Can Foreigners Operate Ships in Turkey? 2026 — Cabotage Law No. 815, Turkish-Ship Conditions under TCC Article 940, the Turkish International Ship Registry (Law No. 4490), Ships of Companies with Foreign Capital, Pilotage and Towage, Yacht Chartering, Ship Agency and Fishing

Turkish version (Türkçe sürüm): Yabancılar Türkiye’de Gemi İşletmeciliği Yapabilir mi?

A foreign investor can own ships in Turkey, become a shareholder in a Turkish shipping company and carry out international transport with ships flying the Turkish flag. However, under the 1926 Cabotage Law No. 815, the carriage of cargo and passengers between Turkish ports (cabotage), towage, pilotage and other port services are reserved to Turkish-flagged ships, and maritime trade and maritime occupations in territorial waters are reserved to Turkish citizens. For a ship to count as a Turkish ship, the conditions in Article 940 of the Turkish Commercial Code No. 6102 (TCC) must be met: in commercial companies, the majority of the persons authorised to manage the company must be Turkish citizens and, under the articles of association, the majority of votes must be held by Turkish shareholders; in joint stock companies, in addition, the majority of the shares must be registered shares and their transfer to a foreigner must be subject to the approval of the board of directors. A foreign-controlled Turkish company that does not meet these conditions can, if its ship meets the ship requirements of Law No. 4490, register the ship in the Turkish International Ship Registry (TUGS) established by that Law, fly the Turkish flag and benefit from tax exemptions; but that ship cannot benefit from the Cabotage Law. This guide answers whether foreigners can operate ships in Turkey, with reference to the legislation, under the following headings: the cabotage ban, the Turkish-ship conditions, TUGS registration, the ship registry and change of flag through chartering, the nationality of masters and seafarers, port and marina operation, pilotage and towage, foreign-flagged yachts and yacht chartering, ship agency, shipyards, fishing and sanctions.

Who can carry out maritime transport and port services in Turkey?

The starting point for a foreign investor is the Foreign Direct Investment Law No. 4875. Under Article 3(a) of that Law, unless otherwise provided by international agreements and special laws, foreign investors are free to make foreign direct investments in Turkey and are subject to equal treatment with domestic investors. Shipping is one of the oldest areas in which this general freedom is restricted by special laws. For the general framework, see our guide Doğrudan Yabancı Yatırımlar Kanunu (4875) (in Turkish).

The basic limit is Law No. 815 on Maritime Transport along the Coasts of Turkey (Cabotage) and the Exercise of Trades and Commerce within Ports and Territorial Waters, adopted on 19 April 1926 and published in the Official Gazette of 29 April 1926, No. 359. The Law entered into force on 1 July 1926 (Art. 6) and consists of only seven articles. The amendments incorporated into the text are as follows: the sanctions article (Art. 5) was rewritten by Law No. 5728 of 23 January 2008, and additions concerning petroleum activities were made to Articles 3 and 4 by the Turkish Petroleum Law No. 6491 of 30 May 2013.

Under Article 1 of the Law, carrying cargo and passengers from one point on the Turkish coast to another, and providing towage (“cer” in the wording of the Law), pilotage and port services of any kind on the coasts, within ports or between ports, is reserved exclusively to ships and vessels flying the Turkish flag. The second sentence of the same article also defines the scope left to foreign ships: foreign ships may only discharge at Turkish ports the passengers and cargo they have taken on in foreign countries, and take on at Turkish ports passengers and cargo bound for foreign ports. In short, international transport is open to foreign-flagged ships, while carriage between Turkish ports is closed to them.

Article 2 of the Law extends this rule to vessels of all kinds in territorial waters. In rivers, lakes, the Marmara basin, the straits and all territorial waters including gulfs, ports and bays, the right to keep vessels of all sizes such as steamers, tugs, motorboats, barges, rowing boats and caiques, craft such as dredgers, lighters and transport pontoons, and fixed equipment such as buoys and rafts, and to trade by navigating and carrying with them, belongs to Turkish citizens.

Article 3 deals with maritime occupations. Within territorial waters, fishing and the harvesting of oysters, mussels, sponges, pearls, coral and mother-of-pearl, the extraction of sand and gravel, the raising and salvage of wrecked ships and wreckage on the sea surface or the seabed, diving, searching, pilotage, ship chandlery, serving as master, engineer, clerk, deckhand and labourer on all Turkish vessels, porterage on piers and quays and all maritime trades are reserved to Turkish citizens. Under the sentence added in 2013, foreigners holding petroleum rights may also carry out petroleum exploration and production activities within Turkish territorial waters.

The Law contains no general permission or exemption mechanism. The only permission provision is in Article 4: the Government may, temporarily and on condition that no right is thereby conferred, permit foreign salvage ships and vessels used in petroleum exploration and production activities to operate, and permit the employment of foreign experts, masters and crew on Turkish salvage ships. The Law provides no route for “cabotage with a foreign ship under special permission” for any other activity.

In the language of 1926, the Law refers to ships “bearing the flag of Turkey” and to “Turkish subjects”. Today, a ship’s right to fly the Turkish flag is determined under Article 940 of the Turkish Commercial Code, and practice reads the two provisions together. For example, the 2025 Regulation on Pilotage and Towage Services requires the operator providing the service to maintain the conditions set out in TCC Article 940 and in Law No. 815 for as long as it provides the service (Art. 18(1)). Whether a foreign investor can enter cabotage or port services therefore depends on whether the company it establishes or becomes a shareholder in meets the Turkish-ship conditions in TCC Article 940.

