войти! REAL ESTATE ACQUISITION OF FOREIGN REAL PERSONS IN TURKEY
Real estate acquisition of foreign real and legal persons has been regulated in the article 35 of the Land Registry Law numbered 2644 with law numbered 5444 and dated December 12,2005 which was established in the Official Gazette of 26046 numbered and dated January 7,2006. New fundamental principles was regulate with this new law for acquisition real estate of foreign real persons and and trade companies having legal personality and established in foreign countries according to the laws of these countries in Turkey.
New form of the article 35 of the Land registry Law is as follows:
“With the reservation of reciprocity and compliance with legal restrictions, foreign real person can acquire real estates for the purposes of using as residence or business aims in Turkey that are separated and registered for these purposes in the implemented development plans or localized development plans. The same conditions shall be stipulated in the establishment of limited real rights on real estates. The total area of the real estates and limited real rights on real estates that a real person of foreign nationality can acquire all over the country can not exceed 25.000 m2. Within the same conditions set out in this paragraph Council of Ministers is authorized to increase the area up to 30 hectares.
Companies having legal personality established in foreign countries according to the laws of these countries can acquire real estates and limited real rights on real estates in Turkey according to the provisions of special laws.
In case of establishing mortgage in Turkey in favor of foreign real persons and trading companies having legal personality established in foreign countries according to the laws of these countries the conditions and restrictions set out in first and second paragraphs shall not be applied.
With the exception of foreign real persons and trading companies having legal personality established in foreign countries according to the laws of these countries, no one can acquire real estates and limited real rights on real estates in Turkey.
For the real estates acquired through legal inheritance by citizens of a country that have reciprocity with Republic of Turkey, the conditions and restrictions set out in the first paragraph shall not be applied. For the real estates acquisition by means of transactions depending on death apart from legal inheritance, the conditions and restrictions set out in the above paragraphs shall be applied. Real estates and limited real rights on real estates acquired through legal inheritance by citizens of countries that do not have reciprocity with Republic of Turkey shall be liquidated after their transfer transactions are performed.
De jure and de facto circumstances shall be taken as basis in determination of reciprocity. In implementation of this principle for the citizens of countries that have not granted land ownership rights, it's stipulated that the rights granted by a foreign country for real estate acquisition to its own citizens should also be granted to citizens of the Republic of Turkey.
The Council of Ministers is authorized to determine the places where foreign real persons and trading companies having legal personality established in foreign countries according to the laws of these countries can not acquire real estates and limited real rights on real estates within the areas in terms of irrigation, energy, agriculture, mine, and protected areas, and belief and cultural featured areas and special protection areas and touchy areas due to flora and fauna features, strategic areas due to public interests and country security by means of the proposals of relevant public institutions and organizations with registry based coordinated maps and plans, and the rate of the areas where foreign real persons can acquire real estates not more than 5 per thousand according to the provinces and provinces’ areas. Proposals of the public institutions and organizations within these scope shall be examined, appreciated and submitted to the Council of Ministers by means of a commission that carries out studies within the authority set out in this paragraph and constitutes of relevant representatives of administration in the structure of the ministry that General Directorate of Land Registry and Cadastre is related to.
Map and coordinate values concerning the military forbidden zones, military and private security zones and strategic zones that are determined after the enforcement of this law and their alterations shall be given without any delay by the Ministry of National Defense to the ministry that General Directorate of Land Registry and Cadastre is related to.
The parcels needed to be expropriated or to be annotated on land register due to be in the areas determined in the above paragraphs shall be notified by relevant institutions to relevant Land Registry Offices.
The real estates and limited real rights on real estates acquired contrary to the provisions of this article or determination of misuse according to the purpose of acquisition without legal necessity shall be converted to value and paid to owner of unless the real estates liquidated by the owner within the period given by Ministry of Finance.”
I.1.RECIPROCITY PRINCIPLE
In the new regulation, instead of exact equivalent implementation of reciprocity principle, it's stipulated that the rights given by a foreign country to its own citizens or trade companies having legal personality and established according to its own laws, should also be given to citizens and trade companies of the Republic of Turkey.
The Council of Ministers expressed what should be understood from the reciprocity principle in its decision dated May 29, 1940 and numbered 2/13394. According to this decision, in addition to legislative regulation of reciprocity principle, practical applicability of it is also required for its existence. By this decision, in which it's taken into consideration that reciprocity in law will not indicate actual situation, restrictions encountered in a foreign country by the citizens of the Republic of Turkey, in case of their application, are wanted to be taken as a basis in implementation of reciprocity. Therefore, for the existence of reciprocity between our country and a foreign country about real estate acquisition, reciprocity must be both in law and in practice. According to this principle, for real estate acquisition of a foreign country's citizen or trade company in our country, the citizens and trade companies of the Republic of Turkey should also have the right to acquire real estate in this foreign country and this right must be accepted by laws and must be practically applicable.
