Investors and businesses in our country are expected to take their place in the evolving and changing global economy. Investing abroad requires taking on the role correctly, conducting research and feasibility studies, and evaluating the opportunities in the broadest context.
If you are planning to invest abroad, you must seek answers to many questions. For example: “Why abroad?” “What are my expectations?” “Is a short-term or long-term return on investment (ROI) expected?” “Is it about establishing permanence?” “Is it high income expectation or image?” The key is how clear and impartial you are about the questions and answers regarding your investment goals and the path you will follow.
Why Consider Investing Abroad?
Before making any cross-border investment, businesses must answer critical strategic questions:
- Why invest abroad?
- What are my expectations from this investment?
- Do I seek short-term profits or long-term sustainability?
- Is the purpose to establish permanence, increase income, or elevate brand image?
Clarity around these objectives ensures that the investment aligns with long-term goals. Making unbiased, well-researched decisions reduces risk and supports sustainable growth.
Strategic Factors to Evaluate Before Investing Abroad
Several elements must be analyzed to assess the viability of an overseas investment:
- Selection of multiple countries or regions for comparative feasibility
- Political risks and diplomatic relations that may affect your business
- Bilateral agreements between Türkiye and the target country
- The country’s membership in international organizations such as the OECD
- Legal frameworks including double taxation avoidance agreements and social security agreements
- Foreign Direct Investment (FDI) laws
- Local competition authority regulations
- Availability and effectiveness of dispute resolution mechanisms
These legal, political, and economic elements must be verified using reliable data and updated sources.
Market Access and Operational Planning
In addition to legal and macroeconomic factors, businesses must also plan for operational realities:
- Accessibility of raw materials and supply chains
- Tariff and non-tariff barriers
- Local competition and price strategies
- Target customers and distribution channels
- Required consultancy areas: legal, financial, technical
- Trademark and IP registration procedures
- Accurate cost forecasting and revenue modeling
Each step must be supported by expert analysis to mitigate financial and operational risks.
Government Incentives for Investing Abroad (As of 2024)
Türkiye provides extensive state support for businesses planning to invest abroad:
- A $200,000 government grant is available for overseas investments.
▸ 60% to 75% of this can be used for legal and financial consultancy services. - For technology-based and high-tech investments, interest support is available.
- In overseas company or brand acquisitions, support can reach:
▸ 3,000,000 TRY annually for general acquisitions
▸ 7,500,000 TRY in cases involving technology transfer - Credit interest support can cover up to 50% of total interest expenses.
- Agreements to avoid double taxation and coordinate social security systems further reduce burdens for Turkish investors abroad.
These incentives demonstrate the government’s commitment to supporting Turkish companies in their global expansion strategies.
Conclusion
Investing abroad is a multifaceted decision that requires financial readiness, strategic insight, legal awareness, and expert guidance. While the potential benefits are significant, successful overseas expansion depends on thorough research, strong risk management, and the ability to leverage state support mechanisms effectively.
To ensure the sustainability and profitability of your international investment, consider consulting with professionals experienced in cross-border advisory, financial planning, and compliance with foreign regulations.For more information, please contact us.
