Legal Guide for Foreign Investors in Turkey (Türkiye) 2026 — Company Formation, Mining Licenses, Real Estate, Stock Market and Gold, Citizenship by Investment, Tax, Profit Repatriation and Dispute Resolution (Law No. 4875, Mining Law Art. 6, Land Registry Law Arts. 35-36, Citizenship Law Art. 12)

Türkçe sürüm: Yabancı Yatırımcılar İçin Türkiye Hukuk Rehberi

For a foreign company or individual planning to invest in Turkey, the legal picture is not a single statute. The general framework is set by Foreign Direct Investment Law No. 4875: unless international agreements or special laws provide otherwise, foreign direct investment is free, and foreign investors receive the same treatment as domestic investors (Art. 3/a). But each type of investment brings its own special law. Mining rights are granted only to Turkish citizens and to companies incorporated under Turkish law (Mining Law No. 3213, Art. 6). Real estate acquisition by foreign individuals is subject to country, area and size limits (Land Registry Law No. 2644, Art. 35). In sectors such as banking and broadcasting, acquiring shares requires a permit or is capped. This guide covers company formation, mining, real estate, stock market and gold investments, citizenship by investment, residence and work permits, tax and profit repatriation, and dispute resolution, in the order an investor will meet them and with the legal provisions behind each step. Each section links to our detailed guides (most of them in Turkish).

Who is a foreign investor? Scope of the law

Foreign Direct Investment Law No. 4875 replaced the Law on the Encouragement of Foreign Capital No. 6224 in 2003 and turned the old permit-and-approval system into a notification system (Arts. 1 and 5/c). The first thing the law does is define who counts as a “foreign investor”. Under Art. 2, foreign investors are foreign nationals, Turkish citizens residing abroad, legal entities established under foreign law and international organizations that make foreign direct investment in Turkey.

The second group is often overlooked. A Turkish citizen living in Germany, the Netherlands or Canada who sets up a company in Turkey with capital brought from abroad is a foreign investor under the law and benefits from the guarantees of Law No. 4875. Being “foreign”, however, is not enough on its own; the investment must also be “direct”.

Foreign direct investment means establishing a new company, opening a branch, acquiring shares in an existing company outside the stock exchange, or acquiring at least 10% of the shares or voting rights through the stock exchange, using assets such as cash capital, company securities, machinery and equipment and industrial and intellectual property rights brought from abroad, or profits, receivables and rights to explore and extract natural resources obtained in Turkey and reinvested (Art. 2/b). A foreigner who buys 3% of a listed company through the stock exchange is not a direct investor under Law No. 4875 but a portfolio investor, for whom capital markets rules come to the fore.

Law No. 4875, Art. 3: Guarantees for investors

The heart of the law is Art. 3. It sets out the principles of foreign direct investment in eight subparagraphs, (a) to (h), and forms the basic guarantees that an investor can invoke against the state. One of these subparagraphs is no longer in force: subparagraph (d), which made real estate acquisition by companies with foreign capital free, was annulled by the Constitutional Court in its decision of 11 March 2008 (Docket No. 2003/71, Decision No. 2008/79); the matter was later regulated again in Art. 36 of the Land Registry Law. Amending these principles is also subject to a special rule: amendments to the provisions of the law can only be made by amending this law itself (Art. 5/d). The aim was to prevent the status of foreign investors from being changed quietly through a provision buried in another statute.

These guarantees are supported by general principles in the Constitution. Everyone has the freedom to work and to conclude contracts in the field of their choice, and establishing private enterprises is free (Constitution, Art. 48). Expropriation may only be carried out where the public interest requires it, with the real value paid in advance and in accordance with the procedure set out by law (Constitution, Art. 46). In concession contracts concerning public services, it may be provided that disputes will be resolved by national or international arbitration; international arbitration is only available for disputes involving a foreign element (Constitution, Art. 125/1). For a detailed review of the law, see our guide (in Turkish) Doğrudan Yabancı Yatırımlar Kanunu (4875).