I.2.EXCEPTIONS OF RECIPROCITY PRINCIPLE
Although the first condition is reciprocity for real estate acquisition of foreign real persons in our country, reciprocity principle has some exceptions in terms of real persons. These exceptions are as follows:
a. Since haymatlos persons have no state citizenship, there isn't any state to decide about reciprocity. For this reason, haymatlos persons are exempted from reciprocity principle.
b. According to the article 7/2 of "Convention on Legal Situation of Refugees" dated July 28, 1951 and ratified by Turkey with the law dated August 26, 1961 and numbered 359, the refugees are exempted from reciprocity principle in a country after three years of residence. The refugees in Turkey are also subjected to the same provision. It is enough for refugees to prove this situation with an official document for exemption.
c. According to the article 8/E of the Law for Encouragement of Tourism numbered 2634, foreign real and legal persons who want to make investment for tourism objective in Turkey, can acquire real estate by the decision of the Council of Ministers in tourism areas and centers being exempted from reciprocity principle and restrictions formulated for foreigners.
I.3.LEGAL RESTRICTIVE PROVISIONS
The second condition for real estate acquisition of foreign real persons in our country is to comply with restrictive provisions involved in law. Some restrictions are involved in our laws concerning real estate acquisition of foreigners. These restrictive provisions are as follows:
a. According to regulations involved in the Military Forbidden Zones and Security Zones Law numbered 2565 which restricts geographically real estate acquisition of foreigners in our country, it is not possible to sell, transfer and rent real estate located within military forbidden zones and security zones, to foreign real and legal persons.
b. According to the article 35 of the Land Registry Law numbered 2644, foreign real persons can not acquire real estate more than 2,5 hectares in our country, however for acquisition up to thirty hectares, decision of the Council of Ministers is required. Legal inheritance is exception of this rule.
I.B. REAL ESTATE ACQUISITION OF FOREIGN trade companies having legal personality IN TURKEY
Companies having legal personality established in foreign countries according to the laws of these countries can acquire real estates and limited real rights on real estates in Turkey according to the provisions of special laws.
Relevant special laws:
- Law for Encouragement of Tourism numbered 2634
- Petrolium Law numbered 6326
- Industry Regions Law numbered 4737
In case of establishing mortgage in Turkey in favor of foreign real persons and trading companies having legal personality established in foreign countries according to the laws of these countries the conditions and restrictions set out in first and second paragraphs shall not be applied.
With the exception of foreign real persons and trading companies having legal personality established in foreign countries according to the laws of these countries, no one can acquire real estates and limited real rights on real estates in Turkey.
I.C.REAL ESTATE ACQUISITION OF FOREIGN CAPITAL COMPANIES
The expression of "foreign capital companies" is usually confused with the expression of "foreign company".
First of all, it should be stated that "foreign capital companies" are established according to the provisions of the Turkish Trade Law in Turkey and enrolled in Turkish Trade Register. In other words, these countries are subjected to the legal provisions of the Republic of Turkey. Only, the whole or part of their capital belongs to foreign real and legal persons. Availability of foreign shareholders within the company will not include it within the status of foreign legal personality; because nationality of the company and nationality of its shareholders are different matters.
The Law for Encouragement of Foreign Capital numbered 6224 and dated January 18, 1954 was repealed by Foreign Direct Investment Law numbered 4875 and dated June 5, 2003 that entered into effect being published in the Official Gazette numbered 25141 and dated June 17, 2003, new provisions were adopted to encourage and increase foreign direct investments, to protect rights of foreign investors, and to transform permission and ratification system to informative systems in realization of foreign investments.
With regard to the subject, a circular numbered 1363-100/841 and dated August 7, 2003 was announced to all our units through our regional directorates and it was stated that implementation would be carried out within the framework of the following statements.
By the Foreign Direct Investment Law numbered 4875, foreign investors are subjected to equal treatment with domestic investors; permissions and ratifications like investment permissions, company establishment permissions, were removed. Moreover, companies having legal personality that foreign investors participate in or establish, in our country, are allowed to acquire real estate or limited real rights in areas where acquisition of these rights is allowed for Turkish Citizens.
Companies established according to the repealed Law numbered 6224 or that will act according to the Law numbered 4875 which is about the activities of foreign capital companies in our country, are considered as companies of the Republic of Turkey, according to criteria of establishment place or administration center. For this reason, real estate acquisition and other demands concerning land register of foreign capital companies that either obtained activity permission according to the repealed Law for Encouragement of Foreign Capital or will act according to the Foreign Direct Investment Law numbered 4875, are concluded by relevant Land Registry Offices implementing the same methods and rules as for companies established according to the Turkish Trade Law, after examining authorization documents given by the Trade Register Authorities that indicate the competent person and competence for real estate acquisition of the company.
II.TRANSFER
It is free to transfer through banks and private financial institutions, revenue and value of sale earned from real estate and real rights acquired by foreigners with or without exchange of foreign currency.
III.AUTHORITY OF APPLICATIONS
By the article 26 of the Land Registry Law numbered 2644, the duty and authorization to regulate contracts concerning property and real rights excluding property were given to Land Registry Offices.
