Turkey

The peculiarity of Turkey is that foreign entrepreneurs work under the same conditions as local companies. To open a company and run a business, you must apply for an entrepreneur visa. This visa makes it possible to apply for a Turkish residence permit.

WE OFFER

Our capabilities

VBC Capital offers company registration services, assistance in opening bank accounts, obtaining citizenship, and obtaining a residence permit. Our specialists will provide detailed information on taxation and build an accounting system for your company.

Together with the leading law firms, VBC specialists will provide legal and attorney consulting support.

After a detailed analysis of your company’s business model, we will provide optimal solutions that will allow you to manage processes with knowledge of the specifics of doing business in Turkey.

Duty-free zone with the European Union. A free trade agreement is in force between Turkey and the European Union. This makes it possible to import goods from Turkey to the EU countries duty-free. Customs duties on imports to Turkey from third countries are the same as in the European Union.

Free economic zones, free economic zones. (FEZ). The country has more than 20 free economic zones with special tax and customs regimes. The purpose of creation of FEZ is to support export of goods from Turkey. All types of economic activity are allowed in FEZ: production, research and development, IT and software development, trade, warehousing and logistics services.

JURISDICTION

Key features of the region

LEGISLATION

Law and agreements

8 free economic zones of Turkey are located in the most convenient places for organization of production and export of goods.

Министерство торговли Турции

Foreign individuals and legal entities can open various types of companies in Turkey.

Foreign investors have the same rights as Turkish investors. This principle is established by the Law on Foreign Direct Investment Law in Turkey.

FOREIGN DIRECT INVESTMENT LAW

Legislation

The main legislation governing the opening of a company in Turkey (a joint-stock company or LLC) is the Commercial Code and any relevant by-laws.

Types of the Companies

The Commercial Code sets the requirements for companies in Turkey. The company’s statutes are drawn up in accordance with the Turkish Commercial Code. Before starting the company registration procedure, candidates should check whether the desired company name is available. This can be done by sending us a request.

Types of the Companies

● Limited Liability Company (LLC) — Limited Şirketi (Limited Shirketi) — suitable for small and medium-sized businesses. Registration procedure is simple and its features make it a favorite among foreign investors. This form of business requires at least one shareholder and a minimum share capital of 5,000 Turkish liras. The company is managed by a board of directors.

● The joint-stock company (JSC) — Anonim Şirketi (Anonymous Shirketi) — is used by those who want to start a large business. At least one shareholder is required to register this type of company, and the minimum share capital requirements are higher than for an LLC and amount to 50,000 Turkish liras. The company is also managed by the Board of Directors together with the Supervisory Council.

● A limited liability partnership (LLP) — Komandit Şirketi (Komandit Shirketi) — does not require a minimum share capital, and this company is used to manage a commercial enterprise under a trademark. Shareholders may have limited or unlimited liability. A collective company is similar to a limited liability partnership, but the liability of shareholders in this case is limited to the number of contributions made to the share capital.

● Partnership or collective company — Kollektif Şirket (Collectif Shirketi)

● Cooperative — Kooperatif

95% of companies in Turkey are registered in the form of LLC and joint-stock companies. The most popular type of company is a limited liability company (LLC)

Agreements on avoidance of double taxation:

Turkey has effective agreements on avoidance of double taxation (DTA) with more than 80 countries.

Including with such as: Russia, Ukraine, Kazakhstan, Poland, Israel and the United Arab Emirates.

List of countries in alphabetical order:

Albania, Algeria, Australia, Austria, Azerbaijan, Bangladesh, Bahrain, Belarus, Belgium, Bermuda, Bosnia and Herzegovina, Bulgaria, Guernsey, Gibraltar, Brazil, Great Britain, Hungary, Vietnam, Germany, Greece, Georgia, Denmark, Jersey, Egypt, Israel, India, Indonesia, Jordan, Iran, Ireland, Spain, Italy, Kazakhstan, Canada, Qatar, China, Kosovo, Ivory Coast, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mexico, Moldova, Mongolia, Morocco, Netherlands, New Zealand, Norway, UAE, Oman, Isle of Man, Pakistan, Poland, Portugal, Republic of Korea, Romania, Russian Federation, Saudi Arabia, Senegal, Singapore, Syria, Slovakia, Slovenia, Somalia, Sudan, USA, Tajikistan, Uzbekistan, Ukraine, Philippines, Finland, France, Croatia, Montenegro, South Africa, Switzerland, Sweden, South Africa, Japan

