{"id":123160,"date":"2026-01-12T09:37:16","date_gmt":"2026-01-12T09:37:16","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=123160"},"modified":"2026-01-15T15:18:44","modified_gmt":"2026-01-15T15:18:44","slug":"turkiye-investing-in","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/turkiye-investing-in\/","title":{"rendered":"Turkey: Investing In"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-123160","comparative_guide","type-comparative_guide","status-publish","hentry","guides-investing-in","jurisdictions-turkiye"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Durukan Hukuk Burosu<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/12\/Logo-1.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Durukan Hukuk Burosu<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/12\/Logo-1.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Investing In laws and regulations applicable in Turkey<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please briefly describe the current investment climate in the country and the average volume of foreign direct investments (by value in US dollars and by deal number) over the last three years.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Turkey has increasing value for investment due to factors such as its geopolitical position, young and educated population, developed infrastructure, and access to European, Asian, and Middle Eastern markets, which offer opportunities for investors. Turkey is a valuable region for investors.<\/p>\n<p>According to data from the Central Bank of the Republic of T\u00fcrkiye and the Investment Office, the amounts of foreign direct investment (FDI) received by the country over the last three years are as follows:<\/p>\n<p>2022: 13 Billion USD<\/p>\n<p>2023: 10.6 billion USD<\/p>\n<p>2024: 11.3 billion USD<\/p>\n<p>The average number of transactions per year has been between 250 and 350. The manufacturing sector ranks first with a 30% share. This is followed by energy, real estate and financial services. In recent years, there has been an increase in technology and e-commerce investments. While European Union countries account for 60% of direct investments in Turkey, the share of investors from Gulf countries and East Asia has also increased in recent years.<\/p>\n<p>Turkey&#8217;s investment environment is supported by investment incentives, customs union advantages, tax exemptions and the principle of equal treatment of foreign capital.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the typical forms of Foreign Direct Investments (FDI) in the country: a) greenfield or brownfield projects to build new facilities by foreign companies, b) acquisition of businesses (in asset or stock transactions), c) acquisition of minority interests in existing companies, d) joint ventures, e) other?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign investors in Turkey generally prefer the following types of investment:<\/p>\n<ul>\n<li>Greenfield Investments: Direct investment by establishing a new facility or production area. For example, a Chinese automotive giant will establish a factory in Manisa with an annual production capacity of 150,000 vehicles by 2026.<\/li>\n<li>Mergers and Acquisitions (M&amp;A): This type of investment involves a foreign company acquiring a domestic company or two companies merging.<\/li>\n<li>Acquisition of Minority Shares in Existing Companies: This involves investors directly acquiring minority shares in existing domestic companies.<\/li>\n<li>Joint Ventures: This involves foreign investors joining forces with two or more domestic companies to form a joint venture.<\/li>\n<li>Public-Private Partnership (PPP) Projects: Foreign investments finance the project in cooperation with the state. This forms an important alternative for foreign investments. It is particularly preferred in the sectors of infrastructure, transportation and energy.<\/li>\n<li>Brownfield Investments: This is defined as investing in a project that is already producing\/providing services in another country or in an inactive but existing facility to expand production and operations.<\/li>\n<li>Franchise and Licensing Models: This is a method used by foreign brands to distribute goods and services in Turkey by granting franchises or licences. It is generally preferred in the retail, restaurant and services sectors.<\/li>\n<li>Real Estate Investments: Direct property acquisition, project partnerships, or project development.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are foreign investors allowed to own 100% of a domestic company or business? If not, what is the maximum percentage that a foreign investor can own?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Turkey, foreign investors can own a company in its entirety based on the rights granted by the Foreign Direct Investment Law No. 4875. They have the right to establish any type of company in Turkey. However, there are restrictions on ownership or licensing conditions in certain strategic sectors such as press and publishing, aviation, energy, and defence.<\/p>\n<p>Only sector-based differences may exist. For example:<\/p>\n<ul>\n<li>Media: The foreign investor&#8217;s share may be up to 50%.<\/li>\n<li>Civil Aviation: The majority of shares, board members, voting rights and control must be held by shareholders who are citizens of the Republic of T\u00fcrkiye.<\/li>\n<li>Energy and mining: A licence or concession must be obtained from the relevant Ministry.<\/li>\n<li>Shipping and transport: Cabotage rights belong to Turkish citizens. For foreign-owned companies to be able to carry out domestic maritime transport (cabotage) in Turkey, they must be a &#8220;Turkish ship\/Turkish flag&#8221; and a &#8220;Turkish company\/company established under Turkish legislation&#8221;.<\/li>\n<li>Real estate: A foreign national may acquire up to 30 hectares of real estate and limited real rights anywhere in Turkey, except in restricted military zones or military security zones.