Türkiye’s 2025 foreign direct investment figures show a clear hierarchy of investor confidence: the Netherlands, Luxembourg and Kazakhstan led equity inflows into the country, while Germany and the United States remained important secondary sources. The ranking matters because it points to a shift in how international capital is entering Türkiye, with European holding-company routes still dominant, Central Asian capital gaining visibility, and investors concentrating on trade, food manufacturing and digital infrastructure rather than only real estate or portfolio flows.
The 2025 Ranking Shows a Broader Investor Base
According to the Central Bank of the Republic of Türkiye data compiled by the International Investors Association (YASED), Türkiye attracted $13.1 billion in international direct investment in 2025, up 12 percent from 2024. The same YASED bulletin, released after the central bank’s February 13, 2026 balance of payments statistics, put cumulative FDI inflows since 2003 at more than $288 billion.
The country ranking was led by the Netherlands, with $2.86 billion in investment capital inflows. Luxembourg followed with $1.16 billion, and Kazakhstan ranked third with $1.14 billion. Germany contributed $779 million and the United States $536 million, according to YASED’s country-level breakdown. The Presidency of the Republic of Türkiye Investment and Finance Office reported the same ranking and said France, the United Arab Emirates, Switzerland, the United Kingdom and Ireland were also among the leading source countries.
The headline number should be read carefully. YASED’s $13.1 billion total includes $9.7 billion in investment capital, $2.3 billion through real estate purchases by foreign nationals, and $2.8 billion via debt instruments, offset by $1.7 billion in investment liquidations. For investors assessing operating opportunities, the $9.7 billion equity component is the more revealing figure because it reflects corporate commitments in sectors such as trade, manufacturing and information services.
The geographic split also underscores Türkiye’s long-standing link to European capital. YASED said 66 percent of 2025 investment capital inflows came from the EU-27. The Netherlands alone accounted for 30 percent, followed by Luxembourg and Kazakhstan at 12 percent each, Germany at 8 percent, and the United States at 6 percent.
Why the Netherlands and Luxembourg Still Matter
The dominance of the Netherlands and Luxembourg does not necessarily mean Dutch and Luxembourg operating companies are the sole underlying investors. Both countries are widely used as holding and financing jurisdictions by multinational groups because of treaty networks, investment protection structures and corporate treasury functions. Türkiye’s own Ministry of Trade has noted in its overseas investment research that special-purpose entities are commonly established in jurisdictions such as the Netherlands, Luxembourg, Malta and Ireland to facilitate international capital flows.
That point matters for FDI analysis. A Dutch-origin investment in Turkish data may reflect a European industrial group, a private equity fund, a Middle Eastern family office, or a global multinational using a Dutch holding company. The same applies to Luxembourg, which is a major domicile for investment funds and holding structures. For foreign investors, this makes corporate structuring a central part of Türkiye entry planning, not a secondary legal detail.
The practical issue is how to align the investor’s ultimate ownership, tax residency, dividend policy, financing model and exit route with Turkish law and treaty protections. This is where company incorporation, corporate structuring, legal and tax compliance, and investment incentives analysis intersect. A manufacturing investor, for example, may need to decide whether to enter through a Turkish limited liability company, a joint-stock company, a branch, or a local acquisition vehicle. That decision affects capital injection, governance, withholding tax, banking documentation, licensing, and later repatriation of profits.
The 2025 ranking also shows that the traditional European channel remains resilient despite Türkiye’s macroeconomic volatility. The OECD Economic Outlook published in June 2025 projected Turkish growth of 2.9 percent in 2025 and 3.3 percent in 2026, while warning that tight financial conditions and fiscal consolidation would moderate demand. Yet the same report expected inflation to decline substantially under tight monetary policy, with year-end 2026 inflation moving toward 15 percent. For long-horizon investors, that combination offers both an entry challenge and a potential timing opportunity.
Kazakhstan’s Rise Signals a Regional Capital Story
Kazakhstan’s third-place ranking is one of the most striking elements of the 2025 data. YASED figures show Kazakhstan’s investment capital inflows rising from $23 million in 2024 to $1.14 billion in 2025. That scale of change suggests either one or more large transactions, or a broader acceleration in Central Asian capital using Türkiye as a regional operating and financial hub.
