In the last decades, we have seen Turkey's exponential growth in different financial areas, becoming more and more attached to a free market economy that favours both domestic and foreign investment. 

Areas such as real estate or information technology have been the turning points in the economic growth of this country, however, there are other industries with a relative growth in recent years, especially those that are considered as young industries, as is the case of the wealth management industry in Turkey.

However, we have to consider the fact that moving to another country brings many responsibilities for the person. One of the most prominent things to consider during this process is to secure and control your finances. 

The different currency rates, exchanging, and transferring money to your home country may give you a headache. However, with an elaborate financial plan and management type, you can overcome these struggles.

Banking and Opening a Bank Account

Once you settle in a new country, you should be able to transfer your money with ease and access it whenever necessary. The banks operating in Turkey have advanced technologies in providing efficient transactions via their mobile apps or internet banking systems available for corporate and individual use. 

It’s better to know about the process and have the arrangements before you move, as the local banks may require a credit history or proof of address which you may not have when you first arrive in the country. Opening a bank account is reasonably easy if you have the necessary documents. 

Banks require a valid passport, a tax ID, and a residence permit or a document showing your residency in the country for opening an account. If you already obtained all these documents, you can initiate the process by going to a bank of your choice. 

Turkish banks offer higher interest rates on the investment made in the Turkish lira. However, you may consider a repo account if you want to stay away from the interest rates set by the relatively high inflation rates and earn higher interest rates.

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Investing in a Stock Market

If you prefer investing in a stock market, the Istanbul stock exchange market follows a promising growth for investors from different sectors. To invest in the Turkish stock market, you should find a broker first. A broker is someone who has the authority to trade financial assets in Borsa Istanbul (principal Turkish equity market). 

You can open an investment account from a bank licensed by the Stock Exchange Board (SPK) with the help of your broker. SPK website is a helpful place to see all the brokers and banks with a license. 

You should be clear about your expectations when choosing a broker because they will play an active part in your trading activities. Your investment account will be activated when you visit a brokerage branch, where you sign an agreement about the services you receive and a risk notification form.

After transferring your funds to your new account, you can enter all your requests into the investment platform with the help of your broker and start trading on the exchange.

The mentioned risk notification form informs the investor about the risks associated with stock market activities and instruments. It’s a pre-market notification form commonly practised before the entry and is mandatory as set by the SPK. 

You should be able to place your buy and sell orders via an online investment trading platform provided by your broker. Trades get made when your orders match the quantity and price. You can send your orders via phone, fax, or in person.

Investing in Real Estate

A property investment might be the safest way to increase your wealth. The real estate market in Turkey is dynamic and highly appreciates foreign investors. A property in a strategically significant city like Istanbul might become a source of revenue for the owners. 

It’s substantial that your property adds to its value over time. There are specific ways you can generate high returns from your real estate investment in Turkey, as it is an emerging market at the moment. 

One of the things you should consider is the location of your property because it’s a crucial factor in increasing the value. Places that still experience growth and development as part of an urban transformation may provide high future returns. 

A property in proximity to main attraction spots and public institutions can also be more profitable. To check the box for all these factors, you should start the process with a trusted and experienced agent in Turkey who can help you find the ideal property. 

After the purchasing gets done and you want to sell your property, you should start the job by collecting your paperwork and making sure you have everything in order. You should have the title deed, a habitation certificate, your DASK (mandatory earthquake insurance), and any other type of insurance you have of your property on hand. If you don’t plan on being physically in the country during the selling process, you should have a Power of Attorney who can complete it. 

A good agent can help you set a reasonable price for your property by evaluating its overall value with multiple determinants. They probably know about the local market with all the competition going on. 

If you want to attract more buyers, you can make small changes to your property by fixing some things that may attract attention when potential buyers visit your property. It’s also good to have detailed and suggestive photos of the property before you put it on the market. 

The fees involved in selling a property in Turkey include capital gains tax and sales transfer fees. A capital gains fee is necessary if you’re selling the property within the five years of purchasing it. It’s a percentage of the profit you made on the property. 

The sales transfer fee involves a stamp duty of 4% (and some additional admin fees). This fee usually falls to the buyer, but under Turkish Law, it is payable by both parties. You can make it clear during the agreement and the negotiations who has the responsibility to pay it.

As you can see, wealth management can be key for a foreigner with little knowledge of the Turkish market, given the paperwork and other details that a specialized agent in these financial fields knows all about. 

It may seem like an unnecessary expense to have a specialist managing your finances, or at least taking a look at them, but when it comes to large sums of capital it is best to have an expert giving a second opinion.