<\/li>\n<\/ul>\n<p>Apart from these exceptions, foreign investors in Turkey are generally on a completely equal footing with domestic investors. Turkey protects and supports foreign investments with legal guarantees.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are foreign investors allowed to invest and hold the same class of stock or other equity securities as domestic shareholders? Is it true for both public and private companies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to the Foreign Direct Investment Law No. 4875, foreigners may hold the same type of shares or equity in both private and publicly-traded companies as domestic investors. This law ensures that foreign investors have equal rights with domestic investors. The principle of &#8220;national treatment&#8221; is adopted here, regardless of the investor&#8217;s nationality.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are domestic businesses organized and managed through domestic companies or primarily offshore companies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The majority of companies operating in Turkey are domestic companies established in Turkey. These companies are generally incorporated under the provisions of the Turkish Code of Commerce and are registered in the domestic trade registry. The principles governing the establishment, management, and supervision of Turkish companies are primarily regulated under the Turkish Code of Commerce No. 6102, the Corporate Tax Law No. 5520, and the Foreign Direct Investment Law No. 4875. Domestic investors are generally organised under the structure of joint stock companies and limited liability companies established in Turkey. These companies are subject to Turkish law and regulations.<\/p>\n<p>Some large groups and multinational companies may establish their corporate structure in offshore countries for tax purposes, such as to avoid double taxation. Other reasons why foreign investors may prefer to establish themselves in offshore centres include ease of financing, confidentiality, and accelerated incorporation. In offshore structures, activities in Turkey are carried out through subsidiaries subject to Turkish law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the forms of domestic companies? Briefly describe the differences.   Which form is preferred by domestic shareholders? Which form is preferred by foreign investors\/shareholders? What are the reasons for foreign shareholders preferring one form over the other?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Pursuant to Article 17 of the Foreign Direct Investment Law Implementation Regulation, &#8220;Companies that foreign investors may establish or participate in are companies regulated by the Turkish Code of Commerce and ordinary partnerships regulated by the Code of Obligations. Partnerships established under names such as ordinary partnership, consortium, business partnership, joint venture, etc., based on a contract and not possessing the distinct characteristics of companies regulated by the Turkish Code of Commerce, are considered ordinary partnerships for the purposes of the application of the Law.&#8221; As can be understood from the wording of the article, the companies that foreign investors can establish in Turkey are collective, limited liability, joint stock, limited and cooperative companies governed by the Turkish Code of Commerce and ordinary partnerships governed by the Turkish Code of Obligations.<\/p>\n<p>A joint stock company (anonim \u015firket) is defined in Article 329 of the Turkish Code of Commerce. It is a type of company that can be established by one or more persons, has a fixed capital divided into shares, and is liable for debts solely with its own assets. There is no upper limit on the number of shareholders, and the shares are in the form of securities. There is no requirement for the founders to be Turkish citizens. Shares may be sold through share transfers. They may be publicly offered.<\/p>\n<p>A limited liability company (limited \u015firket) is defined in Article 573 of the Turkish Code of Commerce. It is a type of capital company that can be established by one or more natural or legal persons with a maximum of 50 partners. Its authorised capital is fixed and consists of the total of the authorised capital shares. The company partners are liable for public debts in proportion to their capital shares. There is no requirement for the founders to be Turkish citizens. They cannot be publicly traded. Share sales are conducted in writing and certified by a notary public. They cannot be publicly offered. It is prohibited by law for companies in sectors such as banking and insurance to be established as limited liability companies.<\/p>\n<p>A general partnership (adi \u015firket), as regulated by the Turkish Code of Obligations, is a type of company in which two or more persons undertake to combine their labour and assets for a common purpose. General partnerships do not have legal personality. They can be established by natural or legal persons. There is no minimum capital requirement for ordinary partnerships as stipulated by law. While there is no legal upper limit on the number of partners, all partners may be foreign nationals.<\/p>\n<p>Although sole proprietorships are advantageous due to their ease of incorporation, lack of capital investment obligations and low accounting costs, limited-liability and joint-stock companies are more commonly preferred in practice.<\/p>\n<p>Domestic investors prefer limited liability companies for small- and medium-sized enterprises. The ease of management, low capital requirements, and faster decision-making regarding daily operations are reasons for this preference among small businesses. Limited liability companies are the most common type of company in Turkey, accounting for 82% of all companies according to 2023 data.