The regional context is important. Türkiye has deepened commercial and diplomatic ties with Turkic states, while Turkish contractors, logistics operators, banks and manufacturers have long used Central Asia as an expansion corridor. Kazakhstan’s appearance near the top of the 2025 list suggests that the flow is no longer only outward from Türkiye to Central Asia. It is increasingly reciprocal.
For foreign investors, Kazakhstan’s rise also shows how Türkiye can function as a platform market. A company entering Türkiye may not only be targeting Turkish domestic demand, but also access to the EU customs framework, the Middle East, North Africa, the Caucasus and Central Asia. The Investment and Finance Office says Türkiye’s FDI Strategy for 2024 to 2028 aims to attract “quality FDI” aligned with technological transformation, sustainable development, global competitiveness and regional development. That language is broad, but the 2025 inflow pattern suggests Ankara is prioritizing investors that can bring production, export capability, technology and regional integration.
This has immediate implications for market entry strategy. Investors need to map not only where to sell in Türkiye, but also how Turkish operations will connect to import-export flows, free zones, customs procedures, supplier localization and logistics. For companies evaluating Türkiye as a regional base, advisory work around import-export facilitation and project management becomes part of the investment case, especially where machinery imports, customs duty exemptions, local supplier qualification and export documentation affect project economics.
Sector Data Points to Trade, Manufacturing and Digital Activity
The sector breakdown is as important as the country ranking. YASED reported that wholesale and retail trade received $3.05 billion in investment capital in 2025, representing 32 percent of total equity inflows. Manufacturing followed closely with $3.02 billion, or 31 percent. Information and communication attracted $1.31 billion, equal to 14 percent.
Within manufacturing, food, beverage and tobacco products stood out with $1.33 billion, also equal to 14 percent of total investment capital inflows. Finance and insurance received $717 million, while transportation and storage attracted $379 million.
This mix tells a different story from a real estate-led investment cycle. Trade remains the largest category, but manufacturing and information services are now central to Türkiye’s FDI proposition. That aligns with global trends. UN Trade and Development’s World Investment Report 2026 said global FDI rose 6 percent to $1.6 trillion in 2025, but described the recovery as narrow and fragile, with investment increasingly concentrated in strategic sectors. OECD’s April 2026 FDI in Figures similarly said global FDI flows rose in 2025, but unevenly, with major fluctuations linked to multinational group reorganizations.
Türkiye’s challenge is to convert that selective global capital into productive projects. The country has competitive strengths in automotive, machinery, food processing, logistics, household appliances, textiles, business services and increasingly digital infrastructure. But investors must navigate a detailed regulatory path before a project becomes operational. Site selection, incentive eligibility, environmental permits, labor rules, tax registration, social security obligations, foreign exchange exposure, import licenses and local contracting can materially affect execution.
The Ministry of Trade’s foreign trade data add another layer. Turkish Statistical Institute figures cited in January 2026 showed exports of $273.4 billion in 2025, up 4.4 percent, while imports reached $365.4 billion. That export base is attractive for manufacturers, but the import bill highlights dependence on energy, intermediate goods and capital equipment. Investors entering production sectors therefore need a realistic plan for customs classification, sourcing, hedging and working capital.
Policy Support Is Expanding, But So Is Execution Risk
Ankara has tried to make the FDI pitch more targeted. The Investment and Finance Office’s 2024 to 2028 FDI Strategy sets a goal of increasing Türkiye’s share of global FDI to 1.5 percent by 2028. The strategy emphasizes digital FDI, climate-related investment, global value chain projects, knowledge-intensive activities, high-quality employment, financial services and regional development.
Türkiye also overhauled its investment incentive framework in 2025. Legal briefings by Turkish law firms and tax advisers, citing Presidential Decree No. 9903 published in the Official Gazette on May 30, 2025, said the new system replaced the earlier Decree No. 2012/3305 and reorganized incentives around technology, local development, strategic, priority and targeted investments. The Investment Office’s incentives guide lists potential supports including VAT exemption, customs duty exemption, tax reductions, social security premium support, interest or profit-share support and land allocation, depending on the project category.