Turkish-ship conditions: TCC Article 940

Which ships fly the Turkish flag is regulated in the Maritime Trade book of the Turkish Commercial Code No. 6102, published in the Official Gazette of 14 February 2011, No. 27846. Article 940, which governs the right to fly the Turkish flag, has applied unchanged since 1 July 2012. Under its first paragraph, every Turkish ship flies the Turkish flag. Under the second paragraph, a ship owned solely by a Turkish citizen is a Turkish ship.

Ships belonging to more than one person count as Turkish ships provided that, in co-ownership in shares, the majority of the shares belong to Turkish citizens and, in joint ownership, the majority of the owners are Turkish citizens (Art. 940(3)). Ships belonging to organisations, institutions, associations and foundations established under Turkish law and having legal personality are Turkish ships provided that the majority of the persons forming their management body are Turkish citizens (Art. 940(4)(a)). Ships owned by co-ownership shipping partnerships (donatma iştiraki) registered in the Turkish trade registry count as Turkish ships provided that more than half of the shares belong to Turkish citizens and the majority of the co-owners authorised to manage the partnership are Turkish citizens (Art. 940(5)).

What matters most for a foreign investor is sub-paragraph (b), on Turkish commercial companies. Under it, ships belonging to Turkish commercial companies established under Turkish law count as Turkish ships provided that the majority of the persons authorised to manage the company are Turkish citizens and, under the articles of association, the majority of votes is held by Turkish shareholders, and, in joint stock companies and partnerships limited by shares, in addition, that the majority of the shares are registered shares and their transfer to a foreigner is subject to the approval of the company’s board of directors (Art. 940(4)(b)). The conditions are as follows:

• Management majority: The majority of the persons authorised to manage the company, that is, the board of directors in a joint stock company and the managers in a limited liability company, must be Turkish citizens. This condition is expressly worded as “Turkish citizen”, not “Turkish shareholder”. On the role of foreigners in management, see our guide Can a Foreigner Be a Board Member or Manager of a Turkish Company?
• Voting majority: Under the articles of association, the majority of votes must be held by Turkish shareholders. The text refers to a majority of votes, not a majority of capital.
• Registered shares and transfer restriction: In a joint stock company, the majority of the shares must be registered shares and their transfer to a foreigner must be made subject to the approval of the board of directors. TCC Article 940 does not itself impose this restriction; it requires that the restriction exist in the company. The restriction must therefore be provided for in the articles of association.

Two points need attention. First, the Law does not define the term “Turkish shareholder”. Whether a Turkish company with foreign capital counts as a “Turkish shareholder” providing the voting majority in the shipowning company is not clear from the text; before setting up chain ownership structures, the practice of the Ministry of Transport and Infrastructure and of the ship registry should be checked. Second, the conditions are not met once and then forgotten. If one of the conditions in Article 940 or in Article 941(2) ceases to be met, the ship loses the right to fly the Turkish flag; this is notified to the Ministry without delay, and the ship may be permitted to fly the Turkish flag for at most a further six months (Art. 942).

For this reason, share purchases, capital increases, board elections and voting agreements of a foreign investor in a Turkish shipping company should be planned together with Article 940(4)(b). It is important that veto and nomination rights in a shareholders’ agreement are not structured in a way that in effect defeats the management and voting majority requirement; on how such provisions are drafted, see our guide Shareholders’ Agreements in Turkey.

The foreign investor’s options

Reading Law No. 815 and TCC Article 940 together, a foreign investor has several possible structures. Which one is suitable depends on whether the investment covers carriage between Turkish ports (cabotage) or port services. If the investment is aimed only at international transport, foreign control is possible; if cabotage or port services are the target, the management and voting majority must remain on the Turkish side.

A branch opened in Turkey by a foreign company is not a separate Turkish company; it is part of the foreign company’s legal personality. As TCC Article 940(4) (“established under Turkish laws”) and 940(4)(b) are based on being a Turkish commercial company, and Article 5 of Law No. 4490 is based on “companies established in Turkey under Turkish legislation”, establishing a separate company in Turkey is the safer route for owning and registering a ship. On the differences between a branch and a company, see our guide Can a Foreign Company Open a Branch in Turkey?, and on company formation, see Company Formation in Turkey for Foreigners.

A foreign investor wishing to buy shares in a Turkish shipping company should also check, depending on the size of the transaction, whether Competition Board approval and sector approvals in the target company’s field of activity are required. For this general approvals map, see our guide Buying a Turkish Company as a Foreign Investor: Which Approvals Do You Need? In pilotage and towage operators, changes in the ownership structure are additionally subject to Ministry approval; this is explained below under ports.

The Turkish International Ship Registry (TUGS)

The legislation that allows a ship of a foreign-controlled Turkish company to fly the Turkish flag is the Turkish International Ship Registry Law No. 4490, adopted on 16 December 1999 and published in the Official Gazette of 21 December 1999, No. 23913. The purpose of the Law is to accelerate the development of Turkish shipping by facilitating the acquisition and operation of ships registered in this registry and of commercial yachts recorded in the inventories of tourism companies; the provisions of Tourism Incentive Law No. 2634 on yacht tourism continue to apply (Art. 1). The Law was amended in 2004 (Law No. 5266), 2016 (Law No. 6745), 2017 (Law No. 6770) and 2018 (Decree-Law No. 698).