<\/p>\n<p>Foreign investors prefer the public limited liability company structure for large investments, corporate ventures, and international partnerships. Reasons for this preference include the ease of share transfer, the opportunity to establish and grow with international investors, the possibility of capital increases and going public, and its suitability for corporate management.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the requirements for forming a company? Which governmental entities have to give approvals? What is the process for forming\/incorporating a domestic company? What is a required capitalization for forming\/incorporating a company? How long does it take to form a domestic company? How many shareholders is the company required to have? Is the list of shareholders publicly available?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The process of establishing a company in Turkey is governed by the provisions of the Turkish Code of Commerce No. 6102 and the regulations of the Ministry of Customs and Trade.<\/p>\n<p>For the incorporation process, the type of company must be determined, the articles of association must be prepared, and the articles of association must be certified by a notary public. The minimum capital amounts stipulated by law are deposited into a bank account, and the bank issues an investment certificate. The company applies to the Trade Registry Directorate with the memorandum of association and capital documents and acquires legal personality upon registration. Tax office registration, Social Security Institution registration and, if necessary based on the sector, Ministry approvals are obtained.<\/p>\n<p>The minimum capital amount varies depending on the type of company. The minimum capital for standard joint stock companies is 250,000 TL, and for joint stock companies adopting the Registered Capital System, it is 500,000 TL. The minimum capital for a limited liability company is 50,000.00 Turkish Lira.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the requirements and necessary governmental approvals for a foreign investor acquiring shares in a private company? What about for an acquisition of assets?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Share acquisition by foreign investors in Turkey is permitted under Law No. 4875. There are no special conditions for share transfers. For joint stock companies, the transfer of registered shares is recorded in the share register, while the transfer of bearer shares is more flexible. This provides foreign investors with a fast and secure investment opportunity. Furthermore, foreign investors are subject to the same conditions as Turkish partners when acquiring shares in joint stock companies. This provides legal certainty to foreign investors. However, steps such as notarial certification, tax obligations, and notification to the commercial register must still be carried out properly during the share transfer.<\/p>\n<p>In limited liability companies, a share transfer agreement must be drawn up before a notary public for the share transfer to be valid. Furthermore, the approval of the general assembly must be obtained, and the transfer must be registered with the commercial registry. Therefore, it may take a little longer for foreign investors to become partners in limited liability companies. On the other hand, as limited liability companies are widely preferred in Turkey, it is quite common for foreigners to invest in this type of company. Foreigners must have their documents translated and notarised, and the apostille process must be completed in full.<\/p>\n<p>In the case of asset acquisition, various permits are required depending on the type of asset being acquired. For example, title deeds and administrative permits for immovable property, permission from the Turkish Patent and Trademark Office for trademark\/patent assets, and permission from the Radio and Television Supreme Council for media operations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does a foreign investor need approval to acquire shares in a public company on a domestic stock market? What about acquiring shares of a public company in a direct (private) transaction from another shareholder?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to the Capital Markets Board regulations, the purchase of shares in a public company listed on the stock exchange in Turkey is unrestricted. No permission is required. The transfer of shares must be carried out in accordance with the provisions of the Turkish Code of Commerce and the Capital Markets Law, recorded, and entered into the company&#8217;s share register.<\/p>\n<p>Although no authorisation is required for standard stock exchange transactions, approval from the relevant authorities may be required for sector-specific transactions (banking, insurance, energy, aviation, media, etc.). If the limits set by the Capital Markets Board are exceeded in a direct purchase, an obligation of preceding authorisation or a mandatory tender offer obligation may arise.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a requirement for a mandatory tender offer if an investor acquired a certain percentage of shares of a public company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Pursuant to Article 26 of the Capital Markets Law, if an investor exceeds a certain shareholding threshold, they must offer to purchase shares from other shareholders on equal terms. For example, a preliminary offer shall be mandatory if 50% of the shares are transferred. This legal regulation aims to protect minority shareholders in public companies and to grant them a fair purchase right when company control changes hands. In the event of a transfer of control, minority shareholders can &#8220;exit on the same terms as the acquirer&#8221;.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the approval process for building a new facility in the country (in a greenfield or brownfield project)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Turkey, the process of making a direct investment (greenfield) or modernising an existing facility (brownfield) is not subject to a special permit and approval system. Only the facility establishment processes are subject to licensing, zoning and environmental permits for all domestic\/foreign investors.