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Frequently Asked Questions

  • How many days does it take the establishment procedures of a company in Turkey?

It takes 7 days.


  • What is the minimum number of partners are needed for a limited liability company establishment in Turkey? What is the minimum capital are needed?

It is enough a shareholder for a limited liability company. The capital must be TRY 100.000- minimum.


  • What is the minimum number of partners are needed for a joint stock company establishment in Turkey? What is the minimum capital are needed?

It is enough a shareholder for a limited liability company. The capital must be TRY50.000- minimum.


  • What is the corporate tax rate in Turkey?

Corporate tax rate is %20


  • How do I get a work permit?

Applications for work permits can be made inside or outside Turkey:  

  • Foreigners residing outside Turkey shall apply to the relevant Turkish Consulate of either his/her country of residence or his/her country of citizenship.

  • Foreigners with a valid residence permit (valid for a minimum of 6 months, except for residence permits for educational purposes) can apply directly to the Ministry of Labor and Social Security.


Foreigners applying for a work permit from their country of residence



Applicant Individual


  • Passport

  • Work visa application

  • 1 photo

  • 1 copy of the work contract



Turkish Embassy / Consulate



Applicant Company




  • Online application should be filed in 6 days.

  • Direct application to the Ministry should be filed in 10 days.



Turkish Ministry of Labor and Social Security


  • If all documents submitted are accurate and complete, the issuing process will take around 30 days.

  • Once approved, the applicant is informed by phone or e-mail.

  • Foreign nationals need an authorized Turkish citizen with a power of attorney to handle their electronic application as the process requires a Turkish national identification number.


Once the work permit has been issued and the work visa application has been approved by the Ministry of Labor and Social Security:  


Applicant Individual





Turkish Embassy / Consulate


  • Non-refundable work visa processing fee

  • Non-refundable work permit processing fee
  • To obtain a residence permit, work visa and work permit holders must apply to the Alien’s Branch of the Local Police Department (Emniyet Mudurlugu Yabancilar Subesi) within 30 days following their arrival in Turkey.


Foreigners applying for a work permit in Turkey 

Foreigners with a valid residence permit that is valid for a minimum of 6 months, except for residence permits for educational purposes, can apply directly to the Ministry of Labor and Social Security.


Applicant’s File





Turkish Ministry of Labor and Social Security





  • How do I get a residence permit?

All foreigners wishing to live and/or work in Turkey are required to obtain a residence permit within one month following their arrival in the country and prior to the commencement of their work.

For long-term residence in Turkey, the applicant should submit the following documents to the Repuplic Of  Turkey Ministry Of  Interior Directore General Of Migration Menagement:

  • 4 passport-size photos

  • Passport

  • Photocopies of the following pages of the passport: the page bearing the applicant’s photo, the page stamped at the last entry, the page indicating the validity and expiry dates of the passport

  • A bank statement or a currency exchange slip testifying to an asset in the amount of USD 500 for each month

Documents required to apply for a residence permit for work purposes:

  • 4 passport-size photos

  • Passport

  • Photocopies of the following pages of the passport: the page bearing the applicant’s photo, the page stamped at the last entry, the page indicating the validity and expiry dates of the passport

  • The original and a copy of the work permit issued by the Ministry of Labor and Social Security


  • Can all foreign nationals acquire real estate property in Turkey?

The acquisition of real estate is based on the “reciprocity principle”, which means that nationals of a country that allows Turkish nationals to purchase real estate properties within its borders are allowed to purchase real estate in Turkey. As regards the ISPAT International representatives’ network, the reciprocity principle does not apply to India, China, Kazakhstan, or the Gulf countries.


  • Is free land allocation available in every Free Zone and Organized Industrial Zone?

The lands of the organized industrial zones and free zones are owned either by the state or by private individuals. State-owned lands may be allocated in organized industrial zones, while privately owned lands can be sold or rented in organized industrial zones and free zones.


  • How are the Free Zones compared with the Organized Industrial Zones when an investment location is chosen?

Free Zones are defined as special sites with the following attributes:  

Valid regulations relating to foreign trade and other financial and economic areas are not applicable, are only partly applicable or a test of new regulations is in progress.

Special measures taken in order to increase trade volume and exports for some industrial and commercial activities as compared to other parts of the country.

Under the Free Zones Law, the main objectives of the establishment and operation of Free Zones are stated as promoting export-oriented investments and production, attracting foreign direct investmentand the latest technologies, directing enterprises towards exports and developing international trade.

There are 20 Free Zones in Turkey operating close to the EU and Middle Eastern markets. They are adjacent to major Turkish ports on the Mediterranean, Aegean and Black Seas and provide easy access to international trade routes.

Organized Industrial Zones (OIZs) are designed to allow companies to operate within an investor- friendly environment with ready-to-use infrastructure and social facilities. 

The existing infrastructure provided in the zones includes roads, water, natural gas, electricity, communications, waste treatment and other services.


  • Under which conditions can the land allocated to investors be confiscated by the OIZ?

Allocation permits granted by the OIZs to investors may be annulled under the following circumstances and within the time frames mentioned:

  • If the investor does not submit the project to the OIZ in order to get a construction permit and does not obtain an Environmental Impact Report within a year.

  • If the investor does not start actual construction works within 2 years of obtaining the necessary construction permit.

  • If the investor does not start production within 3 years, beginning from the date of issue of the construction permit.

