EvimIstanbul Group®
EvimIstanbul Group Official

Business & 
Finance | FAQs

Please Note:

The information below is provided for educational and informational purposes only. While we do our best to keep it up-to-date, laws, procedures, and requirements in Turkey are constantly evolving. Every case is unique — your situation may differ due to nationality, personal background, or recent legal changes.

hat’s why we always recommend speaking with the expert advisors first.

Contact us for a FREE Consultation and receive personalized guidance based on your specific needs.

  • Can a foreigner start a business or company in Turkey? – Absolutely, yes. Turkey allows 100% foreign ownership of companies. Foreign individuals or companies can establish limited liability companies (LLC - “Ltd. Şti.”), joint-stock companies (A.Ş.), or other forms without requiring a Turkish partner. The process involves obtaining a tax ID, drafting articles of association, notarizing documents, depositing a percentage of capital in a bank (for an A.Ş.), and registering with the Trade Registry. It usually takes a few days to a couple of weeks to fully register a new company. You will need a local address for the business and some paperwork handled by a certified public accountant. Many foreigners open small businesses (restaurants, tourism agencies) or start startups in Turkey. Note: If you plan to employ yourself, you’ll then get a work permit as the company’s employee. There are consulting firms and lawyers who specialize in helping foreigners set up companies, and it’s recommended to use them if you’re not familiar with the process. Overall, Turkey is quite open to foreign investment – you have the same treatment as local investors in most cases.
  • What are the common types of business entities in Turkey for investors? – The most common are: Limited Şirket (Limited Liability Company) – requires at least 1 shareholder (can be foreign individual or entity) and a minimum capital of 10,000 TL (though practically one usually puts in more for credibility). Then there’s Anonim Şirket (Joint Stock Company) – requires minimum 1 shareholder and 50,000 TL capital (some sectors require A.Ş format). LLCs are simpler to set up and run, so most small businesses choose that. There’s also a branch office option for foreign companies, and a liaison office (which can’t do commercial activities, just market research or rep office). Each has slightly different rules, but 90% of the time, a foreign entrepreneur will go with an LLC. Partnerships (where liability is not limited) exist but are rare for foreigners. In summary: Ltd. Şti. is like an LLC (easy, common), A.Ş. is used for larger ventures or if you plan to go public or need a specific license.
  • How long does it take to register a company in Turkey? – It’s relatively fast: after you prepare the necessary documents (articles of association, etc.) and obtain potential verifications, the actual registration with the Trade Registry can be done in a few days. Realistically, factoring in gathering documents, getting translations, and notary steps, you can often complete incorporation in 1 to 2 weeks. Turkey has an online central registration system (MERSİS) that has streamlined the process. You’ll need to appoint a company director (can be yourself, doesn’t need to be a Turk) and an address in Turkey. Once the trade registry issues the registration, you then register with tax office and social security. Many steps have been simplified under one roof with the Chamber of Commerce. Hiring a local accountant or lawyer from the start is important because they will draft articles in Turkish and guide you. So, compared to many countries, Turkey is quite quick to set up a business.
  • Do I need a Turkish partner or employee to start a business? – No partner required, you can be the sole shareholder. You also do not need a local partner by law. However, there are some employee-related rules if you’re going to sponsor your own work permit: by the time of renewal, you’ll need 5 Turkish employees as mentioned for the work permit. But to form the company, no employees are needed at the start except the requirement that if the foreign shareholder is also the director residing in Turkey, they might need a work permit or a separate permit exemption for that role (usually you handle that after formation). Many foreigners start a company and are the only employee initially (you can get a temporary 6-month exception from the 5-Turk rule, and then you must comply). If you don’t plan to get a work permit (e.g., you’re an investor staying outside Turkey), you could hire a local manager and staff to run the company. But strictly speaking, the law does not force you to have a Turkish partner or co-shareholder.