<\/p>\n<p>Prior to 2003, Law on the Encouragement of Foreign Capital No. 6224 required special approval and permit processes for direct foreign investors, creating bureaucratic obstacles in the investment process. With an innovative approach, Turkey removed these bureaucratic obstacles in 2003 by enacting the Foreign Direct Investment Law No. 4875.<\/p>\n<p>According to Foreign Direct Investment Law No. 4875, there is equality between foreign and domestic investors, and there is no special procedure for foreign investors. Only providing information is deemed sufficient. Turkey, which is at an epicentre of investment due to its geopolitical location, has not limited itself to new regulations brought by Law No. 4875, but has also established an Investment Advisory Council and a Coordination Council, making progress in encouraging and supporting foreign investors.<\/p>\n<p>According to Law No. 4875, foreign investors have the right to establish companies in Turkey without requiring special approval or permission. It is sufficient for the foreign investor to provide information about the company through the &#8220;Electronic Incentive Application and Foreign Capital Information System-E-TUYS&#8221;. Apart from this notification, there is no difference in the procedures implemented for foreign investors compared to domestic investors. The necessary permits for a foreign investor to build a factory in Turkey are as follows:<\/p>\n<p><strong>Free Zone Permit:<\/strong> Individuals residing in Turkey or abroad may establish a company to operate exclusively in a free zone, in which case the articles of association must be submitted to the General Directorate of Free Zones (SBGM) for approval.<\/p>\n<p><strong>Operating Licence:<\/strong> After the company is incorporated, an operating licence is issued, along with a certificate of eligibility confirming that the company was duly incorporated.<\/p>\n<p><strong>Industry Permits:<\/strong> Companies that will operate in industries such as food, tourism, health, construction, and telecommunications must obtain special licences and permits from the relevant ministries. For example, for the construction sector, it is necessary to obtain a zoning permit, a construction licence and an EIA report. However, this permit is a sector-specific special permit and does not differ depending on whether the investor is domestic or foreign. Reports, licences and permits may be required depending on the activity to be carried out.<\/p>\n<p>It is accepted that foreign investors are not subject to any special restrictions when establishing a factory in Turkey and are treated equally with domestic investors.<\/p>\n<p>If the investor wishes to benefit from various state incentives, such as tax reductions, insurance premium support, etc., they must obtain an Investment Incentive Certificate from the Ministry of Industry and Technology.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can an investor do a transaction in the country in any currency or only in domestic currency? a) Is there an approval requirement (e.g. through Central Bank or another governmental agency) to use foreign currency in the country to pay: i. in an acquisition, or, ii. to pay to contractors, or, iii. to pay salaries of employees? b) Is there a limit on the amount of foreign currency in any transaction or series of related transactions? i. Is there an approval requirement and a limit on how much foreign currency a foreign investor can transfer into the country? ii. Is there an approval requirement and a limit on how much domestic currency a foreign investor can buy in the country? iii. Can an investor buy domestic currency outside of the country and transfer it into the country to pay for an acquisition or to third parties for goods or services or to pay salaries of employees?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Circular on Decision No. 32 on the Protection of the Value of Turkish Currency prohibits payment in foreign currency for certain types of agreements between two parties resident in Turkey. The said circular specifically prohibits payment in foreign currency for contracts between Turkish citizens. According to Article 7 of the Circular, service contracts with persons who are not Turkish nartionals may be denominated in foreign currency. The Circular generally imposes restrictions on Turkish nationals. Since a companu incorporated in Turkey is considered resident in Turkey&#8217;, paying salaries in foreign currency to Turkish citizen employees is subject to restrictions. However, if the employee is a foreign national, payment in foreign currency is possible. Approval from the Central Bank is not required for this practice. Such foreign currency transactions must be carried out through a bank.<\/p>\n<p>There are no restrictions on foreign individuals transferring foreign currency to Turkey. However, for transactions above a certain amount, a declaration must be submitted to the Financial Crimes Investigation Board (MASAK). For transactions between 2,000,000.00 TL and 20,000,000.00 TL, a cash transaction declaration form must be completed. For transactions above 20,000,000.01 TL, both a MASAK declaration and detailed explanation and disclosure regarding the transaction must be provided.<\/p>\n<p>In summary, there are no obstacles under Turkish law to foreign investors conducting transactions in foreign currency. Foreign investors may use foreign currency for company acquisitions, contractor payments, and employee salary payments. Declarations and forms may only be required depending on the amount. Transactions must be conducted through a bank.