Yes. Under the Foreign Direct Investment Law (Law No. 4875) and the Turkish Commercial Code, foreign natural persons and foreign legal corporate entities can own 100% of a Turkish company with identical rights, protections, and legal standing as domestic Turkish citizens. There is no statutory requirement for a local Turkish partner, director, or local nominal shareholder.

Yes. The entire corporate formation process—from drafting the Articles of Association and registering on MERSİS to Trade Registry publication and Tax Office registration—can be executed remotely through a specialized Power of Attorney (POA).

Shareholders execute the POA and passport verification before a local notary public in their home country and obtain an Apostille (or legalization at a Turkish Consulate for non-Apostille countries). Our CPA and legal team then executes all registrations in Istanbul on your behalf. A brief 1-day visit by the designated director is only required at the final banking stage to sign official bank signature circulars

For over 90% of small to mid-sized international ventures, trading subsidiaries, and tech startups, the Limited Liability Company (Limited Şirket – Ltd. Şti.) is the optimal vehicle.

• Limited Liability Company (Ltd. Şti.): Requires a statutory minimum share capital of 50,000 TRY with 0% capital blocked upfront (100% can be deposited within 24 months post-incorporation). It provides lean governance and minimal administrative maintenance.

• Joint-Stock Company (Anonim Şirket – A.Ş.): Requires a minimum share capital of 250,000 TRY, with 25% blocked in a bank prior to registration. Recommended primarily for large-scale industrial projects, holding companies, or ventures planning institutional venture capital funding or future public offerings (IPO). An A.Ş. also offers tax exemptions on share sales held for over 2 years.

A standard foreign company establishment typically ranges between 3,800 EUR and 4,700 EUR in total upfront setup costs. Unlike generic consultancies, we provide an all-inclusive, fully transparent cost breakdown from day one:

• Legal Company Formation Fee: ~1,800 – 2,000 EUR (Articles drafting, MERSİS registration, Chamber of Commerce dues, Tax Office activation).

• Sworn Translation & Notary Formalities: ~500 – 800 EUR (Official notarization and sworn translation of passports/corporate registry documents).

• Registered Virtual Office (1 Year): ~700 – 870 EUR (Compliant statutory address in Istanbul including representation during mandatory tax inspection).

• Corporate Bank Account Liaison: ~500 EUR (KYC dossier preparation and banking appointment representation).

• Statutory Minimum Capital: 50,000 TRY baseline (payable within 24 months, not required upfront for LLCs).

Yes. Registered virtual offices are 100% legal, widely accepted by the Ministry of Treasury and Finance, and provide a cost-effective solution for foreign consulting firms, tech platforms, and trading companies.

However, Turkish tax law mandates a physical on-site verification visit by a revenue officer within 3 to 7 business days following incorporation. Our CPA team physically attends this inspection at the registered office to represent your company, verify the tenancy, and prevent immediate tax registration suspensions.

Introduction:

The Turkish government offers a 80% income tax exemption for software developer self employments. This exemption is designed to encourage the growth of the software industry in Turkey and to make it more attractive for foreign software developers to do business in the country.

Who is Eligible?

To be eligible for the exemption, a self employer must meet the following criteria:

• The company must be registered in Turkey as a sole proprietorship.
• The company must be majority-owned by Turkish citizens.
• The company must be engaged in the development of software.
• The company must have at least one employee or owner who is a Turkish citizen.

How to Apply for the Exemption:

To apply for the exemption, a sole proprietorship must submit the following documents to the Turkish Revenue Administration:

• A completed application form.
• A copy of the company’s registration certificate.
• A copy of the company’s tax return for the previous year.
• A copy of the company’s payroll records.

Benefits of the Exemption:

The 80% income tax exemption can provide significant financial benefits for software developer sole proprietorships. in Turkey These benefits include:

• Reduced tax liability
• Increased profits
• Increased investment
• Increased job creation

Yes. Active Turkish corporate entities can open operational commercial accounts in TRY, USD, EUR, and GBP at major Turkish commercial banks (e.g., Garanti BBVA, İşbank, Yapı Kredi, Ziraat).

Due to rigorous international anti-money laundering (AML) and Know-Your-Customer (KYC) compliance, banks require the designated company director to present the original corporate registration certificate, tax plate (Vergi Levhası), and execute signature circulars (İmza Sirküleri) in person during a 1-day appointment.

Every registered company in Turkey is legally required by the Turkish Commercial Code to retain an officially licensed Certified Public Accountant Statutory compliance operates on strict monthly cycles:

• Monthly Filings: VAT-1 Return, Withholding Tax Return (Muhtasar), and Reverse Charge VAT-2 for cross-border digital or technical services.

• Quarterly Filings: Advance Corporate Income Tax declarations (Geçici Vergi).