  • What are the corporate taxes in Turkey? – Corporate income tax is a flat 20% (it was temporarily 22% in past years, but as of 2023 it’s 20%). However, Turkey also has withholding taxes on dividends (generally 15% on dividends distributed to individuals or foreign shareholders, unless reduced by a tax treaty). There’s also VAT (KDV) on goods and services – standard rate 18%, with some items at 8% or 1%. If you open a company, you will be filing monthly VAT returns, quarterly provisional tax, and annual corporate tax return. There are other taxes like withholding on salaries (stopaj), social security contributions for employees, and stamp duties on certain transactions. If you run a small business as a sole proprietor, personal income tax rates (progressive up to 40%) would apply instead. But for a company, think 20% corporate tax on profits, plus any dividend tax if you take profits out. Turkey has many double taxation treaties which can reduce withholding tax for foreign investors’ dividends, depending on your country.
  • Are there incentives or benefits for foreign investors or businesses in Turkey? – Yes, Turkey offers various incentives to encourage investment. There are Free Zones where companies (usually export-oriented) get tax advantages like no customs duties or VAT, and tax exemptions on profits if conditions met. There are also technology development zones (technopark) that give IT or high-tech startups tax breaks (like no income tax on software exports, reduced corporate tax, no tax on developer salaries in the zone). The government often has incentive packages for manufacturing investments: depending on region, you might get VAT exemption on machinery, customs duty exemption, support for employer social security contributions, and even land allocation. Foreign investors get the same incentives as local ones – the system doesn’t discriminate. There’s also a program for strategic investments and one for tourism investments with specific incentives. For smaller businesses, these might not directly apply, but it’s worth checking with the Ministry of Industry or the Investment Office. Additionally, hiring Turkish employees can get you a subsidy if you hire certain groups (like young or female employees) under some schemes. In short, yes, if you invest in priority sectors or regions, Turkey might reduce your taxes or costs significantly.
  • What is the currency and banking situation I should know for doing business? – Turkey’s currency is the Turkish Lira (TRY). It can be volatile; businesses often factor in exchange risks. Many contracts (especially property or international trade) might be indexed in EUR or USD, but local transactions increasingly must be in Lira due to regulations. Banking: Opening a business bank account in Turkey is straightforward once your company is formed – you’ll need your company documentation and tax number. Turkish banks are modern with online banking. However, for foreigners, sometimes initial compliance checks can make it slow; having a local signatory on the account (e.g. your accountant or lawyer) can help ease communications. Inflation has been high, so interest rates on TRY deposits are also high (which can be a double-edged sword: loan rates are high too). Businesses often keep part of their money in foreign currency to hedge. International transfers in/out are generally smooth; Turkey is integrated in SWIFT. Letters of credit and such work normally. One more thing: PayPal is not operating in Turkey (since 2016), which affects e-commerce – you have to use alternatives like Stripe (not directly supported either yet), local iyzico, or Payoneer for online payments. This is a quirk if your business is online-based. Locally, credit card usage among consumers is high, so setting up credit card payment systems is quite doable.
  • Do foreign business owners need a work permit to run their business in Turkey? – If you’re going to be physically present and actively managing your company in Turkey, yes, you should have a work permit (as a company executive). Simply being an owner/shareholder doesn’t automatically give you the right to work or reside – a work permit or another legal status is needed for day-to-day involvement. Many foreign owners appoint themselves as the company’s director/general manager and then apply for a work permit under the company’s sponsorship. The company then needs to meet the criteria (such as the 5 Turkish employees by renewal time, etc.). If you prefer not to do that, you could theoretically run things remotely and visit on a tourist visa occasionally, but you’d be limited in how much you can legally do while in Turkey (and you couldn’t stay long-term without residency). Also, banking signatory and official representation of the company can be done via a power of attorney to a local if needed. But most choose to get legal residency and work status to freely conduct business.
  • What are the ongoing obligations for a company in Turkey (accounting, etc.)? – Companies must keep accounting records in Turkish Lira and in accordance with Turkish GAAP (or IFRS for some larger ones). You’ll need to hire a Sworn Financial Advisor (SMMM or YMM) or an accountant to submit monthly VAT returns, quarterly tax filings, and payroll withholdings if you have employees. Also, you must file an annual corporate income tax return. If your company is small, this isn’t too onerous because an accountant will handle it for a monthly fee. You also need to hold an annual general meeting for a joint-stock company (for an LLC it’s simpler). If you have foreign shareholders, you’re supposed to report certain info to the Treasury (an “annual activity report for foreign investors”, but your accountant typically handles it). Social security payments for any employees are due monthly. So, compliance is similar to European countries – regular filings and taxes. Make sure to budget for hiring a professional accountant; doing it yourself is not really feasible unless you know the system and language well.
