Free Movement of Capital in the Context of Turkey's EU Candidature

Abstract

The confirmation of Turkey’s candidacy by the Helsinki European Council in 1999 has ushered in a new era of relations after forty years of association with the European Union. The freedom of capital movement is one of the four fundamental freedoms, alongside of the freedom of movement of goods, persons and services to assist the operation of the EU internal market. The Turkish regime on the free movement of capital is, to a certain degree, aligned with the EU regulations. However, there are some restrictions on foreign ownership in other sectoral legislation in the areas of civil aviation, maritime transport, radio and television broadcasting, and energy. Moreover, acquisition of real estate is also limited for foreign investors. Removing all restrictions affecting the acquisition of real estate and foreign ownership in Turkey by EU citizens and legal persons was the focal importance in the process of the harmonization of the acquis.