• Annual Filings: Corporate Income Tax return (standard rate is 25%).

• Digital Tax Compliance: Integration with mandatory government electronic networks, including e-Invoice (e-Fatura / e-Arşiv) and e-Ledger (e-Defter).

Incorporating a company does not grant automatic residency or a work permit, but it establishes the legal foundation to obtain them:

• Short-Term Business Residence Permit: Foreign shareholders can secure a 1-year renewable residence permit based on owning a registered business or commercial property in Turkey.

• Foreign Director Work Permit: To obtain an official work permit as an active company manager, the Ministry of Labor enforces the statutory “5:1 rule”—the Turkish company must employ at least 5 full-time Turkish citizens per foreign work permit holder (subject to an initial 6-month establishment grace period). Passive shareholders who do not work as resident managers do not require a work permit.

Yes. Turkey maintains a liberal foreign exchange regime under Decree No. 32. Foreign investors have the unrestricted legal right to transfer profits, dividends, royalties, management fees, and liquidation proceeds abroad in foreign currencies (USD, EUR, etc.) via the international commercial banking system.

Turkey has signed Double Taxation Avoidance Agreements (DTAs) with over 85 countries (including the US, UK, Germany, Singapore, Switzerland, UAE, Bahrain, and Netherlands), lowering statutory dividend withholding tax rates down to 5%–15% and preventing double corporate taxation.

urkey is an ideal strategic hub for cross-border commerce and manufacturing under-license:

• Export of Goods: Cross-border physical goods exports are subject to 0% VAT. Because Turkey belongs to the European Customs Union, goods can be dispatched with EUR.1 / A.TR Movement Certificates and Certificates of Origin issued directly in your Turkish company’s name for duty-free access across Europe.

• Export of Digital & Engineering Services: Professional services, SaaS, IT development, and remote architecture performed from Turkey to overseas clients are exempt from Turkish VAT.

• VAT Refund Mechanism: When companies purchase inputs subject to local VAT but export at 0% VAT, our CPA firm prepares specialized monthly VAT Refund Reports to reclaim accrued input VAT directly back into your company bank account.

Yes. Turkey offers one of the most generous technology incentive frameworks in Europe through designated Technology Development Zones (Teknokent / Technoparks):

• 0% Corporate Income Tax: Earnings generated exclusively from software architecture, game development, AI, SaaS, and R&D activities within the zone are 100% exempt from Corporate Income Tax.

• 0% VAT on Software Deliveries: Delivery of software applications developed inside the Technopark is entirely exempt from Value Added Tax (VAT).

• Income Tax & Social Security Relief for Personnel: Qualified developers, software engineers, and researchers working on approved projects benefit from significant exemptions on personal income tax, stamp tax, and social security employer contributions.

Foreign-owned firms can establish either a standalone company directly inside a Technopark or set up a standard LLC and subsequently license a project branch within the zone.

A Liaison Office (İrtibat Bürosu) is an establishment permitted under Ministry of Industry and Technology authorization for foreign companies looking to survey the market without engaging in commercial activity:

• Strictly Non-Commercial: A liaison office cannot execute sales, issue invoices, or generate domestic revenue in Turkey. Its activities are strictly restricted to market research, representation, feasibility studies, and promotional oversight for the foreign parent company.

• Substantial Tax Advantages: Because it does not generate commercial profit, a liaison office is exempt from Corporate Income Tax.

• Income Tax Exemption on Expatriate Salaries: Salaries paid to liaison office employees are entirely exempt from Turkish Personal Income Tax, provided the payroll is funded 100% from foreign parent company funds wired from abroad in foreign currency.

If your primary goal is to assess distributors, coordinate regional logistics, or conduct customer support before launching commercial sales, a liaison office provides an effective, low-risk vehicle.

When a Turkish registered entity purchases overseas digital services—such as Google Ads, Meta Ads, AWS, Microsoft 365, or international freelance software development—specific tax mechanics apply:

• Reverse Charge VAT (VAT-2 / KDV-2): Turkish companies must self-assess and declare a 20% Reverse Charge VAT on foreign cross-border invoices where the benefit is consumed in Turkey. The tax is declared and remitted under the monthly VAT-2 declaration, and is concurrently claimed as input credit under standard VAT-1 rules (subject to timely payment).

• Digital Advertising Withholding Tax (Stopaj): Under Presidential Decree No. 476, cross-border digital advertising services purchased from non-resident platforms (such as Google, Facebook/Meta, or LinkedIn) are subject to a 15% statutory withholding tax (Stopaj), unless specific Double Taxation Treaty relief certificates are maintained.

Our CPA firm tracks, reconciles, and files these specialized declarations monthly to ensure cross-border IT procurement does not trigger unexpected tax penalties or audits.