Choosing the investment structure: company, branch, liaison office, acquisition

The investor’s first decision is the legal form in which it will exist in Turkey. This choice directly affects the limit of liability, taxation, eligibility for licenses and which dispute resolution routes will be available later. For example, since a mining license is granted only to a company incorporated under Turkish law, it is not enough for a foreign company planning a mining investment to open a branch; it must incorporate a company in Turkey.

The minimum capital amounts were increased by Presidential Decision No. 7887 and have applied since 1 January 2024. Existing companies also face a compliance deadline: under provisional Art. 15 added to the Turkish Commercial Code by Law No. 7511, joint stock and limited companies whose capital is below these amounts are deemed dissolved by operation of law if they do not raise their capital by 31 December 2026; the Ministry of Trade has the power to extend this period. A foreign investor planning to buy or invest in an older company should check this deadline in particular.

A reporting obligation also continues after incorporation. Under the Implementing Regulation of the Foreign Direct Investment Law, companies with foreign capital and branches submit the “Activity Information Form for Foreign Direct Investments” every year by the end of May at the latest through E-TUYS (the Electronic Incentive Application and Foreign Capital Information System), and liaison offices send their own activity information forms to the Ministry by the same date.

The structure also has an international dimension. The bilateral investment treaties that Turkey has signed with many countries tie protection to the investor’s nationality. The country of the company through which capital is brought in determines which treaty can later be invoked against the state. That is why, in large investments, the holding structure is planned from the outset not only for tax purposes but also for dispute protection. The mining example below shows why this matters. For a step-by-step guide covering minimum capital, the foreign founder’s documents, setting up by power of attorney, tax and work permits, see Company Formation in Turkey for Foreigners.

Sector-specific rules: exceptions to freedom of investment

The principle of freedom in Law No. 4875 is granted “unless special laws provide otherwise” (Art. 3/a). An investor must therefore check, in addition to the general framework, the special law of the sector in which it will operate. The table below brings together the special rules that foreign investors most often encounter. The list is not exhaustive; licensing and permit regimes also apply in areas such as energy, finance, healthcare, aviation and shipping.

Mining investment: a Canadian gold company comes to Turkey

Imagine a gold company incorporated in Canada that wants to explore in Turkey. The first question is who will hold the license. Under Art. 6 of the Mining Law, mining rights are granted to Turkish citizens with full legal capacity, to companies with legal personality incorporated under the laws of the Republic of Turkey and to authorized public bodies. A company incorporated in Canada therefore cannot hold a license directly. It either incorporates a company in Turkey or acquires shares in a Turkish company that holds a license; in the second route, transfers of more than 10% of the shares in a license-holding company require ministry permission. A company incorporated under Turkish law can obtain a license even if all of its capital belongs to foreigners; for mining rights there is no difference between domestically and foreign-owned companies. In practice, the scope of business in the company’s articles of association must also cover mining activity.

The law also provides that mining rights are granted in the name of a single natural or legal person (Art. 6/2). This rule matters for joint ventures in which several foreign partners want to work together on the same site: the partners cannot hold the license jointly; they build the partnership into the shareholding of a single license-holding company. Licenses are issued by the General Directorate of Mining and Petroleum Affairs (MAPEG), affiliated with the Ministry of Energy and Natural Resources. In new license areas, the ministry may impose restrictions, after consulting the relevant institutions, taking into account the mining method, the area of activity, the type of mineral and environmental impacts (Art. 7). The law was again amended extensively in 2025 by Law No. 7554; for current rules on exploration and operation periods, rehabilitation and strategic minerals, see our guide (in Turkish) Altın Madeni Ruhsatı 2026. For the routes by which a foreign company reaches a license, ministry permission for share transfers above 10% and time limits for legal action, see Can a Foreign Company Get a Mining License in Turkey?

