Straddling the continents of Europe and Asia, Turkey's strategic location has given it major influence in the region. The location on two continents has been the main feature of the Turkish history, culture and politics. Its economy is a mix of a traditional agricultural sector and a strong and growing private sector.
According to the World Bank's "Doing Business Database, 2007", Turkey ranks well ahead of all its competitors such as the Czech Republic, Hungary, Italy, Poland, and Spain, and ahead of the OECD average. It has one of the most competitive corporate tax rates in the OECD region, bilateral investment treaties with 80 countries, double taxation prevention treaties with 69 countries, free trade agreements with 15 countries and social security aggreements with 22 countries.
With its regional approach, Intertrust has a vast experience in financial structures that are common in the Turkish region. Whether a ‘straightforward’ holding structure or more complex structures, we can support you to optimise and properly maintain your financial structure.
Geography |
South-eastern Europe and South-western Asia, bordering the Black Sea, between Bulgaria and Georgia, and bordering the Aegean Sea and the Mediterranean Sea, between Greece and Syria - 39 00 N, 35 00 E |
Capital |
Ankara |
Time zone |
UTC+2 |
Population |
76,805,524 (July 2009 est.) |
Nationality |
Noun: Turk(s) - Adjective: Turkish |
Languages |
Turkish (official) |
Government type |
Republican parliamentary democracy |
Legal system |
Civil law system derived from various European continental legal systems; note - member of the European Court of Human Rights (ECHR) Turkey is in the EU Customs Union since 1996 and an EU accession country since October 2005. |
Economy overview |
Turkey's dynamic economy is a complex mix of modern industry and commerce along with a traditional agriculture sector that still accounts for more than 35% of employment. It has a strong and rapidly growing private sector, yet the state still plays a major role in basic industry, banking, transport, and communication. The largest industrial sector is textiles and clothing, which accounts for one-third of industrial employment; it faces stiff competition in international markets with the end of the global quota system. However, other sectors, notably the automotive and electronics industries, are rising in importance within Turkey's export mix. Real GNP growth has exceeded 6% in many years, but this strong expansion has been interrupted by sharp declines in output in 1994, 1999, and 2001. The economy turned around with the implementation of economic reforms, and 2004 GDP growth reached 9%, followed by roughly 5% annual growth from 2005-07. Due to global contractions, annual growth is estimated to have fallen to 3.5% in 2008. Inflation fell to 7.7% in 2005 - a 30-year low - but climbed back to 8.5% in 2007. Despite the strong economic gains from 2002-07, which were largely due to renewed investor interest in emerging markets, IMF backing, and tighter fiscal policy, the economy is still burdened by a high current account deficit and high external debt. Further economic and judicial reforms and prospective EU membership are expected to boost foreign direct investment. The stock value of FDI currently stands at about $85 billion. Privatization sales are currently approaching $25 billion. Oil began to flow through the Baku-Tblisi-Ceyhan pipeline in May 2006, marking a major milestone that will bring up to 1 million barrels per day from the Caspian to market. Economic fundamentals are sound, marked by moderate economic growth and foreign direct investment. Nevertheless, the Turkish economy may be faced with more negative economic indicators in 2009 as a result of the global economic slowdown. |
Currency |
Turkish lira (TRY) |