Legal Framework of Investment in Turkey

Ebru Şensöz Malkoç


Turkey has always been a country that attracts the attention of investors due to its geopolitical position. Legislation regarding investment is shaped in line with the social and economic policies of the country. It is seen that our country has accepted investment-friendly regulations in the process up to now. In this context, the “Foreign Direct Investments Law” dated 2003 and numbered 4875 is the Law which should be examined as a priority. This Law brought two important changes in investment law. One of these innovations is the transition from the permission system to the notification system in foreign investment. The other innovation is related to who can be considered as a foreign investor. With the new regulation, Turkish citizens residing abroad will also be able to get investor status. We define stocks and capital market investments less than 10% and not giving a control on the company as indirect investments. Within the scope of our study, direct investments, indirect investments and their legal framework will be explained in accordance with the relevant legislation.


Investment in Turkey, Foreign Direct Investment Law, Direct Investment, Indirect Investment

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