Introduction: How Can a Foreign Investor Close a Company and Exit Turkey? Foreign investors entering Turkey generally focus on company incorporation, bank accounts, investment permits, employees and commercial operations. However, an equally important question is often ignored: How can the investor legally close the Turkish company and take the remaining investment out of Turkey? A […]
Introduction: Is Buying Commercial Real Estate in Turkey Safe for Foreign Investors? Turkey offers a broad commercial real estate market for international investors. Foreign investors may be interested in purchasing: The legal system permits foreign investment in Turkish real estate, but commercial property transactions should not be approached in the same way as purchasing an […]
Introduction: What Must a Foreign Company Know Before Hiring Employees in Turkey? Hiring personnel in Turkey may appear straightforward from a commercial perspective. A foreign investor establishes a Turkish subsidiary, rents an office or factory, recruits local employees and begins operating. Legally, however, employment creates a separate compliance structure involving Turkish labour law, social security […]
Introduction: What Should a Foreign Investor Check Before Building a Factory in Turkey? Turkey remains an important manufacturing location for international investors seeking access to the European, Middle Eastern, North African and Central Asian markets. Its industrial infrastructure, customs integration with the European Union for many industrial products, developed automotive and machinery supply chains, organized […]
Introduction: Why Do Turkey’s Double Taxation Treaties Matter for Foreign Investors? A foreign investor establishing a company, acquiring shares, lending money, licensing technology or providing services in Turkey can potentially face taxation in more than one country. A German company may pay tax in Germany while receiving dividends from a Turkish subsidiary. A Dutch investor […]
Introduction: How Are Dividends Paid to Foreign Shareholders Taxed in Turkey? Foreign investors establishing or acquiring companies in Turkey naturally focus on the profitability of the investment. However, earning a profit inside a Turkish company and transferring that profit to the foreign shareholder are two different stages from a Turkish tax perspective. A Turkish company […]
Introduction: Can a Turkish Company Transfer Its Profits to a Foreign Shareholder? Yes. A Turkish company may lawfully distribute profits to a shareholder located abroad and transfer the resulting dividend through the Turkish banking system. Turkey’s foreign direct investment legislation expressly protects this right. Article 3 of the Foreign Direct Investment Law provides that foreign […]
Introduction: Can a Foreign Shareholder Lend Money to a Turkish Company? Yes. A foreign individual or foreign company may, subject to Turkish foreign-exchange, tax, banking and corporate rules, finance a Turkish company through a shareholder loan rather than providing all of the funding as share capital. Shareholder loans are extremely common in international corporate structures. […]
Introduction: Can a Foreign Investor Bring Money From Abroad to Establish a Company in Turkey? Yes. A foreign individual or foreign company may transfer funds from abroad to establish, capitalise or finance a Turkish company. Turkey’s foreign direct investment regime is based on the principles of freedom to invest and equal treatment. Unless a special […]
Introduction: What Happens When a Foreign Investor and Turkish Business Partner Fall Out? A foreign investor may enter the Turkish market through a joint venture or by establishing a company together with a Turkish business partner. At the beginning of the relationship, the interests of the parties are usually aligned. The foreign investor may contribute: […]