
Turkey is a civil law country which enables its
citizens to take advantage of various setups for the purpose of protecting their assets. One of the most popular ways of planning one’s estate is to
create a trust. However,
Turkey does not provide for the establishment of such entities. The closest structure to the
trust in Turkey is the
private foundation.
Trusts and private foundations in Turkey
Turkey does not acknowledge
trusts or has any
legislation which provides for their establishment. The
private foundation is similar to the
trust in Turkey because it can be set up for the same purpose and will basically have the same structure in terms of participants. Just like the
trust, a private foundation can be
opened in Turkey for the following purposes:
- - charity;
- - public services;
- - estate planning.
The establishment of a trust will be carried you by preparing a set of documents which must be signed by the settlor and the trustee. The documents, which can be a deed of trust or a will, must be notarized by a public notary.
We invite you to discover our accounting firm and opt for
payroll in Turkey. Being an important part of accounting, payroll involves a series of procedures and formalities, with the help of which employees' salaries are calculated, following which they are delivered to the bank accounts, after paying the related taxes and according to the company's regulations. But for more information on this matter, we invite you to contact us and talk to our specialists in the field.
Elements of the trust in Turkey
The
trust must have a settlor who can be an individual or a company.
Turkish companies can also set up trusts outside the country. Then, the settlor must appoint a trustee who can be an individual or a company and who will manage the assets conveyed through the
deed of trust. The beneficiary or beneficiaries are those in favor of which the
trust was created. The beneficiaries can be foreign or
Turkish citizens.
Taxation of trusts in Turkey
Considering
trusts are not recognized as legal entities
in Turkey, the
taxation system applicable will not have any negative impact on the settlor or beneficiaries of a
trust. Considering
trusts are used for estate planning reasons in most jurisdictions, the Turkish Tax Code provides for the levy of a tax on real estate transfer and of the value added tax.
For full information on the Turkish taxation system, please feel free to
contact us. You can also rely on our
company registration advisors if you want to
open a company in Turkey.