A real example shows why these stages matter. Canada’s Alamos Gold suspended construction at its Kirazlı gold project in the Kaz Mountains in October 2019, as its license terms expired and amid protests against the project. Stating that its licenses had not been renewed, the company announced in 2021 that its Dutch subsidiaries would bring an investment treaty claim of more than USD 1 billion under the Netherlands–Turkey Bilateral Investment Treaty. On 14 September 2025 it announced an agreement to sell the shares of the Turkish company holding the Kirazlı, Ağı Dağı and Çamyurt projects to a Turkish mining company for a total of USD 470 million, payable in instalments; the sale closed in October 2025. According to the company’s announcement, the arbitration, which was already suspended, will remain suspended and will be discontinued with prejudice once certain contractual milestones are met.

Four lessons follow for investors:

• The license timeline is the project’s most critical timeline. Extension applications filed close to expiry, missing documents and unresolved permit issues put the entire investment at risk.
• International protection depends on the investment chain. The fact that the claim was brought through the Dutch subsidiaries under the Netherlands–Turkey treaty, rather than from Canada, shows that protection is determined by the company through which the capital was brought in.
• Administrative litigation and treaty arbitration are planned together. Because of fork-in-the-road clauses in some investment treaties, which route to take and when must be decided according to the treaty text, and the time limit for administrative actions must not be missed.
• A dispute can also end with a sale. The exit option should be considered from the start; ministry approval and legal due diligence are decisive in license transfers and company sales.

Our detailed guides on mining (in Turkish): Maden Ruhsatı Uyuşmazlıkları (mining license disputes), Maden Ruhsatının Devri ve İpotekli Ruhsat (license transfer and mortgage), Madencilikte Rödovans Sözleşmesi (royalty-lease agreements), Enerji ve Madencilikte Vergilendirme (taxation in energy and mining), Orman Arazisinde İzin (forest land permits) and Acele Kamulaştırma ve Özel Kanunlar (urgent expropriation).

Real estate investment and property acquisition

Real estate acquisition by foreigners in Turkey is governed by two separate regimes in Arts. 35 and 36 of the Land Registry Law. The first regime is for foreign individuals. Nationals of countries designated by the President, in view of bilateral international relations and where the country’s interests so require, may acquire real estate and limited rights in rem (such as easements, usufructs and mortgages), provided they comply with the statutory restrictions. The total area these persons may acquire may not exceed 10% of the district’s area subject to private ownership, nor 30 hectares per person nationwide. The President may increase the per-person amount up to twofold, and may restrict, partially or completely suspend or prohibit acquisitions by country, person, region, period, number, ratio, type and area. A foreign individual who buys land without a building must submit the project to be developed on it to the relevant ministry for approval within two years; otherwise the property faces a compulsory sale. Acquisitions in military forbidden and security zones are governed by Military Forbidden Zones and Security Zones Law No. 2565, and in some zones foreigners are completely prohibited from acquiring property.

The second regime is for companies. Commercial companies with legal personality established in foreign countries under their own laws may acquire real estate only within the framework of special laws. Companies established in Turkey in which foreigners hold 50% or more of the shares or have the power to appoint or dismiss the majority of the management may acquire ownership of real estate or limited rights in rem to carry out the activities stated in their articles of association (Art. 36). Companies with foreign shareholders below this threshold transact like domestic companies. The practical result for investors: a foreign investor that needs land for a factory, warehouse, hotel or mining facility does so through the company it establishes in Turkey, and the scope of business in the company’s articles of association must cover the intended use of the property.

Property ownership also has consequences for residence and citizenship. Foreigners who own real estate in Turkey may be granted a short-term residence permit; the nature and value of the property qualifying for the permit are determined by the ministry (Law No. 6458, Arts. 31/1 and 31/6). A foreigner who acquires real estate worth at least USD 400,000 that is subject to condominium ownership or a construction servitude, or is land with a building on it, and has a three-year no-sale annotation entered in the land register, may apply for citizenship through the exceptional route. In land registry transactions, banks and land registry offices also question the source of funds and the beneficial owner, so the payment chain should be documented from the start.