For the purposes of the Law, a “ship” means any cargo, passenger or deep-sea fishing ship, and any special-purpose and specially built ship, used for commercial purposes in cabotage and/or non-cabotage waters (Art. 2(a)). A “yacht” is a vessel built as a yacht, used for touring and sport, carrying no more than thirty-six yacht passengers, not having the character of a cargo or passenger ship, recorded in the inventory of a tourism company and shown as a “Commercial Yacht” in its tonnage certificate (Art. 2(b)). TUGS is therefore a registry for commercial ships and commercial yachts, not for private yachts.

Which ships can be registered? The following ships and yachts are registered in TUGS on request: ships and yachts registered in the National Ship Registry on the date the Law entered into force, ships and yachts built in Turkey, and imported ships exceeding 3,000 DWT; for passenger ships and special-purpose and specially built ships, the threshold is 300 gross tons (Art. 4). A small cargo ship bought abroad may therefore not be eligible for TUGS; the tonnage threshold should be checked before purchase.

Who can register? Ships and yachts belonging to Turkish and foreign natural persons resident in Turkey and to companies established in Turkey under Turkish legislation can be registered in TUGS (Art. 5(1)). This provision makes no distinction based on the nationality of the company’s shareholders or managers; Turkish companies with foreign capital, including foreign-controlled ones, can also register their ships in TUGS. Ships and yachts obtained from abroad through financial leasing are recorded in a special column of the registry (Art. 5(2)).

Flag and the cabotage limit: Ships and yachts registered in TUGS fly the Turkish flag and benefit from the rights granted by national legislation. However, ships and yachts that do not have the right to fly the Turkish flag under the Turkish Commercial Code cannot benefit from the provisions of Cabotage Law No. 815 (Art. 7). The text of the Law still refers to Article 823 of the former Turkish Commercial Code No. 6762; the corresponding provision of the new Code is Article 940 of TCC No. 6102, which governs the right to fly the Turkish flag. As a result, a TUGS-registered ship of a foreign-controlled Turkish company cannot carry cargo or passengers between Turkish ports even though it flies the Turkish flag; it can operate only on international voyages.

Personnel: Subject to the second paragraph of Article 7 of the Law, on ships and yachts registered in TUGS the master must in principle be a Turkish citizen, irrespective of whether the shipowner (donatan) is foreign or Turkish; if the shipowner is a Turkish citizen, at least 51% of the other ship and yacht personnel must also be Turkish citizens (Art. 9). The Law sets no ratio for personnel other than the master on TUGS ships whose shipowner is foreign. Seafarers working on these ships are subject to Turkish social security and labour legislation; however, foreign seafarers are, without prejudice to international or bilateral social security agreements, not covered by disability, old-age and death insurance if they so request and prove that they are compulsorily insured in their own country or privately insured in any country (Art. 10). Foreign seafarers’ seafarer’s books that are recognised by the Ministry serve in place of passports; on a reciprocal basis, no passport is required for their stays in the port cities the ship calls at (Art. 11). For bilateral social security agreements, see our guide Yabancıların Sosyal Güvenliği ve İkili Sözleşmeler (in Turkish).

Tax and fee exemptions: Income derived from the operation and transfer of ships and yachts registered in TUGS is exempt from income and corporate taxes and from funds (Art. 12(1)). Purchase, sale, mortgage, registration, loan, ship charter, time charter and all freight contracts relating to these ships and yachts are not subject to stamp duty or fees, and amounts received in connection with these transactions are not subject to banking and insurance transactions tax or to funds (Art. 12(2)). These exemptions also apply when the ship or yacht is transferred for deletion from TUGS and registration in another registry or otherwise; however, for ships imported from abroad and registered in TUGS, the ship must in that case have been operated while registered in TUGS for at least six months (Art. 12; paragraph added by Law No. 6770). Wages paid to personnel working on these ships are also exempt from income tax and funds. The Law also provides for a registration fee and an annual tonnage fee: the registration fee is the equivalent of USD 10,000 plus USD 1 per net ton, and a fixed USD 5,000 for commercial yachts; the annual tonnage fee is USD 1 per net ton. The President is authorised to increase these amounts, and a 50% reduction applies to ships and yachts classed by Türk Loydu (Art. 12). The current amount applied should be checked at the date of application. Ships and yachts registered in TUGS may also be insured abroad (Art. 13).

The National Ship Registry and change of flag through chartering

Apart from TUGS, the main registry is the National Ship Registry based on the Turkish Commercial Code. Under the Ship Registry Regulation put into force by Presidential Decision No. 7283 published in the Official Gazette of 12 May 2023, No. 32188, merchant ships having the right to fly the Turkish flag under TCC Article 940 and certain other ships listed in the Code may be registered in the ship registry (Art. 24(1)). Registration in the ship registry is compulsory for merchant ships of eighteen gross register tons or more that have the right to fly the Turkish flag and are not registered in TUGS (Art. 24(2)). Ships that are not Turkish ships, and Turkish ships registered in a foreign ship registry, cannot be registered in the ship registry (Art. 24(3)). A ship’s right to fly the Turkish flag is proved by the ship’s certificate of registry issued by the registry office (Art. 5(1)).

