Turkey Wants to Stop Capital Outflow

Politics ♦ Published: August 17, 2013; 14:05 ♦ (Vindobona)

The Turkish government plans to attract more investors. By lower taxes, foreign capital of Turkish nationals should come back to Turkey.

Turkey Wants to Stop Capital Outflow / Picture: © Vindobona.org

For Turkey, the massive capital outflow since the beginning of 2013 has become a substantial risk factor. In July only, the net capital outflow came at € 2.5bn. Turkey wants to offset the capital outflow of foreign investors by the capital inflow of domestic investors. In order to stop the capital outflow, the capital gains tax on domestic interests was lowered to 2%.

In total,…