Whether to buy property in your own name or through a Turkish company, with the tax, citizenship and residence consequences, is compared in Buying Property in Turkey as a Foreign Investor: In Your Own Name or Through a Turkish Company? (in English).

Detailed guides (in Turkish): Yabancılar Türkiye’de Taşınmaz Alabilir mi? (can foreigners buy property in Turkey?), Yabancılar Hazine Taşınmazı Alabilir mi? (Treasury land), Yabancı Uyrukluların Banka ve Gayrimenkul İşlemlerinde MASAK (anti-money-laundering checks for foreigners) and Yabancıların Miras ve Taşınmaz İntikali (inheritance of property by foreigners).

Stock market, capital markets and gold investments

A foreign investor buys shares on Borsa İstanbul through brokerage firms licensed to operate in Turkey. Identity verification is mandatory when opening an account; the rules on remote identity verification, including those specific to foreigners, are explained in our guide (in Turkish) Görüntülü Görüşmeyle Aracı Kurum Hesabı Açmak. When purchases through the stock exchange reach the threshold of 10% of shares or voting rights, the investment becomes foreign direct investment within the meaning of Law No. 4875. Since 3 September 2026, foreign individuals can also open an account remotely with a chip-enabled passport at brokerage firms that offer this service; for the full framework from account opening to tax, see Can Foreign Investors Buy Shares on Borsa Istanbul?

As the shareholding grows, capital markets obligations come into play. Under the Material Events Communiqué (II-15.1), persons whose shares or voting rights in a company reach, exceed or fall below certain thresholds disclose this on the Public Disclosure Platform (KAP). Where management control is acquired, a mandatory tender offer must be made to the other shareholders under the Tender Offer Communiqué (II-26.1).

Gold investment takes two different forms. As a financial investment, gold is bought and sold through the Borsa İstanbul Precious Metals Market and authorized institutions. As a commercial activity, gold imports, exports and intermediation are subject to the permit and membership regime in Decree No. 32 and the precious metals legislation. Identity verification and anti-money-laundering (MASAK) obligations also apply to gold and foreign currency transactions. For the full picture, from buying gold bars and taking jewellery abroad to bank gold accounts, the intermediary permit, the import quota and tax, see our guide Gold Investment and Gold Trading in Turkey for Foreign Investors. Detailed guides (in Turkish): Borsa İstanbul Kıymetli Madenler Piyasası, Altın İthalatı Nasıl Yapılır? (gold imports), Altın ve Mücevher İhracatı (gold and jewellery exports) and Kıymetli Maden Aracı Kuruluşu ve Yetkili Müessese (precious metals intermediaries).

Citizenship by investment, residence and work permits

The legal status of the investor and the investor’s family is determined by three separate pieces of legislation: Turkish Citizenship Law No. 5901 for citizenship, Law No. 6458 on Foreigners and International Protection for residence, and International Labour Force Law No. 6735 for work. These three statuses are not linked to each other; investing does not by itself automatically lead to a residence permit or citizenship.

Citizenship. Citizenship by investment is a form of the exceptional acquisition route in Art. 12 of Law No. 5901 and is granted by Presidential decision. There must be no obstacle in terms of national security and public order; applications of persons with such an obstacle are rejected by the ministry (Art. 12/2). The investment options and amounts are set out in Art. 20 of the Regulation on the Implementation of the Turkish Citizenship Law and have changed several times over the years. By a Presidential Decision published in the Official Gazette on 13 May 2022, the real estate threshold was raised from USD 250,000 to USD 400,000 and the private pension system option was added. By Presidential Decision No. 7938, published in the Official Gazette on 12 December 2023, the qualifying property must be subject to condominium ownership or a construction servitude, or be land with a building on it; land without a building and agricultural fields can no longer be used for this option. Before that, a Presidential Decision dated 6 January 2022 introduced the requirement that foreign currency brought in as the investment amount be sold, before the transaction, to a bank operating in Turkey and by that bank to the Central Bank.