For a foreign investor, these rules mean the following: a ship belonging to a foreign-controlled Turkish company which does not itself meet the conditions in TCC Article 940 is not a Turkish ship and therefore cannot be registered in the National Ship Registry. The route available to this company for operating its ship under the Turkish flag is TUGS, if the ship meets the conditions in Article 4 of Law No. 4490 (built in Turkey or, if imported, exceeding 3,000 DWT, or 300 gross tons for passenger and special-purpose ships) (Law No. 4490, Arts. 4 and 5); otherwise, the ship is operated in a foreign registry under a foreign flag.

TCC Article 941 allows the flag to change temporarily in the case of chartering. If a Turkish ship has been left for at least one year, to be operated in their own name, to persons whose ownership of it would cause the loss of the right to fly the Turkish flag, the Ministry may, at the owner’s request, permit the ship to fly a foreign flag for the duration of that arrangement, provided the laws of that country allow it; unless this permission expires or is withdrawn on statutory grounds, the ship may not fly the Turkish flag (Art. 941(1)).

The reverse is also possible. If a ship that is not a Turkish ship has been left for at least one year, to be operated in their own name, to persons entitled to fly the Turkish flag on it, the Ministry may permit the ship to fly the Turkish flag, provided that the owner’s consent has been obtained, the Turkish rules on masters and ship’s officers are complied with and there is no provision in the foreign law preventing this. The person obtaining the permission must prove every two years that the conditions for the permission continue to be met (Art. 941(2)). These ships are recorded in a special register kept by the Ministry (Art. 941(3)). A foreign shipowner can therefore have its ship operate under the Turkish flag by leaving it for at least one year to a Turkish operator that meets the conditions in TCC Article 940; in that case, the party operating the ship is the Turkish operator.

Cabotage: carriage between Turkish ports and the exceptions

Cabotage is the carriage of cargo and passengers from one point on the Turkish coast to another and is reserved to Turkish-flagged ships and vessels by Article 1 of Law No. 815. A foreign-flagged ship may discharge cargo brought from abroad at more than one Turkish port or load at Turkish ports cargo to be carried abroad; however, it cannot carry cargo or passengers taken on at one Turkish port to another Turkish port. The limit is not confined to the carriage of cargo and passengers; towage, pilotage and all port services in ports are also performed by Turkish-flagged ships and vessels.

The Turkish flag alone is not enough either. Under Article 7 of Law No. 4490, ships that do not have the right to fly the Turkish flag under the TCC cannot benefit from the Cabotage Law, even if they fly the Turkish flag through TUGS registration. In cabotage, the decisive question is therefore not so much which registry the ship is in as whether its owner meets the Turkish-ship conditions in TCC Article 940.

If regular services between Turkish ports are planned, the Regulation on Regular Services by Ships (Official Gazette of 22 November 2023, No. 32377; amended in Official Gazette of 12 July 2025, No. 32954) also applies. Under the Regulation, ships used on these services must be registered in the National Ship Registry or the Turkish International Ship Registry (Art. 5(2)). An operator applying for a line permit must be a citizen of the Republic of Türkiye if a natural person, or a company established under the Turkish Commercial Code No. 6102 if a legal person; in both cases, maritime transport must be among its fields of activity and it must be registered with the Chamber of Shipping (Art. 6(1)). These requirements of the Regulation do not replace the cabotage limit in Law No. 815 and in Article 7 of Law No. 4490; both must be met.

The exceptions to the cabotage ban are narrow. Article 4 of Law No. 815 provides that the Government may, temporarily and on condition that no right is thereby conferred, permit foreign salvage ships and vessels used in petroleum exploration and production activities to operate. Under the sentence added to Article 3 in 2013, foreigners holding petroleum rights may also carry out petroleum exploration and production activities in Turkish territorial waters. Apart from these two provisions, the Law contains no general route permitting foreign-flagged ships to carry out commercial transport between Turkish ports. Special rules on yacht tourism are set out in Law No. 2634 and are discussed below under yachts.

Masters, seafarers and foreign personnel

Article 3 of Law No. 815 reserves the work of master, engineer, clerk, deckhand and labourer on all Turkish vessels to Turkish citizens. Article 4 of the Law allows the employment of foreign experts, masters and crew only on Turkish salvage ships, with the Government’s temporary permission. Against this general rule, Article 9 of Law No. 4490 sets up a separate regime for ships registered in TUGS: the master must in principle be a Turkish citizen; if the shipowner is a Turkish citizen, at least 51% of the other personnel must be Turkish citizens; for TUGS ships whose shipowner is foreign, the Law sets no ratio other than for the master. When a foreign-flagged ship is permitted to fly the Turkish flag under TCC Article 941(2), compliance with the Turkish rules on masters and ship’s officers is also a condition.

The general rules apply to the shipping company’s shore staff. Foreign managers and specialists working in the company’s office in Turkey must obtain a work permit under International Labour Force Law No. 6735; on the employer’s obligations, see our guide Yabancı İşçi Çalıştırmada İşveren Yükümlülükleri (in Turkish). It should also be borne in mind that, if the shipowning company’s ships are to count as Turkish ships, foreigners must remain in the minority on the board of directors or among the managers (TCC Art. 940(4)(b)).

