What are the advantages of real estate funds in Turkey for foreign investors?
Mutual funds usually attract a good class of high-savings investors who believe in the viability of these funds, which provide them with many investment advantages that may not be available elsewhere.
Several foreign investors have also found investment opportunities and features in these funds that are worth taking advantage of, including
1. Tax reduction
One of the most important features of investment funds is the tax incentives that the Turkish government provides for these investments, which will allow investors to grow their capital without the many taxes that affect their capital in other businesses.
According to the presidential decree published in the Official Gazette No. 32533 on May 1, 2024, changes were made to the tax withholding rates in the temporary Article 67 of the Income Tax Law, which established a 0% withholding tax rate on income received from shares of venture capital investment funds and shares participating in real estate investment funds, held for more than two years.
2. Easily enter and exit the market
As investing in real estate funds, entering and exiting the Turkish real estate market for foreign investors is very easy, and these investors can easily buy or sell shares in one of the funds at any time, even though these investors are from nationalities that are not allowed to own real estate in Turkey, as these funds allow them to trade real estate through their participation in one of them.
3. Diversification in investments
It is known that spreading capital across several assets gives those investments more security, unlike the risk of buying a single property. Real estate funds are usually managed by people with experience and knowledge of the nature of the real estate market and dealing with its risks, and they are often keen to diversify those assets into real estate types.
4. Availability of liquidity
It is easier for an investor to monetize their stake in the real estate fund they are investing in than it is in direct real estate investing, as investors can more easily sell their stake in the fund to get their money back, often at any time.
5. Stable returns
The returns of real estate funds are often described as stable returns, as evidenced by the rents that their properties generate or the increase in the value of the invested properties.
6. Achieving geographic diversification
By investing in real estate funds in Turkey's most developed and yielding cities and regions reduces the risks associated with investing in a specific region. For example, diversifying the real estate portfolio within major and tourist cities, such as Antalya, Istanbul, and others, can be an additional safety factor for the portfolio.
7. Periodic evaluation of assets
It is well known that the assets of real estate funds are periodically evaluated to determine their realistic market value by the fund's management, and the fund management is obliged to make performance reports available to depositors and shareholders, which will allow investors to follow the performance of their investments well. The government's periodic monitoring of real estate funds is an additional safety factor in favor of investors.
8. Inflation protection
Real estate commodities tend to be one of the best assets that can maintain their value during economic crises, and hedging with them is an ideal option against inflation, preserving capital value even better.
9. Professional management
Real estate funds are usually managed by experts specialized in this field, as is the case with Oragon Company, whose real estate funds are managed by a group of illustrious names in the field of real estate investment in Turkey, who have left a recognized mark in various investment fields. Professional real estate management can make a difference in investment within the fund it supervises, which helps increase the fund’s returns and profits, by seizing opportunities and managing the fund with a deeper vision and closer experience.
10. Turkish Citizenship
The Turkish Investment Law provides the right to apply for Turkish citizenship for foreign investors within investment funds, provided that the value of the investment reaches $500,000 or its equivalent, and the investment is maintained for at least 3 years. Thus, the foreign investor achieves the benefit of obtaining Turkish citizenship, along with the benefit of growing his capital during this period.
Benefit from the advantages of Turkish real estate funds with Oragon
Through the real estate investment funds in Turkey provided and managed by Oragon, we have been able to provide an ambitious investment model that rises to the level of leadership, especially with the administrative structure that includes an elite group of experts in the field of real estate, economics, and investment.
To benefit from our services or learn about our investment activities, work plans, and team, we invite you to visit our company's headquarters or communicate directly with us through our various identifiers, where you will find a complete answer about our funds, with adequate consultation in the field of investment in real estate funds.
Edited by Oragon Company ©
