As part of the 20th-anniversary events of the Presidency's Investment and Finance Office, a reception titled "Investing in Turkey: Celebrating 20 Years of Success" was hosted by Turkey's Berlin Embassy.

At the event, attended by German business executives, investors, and diplomatic representatives, commercial ties between the two countries, new incentives, logistical advantages, and the vision for strategic partnership were discussed.

Ahmet Burak Dağlıoğlu, President of the Presidency's Investment and Finance Office, shared Turkey's achievements in international direct investments and its future vision.

Stating that the trade volume between Turkey and Germany has exceeded 50 billion dollars, Dağlıoğlu said, "More than 8,600 German-capitalized companies operate in Turkey. While German companies' investments in our country have approached 15 billion dollars in the last 20 years, the total international investment stock has reached approximately 25 billion dollars."

Dağlıoğlu stated that German companies contribute to the production ecosystem, that the capital coming to Turkey is permanent, and that companies grow by reinvesting their earnings.

Dağlıoğlu reported that Turkey has recorded an average annual growth of 5.3 percent since 2003, emphasizing that this performance is above the averages of Europe, OECD, and the world. Dağlıoğlu stated that Turkey's qualified workforce is a strong value proposition for the international business community.

New tax exemptions and incentives for investors

Stating that Turkey shapes its dynamic reform agenda with investor feedback, Dağlıoğlu shared the details of the new incentive package.

He said that global companies establishing qualified service centers that meet specified criteria would be granted corporate tax exemption and income tax withholding advantages.

The 50 percent tax reduction applied to companies engaged in cross-border and global trade will be increased to 100 percent with the new regulation. These companies will be completely exempt from corporate tax.

The standard corporate tax rate of 25 percent will be 12.5 percent for manufacturing industry and agricultural production companies, with a 50 percent reduction.

Dağlıoğlu stated that after traditional sectors, the new era would be built on "technology partnership," adding, "While discussions about over-regulation in the technology sector continue in Europe, we believe that our countries can produce strong technology companies on a global scale. Delivery Hero, headquartered in Germany and operating in 65 countries including Turkey, is the most concrete example of this. Turkey and Germany can form major partnerships to produce global champions in the technology sector."

Dağlıoğlu reminded participants of Turkey's commitment to sustainability, renewable energy, and circular economy goals, inviting them to COP31, which will be held in Antalya in November.

"German companies' investments in Turkey are a win-win opportunity"

Volker Treier, Director of Foreign Trade at the Association of German Chambers of Industry and Commerce (DIHK), emphasized that the Turkey-Germany economic partnership is a strong shield against global challenges.

Treier stated that German companies' investments in Turkey offer a clear "win-win" model, providing high added value to the economies of both countries.

Reminding that DIHK represents more than 3 million companies across Germany, Treier emphasized the importance of rules-based and fair trade conducted with Turkey in an environment of unfair competition caused by fragilities in global supply chains and non-transparent public subsidies.

Treier said that some decision-makers in Berlin had experienced shortcomings in economic policies in the past. For this reason, he stated that they were pleased to work closely with Turkish friends and institutions in Berlin.

Volker Treier, DIHK Director of Foreign Trade, pointed out that Germany has lost some of its competitiveness due to high energy costs, emphasizing that companies investing in strategic countries like Turkey helps them maintain their presence and protect their supply chains.

Treier reported that during his travels in Central Asia, he witnessed the cultural and historical ties with the Turkic world, stating, "Our entrepreneurs of Turkish origin in the region can communicate very easily with everyone from Uzbekistan to Kazakhstan. There is a huge family there, and they included me in this family. In the business world, we also operate on this basis of sincerity and trust with our Turkish friends."

Treier extended his congratulations to Turkey for COP31, to be held in Antalya in November, and the NATO Summit, to be held in Ankara on July 7-8, emphasizing that the climate crisis and geopolitical challenges can only be overcome through strong partnerships.

Stating that DIHK is responsible for the global network of bilateral chambers, Treier said that the activities of the German-Turkish Chamber of Commerce and Industry (AHK Turkey) make significant contributions to economic relations between the two countries.

Treier emphasized that they are working for German companies to find the right partners in Turkey and create added value for both countries, expressing his belief that they will achieve much greater successes with Turkish and German stakeholders in the future and that relations based on fair partnership will deepen and continue.