Ports, marinas, pilotage and towage

Port and marina operation: The operation of commercial coastal facilities is governed by the Regulation on Coastal Facility Operating Permits and Coastal Facility Operators, published in the Official Gazette of 18 November 2022, No. 32017 (amended in Official Gazette of 14 March 2025, No. 32841). The Regulation covers commercial coastal facilities serving ships and vessels, such as ports, piers, berths, fishing shelters, marinas, shelters, pipelines and buoy/platform systems, and the coastal facility operators that operate them (Art. 2(1)). A coastal facility operator is defined as a natural person, or a public or private legal person, that is the right holder (hak lehtarı) or the lessee of the facility in order to operate the coastal facility (Art. 4(1)(i)). As neither this definition nor the application provisions contain any condition on the operator’s nationality or the proportion of foreign capital, the Regulation does not prevent Turkish companies with foreign capital from obtaining an operating permit. On the other hand, the operator must ensure that the personnel working at the port interface of the coastal facility are Turkish citizens (Art. 17(1)(d)). Acquiring the beneficiary right, that is, the right to use the coastal area where the facility will be built, and the investment permits are assessed separately from this Regulation.

Although a port operator may have foreign capital, Article 1 of Law No. 815 requires towage, pilotage and all port services in ports to be performed by Turkish-flagged ships and vessels. The tugs, pilot boats and similar vessels used in port services must therefore fly the Turkish flag.

Pilotage and towage: Under additional Article 1, added to Ports Law No. 618 by Law No. 7519 published in the Official Gazette of 9 July 2024, No. 32597, pilotage and towage services in regional service areas may be transferred by the Ministry, through a tender using the method of granting operating rights in Article 18 of Law No. 4046, to natural or legal persons for a period not exceeding twenty years. The implementing rules are set out in the Regulation on Pilotage and Towage Services, published in the Official Gazette of 11 February 2025, No. 32810:

• A bidder participating in the tender as a natural person must submit a document showing citizenship of the Republic of Türkiye (Art. 10(1)(b)).
• If the successful bidder is a natural person, a joint venture or a legal person other than a joint stock company, it must, within a period of at most six months granted by the Administration, convert into a joint stock company or establish a joint stock company in which the natural person or all members of the joint venture are shareholders; the contract is signed between the Ministry and the joint stock company operator (Art. 15(1)).
• The contract cannot be transferred in any way, and the operator cannot perform the services using a sub-operator (Art. 17).
• The operator must maintain the conditions set out in TCC Article 940 and in Law No. 815 for as long as it provides the services (Art. 18(1)). This means that, in the operator joint stock company, the management majority must remain with Turkish citizens and the voting majority with Turkish shareholders, the majority of the shares must be registered shares and their transfer to a foreigner must be subject to board approval.
• Ministry approval must be obtained for changes in the operator’s ownership structure, shareholding structure and the persons authorised to manage it (Art. 18(2)).
• For port operators providing these services at their own coastal facility, the ships and vessels used in the services must meet the Turkish-ship conditions in TCC Article 940, all personnel working in these services must be Turkish citizens, and the services must comply with Law No. 815 (Art. 19(3)).

The profession of pilot is also reserved to Turkish citizens by Article 3 of Law No. 815. A foreign investor can enter pilotage and towage only as a shareholder in a Turkish joint stock company that meets the conditions in TCC Article 940(4)(b); every change in the ownership, shareholding and management structure is subject to Ministry approval.

Foreign-flagged yachts and yacht chartering

Yacht tourism is governed by Tourism Incentive Law No. 2634; Article 1 of Law No. 4490 also states that the yacht tourism provisions of Law No. 2634 continue to apply. The heading of Article 29 of that Law is “Length of stay in Turkey and cabotage rights of marine tourism vessels”. Under this article:

• Length of stay: Foreign-flagged private yachts used for touring, sport and leisure may stay in Turkey for up to five years for touring, maintenance, repair, slipping or wintering. This period may be extended by a further five years by the Ministry in accordance with the rules in the regulation (Art. 29(1)). The Implementing Communiqué on the Marine Tourism Regulation separately governs extension requests for foreign-flagged private yachts (Art. 20).
• Chartering: Turkish-flagged yachts may be chartered out to Turkish and foreign persons for touring, sport and leisure by their owners, or by operators who charter them from their owners, under a certificate obtained from the Ministry. Commercial use of yachts chartered out in this way by the charterers is prohibited (Art. 29(2)). By Law No. 7175, published in the Official Gazette of 1 June 2019, No. 30791, the words “Turkish and foreign-flagged” in the then second and third paragraphs of the article were changed to “Turkish-flagged”; chartering under a certificate was thus left to Turkish-flagged yachts only. The paragraph was rewritten by Law No. 7334 in 2021, and the words “Turkish-flagged” were retained.
• Commercial yachts longer than 39 metres: Under the paragraph added by Law No. 7334, published in the Official Gazette of 28 July 2021, No. 31551, foreign-flagged commercial yachts longer than thirty-nine metres that the Ministry considers to contribute to the country’s tourism and promotion may be granted temporary permission to operate and navigate in Turkish territorial waters, not extending beyond the same calendar year, against a contribution to social and technical infrastructure services determined each year. The Customs Law No. 4458 applies to yachts that are not granted a further period at the end of the permission and do not leave Turkish territorial waters (Art. 29(3)).
• Not passenger transport: The use of Turkish-flagged marine tourism vessels for touring, sport and leisure does not count as passenger transport (Art. 29(4)).