  • Which documents are required to establish a company in Turkey?

If the founder of the company is a legal entity, the following documents are required: Petition, Establishment Statement, Articles of Association, Certificate of Activity, Power of Attorney, Signatory Declaration, Original of Bank Receipt, Chamber Registration Statement, Letter of Commitment, Proof of Residence and Board Resolution.

If the founder of the company is a natural person, a Board Resolution is not necessary but the individual's identification certificates or passport is needed in addition to the above-mentioned documents.


  • Are loans from Turkish banks easily accessible? Is there a cash subsidy program?

There are no restrictions for securing loans from Turkish banks. Loans are issued mainly on the basis of the financial situation of the company and its shareholders.

Under the Foreign Direct Investment Law, foreign investors can finance the whole investment through equity. If the equity is not enough or requires leverage, investments can also be financed by part equity and part loan. The capital can be in the form of cash of convertible currency bought and sold by the Central Bank of the Republic of Turkey, stocks and bonds of foreign companies (excluding government bonds), machinery and equipment, industrial and intellectual property rights, reinvested earnings, revenues, financial claims, or any other investment-related rights of financial value.

Securing loans from commercial banks depends entirely on the project, credibility and guarantees. Moreover, under the general regime, one of the main incentives is credit allocation from the budget (limited to a certain amount depending on the type of the investment), if certain conditions are met. There is no cash subsidy program within Turkey's general framework of incentives. 

  • Are there any restrictions on the transfer of dividends? What is the withholding tax on the transfer of dividends?

There is no limitation for repatriation of profits unless the company is monitored by an upper supervisory body (such as the Capital Market Board or the Banking Regulatory and Supervisory Board), whose approval is required. After paying a 20% corporate tax, there is a 15% dividend withholding tax if the profit is distributed to local natural persons or foreign natural/legal persons. Under the Turkish tax system, all taxable entities are subject to the same dividend withholding tax rate, which is 15% and is applied to profits after taxation. Favorable dividend withholding tax rates exist due to Turkey's Double Taxation Treaties.

Turkey has around 70 Double Taxation Treaties (DTT) signed with many countries. Therefore if the DTT dividend withholding tax rate is lower than the generic 15% rate, the DTT rate may apply.

Foreign investors are free to transfer dividends to abroad in accordance with the Foreign Direct Investment Law. However, the Turkish Commercial Code legal reserve requirements must also be met. There are no restrictions with respect to dividend payments under the Foreign Exchange legislation, but the dividend withholding tax has to be paid before repatriation. This will be checked by the banks used for the transfer. 

  • What are the main reasons behind the increase of FDI in Turkey in the last 6 years?

The structural reform process launched in 2003 has resulted in a new, dynamic and much more internationally integrated Turkey. The opening up of key markets such as banking, telecommunications, energy, tobacco, and agriculture to competition and projected privatizations are indicative of Turkey’s progress towards becoming an effective free market.

Turkey has decided to implement an active policy to improve its investment environment, as the following acts clearly demonstrate. Turkey has created the national Coordination Council for the Improvement of the Investment Environment (CCIIE), whose duties include rationalizing regulations concerning direct investments, developing policies that will increase the competitiveness of the investment environment, and preventing any bureaucratic problems faced by national and international investors. The government has also devised the international “Investment Advisory Board”, gathering together the CEOs of the world's top 20 companies in Turkey for a full working day with the Prime Minister and the State Minister for the economy. The Investment Advisory Board meeting always culminates in the announcement of a public recommendation list. These initiatives are clear steps taken towards enhancing the role of private industry in the economy.  

A significant range of additional economic reforms has changed the global investment conditions in Turkey. The FDI Law introduced by the Parliament in 2003 guarantees equal treatment for all investors, with no distinction made between international investors and locals. Turkey's economic power has drastically increased in the last six years.


  • How many banks are currently operating in Turkey?

The total number of banks in Turkey is 51 as of  January2015, and they employ 171,048 people.



  • Where does the finance sector stand in the overall FDI picture?

By the end of 2008, the number of foreign banks in Turkey reached 17. In addition, the financial sector was the target of large amounts of FDI between 2004 and 2008. The total amount of FDI attracted by this sector totals USD 28 billion - Turkey attracted almost half of the FDI in the time frame mentioned above.


  • Are there any special incentives to encourage investment in the machinery sector?

When investing in the machinery sector, there are a number of incentive systems that investors can benefit from: Under the umbrella of the General Investment Incentive Regime, investors are exempted from both customs duties and fund levies, VAT for the imported or locally purchased machinery and equipment. In the newly launched incentive scheme the machinery industry is one of the key sectors to be supported. The sector will be benefiting from reduced corporate tax, interest support and a social security premium contribution for employers. The third system, called the Inward Processing Regime, is structured to encourage Turkish exporters. Since the machinery industry is an export-oriented industry, the support given through this regime is also beneficial to investors: Under the Inward Processing Regime, exporters have the opportunity to obtain materials for the production of their exports, without being subject to customs duties or VAT.



  • What kinds of incentives are granted to investors in the tourism sector?

An investor that has a tourism investment certificate can benefit from the following incentives:


  • Tax reduction

  • Investment loans

  • Investment premiums

  • Access to tourism development funds

  • Loans with low interest rates and long maturity

  • Partial customs duty exemption

  • Land allocation 

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