CHARACTERISTICS OF THE REGION

The advantages of doing business in Turkey

  • Employees are exempt from paying income tax if the resident company exported at least 85% of its products.
  • FEZ residents do not pay real estate tax on the territory of FEZ.
  • Goods supplied to the FEZ from Turkey are exempt from VAT.
  • FEZ residents do not pay stamp duties.
  • Goods exported from the Free Economic Zone or from other parts of Turkey are also exempt from VAT. A special tax regime makes it possible to reduce costs and increase the competitiveness of goods on the international market.

TAX LEGISLATION

Taxes

  • Companies in Turkey pay income tax, VAT, Social Security contributions, and stamp duties.
  • The income tax in Turkey is 25%. Turkish companies pay tax on all profits, including foreign profit. Foreign companies pay tax on profits earned in Turkey.
  • VAT. The base rate is 20%. Some categories of goods are subject to a reduced rate: 10% on medicines, 1% on basic foodstuffs, leased equipment, and periodicals.
  • Social insurance. The employer pays 37.5% of the wage fund to the Social Insurance Fund. 
  • Stamp duties for contracts, payroll and financial statements are paid at a rate of 0.15— 1.89% of the document amount.
  • Personal income tax is paid at a progressive rate of 15 to 40%, depending on the amount of income. The maximum 40% rate applies to the portion of income in excess of 3 000 000 TL ($100 000) per year. Some types of income are subject to withholding tax: 10% on dividends and 10 to 18% on interest on deposits — the rate depends on the amount and term of the deposit.
  • Capital gains tax is payable, for example, when selling real estate. The tax is levied on a progressive scale, meaning that the tax rate varies from 15 to 40%, as does the income tax rate. Capital gains tax must be paid within 15 days after the income is received.
  • Interest tax is 0 to 15%, and non-resident investors always pay it at the maximum rate. In other cases, the tax rate depends on the maturity of bonds and deposits: the longer the repayment period, the lower the interest rate.
  • The dividend tax is 10% and is charged only on half of the total dividend amount. If income from dividends and income from other sources of an individual exceeds 150 000 TL, or about $5,000, they are included in the annual tax return. In some cases, dividend tax may be included into calculated income tax.
  • Customs duties. Since May 2022, the customs duty rate for individuals has been 30% on goods worth 150€ or more if they are imported from countries outside the European Union.
  • Inheritance tax and gift tax in Turkey are levied depending on the value of the property. The inheritance tax rate ranges from 1 to 30%, on gifts — from 1 to 10%.

CITIZENSHIP

Turkish Citizenship by Investment

Our company advises and supports in obtaining citizenship by investment. Investors can obtain Turkish citizenship within 6—8 months. Today, the most popular option for obtaining citizenship is investment in real estate worth $400,000 or more. All payments for the Citizenship by Investment Program are tied to the US dollar.

Please note that all payments under the program are tied to the US dollar.

Before starting the procedure for obtaining citizenship, it is necessary to fulfill the condition for investment — to pass a government Due Diligence audit.

Options for obtaining citizenship:

Purchase of real estate worth $400,000 or more.

The requirement for citizenship by investment is to purchase real estate located within the borders of Turkey. The application can be submitted provided that the cadastral value of the property being purchased is at least $400,000. The transaction must be carried out in the Cadastral Chamber of Turkey. After that, the applicant can apply for citizenship.

Real estate purchased under the program cannot be sold for three years.

Our company will help you find real estate in accordance with your criteria and wishes.

Business investments — from $500,000

Turkish citizenship can be obtained by investing in fixed assets in the amount of $500,000.00 or equivalent foreign currency, or Turkish lira, according to a decision of the Ministry of Industry and Technology.