Under Article 18 of the Implementing Communiqué on the Marine Tourism Regulation (Official Gazette of 10 June 2023, No. 32217; amended in Official Gazette of 28 August 2024), the application for foreign-flagged commercial yachts longer than 39 metres is made in writing to the Ministry of Culture and Tourism before the activity; payment of the entry fee under Fees Law No. 492 and of the contribution to social and technical infrastructure determined each year by the Ministry is required, and the activity permit certificate is issued with the approval of the Minister’s Office (Bakanlık Makamı Oluru). As the contribution amounts are determined by the Ministry each year, the current Ministry decision should be relied on at the date of application.

The Marine Tourism Regulation follows the same direction. The provision on chartering out yachts carrying no more than twelve passengers without crew refers only to Turkish-flagged yachts and requires at least one of the charterers to hold an adequate licence (Art. 34(1)); the provisions on chartering foreign-flagged vessels were repealed by the amendment of 19 October 2022. Foreign-flagged marine tourism vessels, or those used by foreigners, may berth and anchor for touring purposes at coasts and bays outside prohibited zones; entries into and exits from Turkey are made through sea border gates (Law No. 2634, Art. 28).

For a foreign investor wishing to set up a yacht charter business in Turkey, this means the following: the yacht to be chartered out must be Turkish-flagged and the business must obtain a certificate from the Ministry. For a yacht to fly the Turkish flag, it must belong to an owner that meets the conditions in TCC Article 940, have the permission under TCC Article 941(2), or be registered in TUGS as a commercial yacht in a tourism company’s inventory. However, under Article 4 of Law No. 4490, the only yachts that can be registered in TUGS are those built in Turkey and those registered in the National Ship Registry on the date the Law entered into force; yachts obtained from abroad through financial leasing are recorded in a special column of the registry (Art. 5(2)). Yachts purchased and imported from abroad are not listed in Article 4(c). For a yacht registered in TUGS by a foreign-controlled company, the effect of the cabotage limit in Article 7 of Law No. 4490 on chartering activities in Turkish waters should be assessed separately on the basis of the specific business model. On tourism certificates for accommodation and foreigners acquiring facilities, see our guide Can Foreigners Build or Buy a Hotel in Turkey?

Ship agency, shipyards and fishing

Ship agency: Ship agency is governed by the new Ship Agents Regulation published in the Official Gazette of 14 May 2026, No. 33253. The Regulation repealed the previous regulation of 2012 (Art. 30), and most of its provisions entered into force three months after publication (Art. 31). Ship agents must obtain an authorisation certificate for the agency class in which they operate (Art. 6(1)), and the authorisation certificate cannot be used by others or transferred (Art. 6(8)). Natural-person agents must be citizens of the Republic of Türkiye (Art. 8(1)(a)). For legal-person agents, ship agency must be among the fields of activity in the articles of association, where its shareholders are Turkish citizens, they must meet the conditions in item (2) of sub-paragraph (a), and membership of the Chamber of Shipping is required (Art. 8(1)(b)); the sub-paragraph contains no provision limiting foreign shareholding or the proportion of foreign capital. The application documents include the signed declaration form in Annex 2 in the case of foreign nationality (Art. 9(1)(b)). The responsible agent officer must meet the conditions in items (1) and (2) of Article 8(1)(a) applicable to natural-person agents, including the Turkish citizenship requirement (Art. 10(1)). In other words, a Turkish company with foreign capital can act as a ship agent, but the responsible agent officer must be a Turkish citizen.

Shipyards and boat building: The Regulation on Shipyards, Boat Building Yards and Slipways (Official Gazette of 28 June 2015, No. 29400; last amended in Official Gazette of 14 March 2025, No. 32841) defines the facility operator as the natural or legal persons operating the facility or floating dock or authorised to represent the facility (Art. 4(1)(k)). The definition contains no nationality condition; for applications by natural persons, however, a declaration of the Turkish identity number (T.C. kimlik numarası) is required. In shipyard investments, the main issues are the rights to use the coastal area and the facility’s permits; these should be planned separately.

Fishing: Article 3 of Law No. 815 reserves fishing and the harvesting of oysters, mussels, sponges, pearls, coral and mother-of-pearl in territorial waters to Turkish citizens. Under Article 3 of Fisheries Law No. 1380, natural and legal persons engaging in commercial fishing, and ships and other water craft to be used in commercial fishing or aquaculture, must obtain a fishing licence (ruhsat tezkeresi) or permission from the Ministry of Agriculture and Forestry (as amended by Law No. 7191, Official Gazette of 22 November 2019). Under the Fisheries Regulation (Official Gazette of 10 March 1995, No. 22223), natural persons applying for a fishing licence must be Turkish citizens and at least 18 years old (Art. 5(1)). Legal persons not all of whose shareholders are Turkish citizens cannot obtain a fishing licence; however, legal entities established in accordance with the foreign capital legislation may be granted a fishing licence, provided that their projects and technical competence are approved by the Ministry (Art. 5(3)).

Sanctions

Article 5 of Law No. 815 (as amended by Law No. 5728 of 23 January 2008) provides for two separate sanctions. Masters of ships engaging in cabotage between Turkish ports in breach of Article 1 of the Law, and owners of vessels belonging to foreigners, are subject to an administrative fine of one thousand to twenty-five thousand Turkish lira; ships whose shipowner is foreign and other vessels belonging to foreigners are detained at a suitable port, at their own expense, until the administrative fine is collected. Foreigners exercising rights granted only to Turkish citizens under Articles 2 and 3 of the Law are subject to an administrative fine of five hundred to five thousand Turkish lira, and their ships and other vessels are prevented from sailing. The administrative fines are imposed by the local chief administrative authority (mülki amir, i.e. the provincial or district governor), and the other administrative measures by the harbour master. The amounts in the Law are increased each year by the revaluation rate under Article 17(7) of the Misdemeanours Law No. 5326.