Foreigners who want to acquire real estate or benefit from real rights apart from property will make their applications to the Land Registry Office where the real estate is located.
Detailed information about the subject can be provided from the General Directorate of Land Registry and Cadastre.
IV. REQUIRED DOCUMENTS FOR APPLICATION
There is no difference between Turkish citizens and foreigners in terms of required documents for application.
IV.A. In terms of Real Persons,
a. Title deed of the real estate if available, otherwise a document indicating the city block and parcel of the real estate or verbal statement of the owner.
b. Identity card or passport of foreigner given by his/her own country and two small photographs.
c. If the person applying for demand is representative, a power of attorney of the representative, and identity card with photograph, two small photographs of the representative, and if some of the purchasers are not present during the transaction, identity card with photograph, two small photographs and power of attorney of the representatives that represent the purchasers, are required.
IV.B. In terms of Legal Persons
a. Companies established according to the Foreign Direct Investment Law numbered 4875 will show competence document given by Turkish Trade Registry, a document given to the person assigned basing on this, and signatures certificate.
b. Foreign trading companies established in foreign countries according to their laws are required, in compliance with the legislation of their country, to show a document having the effect of competence document given by relevant authorities.
With regard to charges and taxes required to be paid in the course of transactions, there is no difference between persons of foreign nationality and citizens of the Republic of Turkey. However, when asking the competent military post to determine whether the real estate demanded by real or legal person of foreign nationality is located out of Military Forbidden Zones and Security Zones or not, if any control in the field is needed to mark on map of 1/25000 scale where the real estate is, a kind of service value will be paid according to transaction named “showing the parcel in its place.”
http://www.tkgm.gov.tr/
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TURKEY: Geographical Profile
The lands of Turkey are located at a point where Asia, Africa and Europe are closest to each other, and straddle the point where Europe and Asia meet. Geographically, the country is located in the northern half of the hemisphere at a point that is about halfway between the equator and the north pole, at a longitude of 36 degrees N to 42 degrees N and a latitude of 26 degrees E to 45 degrees E. Turkey, as a country roughly rectangular in shape, has a width of approximately 550 kilometers and a length of approxiamately 1500 kilometers.
Because of its geographical location, the mainland of Anatolia has always found favor throughout history, and is the birthplace of many great civilizations. It has also been prominent as a centre of commerce because of its land connections to three continents and the sea surrounding it on three sides.
Area
The actual area of Turkey inclusive of its lakes is 814,578 square kilometers, of which 790,200 are in Asia and 24,378 are located in Europe.
Boundaries
The lands of Turkey are located at a point where Asia, Africa and Europe are closest to each other, and straddle the point where Europe and Asia meet. Geographically, the country is located in the northern half of the hemisphere at a point that is about halfway between the equator and the north pole, at a longitude of 36 degrees N to 42 degrees N and a latitude of 26 degrees E to 45 degrees E. Turkey, as a country roughly rectangular in shape, has a width of approximately 550 kilometers and a length of approxiamately 1500 kilometers. Because of its geographical location, the mainland of Anatolia has always found favor throughout history, and is the birthplace of many great civilizations. It has also been prominent as a centre of commerce because of its land connections to three continents and the sea surrounding it on three sides. The actual area of Turkey inclusive of its lakes is 814,578 square kilometers, of which 790,200 are in Asia and 24,378 are located in Europe.
The land borders of Turkey are 2,949 kilometers in total, and coastlines (including islands) are another 8,333 kilometers. Turkey has two European and six Asian countries for neighbours along its land borders.
The land border to the northeast with Georgia is 276 kilometers long; to the east with Armenia is 328 kilometers long and that with Azerbaijan (Nakhichevan) is 18 kilometers long. The land border to to the southeast with Iran is 560 kilometers long; to the south with Iraq is 384 kilometers long, and that with Syria is 911 kilometer long, which took its present form in 1939, when the Republic of Hatay joined Turkey. Turkey's borders on the European continent consist of a 203-kilometer frontier with Greece and a 269-kilometer border with Bulgaria.
Geographical Regions
Turkey is generally divided into seven regions: the Black Sea region, the Marmara region, the Aegean, the Mediterranean, Central Anatolia, the East and Southeast Anatolia regions.
The uneven north Anatolian terrain running along the Black Sea resembles a narrow but long belt. The land of this region is approximately 1/6 of Turkey's total land area.
The Marmara region covers the area encircling the Sea of Marmara includes the entire European part of Turkey, as well as the northwest of the Anatolian plain. Whilst the region is the smallest of the regions of Turkey after the Southeast Anatolia region, it has the highest population density of all the regions.
The most important peak in the region is Uludag (2,543 metres), at the same time it is a major winter sports and tourist centre. In the Anatolian part of the region there are fertile plains running from east to west.
The Aegean region extends from the Aegean coast to the inner parts of western Anatolia. There are significant differences between the coastal areas and those inland, in terms of both geographical features and economic and social aspects.