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there approval requirements for a foreign investor for transferring domestic currency or foreign currency out of the country? Whose approval is required? How long does it take to get the approval? Are there limitations on the amount of foreign or domestic currency that can be transferred out of the country? Is the approval required for each transfer or can it be granted for all future transfers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As explained in detail above, foreign investors generally do not require special permission for Turkish lira or foreign currency transfers. Depending on the amount of the transaction, notification and declaration obligations apply. However, this notification is for explanatory purposes only and does not constitute permission. Such transactions must be carried out through a bank. The notification and declaration will be made to the bank where the transaction is carried out, the Central Bank, and MASAK. As notification is required depending on the transaction and amount, it must be applied separately for each transaction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a tax or duty on foreign currency conversion?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Although there is no direct exchange tax on foreign currency purchase and sale transactions in Turkey, transactions conducted in foreign currency are subject to Banking and Insurance Transactions Tax (BSMV) under the Expenditure Tax Law No. 6802. Exchange tax is a deduction made at a certain rate on transactions made in foreign currency and is assessed under the Municipal Revenue Law No. 2464 and the Expenditure Tax Law No. 6802. The deduction rates are determined by the Treasury and Finance Ministry and the Central Bank. In Turkey, this tax is applied to regulate financial transactions and oversee speculative movements.<\/p>\n<p>Commercial transactions conducted in foreign currency, foreign currency purchases and sales made at banks and foreign exchange offices, remittances and transfers made in foreign currency, and foreign currency transfers made abroad are subject to this tax. For 2025, the rate of this tax has been set at two per thousand (0.2%). Tax collection is carried out through banks or institutions and paid on behalf of the state.<\/p>\n<p>BSMV does not apply to foreign currency sales in transactions such as exports, imports, and financial leasing. Interbank foreign exchange transactions are also among the exceptions. Furthermore, transfers made by foreign investors that bring foreign currency to Turkey and invest it are not subject to BMSV. In other words, a foreign investor buying and selling foreign currency in Turkey is subject to BSMV, but a foreign investor transferring foreign currency brought directly from their own country to Turkey without buying or selling in Turkey is not subject to BSMV. For example, a foreign investor buying and selling foreign currency through a bank in Turkey is subject to BSMV, but bringing foreign currency as investment capital or as a share of partnership is not subject to BSMV.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a tax or duty on bringing foreign or domestic currency into the country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no tax or official duty applied to the entry of foreign currency or domestic currency into Turkey. Turkey is a country that has adopted the principle of capital market freedom, and foreign investors are free to bring their capital directly into Turkey.<\/p>\n<p>For cash inflows, amounts exceeding 10,000.00 Euros must be declared at Customs. When this form is completed, there are no fees or taxes to be paid in Turkey. There are no restrictions on transfers made through banks. Furthermore, Turkey has signed Double Taxation Avoidance Agreements with many countries to prevent double taxation of foreign investors.<\/p>\n<p>In summary, Turkey has legislation that offers many conveniences for foreign investors in the transfer of their earnings or capital inflows. Transfers made as capital contributions or share transfer fees for money inflows in our country will not give rise to any tax liability. If the money inflow is made as a loan, only the interest will be taxed. If it is made in cash, a declaration requirement will apply.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a difference in tax treatment between acquisition of assets or shares (e.g. a stamp duty)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Turkey is open to foreign investors acquiring assets and shares. Tax liabilities relating to the acquisition of assets and shares are assessed separately.<\/p>\n<p>Tax liabilities may arise for foreigners when acquiring shares in Turkey. The tax liabilities arising from the transfer of shares may vary depending on the type of company in which the shares are acquired, the percentage of shares transferred, and the foreign investor&#8217;s country. There is no specific type of tax applied to foreigners. They have the same tax obligations as domestic investors. Joint stock company share transfer agreements are generally exempt from stamp duty. However, limited liability company share transfers are subject to tax and fees as they are made before a notary public.<\/p>\n<p>Under the prohibition of double taxation, foreign investors will be exempt from the obligation to pay tax twice. Earnings derived from the transfer of shares may be taxable for the seller. However, there is no income tax for the foreign investor in respect of the acquisition of shares.<\/p>\n<p>In terms of asset acquisition, foreign legal entities and individuals may acquire immovable property in Turkey in accordance with Article 35 of the Land Registry Law No. 2644. According to this article, foreign natural or legal persons may acquire immovable property and real rights in Turkey, provided that they comply with legal restrictions. These restrictions are determined according to the pertinent provisions (e.g. foreigners cannot acquire immovable property in military zones).