ERAI offers you tailor-made solutions to reduce your operating costs in Turkey and improve your performance in the country.
Reduce Operational Costs in Turkey
Investing in Turkey: Economic Data of the Country
Between 2003 and 2023, Turkey experienced significant economic growth, with an average annual increase of 5.4%. The country’s success is attributed to consistent reforms, sound macroeconomic policies, and political stability under President Recep Tayyip Erdoğan. This period of stability attracted nearly $262 billion in foreign direct investment (FDI), making Turkey a hub for R&D, manufacturing, technology, energy, logistics, and management. Consequently, Turkey became the 11th largest economy in the world in terms of purchasing power parity.
Turkey expects FDI to reach between $12 billion and $14 billion in 2024, an increase from around $10 billion in 2023. This optimism follows Turkey’s removal from the Financial Action Task Force (FATF) “grey list” for money laundering, which improved the country’s credit rating and boosted investor confidence.
Cost of Business in Turkey
Turkey offers a competitive business environment with advantages such as affordable labor costs and strategic access to regional markets (Europe, the Middle East, and Asia).
The minimum wage is advantageous for investors, and utility costs are relatively low, enhancing operational efficiency. Turkey’s gross monthly minimum wage is set at 20,002.50 TRY (573 euros; 614 dollars) as of January 1, 2024. After taxes and deductions, the net monthly minimum wage is 17,002.12 TRY (487 euros; 522 dollars).
Turkey’s infrastructure, including the transportation network and technological services, supports business growth. Financial incentives and tax advantages further reduce costs, making Turkey an attractive destination for investments.
Office and warehouse rental costs should also be considered in your budget. Rates vary depending on the region. For example, costs in Istanbul or Ankara will naturally be higher.
ERAI offers clients the option to rent private offices or open spaces in Kadıköy, a prime business district in Turkey. Our location provides direct metro access to Sabiha-Gökçen Airport, one of Turkey’s largest airports, situated on Istanbul’s Anatolian side. This location also offers quick access to ferries connecting Istanbul and Bursa, one of Turkey’s largest industrial zones. By choosing office rentals with ERAI, you optimize your operational costs in Turkey.
If you want to explore premium office prices in the heart of Istanbul, contact ERAI.
How to Reduce Operational Costs in Turkey?
What are the operational costs in Turkey?
Business expenses in Turkey include low-cost labor and variable rents for offices and warehouses, along with transportation and logistics costs.
What does ERAI do to reduce your operational costs in Turkey?
In addition to office rentals in Istanbul, ERAI Turkey offers several services, ranging from back-office management to strategic consulting to optimize your processes—economic intelligence Turkey, and import/export management. ERAI also provides customized logistics and warehousing solutions to improve efficiency. ERAI offers cost reduction strategies through automation and digitization, helping companies optimize their supply chain and reduce overall expenses.
For more details, visit the Operations page.
To date, ERAI has supported over 500 international companies since 2006 and is recognized as a market expert in Turkey.
5 Tips for A Successful BUSINESS in Turkey
- Leverage Affordable Labor Costs: Take advantage of Turkey’s competitive labor market. With a relatively low minimum wage, companies can reduce personnel expenses while maintaining productivity.
- Find Office and Storage Rentals: Choose strategic locations for offices and warehouses. Consider cheaper regions or opt for shared office spaces in areas like Kadıköy, Istanbul, where ERAI offers economical solutions to reduce operational costs in Turkey.
- Utilize State Incentives: Benefit from the Incentives and tax advantages offered by Turkey to attract foreign investments.
- Improve Efficiency Through Technology: Implement automation (AI, IoT, etc.) and digital tools to streamline operations.
- Optimize Supply Chain and Logistics: Take advantage of Turkey’s strategic position and well-developed infrastructure to optimize logistics and supply chain processes, thereby reducing operational costs in Turkey.
Source: Invest In Turkey, AGBI, Reuters