  • How do taxes work for me as an expatriate business owner? – If you spend more than 6 months a year in Turkey, you might become a tax resident personally, which means your worldwide income could be subject to Turkish income tax unless a tax treaty says otherwise. But if you’re just taking salary or dividends from your Turkish company, those can be structured tax-efficiently. Salary you pay yourself will be subject to income tax withholdings, but you can also consider paying yourself via dividends, which are taxed at 15% in Turkey (and that might satisfy home country tax or be credited, depending on treaties). Some expats prefer to keep a modest salary in Turkey (to minimize progressive tax) and take the rest as dividends annually. If you remain a non-resident, you only pay tax on Turkish-sourced income. It’s a bit complex, so definitely consult a tax advisor who understands cross-border issues. The good news: Turkey has treaties that prevent double taxation with many countries, and corporate taxes paid can often be credited back home. Social security: if you’re on Turkish payroll, you’ll pay into Turkish social security. If you plan to retire elsewhere, you might not benefit from it, but Turkey does have bilateral agreements with some countries to transfer social security credits.
  • What about hiring employees – can I hire foreigners in my Turkish company? – Yes, but they will need work permits like any foreigner. Your company would have to sponsor them and must satisfy the 5 Turkish employees per 1 foreigner rule as discussed. So a new company with 0 employees typically cannot hire a foreigner other than possibly the owner/manager in the first year (and even that is conditional). To hire additional foreigners, you’d first hire Turks to get the ratio. Some categories (like if your business is in education as a foreign language school or certain exporting fields) might get exceptions or easier terms. For highly skilled expats or those married to Turks, there are also some eased conditions. But in general, plan to have mostly local staff. Labor law in Turkey also comes into play: you’ll need to issue contracts, enroll employees in social security, abide by notice and severance rules, etc., similar to European labor standards.
  • How easy is it to do banking transactions and manage currency for a business? – Turkish banks allow business accounts to hold multiple currencies (TRY, USD, EUR etc.). You can conveniently do internet banking in English (most big banks have English interfaces for online/business banking). Converting currency is straightforward with banks or currency exchange offices (which sometimes give better rates for large amounts). Repatriating profits: you can send dividends or other payments abroad; just ensure proper paperwork (annual General Assembly decision to distribute dividends, etc.) is in place. There are no strong capital controls on businesses – Turkey wants to attract investment, so you can move money, pay overseas suppliers, etc. freely. Just be aware of the lira’s volatility; many businesses price goods in hard currency or quickly adjust lira prices. Hedging tools exist (like FX accounts, forwards) if needed. Payment of international invoices can be done via swift easily. One quirk: due to an past measure, exporters have to exchange a portion (like 40%) of their export proceeds into Lira upon receiving them, to support currency stability – but they can then re-buy FX if they want. This mostly affects manufacturing exporters, etc. For a normal domestic business, that’s not relevant.
  • Are credit cards and cashless payments widely used? – Yes, credit and debit cards are widely used in Turkey, even for small amounts. Visa/Mastercard are accepted nearly everywhere in cities. Contactless payments, mobile wallets (Apple Pay launched in Turkey in late 2023), and QR code payments via bank apps are all common. If you start a business like a shop or restaurant, having a POS machine is essential (banks provide them easily). Online businesses can use payment gateways like iyzico, PayU, or PayTr for e-commerce transactions. Cash is still used, especially in local markets or smaller towns, but urban consumers often prefer card or even installment payments on credit cards (installments are a big thing in Turkey – people love paying in 3-6 month installments for goods, which your business could offer through the banks’ POS system integration). So infrastructure for cashless is modern and robust.