<\/p>\n<p>For foreign natural and legal persons, there is no difference between the obligations applicable to Turkish citizens and foreigners in the taxation process for real estate suitable for sale that is not subject to the restrictions in the law. When a real estate is sold, the Land Registry Fee, Revolving Fund Fee, service fee, etc., determined according to the declared property value, shall be paid.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">When is a stamp duty required to be paid?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Stamp duty is a type of tax levied by the state on contracts. It is not mandatory to pay stamp duty for a contract subject to stamp duty to become valid. However, if you submit the contract to an official authority (for example, if you wish to initiate enforcement proceedings based on the contract), it is required that you first pay the stamp duty. According to the Stamp Duty Law, all contracts signed in Turkey and having legal effect in Turkey are subject to stamp duty. The parties to the contract are jointly and severally liable for stamp duty. Although the parties have the right to determine among themselves who will pay the tax, they cannot assert this right against the tax office. Stamp duty is paid monthly or every 15 days, depending on the situation, but the payment period varies according to the payment method. The relevant matters are regulated further in the legislation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are shares in private domestic companies easily transferable? Can the shares be held outside of the home jurisdiction? What approval does a foreign investor need to transfer shares to another foreign or domestic shareholder? Are changes in shareholding publicly reported or publicly available?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Share transfers are possible in private companies in Turkey. Different formal requirements may apply to share transfers depending on the type of company. However, these formal requirements are straightforward and of procedure. Share transfers are generally unrestricted in public limited liability companies. Share transfers in limited liability companies, on the other hand, are subject to certain conditions.<\/p>\n<p>In joint stock companies, share transfers are possible without any approval. While share transfers are made in writing for unregistered bare shares, share transfers are sufficient for bearer shares. In the transfer of registered shares, pursuant to Article 491 of the Turkish Code of Commerce, if the price of the registered shares has been paid in full, they can be transferred by endorsement and transfer of possession; if the price has not been paid, the shares in question can only be transferred with the company&#8217;s approval. Restrictions may be imposed on the transfer of shares in the articles of association. In public limited liability companies, there is no requirement for registration and publication in the commercial register for the transfer of shares. The transfer of shares takes effect when recorded in the company&#8217;s share register. However, registration may be required for certain transactions, such as changes in management or capital increases. Under Turkish law, the transfer of shares is a relatively straightforward process.<\/p>\n<p>In limited liability companies, the transfer of shares must be made in writing in accordance with Article 495 of the Turkish Code of Commerce. The transfer of shares is made in writing and the signatures are certified by a notary public. Unless otherwise stipulated in the company&#8217;s articles of association, the transfer of shares in the authorised capital requires the approval of the general meeting of shareholders. Subsequently, it must be recorded in the share register, recorded in the commercial register and announced. As limited liability companies are businesses smaller than public joint stock companies and are a type of company where personal relationships in the partnership come to the fore, the transfer of shares is subject to stricter rules than in public joint stock companies.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a mandatory FDI filing? With which agency is it required to be made? How long does it take to obtain an FDI approval? Under what circumstances is the mandatory FDI filing required to be made? If a mandatory filing is not required, can a transaction be reviewed by a governmental authority and be blocked? If a transaction is outside of the home jurisdiction (e.g. a global transaction where shares of a foreign incorporated parent company are being bought by another foreign company, but the parent company that\u2019s been acquired has a subsidiary in your jurisdiction), could such a transaction trigger a mandatory FDI filing in your jurisdiction? Can a governmental authority in such a transaction prohibit the indirect transfer of control of the subsidiary?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no FDI approval system in Turkey, only a notification obligation. Notifications are made to the Ministry of Industry and Technology via E-TUYS. Transactions such as foreign investor share transfers, indirect control transfers, and capital increases are subject to notification. Permits may be required in sector-licensed areas; but this is an industry regulation, not FDI. The public authority generally does not intervene in indirect share transfers, only examining them from a competition or sector licence perspective.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are typical exit transactions for foreign companies?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to the provisions of Law No. 4875, foreign investors are free to exit Turkey and there are no restrictions. Different tax, notification and licensing obligations may apply depending on the type of transaction. Exit transactions by foreign investors are mostly in the form of share sales, asset sales and liquidation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do private companies prefer to pursue an IPO? i. on a domestic stock market, or ii. on a foreign stock market? iii. If foreign, which one?