In general, the mountains in the region fall perpendicularly into the sea and the plains run from east to west. The plains through which Gediz, Kücük Menderes and Bakircay rivers flow carry the same names as these rivers.
In the Mediterranean region, located in the south of Turkey, the western and central Taurus Mountains rise up closely behind the coastline. The Amanos mountain range is also in the area.
The Central Anatolian region is exactly in the middle of Turkey and gives the appearance of being less mountainous compared with the other regions. The main peaks of the region are Karadag, Karacadag, Hasandag and Erciyes (3.917 metres).
The Eastern Anatolia region is Turkey's largest and highest region. About three fourths of it is at an altitude of 1,500-2,000 metres. Eastern Anatolia is composed of individual mountains as well as of whole mountain ranges with vast plateaus and plains. The mountains: There are numerous inactive volcanoes in the region including Nemrut, Suphan, Tendurek and Turkey's highest peak, Mount Agri (Ararat), which is 5,165 metres high.
At the same time, several plains extend along the course of the River Murat, a tributary of the Firat (Euphrates). These are the plains of Malazgirt, Mus, Capakcur, Uluova and Malatya.
The Southeast Anatolia region is notable for the uniformity of its landscape, although the eastern part of the region is comparatively more uneven than its western areas.
Coastlines
Turkey is surrounded by sea on three sides, by the Black Sea in the north, the Mediterranean in the south and the Aegean Sea in the west. In the northwest there is also an important internal sea, the Sea of Marmara, between the straits of the Dardanelles and the Bosphorus -- important waterways that connect the Black Sea with the rest of the world.
The mountains in the Black Sea region run parallel to the coastline and the coasts are fairly smooth without too many indentations or projections. The Black Sea coastline in Turkey is 1,595 kilometers and the salinity of the sea is 17%.
The Mediterranean coastline runs for 1,577 kilometers and here too the mountain ranges are parallel to the coastline. The salinity level of the Mediterranean is about double that of the Black Sea.
Although the Aegean coastline is a continuation of the Mediterranean coast it is quite irregular because the mountains in the area are perpendicular to the Aegean Sea. As a result, the Aegean Sea coast is over 2,800 kilometers long. The coastline faces many islands.
The Marmara Sea is located totally within national boundaries and occupies an area of 11,350 square kilometres. The coastline of the Marmara Sea is over 1,000 kilometers long; it is connected to the Black Sea through the Bosphorus and to the Mediterranean through the Dardanelles.
Rivers
Most of the rivers of Turkey flow into the seas surrounding the country. The Firat (Euphrates) and Dicle (Tigris) join together in Iraq and flow into the Persian Gulf. Turkey's longest rivers, the Kizilirmak, Yesilirmak and Sakarya, flow into the Black Sea. The Susurluk, Biga, and Gonen pour into the Sea of Marmara, the Gediz, Kucuk Menderes, Buyuk Menderes and Meric into the Aegean, and the Seyhan, Ceyhan and Goksu into the Mediterranean.
Lakes
In terms of numbers of lakes, the Eastern Anatolian region is the richest. It contains Turkey's largest, Lake Van (3.713 square kilometres), and the lakes of Ercek, Cildir and Hazar. There are also many lakes in the Taurus mountains area: the Beysehir and Egirdir lakes, and the lakes that contain bitter waters like the Burdur and Acigoller lakes. Around the Sea of Marmara are the lakes of Sapanca, Iznik, Ulubat, Manyas, Terkos, Kucukcekmece and Buyukcekmece. In Central Anatolia is the second largest lake in Turkey: Tuzgolu. This lake is shallow and very salty. The lakes of Aksehir and Eber are also located in this region. As a result of the construction of dams during the past thirty years, several large dam lakes have come into existence. Together with the Atatürk Dam lake which started to collect water in January 1990, the following are good examples: Keban, Karakaya, Altinkaya, Adiguzel, Kilickaya, Karacaoren, Menzelet, Kapulukaya, Hirfanli, Sariyar and Demirkopru.
The Climate
Although Turkey is situated in a geographical location where climatic conditions are quite temperate, the diverse nature of the landscape, and the existence in particular of the mountains that run parallel to the coasts cause significant differences in climatic conditions between regions. While the coastal areas enjoy milder climates, the inland Anatolian plateau experiences extremes of hot summers and cold winters with limited rainfall.
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TURKEY-Economy and Business
Background
Over the past two decades, the Republic of Turkey has undergone a profound economic transformation. Combined with an outward oriented trade policy, the Turkish economy has been pursuing a progressive growth in most sectors. In spite of certain difficulties, the Turkish economy has become more resilient to external and domestic fluctuations.
Turkey experienced two major economic crises in November 2000 and February 2001. The cost of these crises and of the subsequent transformation of the economy was substantial. Public sector's net debt-to-GNP ratio nearly doubled within a year and the economy experienced its most serious contraction since the World War II. Economic activity dwindled and unemployment rose.