If one of the conditions in TCC Article 940 ceases to be met in the shipowning company, the ship loses the right to fly the Turkish flag (TCC Art. 942). In yacht tourism, an administrative fine is imposed on persons carrying out commercial activities with marine tourism vessels without a tourism operation certificate (Law No. 2634, Art. 33); persons acting in breach of the second paragraph of Article 29 of the Law are punished with a judicial fine of not less than fifty day-units (Law No. 2634, Art. 36(b)).

Checklist

Common mistakes

• Treating the Turkish flag as a cabotage right. A ship registered in TUGS flies the Turkish flag; but if its owner does not meet the conditions in TCC Article 940, it cannot carry cargo or passengers between Turkish ports (Law No. 4490, Art. 7).
• Assuming a permit can be obtained for cabotage. Law No. 815 has no general permission route; the Government’s temporary permission is only for salvage ships and vessels used in petroleum activities (Art. 4).
• Looking only at the capital ratio. TCC Article 940(4)(b) requires the management majority, the voting majority and, in a joint stock company, registered shares and a transfer restriction together.
• Not including the transfer restriction in the articles of association. Making the transfer of shares to a foreigner subject to board approval is one of the Turkish-ship conditions for a joint stock company.
• Trying to own ships through a branch. A branch is not a separate Turkish company; TCC Article 940 and Article 5 of Law No. 4490 are based on a company established under Turkish legislation.
• Not checking the conditions after a share transfer. If one of the conditions ceases to be met, the ship loses the right to fly the Turkish flag (TCC Art. 942).
• Planning a foreign master. On TUGS ships, too, the master must in principle be a Turkish citizen (Law No. 4490, Art. 9).
• Chartering out a foreign-flagged yacht for payment. Since 2019, chartering under a certificate has been granted only to Turkish-flagged yachts; commercial activity without a certificate may lead to an administrative fine (Law No. 2634, Art. 33), and a breach of Article 29(2) to a judicial fine (Art. 36(b)).
• Changing the ownership of a pilotage operator without approval. Ministry approval is required for changes in ownership, shareholding and management (Pilotage and Towage Regulation, Art. 18(2)).

Frequently asked questions

Can foreigners operate ships in Turkey?

Yes; however, the carriage of cargo and passengers between Turkish ports (cabotage) and towage, pilotage and other port services in ports are reserved to Turkish-flagged ships (Law No. 815, Art. 1). A foreign-controlled Turkish company can register its ship that meets the requirements of Law No. 4490 in TUGS and carry out international transport under the Turkish flag; for cabotage or port services, however, the company must meet the Turkish-ship conditions in TCC Article 940.

What is cabotage, and can a foreign-flagged ship carry goods or passengers between Turkish ports?

Cabotage is the carriage of cargo and passengers from one point on the Turkish coast to another and is reserved exclusively to Turkish-flagged ships and vessels. Foreign ships may only discharge at Turkish ports the cargo and passengers they bring from abroad and load at Turkish ports cargo and passengers bound for abroad (Law No. 815, Art. 1).

Can a foreign ship be operated with a permit under the Cabotage Law?

The Law has no general permission route. The Government may only, temporarily and on condition that no right is thereby conferred, permit foreign salvage ships and vessels used in petroleum exploration and production activities to operate, and permit the employment of foreign experts, masters and crew on Turkish salvage ships (Law No. 815, Art. 4).

Under what conditions does a company’s ship count as a Turkish ship?

A ship of a Turkish commercial company established under Turkish law counts as a Turkish ship if the majority of the persons authorised to manage the company are Turkish citizens and, under the articles of association, the majority of votes is held by Turkish shareholders. In a joint stock company, in addition, the majority of the shares must be registered shares and their transfer to a foreigner must be subject to the approval of the board of directors (TCC Art. 940(4)(b)).

Can a foreign shareholder hold the majority in a Turkish shipping company?

TCC Article 940(4)(b) refers not to a majority of capital but to a management majority and to a majority of votes under the articles of association. In a company whose ships are to count as Turkish ships, the management majority must remain with Turkish citizens and the voting majority with Turkish shareholders. Before setting up structures that separate capital from voting rights, the practice of the Ministry and the ship registry should be checked.

Can a ship of a Turkish company with foreign capital fly the Turkish flag?

Yes. If the company meets the conditions in TCC Article 940, its ship is a Turkish ship and flies the Turkish flag through registration in the National Ship Registry. If it does not, the ship may fly the Turkish flag through registration in TUGS, provided it meets the conditions in Article 4 of Law No. 4490 (Law No. 4490, Arts. 4, 5 and 7); in that case, however, it cannot benefit from the Cabotage Law.

Which ships can be registered in TUGS?

Ships and yachts built in Turkey, those registered in the National Ship Registry on the date the Law entered into force, and imported ships exceeding 3,000 DWT can be registered; for passenger ships and special-purpose and specially built ships, the threshold is 300 gross tons (Law No. 4490, Art. 4). Ships obtained from abroad through financial leasing are recorded in a special column of the registry (Art. 5(2)).

