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+90 532 351 66 77
Company Formation Turkey



Turkish legislation related to investments

Updated on Wednesday 13th December 2017

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turkish_legislation.jpgThe foreign investors who come to Turkey in order to open a company and start doing business in this country should know the main regulations related to foreign investments. The businessmen from abroad are not discriminated by the local authorities or legislation, which is based on the international standards.

The main regulations related to foreign investments in Turkey are the Encouragement of Investments and Employment Law No. 5084 and Foreign Direct Investments Law No. 4875. The double tax treaties are also very important for foreign investors who want to avoid the double taxation of their profits.

The rights of the foreign investors are protected by the law no. 4875 that contains a few measures for the encouragement of foreign investments in order to increase the volume of these activities. The freedom to invest in Turkey is guaranteed to foreign entrepreneurs who have acces to buying in the real estate field and can employ citizens from their countries of residence and have a lot of other privilegies if they decide to set up a company in the special investment zones in Turkey.

Foreign entrepreneurs can’t work in Turkey without a special permit, neither the employees brought from other countries. The work permits can be obtained in nearly a month starting with the date when all the necessary documents are presented at the Turkish embassy or at the offices in Turkey, at the Ministry of Labor.

Protection of investments

The foreign investments are protected by bilateral agreements signed between Turkey and the countries interested in promoting of investments. The main goal of these treaties is to increase the amount of foreign capital in every two countries that have signed an agreement.

These documents contain provisions related to international arbitration when it comes to disputes that can be settled mutual. Turkey has signed bilateral agreements with 75 countries and double tax treaties with 77 countries. The foreign investors from the 77 countries can pay taxes only in one country and not in the both states. In the future, there will be more double tax treaties to be signed, so the foreign investments are expected to grow.

Turkey has also signed a Customs Union Agreement with EU to permit trade without customs restrictions until Turkey will become an EU member.   

The foreign entrepreneurs, interested in opening a company in Turkey, can ask our local representatives for more details about the incorporation procedure.


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