NEWSROOM

The pandemic paved the way for foreign investments. According to the data of the Ministry of Commerce, direct investments of companies from Turkey in international markets increased by 62% in the third quarter of 2021, reaching the limit of 560 million dollars. While the CEE Region, which includes Central and Eastern European countries, leads the way in investments, countries such as Hungary, Germany, Serbia, Estonia, Poland and the Czech Republic direct the foreign moves of companies with the different advantages they offer.

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ISTANBUL (TR) - Turkish companies, which successfully managed the shocking effects of the pandemic, accelerated their globalization steps. According to the data of the Ministry of Commerce, foreign direct investments increased by 62% in the third quarter of 2021 compared to the same period of 2020, reaching the limit of 560 million dollars. The total amount of direct investments made by Turkish investors abroad has approached the cumulative level of 50 billion dollars from 2003 to 2020. In 2021, there were remarkable increases in investments in the industry and manufacturing sectors, where the service sector was far ahead. Stating that the CEE Region, which includes Central and Eastern European countries, stands out in direct investments made abroad, the Founding Partner of Gürcan Partners, an EU-based international law and consultancy company, Atty. Bedrettin Gürcan said, “Overseas investments, which require a certain capital and experience, allow Turkish companies to globalize when properly planned depending on regional needs and market conditions. Government incentives and tax concessions also facilitate this process. Particularly, the CEE Region shapes the foreign investments of Turkish companies with its strong economy, developed sectors, educated workforce and different opportunities offered depending on the countries.”

The advantages offered by the countries have a say in investments.

Noting that the advantages offered by the countries have a say in the investments made by Turkish companies with a focus on growth and acquisition abroad, Atty. Bedrettin Gürcan made the following assessment on the subject: “Germany seeks a capital requirement of 25 thousand euros for limited company establishments. In Estonia, this figure is 2 thousand 500 euros, but flexibility is also offered. In addition, company establishment procedures can be carried out online, and the expenses incurred at this stage can be shown as an expense. Hungary is one of the most attractive countries for those who want to establish a company in Europe with a 9% corporate tax. It has very favorable investment conditions with its close relations with Turkey and strong IT and logistics infrastructure.”

Low inflation and cheap labor

Drawing attention to the fact that low inflation rate and cheap labor force bring cost advantages to foreign investments, Gürcan Partners Co-Founder Atty. Bedrettin Gürcan said, “Poland is one of the advantageous countries for establishing a company in Europe with its low inflation rate, qualified and cheap labor force, stable and growing economy and strong domestic market. Skilled and cheap workforce and strong industrial infrastructure also open the door to Czech Republic investments. Serbia is a country that is very open to investments with its developing startup ecosystem. Due to the steps taken towards becoming an EU member, investments are regulated within the scope of European Union Legislation.

International law firms open doors of opportunity

Stating that the offered residence opportunities, investment incentives and tax advantages make it attractive to invest abroad, Atty. Bedrettin Gürcan said, “Companies prefer direct investment to get a larger share of commercial traffic in global markets. Law firms also have a big role to play in terms of which country will be more advantageous to invest in. The gray list of Turkey by the Financial Action Task Force (FATF) affiliated to the OECD has also increased the importance of international law firms. International law firms, which specialize in investment planning, tax optimization and international commercial disputes, open doors of opportunity while keeping Turkish companies away from risks.

Offers a roadmap to Turkish companies

Mentioning that international law companies offer a roadmap for Turkish companies' foreign investments, Gürcan Partners Co-Founder Atty. Bedrettin Gürcan said, “As an experienced and innovative international law and consultancy company, we direct the investments of Turkish companies in the CEE Region with our staff that brings together lawyers from the Czech Republic, Poland, Hungary, Turkey, Serbia, Estonia, and the USA. Our dominance of the 21st century legal industry enables us to comprehensively evaluate both regional and multinational agreements. With our operations spanning 9 countries, we have provided consultancy to nearly 200 Turkish companies abroad, including large holdings, to date. We also assist companies on investment and business opportunities with the service we offer in 13 languages. We are also strengthening our consultant position with the accounting services we provide to companies through Gurcan Consultancy, which we position within our organization.