'Angels' chasing investments in Turkey

Angel investors, who are widespread in Europe and the United States, have been expanding rapidly in Turkey for the past two years. Investors who support new entrepreneurs with capital infusion and advice are called "angels." But for some, these angels are also "investment hunters" who seek profitable investment opportunities for themselves.

In Turkey, angel investors are encouraged with tax breaks. But to benefit from such subsidies, investments should be innovative, research and development-oriented and high-risk companies with rapid advancement prospects.

Deputy Prime Minister for Economic Affairs Mehmet Simsek said angel investors are exempt for up to 75-100% in their tax obligations.

To benefit from tax exemptions, angel investors first have to obtain the License for Individual Capital Infusion from the Treasury. Those who get the license are entitled to 75% income tax exemption. Those who have invested in projects supported by the Ministry of Science, Industry and Technology; Scientific and Technological Research Council of Turkey and the Small and Medium Business Development and Support Administration for five years are entitled to 100% tax exemption.