  • What is the procedure to register a company in Turkey as a foreigner? – To register a company, you will: decide on a company type (usually LLC), prepare Articles of Association (in Turkish) with a notary, obtain a tax identification number for the foreign shareholder (as an individual or foreign company), deposit a small fraction of capital in a temporary bank account (for LLC this is not required to block upfront, but for JSC it is), file incorporation documents at the Trade Registry Office, and upon approval, the company is established. After that, you must register with the tax office and social security. Typically you’ll hire an accountant who will be an authorized contact to get your company tax number etc. There is also a requirement to notarize the signature declarations of the company directors, and to submit room of commerce registration. If the foreign shareholder will not be present, they can give power of attorney to handle these steps. The costs for a basic LLC formation (official fees) are not high (a few hundred dollars maybe, plus whatever capital you decide to inject). A key point: if the foreign shareholder doesn’t have a residence in Turkey, some extra documentation might be needed (like proof of address abroad, etc.). But overall, it’s straightforward and many incorporation agents offer a package to do it in ~5 business days after you give them necessary info.
  • Can I open a bank account for my company easily? – Yes, once the company is registered, you take your registry documents (registry gazette, tax registration, company seal if you have one, and IDs of authorized signatory) to a bank of your choice. Banks will require proof of address for the company (usually the registration address suffices) and identification of the signatory (passport, residence permit if available). Due to international anti-money laundering rules, some banks have a compliance process for foreign-owned companies – they might ask about your business plan, expected transaction volumes, etc. If everything is legit, you’ll get the account. This can sometimes be done in a day or two. Some patience might be needed to get online banking access set up with your foreign phone number, etc. Also note, if the company signatory (e.g., you) is not a resident yet, some banks might hold off until you have a Turkish ID number or residence. But many will still open using your passport and tax ID. It helps to go in person and have a Turkish-speaking colleague with you. Choose a bank that’s foreign-friendly; many expats recommend Garanti BBVA, İş Bankası, or HSBC for smoother experiences.
  • Are there any business sectors restricted or requiring special permission for foreigners? – Generally, most sectors are open. A few regulated sectors (like media broadcasting, education, pharmaceutical retail, mining, energy, telecommunications) might require obtaining licenses or meeting certain conditions, but that applies to locals as well. Foreigners cannot own media companies above a certain share (there are limits on foreign ownership in TV/radio broadcast sector). Similarly, to open a private school or hospital, you’d need special permissions regardless of being foreign. Real estate ownership by a company with foreign shareholders is allowed except in military zones (similar to individual restrictions). One notable restriction: foreigners cannot operate as individual pharmacists or lawyers, but a foreign company could invest in a pharmacy chain or a law firm (though law is tricky due to Bar rules). Also, contracting business (construction) – foreigners can do it but large government contracts might have local partner requirements. Arms and defense industry investments would definitely require permissions. Agriculture: you can do it, but owning large tracts of agricultural land might be scrutinized. By and large, if it’s not a sensitive sector, foreigners can do it – just follow the same licensing rules any business needs to.
  • What investment opportunities exist in Turkey beyond real estate? – Plenty: stocks and bonds – foreigners can buy stocks on Borsa Istanbul or government bonds; you just need to open an investment account at a brokerage (a bank can help). The stock market in Turkey can be volatile but has had strong returns in lira terms (be mindful of currency risk). Bank deposits – Turkey’s high interest rates (to counter inflation) mean you can earn significant interest in TL deposits (currently around 30-40% annual interest in TL). There are also FX-protected Lira deposit schemes where the government protects against lira depreciation. Business investment – you could invest in an existing business or start one; sectors like technology startups are growing (Istanbul has a nascent startup scene with some unicorns in gaming and e-commerce). VC or Angel investing – if that’s your domain, there are funds and networks (plus the government has incentives for tech parks as mentioned). Tourism industry – always an opportunity, e.g., boutique hotels or restaurants, since Turkey is a top tourist destination. Agriculture – fertile land for things like organic farming or export-oriented agriculture (hazelnuts, olives, etc.). Manufacturing – Turkey has a robust manufacturing base (auto, textiles, appliances); some foreigners set up factories to take advantage of customs union with EU and relatively lower labor costs than Europe. Energy – Turkey is pushing renewables (solar, wind), and there are investment opportunities in power plants or in government tenders for solar farms. Medical and health sectors – as a hub for medical tourism, investing in clinics (dentistry, cosmetic surgery) can be lucrative if you have expertise. Lastly, foreign currency trading or arbitrage – some savvy investors take positions on the lira, but that’s speculative.
