Mundo’s Freedom Rating

Mundo's country rating is essentially a freedom index whereby our team of specialists rates a combination of freedoms which include freedom from violence and personal attacks, financial freedom from high taxes and other government levies, and business freedom from government interference.

Political stability: 7 

Turkey is a country with considerable political stability. The country has been ruled by the same political class since 2003 and especially by the former Prime Minister (2003-2014) and afterward, President Recep Tayyip Erdogan. Its sustained economic growth and accurate foreign policy towards Europe and the Middle East have enabled it to enjoy stability enough to improve the country. 

It is precisely this stability that has allowed the government to overcome its tensest moments, such as the failed coup d'état of 2016. 

In turn, Syria is currently the epicenter of a conflict between Turkey, the Kurds, and the United States. This incursion is the third one the Turkish army has led in Syria since 2016 and has already caused at least 60,000 displaced people, yet, it only affects a small part of the country. Thus, if you have a business venture in Istanbul, this should not worry you too much.

Personal security: 7

Turkey is, in general, a safe country when it comes to crime. However, there is a relatively high risk of terrorist attacks due to its sensitive geographical location. These attacks have targeted everywhere from sacred places of worship to tourist sites. 

In certain regions, conflict levels are increasing due to fighting between terrorist groups over the conflicts between Syria and Iraq, both of which are neighbors of Turkey. These border provinces are the main risk areas to avoid visiting. They have been classified as high-risk areas.

However, Ankara and Istanbul are generally safe, and you should not worry too much if you take regular precautions, such as not taking long walks alone at night.

While no area is without risk, if you are thinking of investing in Turkey, security should not be an issue for you. Nothing that an apartment in a middle or upper-middle-class neighborhood in any city and an inexpensive closed-circuit surveillance system can't fix. 

Lifestyle: 10

With a population of 82 million and 37 million visitors a year on average, two words can define the lifestyle in Turkey: dynamism and diversity. 

In the last two decades of the "Turkish miracle," the quality of life of the Turkish people has increased significantly. Before decades of perpetual crisis, the country has become one of the world's leading economies, respected around the globe. 

In a middle-class neighborhood in Istanbul, a Turkish citizen can drive a Ford of the Year vehicle over Pirelli rubber, pay for his two children's private schooling, and still have money left over for a summer vacation to the Mediterranean. 

In turn, Turkey is a very cultivated country. About 800,000 people graduate from university every year. This, added to its rich history, makes Turkey an important center for the arts, science, and culture.

Plus, Turkey likely enjoys the best nightlife in the Middle East, fantastic beaches in the Mediterranean Coast, and it is one of the most culturally and archaeologically rich countries on the planet.

Tax optimization: 8

At the moment, according to the World Bank, Turkey is one of the countries that has made more and better reforms in its tax and fiscal system. The government has done this to generate incentives to attract investments to overcome the slight economic recession in which the nation finds itself, after spectacular periods of growth. This is the result of a modernizing reform plan promoted by the national government. 

You can see the tax system in Turkey two ways: you can choose to see the average 42.3% of total revenue that must be paid in taxes or you can see the otherworldly tax incentives that can allow you to do business in Turkey almost tax-free. With proper guidance, you will receive tax benefits only comparable to offshore jurisdictions.

Investment potential: 9

The recent process of liberalization encouraged and promoted by the state, due to the slowdown in the Turkish economy, aims to attract the highest amount possible of foreign investment. 

Though, Turkey, the thirteenth largest economy in the world, has enormous investment potential. Since 2003, it has experienced a sustained process of economic growth that, at times, has led it to be compared with the growth rate of nations such as China or India. 

The services industry, which already accounts for two-thirds of the Turkish economy, is the most attractive sector in which to invest. Also, there are sectors such as tourism and communications. The possibility of technological innovation opens the window to attract investments in Turkey's robust and booming industrial sector. 

Finally, it has access to the European Union market, a vibrant internal market with active personnel and a highly qualified workforce, mobility, and relations with the major powers on five continents, juicy tax incentives, including tax breaks and exemptions in free zones. All this, combined with a recent process of modernization and liberalization towards policies closer to the free market and further away from state intervention in the economy, makes Turkey a fantastic destination for investment and good business. 

Yet, high levels of corruption can undermine trust between economic actors, and its above-mentioned complex geographical location, which can be counterproductive in sectors such as tourism, prevent Turkey from being given the highest score in this section. 

Today Turkey does not need a new miracle. It just needs modern investors with vision and ambition, capable of investing and doing good business in a country that, after briefly stumbling, has made significant changes to open up to the world. 

Freedom Index (OVER 50): 41, A-