legal regulations that limit the investment activities of international investors. Therefore, it is of utmost importance to examine in detail the legal regulations in the country of investment.

Investors who learn about the legal regulations in the country where they will invest should prepare the necessary documents for the investment procedure. The process in question may include exclusive investment contacts, agreements, and license applications for the relevant field.

In recent years, Türkiye has become a significant market for international investors. Because Türkiye’s strategic location, young population, dynamic economy, growth potential, political stability, and the importance attached to the role of foreign investments in economic cooperation and development in Türkiye attract the attention of investors. However, within the scope of the investment processes in question, there are a few issues that international investors should pay attention to as they invest in Türkiye. These issues mainly include the following: First of all, it is of great importance to get support from local legal consultants in order to determine the roadmap of the investment and to prevent the problems that may be encountered in the investment and cooperation processes.

Because legal advisors can support the investors in following the legislation and regulation in Türkiye with regard to investment allocation, providing public relations support at the point of providing appropriate communication channels between public administrators and the investors, and analyzing investment opportunities, returns and risks of investment and make investors aware of the legal risks in the investment process. As a matter of fact, many international investors are not aware of financial advantages such as incentives and supports, tax reductions, and tax exemptions in the country they will invest in. At this point, we show the utmost care to provide our clients with the most advantageous scenarios, both legally and financially.

It is of utmost importance to examine in detail the legal regulations in the country of investment

In addition, one of the most vital issues to be considered is that the investors should follow the economic and political developments in Türkiye. Investors should keep an eye on economic and political fluctuations, follow current economic and political developments and take their investment decisions according to these developments. Factors such as economic data, political decisions, and exchange rate changes are important factors that international investors should consider as they invest in Türkiye. Besides, the investment contracts of international investors in Türkiye should be prepared in a meticulous manner, and the law to be chosen in the contract and the alternative dispute resolution method should be carefully determined according to the nature of the investment. In order to avoid possible disputes, an effective financial due-diligence process should be carried out, and the financial information of the counterparty to be contracted
should be examined in strategic, operational, and commercial terms. Making sure that everything is in writing in order to prevent possible legal disputes in the future has a critical role in ensuring investor security.

The importance attached to the role of foreign investments in economic cooperation and development in Turkiye attracts the attention of investors

Another factor to be considered in international investments is the extent to which the property rights of the investor are secured in the country of investment. Investors are advised to have information about property rights and their protection in the country where they will invest and to enter the relevant investment area by making risk analyses with this knowledge. Getting support from local legal consultants in this regard ensures that they protect their property rights in the country where they will invest and minimizes the risks in the investment process. In addition to all these issues, it is important for the investor to learn about the local culture and business traditions in terms of ensuring their reliability in the local market. Because Türkiye has a different culture and way of doing business. International investors should be knowledgeable in this sense so that their activities in Türkiye are in line with local culture and business traditions. Certain factors such as having a local business partner, joining local networks, or hiring a local mentor will enhance international investors’ business opportunities in Türkiye.

In conclusion, international investors who are willing to invest in Türkiye should get support from local legal consultants and learn in detail about investment contracts, follow the economic and political developments in Türkiye, carry out an effective due-diligence process in order to have detailed information about the domestic legislation, permits, tax system, property rights, and judicial system in our country. For international investors, in order to discover business opportunities in Türkiye and make the right investment decisions, it is critical for the success of the investment that they manage these processes in a correct manner and make their investments in a legal way.