As a result of these developments, a new economic reform program was announced in April 2001, focusing primarily on the banking sector and financial markets. The overall strategy of the program comprises of three measures: Reforming the banking sector, ensuring stability in the money and foreign exchange markets and providing a sustainable growth environment in macro-economic balances.
The Reform Process
Over the past two decades, the Republic of Turkey has undergone a profound economic transformation. Combined with an outward oriented trade policy, the Turkish economy has been pursuing a progressive growth in most sectors. In spite of certain difficulties, the Turkish economy has become more resilient to external and domestic fluctuations. Turkey experienced two major economic crises in November 2000 and February 2001. The cost of these crises and of the subsequent transformation of the economy was substantial. Public sector's net debt-to-GNP ratio nearly doubled within a year and the economy experienced its most serious contraction since the World War II. Economic activity dwindled and unemployment rose. As a result of these developments, a new economic reform program was announced in April 2001, focusing primarily on the banking sector and financial markets. The overall strategy of the program comprises of three measures: Reforming the banking sector, ensuring stability in the money and foreign exchange markets and providing a sustainable growth environment in macro-economic balances.
During the last several years, the Republic of Turkey has been going through a very comprehensive process of economic reform and restructuring. With the strong backing of a single party government, the Turkish economy has gained enormous momentum and endurance especially in the last three years.
The Government places a particular emphasis on structural reform efforts. Starting from the financial sector, and with the accelerated privatization process, sweeping reforms including agriculture and social security, energy and telecommunication sectors have been successfully carried out by the Government. These are focused particularly on the reform of the public sector itself through measures in a number of topics ranging from public financial management to transparency and good governance.
Macro-economic indicators have been following a positive trend. Major objectives of the programme, namely, decreasing the inflation to one digit numbers, providing a higher and more stable economic growth and realizing structural reforms have been achieved.
The current Government's economic program continues to deal with the root-causes of Turkey's underlying economic problems. The economic program focuses on restructuring the financial sector at large and removing the obstacles for private-sector-led growth.
Thanks to the strict implementation of the program, recovery has now resumed and the Turkish economy has become much more institutionalized. Economic agents are now more conscious of the importance of sustaining the program and the results it can deliver.
Economic Growth
To be more precise, after an average growth of only 2,8 percent for ten years from 1993 to 2002, Turkey was able to achieve a growth rate of 5,9% in 2003. Last year’s growth rate was % 9,9, one of the highest in the world.
Interest rates, which are still high in comparison to most European countries, have been swiftly shrinking down to record low levels. It is also worth mentioning that instead of a policy of fiscal expansion and monetary loosening, growth has been driven mainly by private sector.
Production Capacity
To be more precise, after an average growth of only 2,8 percent for ten years from 1993 to 2002, Turkey was able to achieve a growth rate of 5,9% in 2003. Last year’s growth rate was % 9,9, one of the highest in the world. Interest rates, which are still high in comparison to most European countries, have been swiftly shrinking down to record low levels. It is also worth mentioning that instead of a policy of fiscal expansion and monetary loosening, growth has been driven mainly by private sector.
Productivity growth in private manufacturing sector has been around 10 percent on average during the last three years. This has been very encouraging in terms of sustainable development and competitiveness of the Turkish economy. It is also noteworthy that industrial and durable goods now consist a greater portion of the total production capacity of the Turkish economy.
Monetary Policy
Productivity growth in private manufacturing sector has been around 10 percent on average during the last three years. This has been very encouraging in terms of sustainable development and competitiveness of the Turkish economy. It is also noteworthy that industrial and durable goods now consist a greater portion of the total production capacity of the Turkish economy.
Monetary policies conducted by the Turkish Central Bank, which is in line with the inflation target, were also crucial in bringing down inflation. There had been double-digits inflation in Turkey for more than three decades. The fact that inflation has been brought down despite a high growth rate is a landmark success. As a result of the strict economic program, inflation was cut down to single-digits last year. For 2004, the year-end target of inflation rate was set at 12%, but realized as 9.32%. Targeting an inflation rate of 8% for this year, the Turkish Government’s ultimate goal is to further reduce it so as to be in line with the rest of Europe.
As a further sign of growing self-confidence, Turkey discarded six zeros from its national currency at the beginning of 2005 and re-introduced low denomination banknotes and coins.
Fiscal Discipline
These developments owe much to fiscal policy of recent years. Turkey has been extremely careful with its budget for the last two years. The budget deficit to GNP ratio peaked to 17% in 2001. Turkey is expected to complete this year by a budget deficit of around 4,5 – 5%. Moreover, next year’s budget deficit is planned to be around 2%. Currently Turkey is in the midst of an IMF-led austerity programme that relies primarily on fiscal restraint. In this vein, fiscal discipline was the key policy instrument behind the successful results in the economy during the last two years. With a very strong fiscal policy, net public debt to GNP ratio declined to 63,5% at the end of 2004 from 90,5 percent in 2001. The composition of the debt stock has also been improved and become more resilient to disturbances in interest and exchange rates.