For the steps to take if a citizenship application is rejected, the grounds for rejection and time limits for legal action, see our guide (in Turkish) Vatandaşlık Başvurusu Reddi Rehberi; for details of the investment options, see Türk Vatandaşlığına Yatırım Yoluyla Alınma.

Residence. Those who may be granted a short-term residence permit include foreigners who own real estate in Turkey, those who will establish business connections or set up a business, and those who will invest within the scope and amount determined by the President (Law No. 6458, Art. 31/1). A short-term residence permit is granted for a maximum of two years at a time; for those who make the investment determined by the President, this period is five years. See our guide (in Turkish) Oturma (İkamet) İzni Yabancılar İçin.

Work. Work permits are granted to foreign personnel employed within the investment (Law No. 4875, Art. 3/g). The permit regime is governed by Law No. 6735. For an independent work permit, the foreigner’s education, professional experience, the effect of the activity on the economy and employment and, if the foreigner is a company shareholder, the share in the capital are taken into account (Art. 10). The Turquoise Card, granted to qualified foreigners such as those who make a significant contribution to the national economy, is issued with a three-year transition period; if the card is not cancelled during this period, an indefinite card is issued upon the foreigner’s application (Art. 11). The law also provides exceptions for foreigners regarded as qualified investors in terms of their level of investment or exports and the employment they create (Art. 16). See our guides (in Turkish) Yabancıların Türkiye’de Çalışma İzni, Bağımsız Çalışma İzni and Turkuaz Kart.

Tax, foreign exchange and profit repatriation

Tax status depends on the structure. Corporations whose legal seat or place of effective management is in Turkey are resident (unlimited) taxpayers and are taxed on their worldwide income (Corporate Tax Law No. 5520, Art. 3/1). A company with foreign capital incorporated in Turkey is therefore taxed like any Turkish company. Corporations whose legal seat and place of effective management are both outside Turkey are non-resident (limited) taxpayers, taxed only on income earned in Turkey (Art. 3/2); the Turkish branch of a foreign company falls into this category. If there is a double tax treaty between the investor’s country and Turkey, the withholding rates on dividends, interest and royalties may change under the treaty and a certificate of residence. For the full process, from the general assembly resolution to the bank transfer, see Dividend Repatriation from Turkey for Foreign Shareholders. See our guides (in Turkish) Dar Mükellefiyet (limited tax liability) and Çifte Vergilendirmeyi Önleme (double taxation).

The right to transfer is free; the paper trail is essential. Art. 3/c of Law No. 4875 guarantees that net profits, dividends, sale, liquidation and compensation proceeds may be transferred abroad freely through banks or special finance houses (now participation banks). Before a transfer, however, banks ask about the source of funds, the economic rationale of the transaction and the beneficial owner; correspondent banks and MASAK procedures can delay a transfer. Supporting a profit distribution with the general assembly resolution, financial statements and withholding tax documents is therefore a practical necessity. See our guides (in Turkish) Yurt Dışına Para Transferi (transfers abroad) and MASAK İşleminizi Askıya Aldı (when MASAK suspends a transfer).

Ban on foreign currency prices between Turkish residents. Under paragraph (g) added to Art. 4 of Decree No. 32 on the Protection of the Value of the Turkish Currency by Presidential Decision No. 85, published in the Official Gazette on 13 September 2018, persons resident in Turkey may not, as a rule, set the price in foreign currency or indexed to foreign currency in contracts between themselves such as real estate sales and leases, employment and service contracts. The exceptions are listed in Art. 8 of Communiqué No. 2008-32/34 of the Ministry of Treasury and Finance; an amendment in March 2025 (Communiqué No. 2025-32/72) made it permissible to set prices in foreign currency in sales of movable goods other than vehicles. Since a company with foreign capital incorporated in Turkey is also a person resident in Turkey, it must observe this ban in contracts with local suppliers and landlords and check the exceptions in the Communiqué separately for each type of contract.