  • Is now a good time to invest considering Turkey’s economy? – This is subjective and depends on risk appetite. Turkey’s economy in 2023-2025 has challenges: high inflation, a volatile currency, but also high growth in certain sectors and a young population. Some see it as an opportunity – assets and labor are relatively cheap in hard currency terms, so if the economy stabilizes, there could be significant upside (e.g., real estate is very affordable for foreigners with USD, and could appreciate). The new economic team in 2024 is attempting more orthodox policies to tame inflation and stabilize the currency, which might improve the investment climate. There is always some political risk – elections, geopolitical events – which can affect investor sentiment. However, many multinational companies operate successfully in Turkey for decades. If you’re a long-term investor, Turkey’s large market (85+ million people) and location bridging Europe and Asia are positives. So, it can be a very good time if you know what you’re doing and can handle short-term volatility. As always, diversify and perhaps consult local financial advisors or chambers of commerce.
  • What are some challenges I might face doing business in Turkey? – Bureaucracy can be one – while starting a business is quick, certain processes (permits, licenses, import/export paperwork) can be slow or require local know-how. Language barrier – officialdom runs in Turkish, so having bilingual staff or translators is necessary. Inflation and currency instability – pricing your goods, managing costs can be tricky when prices change frequently; contracts often include escalation clauses. Payment terms and cash flow – Turkish business culture might involve longer payment terms or negotiations on price and discounts; be prepared for haggling or late payments in some sectors. Legal system – courts can be slow; enforcing contracts might take time, though there are international arbitration options. Finding trustworthy partners or staff – like anywhere, you’ll need to vet employees or partners. Networking and local references help. Cultural differences – business in Turkey is often built on relationships and trust; rushing straight to business without building rapport may not yield results. Patience and personal interaction (like tea chats) often grease the wheels. Importing goods – customs processes can be bureaucratic and occasionally unpredictable with valuations and duties. And one more: high interest rates mean borrowing capital is expensive – many businesses avoid bank loans due to 30%+ interest, which might limit expansion unless you have foreign financing. Knowing these, many foreigners still thrive by adapting and often having a good Turkish advisor or team member by their side.
  • How do I protect my investment or business in Turkey? – A few tips: Legally, always have clear contracts (bilingual if needed) for any partnership or significant transaction. Register trademarks or patents if you have IP – Turkey is party to major IP treaties and has a functioning IP registry. Choose the right company structure (for instance, an A.Ş. provides a bit more prestige and can have multiple shareholders easily if you plan to bring investors). Keep compliant with laws to avoid fines – hire a good accountant and lawyer. Diversify currency exposure – if you’ll need to spend money in USD (for imports) but earn in TL, consider holding some funds in USD or forward buying currency to avoid exchange hits. Consider insurance – you can insure your facilities and also consider “political risk insurance” if you’re very worried (though that’s usually for larger investments). Another aspect: build a relationship with local authorities – often having open communication with the tax office or municipality (via your lawyer/accountant) can resolve small issues before they become big. If things go really awry, remember foreign investors can seek remedy via international arbitration if included in contracts, as Turkey is part of ICSID. But most likely, good local partnerships, staying informed on regulatory changes, and sound financial management will keep your investment safe and profitable.
  • Are there any plans for a “digital nomad visa” or similar in Turkey? – As of 2025, Turkey does not have a specific digital nomad visa, unlike some countries. However, the concept has been discussed in business circles given the popularity of cities like Istanbul and Antalya among remote workers. Currently, remote workers either use the 90-day tourist visa (and do visa runs or leave before expiry) or obtain a short-term residence permit by stating a purpose like “touristic” or now a new category called “Remote Work or Digital Nomad” under certain visa types has been rumored but not officially implemented widely. Turkey did introduce a Turquoise Card system for highly skilled or wealthy individuals (like a talent card), but that’s not for the average nomad. If Turkey sees benefit, they might create a more straightforward remote worker visa in the future, but nothing concrete yet. So for now, if you want to stay long-term as a digital nomad, you’ll likely apply for a normal residence permit (possibly citing “to explore Turkish culture” or you could enroll in language classes, etc., as a basis). Keep an eye on announcements from the Presidency of Migration Management in case policies change.