Doing business in Türkiye

Turkish commercial law is codified, with the Turkish Commercial Code governing companies, the Foreign Direct Investment Law No. 4875 governing foreign investment, Law No. 4054 governing competition and Law No. 6769 governing industrial property. Companies are registered with trade registry offices through the MERSIS system. Tax is administered by the Revenue Administration, work permits for foreign staff by the Ministry of Labour and Social Security, merger control by the Competition Authority and industrial property by the Turkish Patent and Trademark Office. Türkiye is in a customs union with the EU for industrial goods and has its own network of trade agreements. Several official Turkish sites could not yet be checked in this review, so a number of points rest on secondary sources and are marked as such.

Key facts

Corporate income tax

25% (30% financial sector); 10% domestic minimum tax

VAT

20% general rate

Main entity forms

LLC (TRY 50,000) or joint stock company (TRY 250,000)

Foreign ownership

Notification, not prior approval, under Law No. 4875

Profit repatriation

Free transfer of profits under Law No. 4875

New York Convention

In force since 30 September 1992 (reciprocity and commercial reservations)

Social security floor 2026

TRY 33,030 per month

Foreign investors use the same company forms as Turkish investors and notify, rather than seek approval for, their investment. Limited liability and joint stock companies have minimum capital requirements that existing companies must meet by the end of 2026.

Key facts

• No prior approval is needed for foreign investment; formation and share transfers are notified through E-TUYS.

• Minimum capital is TRY 50,000 for an LLC and TRY 250,000 for a joint stock company (TRY 500,000 under the registered-capital system).

• Companies below these minimums are deemed dissolved unless they increase capital by 31 December 2026, which is an urgent check for existing subsidiaries.

• Registration runs through MERSIS, and joint stock companies must pay in 25% of cash capital before registration.

• Directors and shareholders need not be resident; branches expose the parent to liability and liaison offices cannot trade.

Who handles this in TürkiyeSetting up and running a companyContracts and commercial law

Corporate tax is 25%, or 30% for financial companies, with a 10% domestic minimum tax since 2025 and Pillar Two rules since 2024. VAT is generally 20%, and branch remittances carry 10% withholding tax.

Key facts

• The standard corporate rate is 25%, with 30% for the financial sector.

• A 10% domestic minimum corporate tax applies from 2025, limiting the benefit of exemptions and deductions.

• Large groups are within Pillar Two, including a 15% domestic top-up tax from 2024.

• VAT is generally 20%; branch profits remitted abroad bear 10% withholding tax unless a treaty reduces it.

• An annual transfer pricing report must be ready by the corporate tax return deadline.

Who handles this in TürkiyeTax and structuringAccounting and annual filings

Employer social security costs are about a fifth of gross pay within a monthly floor and ceiling. Foreign key personnel of qualifying FDI companies benefit from a special work permit regime, and the Turquoise Card serves highly qualified foreigners.

Key facts

• Employers pay 20.75% social security (reducible if conditions are met) and employees 14%, plus unemployment insurance of 2% and 1%.

• Contributions are calculated between a monthly floor of TRY 33,030 and a ceiling of TRY 297,270 in 2026.

• Partners, board members, senior managers and essential specialists of qualifying FDI companies can use the special key personnel work permit route.

• Specific FDI status in 2026 depends on thresholds such as TRY 21.9 million foreign capital with large turnover, exports or headcount.

• The Turquoise Card has a three-year transition period, and the follow-up application must be made in its last 180 days.

Who handles this in TürkiyeEmployment, payroll and immigration

Foreign investors generally need no special permission, but sector permits apply in regulated areas such as energy and finance. Incentive schemes, free zones, public procurement and foreign real estate rules were not confirmed in this review.

Key facts

• Regulated sectors such as energy and finance need their own permits regardless of foreign ownership.

Who handles this in TürkiyeLicences, permits and regulators

Law No. 4875 allows foreign investors to transfer profits abroad freely. Current foreign exchange regulations, central bank rules and bank onboarding requirements could not yet be confirmed from official sources in this review.

Key facts

• Profits from foreign direct investment can be transferred abroad freely under Law No. 4875, subject to withholding tax on remittances.

Who handles this in TürkiyeBanking and capitalPayments and currency

Türkiye has a customs union with the EU and a wide set of trade agreements, including with EFTA, the United Kingdom, Korea, the UAE and Singapore. Customs procedures, tariffs and export controls were not confirmed in this review.

Key facts

• Trade agreements in force include EU-Türkiye, EFTA-Türkiye, UK-Türkiye, Korea-Türkiye, Türkiye-UAE and Türkiye-Singapore.

Who handles this in TürkiyeCustoms, trade and export controls

This topic was written by AI from general knowledge and is being checked against official sources. Confirm anything you plan to rely on with a qualified local professional.

5 statements on rates, thresholds or deadlines are held back until they are checked against an official source.

Who handles this in TürkiyeData protection and cyber

Industrial property is governed by Law No. 6769 of 2017 and copyright by Law No. 5846, with registration through the Turkish Patent and Trademark Office. Türkiye is in the Madrid, PCT and Paris systems.

Key facts

• Law No. 6769 covers patents, utility models, trademarks, geographical indications and designs.

• Copyright arises under Law No. 5846 on Intellectual and Artistic Works.

• Türkiye can be designated under the Madrid Protocol (since 1999) and the PCT (since 1996), and has been in the Paris Convention since 1925.

Who handles this in TürkiyeTrade marks, patents and brands

Merger notification thresholds were raised on 11 February 2026 to TRY 3 billion aggregate and TRY 1 billion individual Turkish turnover, with a narrower technology exception. Notifiable deals are invalid until cleared and gun-jumping is fined.

Key facts

• From 11 February 2026 the tests are TRY 3 billion aggregate plus TRY 1 billion for two parties, or TRY 1 billion target turnover plus TRY 9 billion worldwide for another party.

• Targets that are technology undertakings established in Türkiye are caught at TRY 250 million.

• Deals are invalid until approval and failing to file costs 0.1% of Turkish turnover, so closing must wait for clearance.

• Phase I runs 30 calendar days from a complete filing, with deemed approval if the Board does not respond.

Who handles this in TürkiyeBuying, selling and investing

Türkiye is a long-standing FATF member and had a new mutual evaluation on-site visit in late 2025. Anti-bribery, sanctions and whistle-blowing rules were not confirmed in this review.

Key facts

• Türkiye has been a FATF member since 1991.

• Its latest FATF evaluation reflects an on-site visit ending 28 November 2025, and its outcome will shape bank and counterparty due diligence.

Who handles this in TürkiyeAnti-bribery, sanctions and compliance

Türkiye has applied the New York Convention since 1992 with reciprocity and commercial reservations, and is party to the Singapore Convention on Mediation. It is not party to the HCCH 2019 Judgments Convention.

Key facts

• Foreign arbitral awards from other contracting states are enforceable under the New York Convention for commercial matters.

• International mediated settlement agreements can be relied on under the Singapore Convention, in force for Türkiye since 11 April 2022.

• Foreign court judgments cannot use the HCCH 2019 Convention route, so enforcement depends on national law and treaties.

Who handles this in TürkiyeDisputes and arbitrationContracts and commercial law