Incentives. The investment incentive system applies to foreign and domestic investors on the same terms; if an incentive certificate is to be obtained, the application should be planned before the investment starts. See our guide (in Turkish) Yatırım Teşvik Sistemi.

Dispute resolution: courts, arbitration and investment treaties

Disputes a foreign investor may face fall into three groups: commercial disputes with private parties (shareholders, suppliers, customers, contractors); administrative disputes arising from government acts such as licenses, permits, tax or citizenship decisions; and investment disputes alleging that the state expropriated the investment or treated the investor unfairly. Each group has its own route, and most are determined when the contract is signed or the investment structure is set up.

Law No. 4686 applies to disputes with a foreign element where the seat of arbitration is in Turkey. A foreign element exists in any of the following cases: where the parties’ domicile or place of business is in different states; where the country of the parties differs from the place of performance of the main obligation or the place most closely connected to the dispute; where foreign capital has been contributed to the company on which the main contract is based, or the contract requires a loan or guarantee from abroad; or where the contract provides for the movement of capital or goods from one country to another (Art. 2). A contract with a company with foreign capital is therefore often suitable for international arbitration. Turkey is also a party to the Washington (ICSID) Convention on the settlement of investment disputes between states and nationals of other states. Which treaties protect an investor against Turkey, what Turkey’s ICSID notification says, which preconditions and time limits apply and how awards are enforced are explained in our guide Investment Arbitration Against Turkey and ICSID.

Expropriation is protected both in domestic and international law. Art. 46 of the Constitution makes expropriation conditional on public interest and advance payment of the real value; Art. 3/b of Law No. 4875 applies the same guarantee to nationalization. Claims of “indirect expropriation”, where the economic value of an investment is effectively destroyed without ownership being taken directly, are usually argued under investment treaties. Detailed guides (in Turkish): Dolaylı Kamulaştırma ve Yatırımcı Korumaları (indirect expropriation), Milletlerarası Tahkim (international arbitration), Yabancı Mahkeme ve Hakem Kararlarının Tanınması ve Tenfizi (recognition and enforcement) and Yabancının Türk Mahkemesinde Teminat Göstermesi (security for costs).

The investor’s roadmap: first steps

The sequence below shows the legal steps for an investor coming to Turkey for the first time. Every investment is different, but breaking the order, for example discovering after incorporation that the company’s scope of business does not match the license, costs time and money.

Common mistakes

• Opening only a branch for a mining or similar license; the license is granted to a company incorporated under Turkish law.
• Drafting the scope of business in the articles of association too narrowly; the company’s property acquisition and license applications depend on it.
• Trying to set up a joint venture at license level; mining rights are granted in the name of a single person.
• Building the investment chain without considering international protection at all.
• Setting prices in foreign currency in leases, property sales or service contracts between Turkish companies without relying on an exception.
• Taking over an older company with capital below the minimum and missing the 31 December 2026 deadline.
• Drafting a vague arbitration clause; the institution, seat, language and number of arbitrators should be stated clearly.
• Not putting license and permit periods and the time limit for administrative actions in the calendar.
• Not documenting the source of funds from the start; bank and land registry transactions may be held up as a result.
• Forgetting the annual reporting in May.

Related guides (in Turkish)

This page is the English version of our foreign investor hub. The detailed guides below are currently published in Turkish.