The HIT-30 high technology investment program is another signal. PwC’s Turkey tax summaries describe HIT-30 as a project-based incentive program for specialized investments in priority technology fields, with a minimum investment threshold of TRY 2 billion. The official HIT-30 materials list areas such as semiconductors, mobility, green energy and advanced manufacturing technologies.
For investors, incentives are not automatic value. They require documentation, eligibility analysis, Ministry of Industry and Technology interaction, project timing discipline and compliance after approval. If an investor imports machinery before obtaining the right certificate, misclassifies equipment, changes project scope, or misses employment and investment commitments, the expected benefit can be reduced or clawed back. That makes investment incentives advisory and government relations central to the entry process, particularly for manufacturing, technology and logistics projects.
Tax compliance has also become more complex. PwC reported that Law No. 7524, published in the Official Gazette on August 2, 2024, introduced a domestic minimum corporate tax regime requiring corporate taxpayers to calculate liability under both the standard system and a parallel minimum tax system, then pay the higher amount. For multinational groups, this interacts with transfer pricing, financing structures, incentive modeling and global minimum tax rules.
The Investment Climate Is Open, But Not Simple
Türkiye remains relatively open to foreign ownership. The U.S. Department of State’s 2025 Investment Climate Statement said Türkiye does not generally screen, review or approve FDI specifically, though sector regulators oversee industries such as banking, energy, telecommunications and aviation. White & Case’s 2026 foreign investment review similarly stated that FDI in Türkiye is generally not restricted and foreign investors are treated in the same way as local investors, while noting sector-specific restrictions and permissions.
That openness is an advantage compared with markets where national security screening has become a broad barrier. However, investors still face operational complexity. Licensing obligations, public procurement rules, competition law, data protection, employment regulations, tax audits, customs controls and sector-specific permits can determine the success of an investment as much as headline ownership rights.
The macroeconomic setting also remains a live variable. OECD noted in 2025 that tight monetary policy was helping reduce inflation, but upside risks remained significant. ING’s February 2026 Turkey commentary forecast end-2026 inflation above the central bank’s earlier range, while emphasizing the importance of policy credibility. For foreign investors, the practical consequence is that pricing, working capital, debt currency, supplier contracts and wage planning need to be stress-tested under multiple inflation and exchange-rate scenarios.
Early 2026 data suggest the 2025 rebound should not be treated as a straight-line trend. Dünya newspaper, citing YASED’s compilation of central bank data, reported that Türkiye received $4 billion in FDI in the first five months of 2026, down 15 percent from the same period of the prior year, with information and communication standing out. That does not invalidate the 2025 performance, but it reinforces the need to distinguish annual transaction spikes from sustained project pipelines.
What This Means for Foreign Investors
The 2025 country ranking is best read as a map of investor channels, not just investor nationalities. Dutch and Luxembourg inflows highlight the continuing role of European holding structures and fund platforms. Kazakhstan’s rise points to Türkiye’s growing relevance as a regional bridge for Central Asian capital. Germany and the United States show that established industrial and technology investors remain present, even if they are not dominating the year’s largest inflows.
For a foreign company considering Türkiye, the first task is market entry analysis grounded in sector demand, import dependence, export potential, customer channels and competitor behavior. The second is corporate structuring and incorporation, because the choice of entity, shareholder chain and financing route will shape tax, governance and exit outcomes. The third is incentives work, especially after the 2025 overhaul, since eligibility must be tested before capital expenditure begins.
Legal and tax compliance should be built into the project model from the start, including minimum tax exposure, VAT treatment, customs classification, payroll obligations and transfer pricing. Government relations and regulatory liaison matter where a project touches incentives, land, permits, public institutions or regulated sectors. For companies using Türkiye as a trade platform, import-export facilitation is not administrative housekeeping, but a core margin driver. For investors still building relationships, expo and trade-fair representation can help test distributors, suppliers and public-sector contacts before committing capital. Once the decision is made, project management becomes the discipline that turns approvals, construction, hiring, procurement and launch dates into an operating business.
Türkiye’s 2025 FDI data show renewed momentum, but also selectivity. Capital is flowing to investors with structure, sector fit and execution capacity. The opportunity is real, but the advantage will go to firms that treat Türkiye not as a single market entry filing, but as a regulated, regional operating platform requiring careful preparation.