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Private companies in Turkey can be publicly listed. The domestic stock exchange (Borsa \u0130stanbul-BIST) is more commonly preferred. Public offerings are subject to the approval of the Capital Markets Board (SPK). Foreign investors can freely buy and sell shares in publicly listed companies. Foreign stock exchanges are rarely preferred, except by certain large companies.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do M&amp;A\/Investment\/JV agreements typically provide for dispute resolution in domestic courts or through international arbitration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In practice in Turkey, international arbitration is generally preferred over local courts for the resolution of disputes in merger &amp; acquisition, investment and joint venture agreements. The parties mostly choose internationally recognised arbitration institutions such as the ICC, LCIA or ISTAC for reasons of impartiality, enforceability of awards and procedural efficiency.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How long does a typical contract dispute case take in domestic courts for a final resolution?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Turkish law, disputes arising from contracts are heard before different courts depending on the type of contract. As an alternative means of resolution, disputes can be settled more expediently through mediation if the parties reach an agreement, and the mediation minutes will have the force of a court decision. If the contract provides for arbitration, the dispute can also be resolved quickly through arbitration. At the litigation stage, the process varies depending on the court&#8217;s workload and the nature of the dispute. The local court stage can take 2-3 years, and with appeals, this period can be extended by approximately 3-5 years.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are domestic courts reliable in enforcing foreign investors rights under agreements and under the law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The principle of equality is fundamental in Turkish law. Decisions are made within the framework of the law, with justification and subject to review, without regard to the national identity of the parties. The Turkish judiciary has an independent and egalitarian approach. Law No. 4875 ensures equality between foreign and domestic investors. Furthermore, the principle of equality is one of the fundamental rights protected by the Constitution. For these reasons, the Turkish judicial system is reliable in protecting the rights of foreign investors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there instances of abuse of foreign investors? How are cases of investor abuse handled?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned above, Turkish law has legally guaranteed the rights of the parties by adopting an inclusive and egalitarian approach. On the other hand, to avoid any grievances in investment transactions, it would be beneficial to conduct the process with legal professionals and seek support from law firms specialising in this field. In addition, bilateral investment treaties and international arbitration mechanisms to which Turkey is a party provide additional safeguards for the protection of foreign investors&#8217; rights.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are international arbitral awards recognized and enforced in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>International arbitration awards are recognised and enforceable in Turkey. For an arbitration award to become enforceable in a country other than the one where it was issued, its recognition and enforcement are required. The recognition of foreign arbitral awards in Turkey is governed by International Private Law and Procedural Law No. 5718 (&#8220;M\u00d6HUK&#8221;). In addition, the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards also provides a basis for the recognition of awards.<\/p>\n<p>For the recognition of international arbitration awards, the requirements set forth in M\u00d6HUK must be met:<\/p>\n<ul>\n<li>The award must be final and binding.<\/li>\n<li>There must be a valid arbitration agreement in writing between the parties.<\/li>\n<li>The arbitral award must not be contrary to Turkish public policy.<\/li>\n<li>The subject matter of the dispute must be arbitrable under Turkish law.<\/li>\n<li>The parties must have been represented before the arbitrator in accordance with the applicable rules of procedure.<\/li>\n<\/ul>\n<p>Turkey, which is a party to the New York Convention and has been implementing the convention since 1992, has added a reservation to the convention stating that only the arbitration decisions of the contracting states will be recognised. The New York Convention is mainly applied to commercial disputes, investment arbitration and disputes arising from international contracts.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there foreign investment protection treaties in place between your country and major other countries?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Turkey has signed bilateral investment treaties with numerous countries. These agreements provide foreign investors with guarantees such as investment protection, fair and equitable treatment, and the possibility of recourse to international arbitration.<\/p>\n<p>Turkey has investment treaties in force with European countries, the United States, and many countries in Asia and the Middle East. While some agreements have been updated under new regulations, Turkey has an extensive network of investment protection agreements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">5915<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/123160","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=123160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}