A Market Entry Guide to Turkey's Digital Economy for Spanish Investors 

Turkey is now recognized as one of the fastest moving digital markets in Eurasia; it is a crossroads between Europe and Asia that brings together innovation, entrepreneurship and technological driven business models. For Spanish investors wishing to add new dimensions to their portfolio or to take advantage of an emerging digital environment, Turkey represents a combination of potential, talent, and geographic location. 

This guide looks at why Turkey's digital economy is becoming increasingly attractive to international investors and how Spanish investors can successfully enter and operate in this market. 

Turkey's Digital Growth: A Rapidly Evolving Environment 

Turkey's digital economy has experienced double-digit growth for the last decade. The country has a large and youthful population and a supportive government towards technology and innovation, making Turkey one of the largest online markets in Europe. Indicators illustrate the rapid development of Turkey's digital economy: 

• Annual e-commerce volumes exceed $40 billion (2024) and are experiencing an annual increase of more than 35%. 
• Fintech and digital payments are currently some of the most popular investment areas in Turkey due to the favorable regulatory framework. 
• Istanbul, Ankara and Izmir, Turkey's main tech-hubs, are attracting both domestic and international venture capital for the launch of new tech-startups. 
• Public initiatives, "Digital Turkey" and "Turcorn 100", are designed to generate new unicorns and promote the export of technology from Turkey. 

Why Turkey Attracts Spanish Investors 

Similarities exist between the Spanish and Turkish economies. Both countries have small and medium enterprises (SME) sectors that are very innovative and digital-first consumer bases. For Spanish investors, there are three key reasons why they would be interested in investing in Turkey: 

Strategic Location 

Turkey is strategically located as a gateway between Europe, the Middle East and Central Asia and therefore provides its investors with access to a population of over 1.5 billion people within a four-hour flight radius. 

Cost-Efficient Workforce 

Turkey has a large, young, tech-savvy and relatively low cost labor force. Therefore, Turkey is an attractive location for scaling startups and setting up shared service centers compared to Western Europe. 

Increasing Availability of High-Quality Technology Infrastructure 

Turkey has an increasing availability of high-quality technology infrastructure such as cloud services, data centers and broadband connectivity. In particular, Istanbul's tech ecosystem is led by tech-hubs such as ITÜ Çekirdek, Kolektif House, and Teknopark Istanbul which offer world-class innovation facilities. 

High-Growth Sectors for Spanish Investors 

Fintech 

Turkey has one of the most vibrant fintech ecosystems in the region with over 600 fintech startups operating in digital banking, lending and payment technologies. Spanish investors with experience in European fintech (e.g., those connected to Madrid or Barcelona fintech hubs) can contribute capital and expertise. 

Ecommerce & Retail Tech 

Although the level of online retail penetration in Turkey is still developing, especially in areas such as fashion, groceries, and logistics, Spanish investors collaborating with Turkish logistics or payment platforms can gain access to strong B2C and B2B ecommerce opportunities. 

SaaS & Enterprise Solutions 

Turkish SMEs are rapidly digitalizing, creating significant demand for cloud-based management, accounting, and CRM software solutions. Spanish SaaS providers can find good partnerships or acquisition opportunities. 

Green & Smart Technologies 

Turkey's government is incentivizing the development of renewable energy, smart agriculture and sustainable urban technologies. Additionally, international green-tech innovation programs between the EU and Turkey are facilitating cross-border green-tech collaborations. 

How to Enter and Operate in the Digital Economy 

Here are five ways Spanish investors can enter the digital economy in Turkey: 

Local Partnerships 

Collaboration with Turkish tech-companies or accelerators can facilitate quicker access to local market insight and customer networks. 

Investment Funds and Venture Capital Platforms 

Turkey's startup ecosystem is funded by multiple venture-capital funds such as Revo Capital, 212 and Logo Ventures. Co-investment with local funds can help reduce entry risk. 

Leverage Bilateral Trade Relations 

Spain and Turkey enjoy strong bilateral trade relationships through the EU–Turkey Customs Union. This facilitates easier cross-border operation and encourages direct investment. 

Establish a Local Entity or Joint-Venture 

Establishing a local entity or joint-venture in Turkey enables investors to maintain better control of their long-term operations and to be eligible for local R&D incentives, tax-breaks, and export-supports. 

Regulatory and Legal Considerations 

Turkey generally has an open investment environment for foreign capital with similar conditions for local and foreign investors. Digital sectors are subject to several regulatory frameworks including: 

Personal Data Protection Law (KVKK): aligns with the EU GDPR principles. 

Banking and Central Bank Regulation (BDDK): regulates fintech activities. 

Ecommerce Law: regulates online retail platforms. 

Therefore, investors need to consult local legal counsel who specialize in the digital sector and in cross-border taxation. 

Building a Lasting Digital Partnership 

Both Turkey's ambitions to develop into a leading digital hub in the region and Spain's outward-looking investment culture create the foundation for a long-lasting digital partnership. By sharing knowledge and resources, Spanish investors can collaborate with Turkish counterparts to create innovations in areas of mutual interest, such as renewable energy, smart cities and digital transformation, and thereby co-create the digital futures of both countries. 

With ongoing cooperation between both countries in terms of trade and technology, 2025 could represent the perfect moment for Spanish investors to enter Turkey's rapidly evolving digital environment. 

Key Takeaway 

Turkey is not a market to invest in — it is a partnership to build. 

Spanish investors who approach Turkey's digital economy with a long-term and collaborative mindset will find not only opportunities for growth, but also long-term added value through innovation, talent and cultural exchange.