Reserves
Despite the widening of current account deficit, which has been driven mainly by the gradual increase of imports, Turkey’s international reserves have continued to increase steadily as well. Jump in portfolio and FDI inflows are the key factors behind the strong reserve position. As of August 2005, the official reserve assets of the Central Bank of the Republic of Turkey have reached almost 43 billion USD, indicating the strength of the Turkish economy to possible turbulences in domestic and global markets.
Economic Integration Schemes with International Organizations
Turkey has recently begun to extend its economic ties beyond the more familiar terrain of the Balkans, the Middle East, the Caucasus and Central Asia. Turkey's vision for 21st century is to achieve integration with Europe and become a leading country in its region. Convinced that a liberal international trade system based on the principles of free competition, non-discrimination and elimination of barriers to trade are in the interest of the international community, Turkey’s trade policies since 1980s have been consistent with this principled stand.
Being one of the leading members of the OECD, Turkey also became a founding member of the WTO in 1995 and established a Customs Union with the EU in 1996. Free Trade Agreements have also been signed with various countries. Turkey conducts most of its foreign trade with EU and OECD countries.
With the Customs Union, Turkey has lowered its rate of protection and as a result industrial goods have started to circulate freely between Turkey and the European Union. With respect to imports from the third countries, Turkey applies the Common Customs Tariff.
European Integration
Membership to the EU is a process, which has its roots back in late 1950s. It has been the main pillar of Turkish foreign policy, and consolidated over the years. Turkey was declared a candidate destined to become a full member in 1999. Since then, Turkey has undergone a very comprehensive reform process geared at meeting the membership criteria as stipulated by the EU. Consequently, based on the recognition by the European Commission and the Council on 17 December last year to have met sufficiently the Copenhagen Criteria, Turkey was given a firm a date (3 October 2005) to start the accession negotiations.
The start of the accession negotiation on 3 October has opened a new page in Turkey - EU relations. Now, Turkey is an accession country.
However, economic integration between Turkey and the EU is even more advanced due to the Customs Union, which has been in force for almost a decade now. Turkey is the only country to have entered into a Customs Union with the EU prior to accession. The EU holds a big share in foreign investment in Turkey. It is also a major trade partner of the country.
The progress in accession process accompanied by significant structural reforms in the Turkish economy will appeal to more foreign investors, which will reflect on the economic relations between Turkey and the EU positively.
Turkey’s economic contribution to the EU will not only be limited to its own economic potential but also encompass the strategic geography it is located in. Turkey is situated on a key location for the increasingly important energy, transportation, and communication networks that link the East to Europe. Aiming for leadership in foreign trade in its geography, Turkey has developed extensive trade relations with the Central Asian, Black Sea Economic Cooperation and the Economic Cooperation Organization countries. Turkey will thus be able to contribute both to the EU’s opening to these markets and to the procurement of raw materials and inputs that are of vital importance for the European economy.
Foreign Trade
Within the context of globalization, Turkey has been pursuing an outward-oriented development scheme and export-led growth since 1980. By virtue of the comprehensive structural adjustment program, among other measures, restrictions on imports have been lifted, safeguard practices reduced and foreign exchange transactions liberalized. By abandoning import substitution policies, Turkey has experienced major developments in its foreign trade.
On the path of becoming a completely open economy, Turkey has been searching for new markets and networks within a broader spectrum extending from the Far East to Latin America. The external trade volume in 2004 was 160 billion dollars, and GNP was 301 billion dollars. This means that the external trade volume exceeded % 50 percent of the GNP last year.
As a result of the economic reforms carried out during the last two decades, both the volume and composition of the Turkish trade have radically changed. In the process, the volume of Turkish exports has increased almost 22 times. While only 2.9 billion Dollars worth of goods were exported in 1980, this figure has grown constantly and reached the level of 63 billion Dollars in 2004.
This trend seems to be continuing when looked at the following data announced by the State Statistics Institute of the Republic of Turkey: In the first eight months of 2005, Turkey’s exports reached 46 billion USD, whereas the imports moved up to nearly 75 billion USD. These account to a total foreign trade volume of 121 billion USD for the said period.
Moreover, while Turkish exports had mainly been composed of agricultural products in the 1980s, manufactured goods now constitute around 90 percent of Turkish exports, indicating the structural transformation of the Turkish economy. Textiles still being the predominant sector, export products have been diversified to include iron and steel, glass and ceramic ware, leather and leather products, household appliances and vehicles and vehicle spare parts.
The main principles of Turkish import policy are the reduction of bureaucratic procedures, in compliance with GATT94 rules and securing the supply of raw materials and inter-mediary goods at suitable prices and certain quality standards.
Foreign Direct Investment
When Turkey is taken as a center and a circle of four-hour flight distance is drawn, this circle covers one fourth of the world’s GNP and one fourth of the world’s population. Easy access to these huge markets is also something that makes Turkey an attractive place for foreign investors.
In parallel to the political and economic realignments unfolding in the world, the ongoing privatization program and huge energy and infrastructure projects have rendered Turkey more attractive to foreign investors over the recent years. With its dynamic economy, large internal market, competitive industry and skilled labor force, Turkey offers numerous opportunities for foreign investors.