Can a ship registered in TUGS engage in cabotage?

Ships and yachts that do not have the right to fly the Turkish flag under the TCC cannot benefit from the Cabotage Law, even if they are registered in TUGS (Law No. 4490, Art. 7). A TUGS ship of a foreign-controlled company therefore cannot carry cargo or passengers between Turkish ports; this ban does not apply to ships whose owners meet the conditions in TCC Article 940.

Can foreign seafarers work on a TUGS ship?

The master must in principle be a Turkish citizen, irrespective of the shipowner’s nationality. If the shipowner is a Turkish citizen, at least 51% of the other personnel must be Turkish citizens; for TUGS ships whose shipowner is foreign, the Law sets no ratio other than for the master (Law No. 4490, Art. 9). Foreign seafarers’ seafarer’s books that are recognised by the Ministry serve in place of passports; on a reciprocal basis, no passport is required for stays in the port cities the ship calls at (Art. 11).

What are the tax advantages of TUGS?

Income derived from the operation and transfer of ships and yachts registered in TUGS is exempt from income and corporate tax and from funds; purchase, sale, mortgage, lease (hire), charter and freight contracts are not subject to stamp duty or fees, and amounts relating to these transactions are not subject to banking and insurance transactions tax; personnel wages are also exempt from income tax (Law No. 4490, Art. 12).

Can a foreign-flagged ship be transferred to the Turkish flag?

If a ship that is not a Turkish ship is left for at least one year, to be operated in their own name, to persons entitled to fly the Turkish flag on it, the Ministry may give permission, provided that the owner consents, the Turkish rules on masters and ship’s officers are complied with and there is no bar in the foreign law. These ships are recorded in a special register, and the continued existence of the conditions is proved every two years (TCC Art. 941(2)-(3)).

Can a company with foreign capital operate a port or marina in Turkey?

The definition of operator in the Regulation on Coastal Facility Operating Permits and Coastal Facility Operators contains no nationality or foreign-capital condition (Art. 4(1)(i)). However, port interface personnel must be Turkish citizens (Art. 17(1)(d)), and towage, pilotage and port services in ports are performed by Turkish-flagged vessels (Law No. 815, Art. 1).

Can a company with foreign capital provide pilotage and towage services?

The operator must maintain the conditions of TCC Article 940 and Law No. 815 for as long as it provides the services; changes in ownership, shareholding and management are subject to Ministry approval (Regulation on Pilotage and Towage Services, Art. 18). A foreign investor can therefore be a shareholder only in a joint stock company whose management majority remains with Turkish citizens and voting majority with Turkish shareholders, and whose shares comply with TCC Article 940(4)(b).

How long can a foreign-flagged yacht stay in Turkey, and can it be chartered out?

Foreign-flagged private yachts may stay for up to five years for touring, maintenance, repair, slipping or wintering, and the period may be extended by a further five years by the Ministry (Law No. 2634, Art. 29(1)). Chartering out under a certificate is reserved to Turkish-flagged yachts (Art. 29(2)); foreign-flagged commercial yachts longer than 39 metres may be granted temporary permission, against a contribution, not extending beyond the same calendar year (Art. 29(3)).

Can foreigners set up a ship agency in Turkey?

Natural-person agents must be Turkish citizens. For agency as a company, ship agency must be among the fields of activity, and Chamber of Shipping membership and an authorisation certificate are required; an Annex 2 declaration is required in the case of foreign nationality. The responsible agent officer must be a Turkish citizen (Ship Agents Regulation, Arts. 6, 8, 9 and 10).

What is the sanction for breaching the Cabotage Law?

Masters of ships engaging in cabotage between Turkish ports and owners of vessels belonging to foreigners are subject to an administrative fine; ships whose shipowner is foreign are detained in port until the fine is collected. Foreigners exercising rights reserved to Turkish citizens are also subject to an administrative fine, and their vessels are prevented from sailing (Law No. 815, Art. 5). The amounts are increased each year by the revaluation rate.

Related guides

• Legal Guide for Foreign Investors in Turkey — company, stock exchange, mining, energy, real estate, tax and arbitration
• Buying a Turkish Company as a Foreign Investor: Which Approvals Do You Need? — Competition Board and sector approvals
• Can Foreigners Set Up an Airline in Turkey or Buy Into a Turkish Airline? — another transport sector with a Turkish control requirement
• Can Foreigners Build or Buy a Hotel in Turkey? — Law No. 2634 and tourism certificates
• Shareholders’ Agreements in Turkey — veto rights, transfer restrictions and deadlock
• Can a Foreigner Be a Board Member or Manager of a Turkish Company? — foreign managers and work permits
• Can a Foreign Company Open a Branch in Turkey? — the difference between a branch and a Turkish company
• Company Formation in Turkey for Foreigners — capital, documents and formation
• Doğrudan Yabancı Yatırımlar Kanunu (4875) — freedom of investment, equal treatment and special-law exceptions (in Turkish)
• Can Foreigners Establish a Private Hospital in Turkey or Buy Into One? — another regulated sector: private hospitals, medical centres, dental clinics and health tourism
• Can Foreigners Explore for and Produce Oil and Gas in Turkey? — Petroleum Law No. 6491, State share, change-of-control permission and EPDK licences
• Yabancılar Türkiye’de Gemi İşletmeciliği Yapabilir mi? — Turkish version of this article