The İFM will join the ranks of the world's most important financial centers and offer incomparable opportunities to foreign investors and financial institutions that wish to establish business operations in Turkey and the region. CCS Law, one of the leading international law firms, hereby guides you on how to form part of this ambitious project. In the given article, we will refer to the main advantages of activities within İFM and indicate the procedures for getting a Katılımcı Belgesi - Participant Certificate.
Why Choose Istanbul Finance Centre?
The İstanbul Finance Centre is located at the junction of Europe, the Middle East, and Asia-the ideal position to act as a real gateway into the international markets. This provides a strategic location with world-class facilities and substantial financial incentives for businesses. Be it a financial institution, an investment firm, or a multinational firm, İFM provides an attractive base to expand your operation.
Key Benefits for Foreign Investors:
1. Generous Tax Incentives
Probably, one of the most attractive points of İFM for a foreign investor is the beneficial tax regime:
Corporate Tax Reductions: Profits obtained from financial services performed for non-residents are fully deductible for corporate tax purposes up to 2031 and then 75% thereafter. Furthermore, international buying/selling transactions that do not involve Turkish residents locally will be treated to a 50% deduction for the profits transferred back to Turkey.
No Stamp Duty/Fees: On all real estate leasing, financial services, and related deals, no stamp duties and fees will be levied until 2031, saving on much of the budget.
Exemption from BSMV: Financial service exports and related earnings are exempt from the Bank and Insurance Transaction Tax-BSMV. Opportunities at the Istanbul Finance Centre (İFM)
2. Personnel Tax Advantages
IFM grants exemptions in income tax to qualified foreign professionals. Workers who have at least five years of international work experience get a 60% exemption from income tax, and for more than ten years, the percentage of exemption rises to 80%, hence attracting the best talent from all over the world will be easier.
3. Flexible Legal and Financial Framework
Working in İFM makes it possible for companies:
Maintain Financial Records in Foreign Currencies: Through this, companies can avoid some of the local regulatory constraints and maintain their books and records in the currency of their choice.
Freedom to Choose Legal Frameworks: Every company is free to choose a legal framework that will govern their contract, provided it does not oppose Turkish law.
4. State-of-the-Art Infrastructure
Equipped with 1.3 million m² of office space, a 100,000 m² shopping mall, and world-class facilities, the İFM is designed to accommodate the needs of global financial institutions. It contains a 2,000-person conference centre, 38,000 m² hotel and research facility, and 25,000 parking spaces.
How to Become a Participant in İFM
The foreign investors and institutions must be granted a Participant Certificate (Katılımcı Belgesi) to operate within the Istanbul Finance Centre. This participant certificate shall enable businesses to seize all various benefits on offer at İFM concerning financial, operational, and regulatory benefits. Here's how you can get started:
Step 1: Establishment of Legal Entity in Turkey
For foreign participants to obtain the Participant Certificate, they need to have registered a branch, subsidiary, or office in Turkey. CCS Law will guide you to establish your legal entity and maintain your company fully compliant with the relevant Turkish regulations.
Step 2: Acquire all necessary licenses and approvals.
This would mean that your business, prior to applying for the Katılımcı Belgesi, has to obtain all licenses, permits, and regulatory approvals available in Turkey from the relevant authorities. These might include a license for banking, permits concerning insurance, or other types of licenses pertaining to specific sectors. CCS Law will put your company on the right path in this regard to ensure your compliance with these regulations.
Step 3: Application via İFM Portal
Application forms to the Katılımcı Belgesi are submitted through the İFM Portal, an electronic system by the Finance Office. The application will ask for in-depth business plans, proof of your legal existence, and documentation showing the fulfillment of Turkish financial regulation.
Step 4: Finalizing Office Leasing at İFM
Your participation is related to the acquisition of office space at the İstanbul Finance Centre. After concluding the lease agreement, your application may be finalized. CCS Law may negotiate favourable lease terms and assist with all contractual matters.
Step 5: Evaluation and Approbation
The application will be gauged by the Finance Office on how your company is aligned strategically with the goals set by İFM in terms of its contribution to making Istanbul a global financial centre. After its approval, your business will receive the Katılımcı Belgesi, which will enable you to operate within İFM.
Why Choose CCS Law?
At CCS Law, we are experts in both Turkish and international financial regulations. With extensive knowledge of the Istanbul Finance Centre's regulatory framework and strategic incentives, we will be in a position to guide foreign investors and financial institutions through the process of establishing an operation in İFM. From corporate structuring, through the processes involved in regulatory compliance to even contract negotiations, we shall guide you through each step with the necessary legal support to ensure your success here in Turkey.
For those who want to learn more about how CCS Law can help your business become a part of the Istanbul Finance Centre, please feel free to get in touch with us today.
Disclaimer: This article is intended for informational purposes only and does not constitute legal advice.
#CCSLaw #IstanbulFinanceCentre #IFMOpportunities #ForeignInvestment #BusinessInTurkey #LegalServices #ParticipantCertificate #FinancialInstitutionsTurkey #CorporateLaw #InvestmentInTurkey #TaxIncentivesTurkiye #InternationalBusiness #TurkeyLegalExperts #BusinessExpansion #LegalGuidance #FinanceCentreTurkey