At the end of January 2023, the opposition coalition bloc in Turkey - known as the "six-party table" consisting of 6 political parties from different backgrounds - announced its long-awaited draft of "mutually agreed policies", which it aspires to implement if he wins. the candidate of the opposition bloc for the presidency in the upcoming elections in Turkey;
You can find the full text of this draft in Turkish at this link.
The opposition bloc's draft of mutually agreed policies has attracted a lot of attention from foreigners inside and outside Turkey, as there are many questions, doubts and speculations about what the diverse and heterogeneous opposition coalition can offer, while the policies of the current AKP government are well known, or even Its policies are least predictable because it has ruled the country for more than 20 years, especially since the current President Recep Tayyip Erdogan has held this position since 2014.
The Mutually Agreed Draft Policies is an extremely comprehensive 240-page text that pledges to make significant changes in almost all aspects of policy and power.
There are many policy changes that have been undertaken that will have direct or indirect impacts on foreigners and foreign investors.
Public perceptions are that the current government is pursuing policies that serve the interests of foreigners, and the opposition bloc is strongly opposed to foreigners.
However, this is not an entirely accurate opinion given the very different policies adopted by the different political parties in the opposition bloc.
It should be noted that two political parties in the bloc were established by former prominent political figures in the AKP governments, and another party representing the traditional Islamic line in Turkish politics.
It is therefore unfair to say that the draft mutually agreed opposition policies propose absolutely unfavorable and restrictive rules against foreigners.
Although this data is correct in some respects, sometimes completely liberal and foreign-friendly policies are adopted.
Although it is not possible to examine in detail all the policy changes undertaken with regard to foreigners and foreign investors, I will attempt to highlight the most important paradoxes in this article.
The purpose of this article is to address questions and speculation that have been raised frequently since the announcement of the draft mutually agreed policies.
It is not clear if the opposition bloc has more chances than the current government.
It is only clear that the upcoming elections will be very competitive, just as it is not clear if the opposition bloc will be completely faithful to its pledges contained in this draft if it wins the elections;
This draft is not a legally binding text.
However, it is believed that it will have to comply with the pledges in the draft to a large extent in order to maintain its political legitimacy and internal cohesion.
Promised Changes Regarding Turkish Citizenship Laws:
Granting exceptional citizenship will be more difficult and its scope will be narrowed.
Closing the citizenship by investment program.
make inquiries about already completed citizenship applications, and if any corruption activity or presentation of a fraudulent or misleading document is found, legal action will be initiated against the relevant citizenship holders;
Which may lead to the revocation of their nationality.
Promised Changes to Immigration Laws:
The General Directorate of Migration, the public institution responsible for immigration affairs, will be restructured and its staff will be strengthened to provide better quality services.
Immigration and international protection laws will be reviewed.
Agreements between the EU and Turkey on migration dated in 2014 and 2016 will be reviewed.
New forced return agreements will be signed for migrants with countries that are sources of irregular migration towards Turkey.
The Turkish visa system and the rules for short-term tourist residence permits will be reviewed, and if people in some countries are found to be repeatedly abusing these permits, visa exemption agreements, residence permits and facilities with those countries will be terminated.
Syrian migrants under temporary protection status are repatriated whenever conditions are appropriate and for as long as they can be repatriated in accordance with domestic and international law.
To make this possible, the Turkish government, the Syrian community in Turkey, the Syrian government and international institutions will cooperate.
In particular, UNHCR will be consulted and have a supervisory function during this process.
For the children of immigrants who will need to reside in Turkey, additional educational programs and opportunities will be offered to them.
Immigrants will not be allowed to settle in a particular area intensively.
Thus, the total number of immigrants living in a given area will not exceed a certain percentage of the total population there.
Immigrants under TPS will not be allowed to stay in cities other than the city where they are allowed to stay for extended periods unless there is a legitimate reason.
Migrants who are involved in criminal activities will be quickly deported and banned from entering Turkey again.
Increase the number and quality of deportation centers.
Border control will be strengthened and equipped with more advanced technologies.
Penalties and penalties for companies that employ foreigners or are run by foreign entrepreneurs without a work permit will be tougher, and inspections will be more stringent.
For qualified foreign workers in the scientific and technological sectors, work permit procedures will be simplified and made more flexible.
The rules allowing foreign students to enroll in Turkish schools, work during their studies and remain in Turkey after graduation will be reviewed and additional conditions will be imposed.
Promised changes to trade rules and the economy:
The economic model centered on real estate development will be withdrawn, and the part of the "Canal Istanbul" project will be cancelled.
The export of real estate development services will be encouraged and stimulated by the government.
Focus will be directed to some other sectors: artificial intelligence and autonomous system development, crypto assets and blockchain technologies, software development, green transformation, electric cars, health tourism, media production and finance, and bold steps will be taken to make Istanbul a truly global financial center.
It will facilitate the procedures for incorporating the company, liquidating it, and transferring shares in it.
A new “start-up company” law will be enacted to clarify the special rules for startups in Turkey.
It will simplify the application procedures for grants and general incentives for all entrepreneurs, there will be additional flexibility to attract angel investors to startups in Turkey, and trademark protection procedures will be simplified.
Rules requiring exporters to exchange a certain amount of their foreign currency income for Turkish lira will be abolished.
It will be instigated to ensure that tax breaks and capital returns are not used for money laundering.
Also, tax exemptions and exemptions will be simplified, the number of indirect taxes will be reduced, and there will be new restrictive rules for assets transferred to "tax haven" countries.
The tax liabilities and legal framework for the crypto-asset industry will be clarified by the new laws that will be enacted.
The value-added tax will be eliminated on educational services, and the supplier tax will be removed on the rental income of real estate used as a place of business.
Income tax arising from workers' wages and social security tax burdens on employers will be reduced.
Capital taxes and rentier profits from real estate will be raised.
New trade and investment agreements will be signed with the countries of the Middle East, the Balkans and the Caucasus in the region.
Care will be taken to ensure that the Turkish Statistical Institute provides and announces accurate data of great importance for calculating the inflation rate, unemployment rate, etc., the independence of the Central Bank of Turkey will be guaranteed, and the interventions of public authorities will be minimized in the floating exchange rate system and free market dynamics.
The Currency Protected Turkish Lira Participation Account Program will be dispensed with, existing accounts will remain active until the end of their maturity date and will not be renewed.
Committed changes to governance and bureaucratic systems:
Official documents such as business licenses, graduation certificates, real estate title deeds, health certificates, and identity cards will be fully integrated into the digital realm through the use of blockchain technology.
International trade and customs procedures will be integrated into the blockchain system.
For fundamental and vital matters, legal procedures and procedural complexities as well as mediation costs will be reduced, while seeking to enhance transparency with speed.
For companies that aim to provide their services to Turkey's market without having a physical presence in Turkey, new laws will be enacted and their operations will be empowered by new opportunities such as "e-Residency".
And it will be keen to provide “e-residency” opportunities for foreign entrepreneurs and qualified workers who wish to establish or work in emerging companies in the technology sector.