• Can a Foreign Company Get a Mining License in Turkey? — Turkish company requirement, license and share transfers, Law No. 7554, treaty protection (in English)
• Can Foreign Investors Buy Shares on Borsa Istanbul? — brokerage account, remote opening with a passport, disclosure thresholds and tax (in English)
• Dividend Repatriation from Turkey for Foreign Shareholders — transfer guarantee, 15% withholding, tax treaty rates, certificate of residence and interim dividends (in English)
• Buying Property in Turkey: In Your Own Name or Through a Turkish Company? — Land Registry Law Arts. 35 and 36, governorship review, tax, citizenship and residence (in English)
• Gold Investment and Gold Trading in Turkey for Foreign Investors — physical gold, the USD 15,000 jewellery limit, bank gold accounts, the precious metals intermediary permit, import quota, tax and MASAK (in English)
• Company Formation in Turkey for Foreigners — minimum capital, documents, setup by power of attorney, tax and work permits (in English)
• Investment Arbitration Against Turkey and ICSID — bilateral investment treaties, Turkey’s ICSID notification, preconditions and enforcement of awards (in English)
• Yabancı Yatırımcılar İçin Türkiye Hukuk Rehberi — Turkish version of this guide
• Doğrudan Yabancı Yatırımlar Kanunu (4875) — the Foreign Direct Investment Law
• Yabancı Ortaklı Şirket Kapatma — closing a company with foreign shareholders
• Yabancıların Türkiye’de Taşınmaz Edinmesi — property acquisition by foreigners
• Yatırım Yoluyla Türk Vatandaşlığı — citizenship by investment
• Yabancılar Hukuku Rehberi — residence permits, deportation and citizenship
• Yabancılar İçin Türkiye’de Yaşama Rehberi — living in Turkey as a foreigner

Frequently Asked Questions

Can foreigners set up a company in Turkey?

Yes. Unless international agreements or special laws provide otherwise, foreign direct investment is free and foreign investors are treated equally with domestic investors (Law No. 4875, Art. 3/a). Foreigners can incorporate a joint stock or limited liability company under the Turkish Commercial Code, open a branch or acquire shares in an existing company.

Can a foreign company obtain a mining license in Turkey?

Not directly. Mining rights are granted to Turkish citizens, companies incorporated under the laws of the Republic of Turkey and authorized public bodies (Mining Law No. 3213, Art. 6). A foreign company reaches a license by incorporating a company in Turkey or by acquiring shares in a Turkish license holder; it does not matter if all of the capital is foreign-owned. Transfers of more than 10% of the shares in a license-holding company require ministry permission.

Is there a minimum capital requirement for foreign investors?

Law No. 4875 does not set a separate minimum capital for foreigners. The general amounts by company type apply: since 1 January 2024, TRY 250,000 for a joint stock company, TRY 500,000 in the authorized capital system and TRY 50,000 for a limited liability company (Presidential Decision No. 7887). Existing companies with capital below these amounts are deemed dissolved by operation of law if they do not raise their capital by 31 December 2026 (Turkish Commercial Code, provisional Art. 15). If a work permit will be obtained for a foreign shareholder or employee, the criteria in that legislation are assessed separately.

Can a foreign investor transfer profits out of Turkey?

Yes. Net profits, dividends, sale, liquidation and compensation proceeds may be transferred abroad freely through banks or special finance houses (now participation banks) (Law No. 4875, Art. 3/c). Before the transfer, banks may ask for documents such as the profit distribution resolution, financial statements and withholding tax records.

What happens if a foreign investment is expropriated?

Foreign direct investments may not be expropriated or nationalized unless the public interest requires it and compensation is paid (Law No. 4875, Art. 3/b). Art. 46 of the Constitution requires the real value to be paid in advance. If there is an investment treaty between the investor’s country and Turkey, international arbitration may also be available.

Can foreigners buy a house or land in Turkey?

Nationals of countries designated by the President can, within statutory limits. The total area may not exceed 10% of the district’s area subject to private ownership and 30 hectares per person nationwide; for land without a building, the project must be submitted to the ministry for approval within two years (Land Registry Law, Art. 35). In military forbidden and security zones, the restrictions and prohibitions of Law No. 2565 apply.

Can a foreign company buy real estate in Turkey?

