Why is Germany the attraction center of trade investments?
During the recent periods, Germany has become the favorite of Turkish investors with its perfect infrastructure, creative corporations and high purchasing power. There is an increase especially in the purchases of real estates and company incorporations. Germany and especially Berlin are preferred by Turkish citizens whether for incorporating new companies or branches or for purchasing real estates.
One basic reason for this is Germany's strong economy and that the real estate prices especially in Berlin are lower vis-à-vis other European capitals but are stable in the long-term. Furthermore, the support given by the Republic of Turkey to the Turkish brands and products incents many entrepreneurs to enter German markets and provides a great ease for them.
What is the historical origin of trade relations between Turkey and Germany?
The trade relations between Germany and Turkey commenced in the Ottoman Period. On 2 April 1761, a Friendship, Shipping and Trade Agreement; was signed between Prussia and the Ottoman Empire. The first telegraph was installed in Istanbul in 1856 by Siemens. At the beginning of the 20th century, the PhilippHolzmann company and the Deutsche Bank provided financing for the Baghdad Railway. Bosch opened its branch in Istanbul in 1910 and since the 1960s, the Mercedes and MAN companies have been continuing their activities in the Turkish automotive sector. Today, the trade volume between the two countries has reached 33 billion Euros and Germany stands as Turkey's most important trade partner.
What kind of investment opportunities does Germany provide for Turkish citizens? Are there any hindrances or limitations for company incorporations or purchasing of real estates?
The trade legislation of Federal Germany has no limitations for foreign citizen investors. For this reason, the Turkish citizens can for example incorporate limited companies (GmbH), which is one of the most preferred company types in Germany. They are able to open branches for a parent company resident in Turkey. It is sufficient for them to fulfill general conditions that are required for everyone. Similarly, there is no limitation for Turkish citizens for the purchase of real estates. But company incorporations or real estate purchases do not engender the obtainment of residence permit directly.
What kind of special agreements exist between the Republic of Turkey and Germany that facilitate trade?
I. Mutual Settlement Right
On 12 January 1927, the Republic of Turkey and the German Empire has signed the Mutual Settlement Agreement that will facilitate the circulation of capital. Since 1 March 1953, this Agreement has taken effect again with the approval of both parties.
II. The Ankara Agreement of 1963
The Ankara Agreement signed between Turkey and the European Union in 1963 constitutes the legal basis of the relations between Turkey and the European Union. The purpose of the Ankara Agreement is stated as follows in Article 2 therein; To encourage ceaseless and balance economic relations between the parties with consideration of the need to ensure the rapid development of the Turkish economy and to increase the employment levels and living conditions of the Turkish citizens".
III. The Agreement between the Government of the Republic of Turkey and the Government of the Federal Republic of Germany concerning the Employment of Laborers of Turkish Companies Within the Framework of Work Agreements
By also considering the requirements of the labor market, "The Agreement between the Government of the Republic of Turkey and the Government of the Federal Republic of Germany concerning the Employment of Laborers of Turkish Companies Within the Framework of Work Agreements" has been signed on 18 November 1991 in order to ensure the economic cooperation between Germany and the Republic of Turkey, enabling Turkish companies to enter the German market. As per this agreement, the Turkish companies resident in Turkey can sent their own workers to Germany for the works they were assigned by German companies.
Reputable Turkish companies, which are incorporated and operating according to the laws of the Republic of Turkey, can apply as subcontractors for the works undertaken by companies, which are incorporated according to German laws and which are awarded works in Germany, and on the condition to submit the documents that are required for the works they will act as subcontractors in, they can apply to the City/Branch Directorate of the Turkish Labor Agency in order to get quotas.
IV. The Double Taxation Agreement
An agreement was signed between Germany and Turkey on 19 September 2011 in order to prevent double taxation. Concerning the revenues obtained in either of the contractual parties, the Double Taxation Agreement regulates the scope of the States' taxation right. The Double Taxation Agreement aims that real or artificial persons obtaining revenues in both countries are not subjected to double taxation.
Is it possible to apply for residence in Germany after establishing a business therein?
As per Article 21 of the Federal German Residence Law, a foreigner can be granted independent purpose residence permit in the presence of the following:
1. If a very important economic benefit or a specific regional necessity exists;
2. If there is an expectation that the business conducted by him/her will create positive impacts;
3. If his/her work is financed by his/her own capital or by a credit guarantee.
In 2012, the obligation to invest 250.000,00 Euros and to employ minimum 5 persons was removed.
Especially in creative professions, information technology and other professions that are in need of labor (scientist, mathematician, engineer, doctor and software developer), Germany draws a serious amount of well-trained personnel from Turkey. These persons can easily obtain residence permit over the Blue Card application. The conditions for Blue Care are generally the following:
University Graduation;
Condition to find job in his/her field of specialization;
A minimum gross annual salary of 53.600 Euros.
As an exemption, an annual gross salary of 41.808,00 Euros is considered sufficient for
scientists, mathematicians, engineers, doctors and software developers.
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