When Turkey is taken as a center and a circle of four-hour flight distance is drawn, this circle covers one fourth of the world’s GNP and one fourth of the world’s population. Easy access to these huge markets is also something that makes Turkey an attractive place for foreign investors. In parallel to the political and economic realignments unfolding in the world, the ongoing privatization program and huge energy and infrastructure projects have rendered Turkey more attractive to foreign investors over the recent years. With its dynamic economy, large internal market, competitive industry and skilled labor force, Turkey offers numerous opportunities for foreign investors.
A new "Foreign Investment law" was enacted by the Turkish Grand National Assembly on June 5, 2003. This Law grants equal rights to foreign investors and abolishes minimum foreign investment capital requirements, special foreign investment permit requirements, and the prohibition on purchases of Turkish real estate by foreign individuals and firms. For instance, it takes now literally just one day to start a company in Turkey. As a result, there has been a major increase in the amount of foreign direct investments entering Turkey. For instance, during the period 1993-2002, the FDI inflow to Turkey on average was about 1 billion dollars, which is very low compared to Turkish foreign trade or Turkish GNP. In 2003 this figure increased to 1,7 billion, and to 2,6 billion in 2004. It is a striking record that in the first eight months of 2005, the foreign direct investment entering Turkey amounted to 2.9 billion USD. From 2005 to 2007 we are expecting an inflow of an average of 5 billion dollars a year.
As part of the liberal trade and investment policies launched after 1980, a "Free Zones Law" was enacted laying the framework for the establishment of free trade zones in 1985, thus paving the way for acceleration of capital inflow and export-oriented investment. Currently, 20 free trade zones are in operation that have attained a total trade volume of 22.1 billion Dollars in 2004. There is no restriction on transactions conducted in Turkey's free zones. While entrepreneurs are exempted from all kinds of taxes including income, corporate and value added taxes, revenues can be transferred to any country without prior permission.
Turkish Investments Abroad
Turkish businessmen have been expanding their investments steadily to the neighboring and wider regional countries. For instance, they do not hesitate, even under worst conditions, to do business in such countries as Afghanistan and Iraq. Traditional and strong engagements of our businessmen with their counterparts in most Arabic countries pave the way for easier accession to the Middle East market. Particularly, Turkish contractors have so far successfully completed over 3000 projects at international standards, in 63 countries across four continents. Their total business volume, nearly one third of which is in the Middle East region, reached 64 billion US Dollars by the end of June 2005.
Privatization
Turkey's privatization efforts have recently gained a significant momentum. Privatization portfolio includes major state economic enterprises such as Türk Telekom, State Tobacco, Salt and Alcohol Enterprises, Turkish Electricity Distribution Company, Turkish Airlines, iron and steel mills and sugar factories. This process is ongoing.
Privatization in Turkey not only aim to minimize state involvement in economic activities and to relieve the financial burden of state economic enterprises on the national budget, but is also geared towards the development of capital markets and the re-channelling of resources towards new investments.
Infrastructure Projects in Turkey
Turkey has also embarked on grand infrastructure projects both within and outside its territory.
The Southeastern Anatolian Project (GAP) is the most ambitious development project undertaken by Turkey. It comprises 22 dams, 19 hydroelectric power plants, and numerous irrigation networks. The overall project will regulate 28% of Turkey's water potential, generate 27 billion kw/h of electric energy and irrigate about 17,000 square kilometers of land, thus increasing the total arable land in Turkey by 50%. It is considered one of the 9 mega projects in the world.
Taking advantage of its geopolitical position and as an emerging regional energy terminal, Turkey has also pioneered large-scale energy transportation projects, through which oil and natural gas exports of the Caspian Basin will reach the Western markets. These projects have major long-term implications for both Turkey and Europe. Materialization of these projects will transform Turkey into a hub of energy transportation lines in Euroasia.
Human Resources
Turkey’s biggest asset is its young and well educated human resources. Turkey, at the same time, is the leading country in Europe in sending students to overseas, including the USA for higher education. All over the world it is the fifth in this field. This is expected to contribute considerably to enhance the human capacity not only of Turkey, but also of the whole region. A country of 72 million people, which has a per capita income of USD 4172 as of last year, is a sizeable market for any multinational company. If we adjust it to GNP by purchasing power parity per capita income in Turkey, it is close to 8000 US Dollars.
Looking Ahead
Turkey’s recent performance suggests that as long as the public sector keeps its house in order, private sector is ready and has the potential to take the lead both in Turkey and all around the globe. Turkey’s strong macro-economic performance has been a reflection of both the dynamism of the region and the unlocking of the high potential of its economy. Turkey has proved that confidence, consistency and continuity in macro-economic policies are the key to produce better macro-economic results.
Turkey was able to attain a significant result in a relatively short time on the economic front. Behind this success rests “confidence” and “stability”. The Turkish Government has been very consistent in the implementation of economic policy. It has also been very transparent and detailed in explaining the essences of the followed economic policies.