Commercial companies established abroad may acquire real estate only within the framework of special laws. Companies established in Turkey in which foreigners hold 50% or more of the shares or control the management may acquire real estate to carry out the activities stated in their articles of association (Land Registry Law, Art. 36).

How much investment is required for Turkish citizenship?

Real estate worth at least USD 400,000 that is subject to condominium ownership or a construction servitude, or is land with a building on it (with a three-year no-sale annotation); or USD 500,000 as fixed capital investment, bank deposit, government debt instruments, real estate or venture capital investment fund units, or private pension contributions (held for three years); or creating jobs for at least 50 people (Law No. 5901, Art. 12/1-b; Regulation, Art. 20).

Can a foreign investor get a residence permit in Turkey?

Yes. Foreigners who own real estate in Turkey, those who will establish business connections or set up a business, and those who invest within the scope and amount determined by the President may obtain a short-term residence permit (Law No. 6458, Art. 31/1). The permit is granted for up to two years at a time, and for five years for those making the investment determined by the President.

Can a foreign investor work in Turkey?

A work permit is required. For an independent work permit, the shareholder’s share in the company’s capital is also taken into account (Law No. 6735, Art. 10); qualified foreigners may be granted a Turquoise Card (Art. 11); there are exceptions for foreigners regarded as qualified investors in terms of investment and employment (Art. 16).

What should a foreign investor buying shares on Borsa İstanbul watch out for?

When shares or voting rights reach 5%, 10%, 15%, 20%, 25%, 33%, 50%, 67% or 95%, a disclosure is made on the Public Disclosure Platform (KAP) under Communiqué II-15.1. Acquiring at least 10% through the stock exchange counts as foreign direct investment (Law No. 4875, Art. 2/b). Acquiring management control triggers a mandatory tender offer (Communiqué II-26.1).

Can a contract with a Turkish company give jurisdiction to a foreign court?

In disputes with a foreign element arising from an obligational relationship, the parties may give jurisdiction to a foreign court by written agreement (MÖHUK, Art. 47), without prejudice to the special jurisdiction rules for employment, consumer and insurance contracts.

How is a foreign arbitral award enforced in Turkey?

An arbitral award rendered abroad is enforced in Turkey through a recognition and enforcement decision. The 1958 New York Convention, to which Turkey is a party, and MÖHUK Art. 60 et seq. apply.

Can a company with foreign capital sign leases or sales contracts in foreign currency?

A company with foreign capital incorporated in Turkey counts as a person resident in Turkey. Persons resident in Turkey may not, as a rule, set the price in foreign currency or indexed to foreign currency in contracts between themselves such as real estate sales and leases, employment and service contracts (Decree No. 32, Art. 4/g). The exceptions are listed in Art. 8 of Communiqué No. 2008-32/34; since March 2025, prices for sales of movable goods other than vehicles may be set in foreign currency.

Do companies with foreign capital have an annual reporting obligation?

Yes. Companies with foreign capital and branches submit the Activity Information Form electronically through E-TUYS every year by the end of May at the latest, and liaison offices send their own information forms to the Ministry by the same date.

Is a Turkish citizen living abroad a foreign investor?

Yes. Under Art. 2 of Law No. 4875, Turkish citizens residing abroad also fall within the definition of foreign investor when they make direct investments in Turkey, and they benefit from the guarantees of the law.

What can a foreign investor do if a mining license is not extended?

An action for annulment can be brought before the administrative court against the decision not to extend or to cancel the license; the time limit is, as a rule, sixty days (Administrative Judicial Procedure Law No. 2577 (İYUK), Art. 7). If there is an investment treaty between the investor’s country and Turkey, the international arbitration option is also assessed according to the treaty’s conditions.

Does a foreigner suing in a Turkish court have to provide security?

As a rule, yes; foreign individuals and legal entities suing before Turkish courts provide security, determined by the court, for court costs and the other party’s damages. Where reciprocity exists, the court exempts them from security (MÖHUK, Art. 48).