The decision to grant citizenship to an applicant is issued by the President of the Republic of Turkey, provided that this is not hampered by national security and public order.

Bank deposit — from $500,000

Turkish citizenship can be obtained by making a contribution of at least $500,000.00 or the equivalent in foreign currency or Turkish lira to a bank operating in Turkey. A bank deposit cannot be withdrawn for at least three years, as confirmed by Banking Regulation and Supervision.

The decision to grant citizenship to an applicant is issued by the President of the Republic of Turkey, provided that this is not hampered by national security and public order.

Purchase of government bonds — from $500,000

Turkish citizenship can be obtained by purchasing government bonds worth at least $500,000 or the equivalent amount in foreign currency or Turkish lira. Government bonds cannot be sold for at least three years, as confirmed by the Ministry of Treasury and Finance.

The decision to grant citizenship to an applicant is issued by the President of the Republic of Turkey, provided that this is not hampered by national security and public order.

Purchase of investment fund units — from $500,000

Turkish citizenship can be obtained by purchasing a share in a real estate investment fund or a venture capital fund in the amount of at least $500,000.00 or the equivalent in foreign currency or in the amount of Turkish lira. The shares of a real estate investment fund or venture capital fund cannot be sold for at least three years, as confirmed by the Turkish Capital Markets Board.

The decision to grant citizenship to an applicant is issued by the President of the Republic of Turkey, provided that this is not hampered by national security and public order.

Creation of jobs

Turkish citizenship can be obtained by creating jobs for at least 50 people, as confirmed by the Ministry of Family, Labor and Social Services.

The decision to grant citizenship to an applicant is issued by the President of the Republic of Turkey, provided that this is not hampered by national security and public order.

REGISTRATION

Registeration of a business and opening of accounts

We provide assistance in preparation of documents for company registration.

  • We support the process from document preparation to full registration of the company and commencement of business
  • We provide full legal support
  • We comply with all legal regulations.

Company registration services

  • Registration of a company/representative office
  • Registration of a legal address
  • Obtaining a VAT number for the company

ACCOUNTS OPENING

Opening of the bank accounts

Our company will help you to open a bank account. You can open a bank account either in person or remotely by proxy. This service applies to both legal entities and individuals.

  • We provide legal support services
  • We provide banking support services
  • Interpreter services
  • Representation of client’s interests in government agencies
  • Preparation of a complete set of notarized and apostilled registration documents with register notes translated into Turkish.
To open an account, you must provide the following documents:
  • A detailed description of the business.
  • Company Charter (with apostille).
  • Company registration certificate (with apostille).
  • Certificate of good standing of the company (with an apostille).
  • Certificate of state registration, current composition of members and governing bodies of the legal entity; A document that displays an authorized person with the right to sign and reflects the current composition of shareholders. The title of the document may vary, but it must be official and disclose the company’s structure (with an apostille).
  • A copy of the authorized person’s passport.
  • Parents’ names (required to obtain a tax number).
  • If the company’s shareholder is a legal entity, a full package of documents for the shareholder company is required.

BOOKKEEPING

Accounting services

After opening a company, we take responsibility for the accuracy, correctness and timely submission of your company’s accounting report. The accumulated experience allows our specialists to provide high-quality accounting services, records management and advice on legislation and taxation issues.

Our main task is to maintain correct accounting in accordance with regulations and international accounting standards.

Accounting support:

  • accounting support
  • audit, consulting and support
  • tax planning
  • assistance in paying tax payments

SERVICES

Legal services

Obtaining and maintaining a legal address in a prestigious business center with the ability to use mail processing services. If necessary, mail forwarding and call receiving services will be available, which will give you the opportunity to work from anywhere in the world.

Legal support services and representation of clients in courts and other state institutions.

Work with a counterparty — we are ready to represent your interests both in government agencies and in dealing with counterparties in Turkey

Real office services, real estate search — if you decide to open a representative office, we will help you find a property for your needs. Regardless of whether you rent or buy, we will help you complete the deal

Apostille, certification of documents and obtaining of other business documents.

To start cooperation

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