Hence, predictability, transparency and delivering on its commitments helped Turkey build a huge confidence not only in the domestic market, but also among foreign business circles. Turkey's message to the outside world is quite clear: A resolute implementation of the adjustment policies and structural economic measures are the best way to tackle the difficulties and usher in a new period of prosperity with social benefits.
Source : http://www.turkishembassy.org
Local time:
GMT+3 hours (April-September) GMT+2 hours (October-March)
Time Differences:
Argentina -5, France -1, Netherlands -1, Australia +8, Germany -1, Saudi Arabia+1, Austria -1, Greece 0, Sweden -1, Egypt 0, Italy -1, Switzerland -1, England -2, Japan +7, Spain -1, USA -7 (EST) -10 (WEST)
These time differences are for the period October-March; however, they may show variances according to each country's own time-saving adjustments.
Petrol:
Super (peremium) - Unleaded (at some places). Normal (regular) - Diesel.
Electricity:
220 volts AC/50 Hz. all over Turkey. (Industrial:380 V) Plug: European round/ 2-prong plug.
Water:
Although tap vater is safe to drink since it is chlorinated, it is recommended to get advice from the concemed authorities of the places resided.
Weights and Measures:
1 inch = 2.54 centimeters , 1 centimeter = 0.3937 inches
1 yard = 0,9144 meters, 1 meter = 1.0936 yards
1 mile = 1,6093 kilometers, 1 kilometer = 0.6214 miles
1 pound = 0,4536 kilograms, 1 kilogram = 2.2046 pounds
Area:
1 acres = 0,4047 Hectares, 1 hectare = 2.471 acres
Capacity:
1 UK gallon = 4.546 litres, 1 litre = 0.2199 UK gallons
1 US gallon = 3.7831 litres, 1 litre = 0.2643 US gallons
Newspapers and Magazines:
Foreign newspapers and magazines are available in big cities and tourist areas. Also there is a Turkish daily newspaper, Daily News, published in English.
Tipping:
At various establishments like hotels, restaurants, Turkish baths, barbers and hairdressers, tipping at a rate of 5%-15% of the total is common. Taxi and "dolmus" drivers on the other hand, do not expect tips or even rounded fares.
Visiting a mosque:
Five times a day, the "müezzin" calls the faithful to prayer in thi mosque. Before entering a mosque, Muslims wash themselves and remove their shoes. Foreign visitors should also remove their shoes and show the respect they would any other house of worship and avoid visiting the mosque durin prayer time. Women should cover their heads and ams, and not wear miniskirts. Men should not wear shorts. (In certain famous mosques, overalls are provided for those not suitably dressed.)
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Pronunciation
a: art e: bear u: you c: chart
s: sharp k: kick o: early
Basics
Hello: Merhaba
Goodbye: Allahaismarladik (said by the person leaving)// Gule Gule (Said by the person seeing his/her friend off)
Good morning: Gunaydin
Good evening: Iyi Aksamlar
Good night: Iyi Geceler
How are you?: Nasilsiniz? I am well: Iyiyim
Yes: Evet
No: Hayir
Please: Lutfen
Thank You: Tesekkur ederim or Mersi
There is: Var
There is not: Yok both expressions used to express availability or lack thereof respectively
I want...: (object) + istiyorum
Expressions of Time
When?: Ne zaman?
Yesterday: Dun
Today: Bugun
Tomorrow: Yarin
Morning: Sabah
Afternoon: Ogleden sonra
Evening: Aksam
Night: Gece
One hour: Bir saat
What is the time?: Saat kac?
At what time? Saat kacta?
The Days of the Week
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
Pazar Pazartesi Sali Carsamba Persembe Cuma Cumartesi
Travel Terms
Airport: Hava alani
Port: Liman
Town Center: Sehir merkezi
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http://www.goldenhorn-rotary.com/ercu/ERCU_FLASH_eng.html ( Turkey's Presentation)
Why go to TURKEY? It's friendly, beautiful, culturally rich and good value for money. It's modern enough to be comfortable yet traditional enough to be interesting.Turkey is one of the top 10 travel destinations in the world, welcoming more than 20 million visitors every year.Culture & Art: Turkey's history of human habitation goes back 25,000 years. Some of the earliest-known human communities are here. Hittites, Phrygians, Greeks, Romans, Byzantines, Crusaders, Seljuks, Mongols, Ottomans and others have all left their works of art and culture in what is now the Turkish homeland. Modern Turkey has all this—and more mobile phones than you've ever seen in one place before. Special-Interest Activities: With nearly 8400 km (5200 mi) of coastline, water sports and yachting are big favorites. Hiking, white-water rafting, mountain-climbing and cycling are all important, and growing, as is skiing, hot-air ballooning.
Cuisine: Turkish food is now world-famous, and rightly so. The abundance of its fields, farms, orchards, flocks and fishing boats is exceptional, and Turkish chefs take full advantage of this bounty. Everyone comments on how good the food is.
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