Investor Guide

Turkey's Foreign Direct Investment (FDI) Law is based on the principle of equal treatment makes it possible to have the same rights and obligations as local investors and international investors. Accordingly, international investors can establish all types of companies specified in the Turkish Commercial Code (TCC).

Under the TCC, corporate and non-corporate companies of the following types can be established:

a. Institutional structures

  • Incorporated company (A.Ş.)
  • Limited company (Ltd. Şti.)
  • Cooperative Company

b. Non-institutional structures

  • Unlimited company
  • Limited Partnership

When setting up a company in Turkey must comply with the following rules and regulations:

  • Submission of minutes and articles of association online to MERSIS.
  • Preparation of company documents and notarization.
  • Getting the potential tax number.
  • Depositing a certain percentage of the capital to the account of the Competition Authority.
  • Depositing at least 25% of the founding capital in a bank and documenting it.
  • Registration application to the Trade Registry Office.
  • Certification of legal books.
  • Following the company establishment statement of the Trade Registry Office from the tax office.
  • Arrangement of signature circular.
  • Transferring Certain Documents to Electronic Media / E-TUYS System.

While calculating the costs of doing business, the following issues should be taken into consideration;

  • Monthly Minimum Wage (gross and net)
  • Cost of Electricity
  • Industrial Water Cost
  • Cost of Natural Gas
  • Broadband Service Fees
  • Tax

Turkey, the most competitive institutions among OECD member countries has one of the tax rate. Turkish corporate tax legislation is clear, objective and regulated with provisions in line with international standards. Turkish tax legislation can be grouped under three main headings:

1. Income Taxes

Income taxes included in the Turkish tax legislation are personal income tax and corporate tax.

1.1. Personal Income Tax

Real persons' income is subject to personal income tax. Income is the net amount of earnings and revenues earned by a natural person in a calendar year.

1.2. Corporation tax

If the income elements defined in the Income Tax Law are obtained by the institutions, the taxation is made through the legal personality of these institutions.

2. Taxes on Expenses

2.1. Value-added tax (VAT)

Generally applied VAT rates; 1%, 8% and 18%. Commercial, industrial, agricultural and independent professional goods and services; All deliveries of goods and services created through goods and services that have been imported and entered the country and other activities are subject to VAT.

2.2. Special Consumption Tax (ÖTV)

There are four main product groups subject to SCT at various tax rates:

  • Petroleum products, natural gas, machine oils, solvents and solvent derivatives
  • Automobiles and other vehicles, motorcycles, planes, helicopters, yachts
  • Tobacco and tobacco products, alcoholic beverages
  • Luxury goods

Unlike VAT, which is applied on each delivery, SCT is applied only once.

2.3. Banking and Insurance Transaction Tax

Although transactions made by banking and insurance companies continue to be exempted from VAT, these transactions are subject to Banking and Insurance Transactions Tax. This tax is levied on income earned by banks, such as loan interest. The tax rate is generally 5%, but it is 1% for the interest applied in some transactions such as deposit transactions between banks. Since 2008, no tax has been applied to sales amounts from foreign exchange transactions.

2.4. Stamp duty

Stamp duty; It applies to a variety of documents, including contracts, debt securities, capital shares, letters of credit, letters of guarantee, financial statements and payrolls. Stamp tax is levied at rates varying between 0,189% and 0,948% of the document price, as well as collected as a fixed price (a predetermined price) for some documents.

3. Wealth Taxes

There are three types of wealth taxes:

  • Real estate tax
  • Motor vehicle tax
  • Inheritance and gift tax

Owned buildings in Turkey, apartments and land are paid to Own Contribution Protection of the Immovable Cultural Property is subject to estate tax at rates ranging from 0.1% to 0.6% of the accrued tax rate of 10%. Motor vehicle taxes, on the other hand, are collected annually according to the fixed prices determined according to the age and engine volume of the vehicles. Inheritance and gift taxes are collected at the rate of 1-30%.

Turkey there are three types of investments:

1. Technology Development Zones - Technoparks

Technology Development Zones (TGB) are areas designed to support R&D studies and attract investments in high technology. Currently there are 84 TDZs, 63 of which are active; The other 21 regions have been approved and the construction continues.

2. Organized Industrial Zones

Organized Industrial Zones (OIZ *) are designed to enable companies to operate using ready-made infrastructure and social facilities. The infrastructure provided in these regions includes roads, water, natural gas, electricity, communications, waste treatment and other services.

In 80 provinces, there are currently 331 OIZs, 234 of which are active; It continues in the remaining 97 OSB production in various regions throughout Turkey.

3. Free Zones

Free Zones are special areas that are located outside the scope of customs zones, although they are located within the political borders of the country. These regions are designed to increase the number of export-oriented investments. Legal and administrative regulations applied in commercial, financial and economic areas in the customs zones are not implemented or partially implemented in free zones.

In Turkey, the EU and Middle East market is located in the Free Trade Zone close to a total of 19 cases of which 18 are active, while one is under construction. Free Zones; It is located at the points where access to international trade routes with ports in the Mediterranean, Aegean and Black Sea is easily provided.

Republic of Turkey, both greenfield investments and also offers a comprehensive program to support the acceleration of investment incentives to minimize start-up costs and return on investment for expansion investment projects.

These incentives can also be adapted for projects in priority sectors classified as important areas for technology transfer and economic development. Republic of Turkey to investors; In addition to the support programs it offers for R&D and innovation projects and additional employment, it also supports exporters through various grants, incentives and loans.

Investment Guide FAQ
1. Can we make the investment with TR INVEST?
Yes. We can make joint investments in GES, construction, real estate and agriculture. We can make investments by putting joint capital or by operating the investments made by you by us.
2. Does TR INVEST support during the operation of the investment?
Yes. As TR Invest, we support you in the process of operating your investments through us.
3. In which region should I invest?
It depends on the type of investment you make. The depreciation periods and the purpose of the investment are effective in the selection of the region. For example, in Solar Energy Systems, while regions with more sun are effective for region selection, fertile land in agriculture, real estate in real estate, and rental income is effective for region selection.
4. What are the conditions for starting a business for foreigners?
The conditions for company formation and share transfer are the same as those applied to local investors. Accordingly, international investors can establish all types of companies specified in the Turkish Commercial Code (TCC). TTK; It meets international standards, encourages private equity and IPO activities, providing transparency in government operations and business environment which makes Turkey's compliance with EU legislation and EU accession process offers an approach to corporate governance.
5. What are the real estate taxes charged for real estate?
Owned buildings in Turkey, apartments and land are paid to Own Contribution Protection of the Immovable Cultural Property is subject to estate tax at rates ranging from 0.1% to 0.6% of the accrued tax rate of 10%.
6. What are the advantages of Organized Industrial Zones?
  • VAT exemption for land purchases.
  • Property tax exemption for five years, effective from the completion of the facility construction.
  • Low water, natural gas and communication costs.
  • Tax exemption in division / merging of parcels.
  • Local government tax exemption in facility construction and operation.
  • Solid waste tax exemption if the OIZ does not benefit from municipal services.
7. What types of Investment Incentive Certificates are issued?
  • SME Investment Incentive Certificate
  • Research and development investments,
  • Investments to be made in technoparks and technoparks,
  • Investments for environmental protection,
  • Agricultural industry investments,
  • Investments in priority technology,
  • Investments for regional development,
  • Rural development and agricultural incentives
  • Tourism Incentives
  • Free zone incentives
  • Livestock incentives
  • Organized industry shadow incentives
INVEST, GO WIN

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