Starting a business in
🇹🇷Turkey
Checked November 4, 2026 · How we score
Corporate tax
25%
Top income tax
40%
Setup from
$1,000
all-in, first year
Time to form
7 days
can be done remotely
Taxes in Turkey
| Corporate income tax | 25% 25% standard rate (financial institutions pay 30%); a minimum corporate tax of 10% of pre-deduction profit applies since 2025. Technology Development Zone companies pay no corporate tax on software and R&D income (currently to 2028). |
|---|---|
| Personal income tax (top) | 40% Progressive rates of 15%, 20%, 27%, 35% and 40% on employment income, indexed annually (separate tariff for wages); Turkish residents are taxed on worldwide income. |
| Tax system | Worldwide income |
| Capital gains tax | 0%No general capital gains tax: gains on listed shares and crypto are largely untaxed, while gains on property sold within five years are taxed as ordinary income. |
| Dividend withholding (non-residents) | 10% |
| VAT / GST | 20% |
| Social security | Employee contributions about 15% and employer about 20.75-22.75% of gross salary up to a ceiling; high inflation requires annual inflation-adjusted accounting. |
Forming a company in Turkey
| Usual entity | Limited Sirket (Ltd. Sti., limited liability company) or Anonim Sirket (A.S.) |
|---|---|
| Minimum capital | $1,200 |
| Setup cost (all-in) | $1,000–$3,500 |
| Annual running cost | $2,500–$8,000 |
| Time to incorporate | 7 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
Short-term residence permits are easy for company owners and property buyers; real estate purchases of USD 200,000 qualify for residence and USD 400,000 for citizenship. No widely implemented digital nomad visa exists.
| Digital nomad visa | No |
|---|---|
| Golden visa | Yes, from $200k |
| Citizenship by investment | From $400k |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
Citizenship by investment
Foreigners can obtain Turkish citizenship by buying USD 400,000 of real estate, depositing USD 500,000 in a bank, or making a fixed-capital investment.
Technology Development Zones (technoparks)
Software and R&D companies in technoparks are exempt from corporate tax on qualifying income and VAT on software, and R&D staff benefit from income tax exemptions.
Free zones
Export-oriented manufacturing and services companies in free zones can be exempt from corporate tax and customs duty, subject to restrictions and annual quotas.
Pros and cons
Why founders pick Turkey
- Technopark exemptions on software and R&D profit
- Citizenship by investment from USD 400,000
- Low labour and setup cost with large domestic market
- No tax on most capital gains
Watch out for
- High inflation, currency volatility and FX controls
- Standard corporate tax of 25% plus 10% minimum tax
- Banking and payment processing for foreigners can be difficult
- Complex bureaucracy and frequent regulatory change
Best for: Software and R&D companies using technopark incentives · Investors seeking citizenship or residency through property · Businesses targeting Turkey, the Middle East and Central Asia
Turkey: common questions
What is the corporate tax rate in Turkey?
The standard corporate income tax rate is 25% for 2025-2026, with financial institutions paying 30%. A minimum corporate tax of 10% of profit before deductions also applies, and technopark software income can be exempt.
Can a foreigner open a company in Turkey?
Yes. Foreigners can own 100% of a Turkish limited company and set it up remotely with an apostilled power of attorney and a Turkish tax number. The minimum capital for a limited company was raised to TRY 50,000, and the company needs a Turkish registered address.
How can you get Turkish citizenship by investment?
A foreigner can qualify by buying real estate worth at least USD 400,000 (with a three-year no-sale commitment), depositing USD 500,000 in Turkish banks, or investing USD 500,000 in fixed assets. Applications are processed through the Ministry of Environment, Urbanisation and Climate Change.
What is the personal income tax in Turkey?
Progressive rates run from 15% up to 40% in the top bracket, with brackets indexed each year. Residents are taxed on worldwide income, and non-residents on Turkish-source income only.
Sources
- Revenue Administration of Turkey (GIB)
- Invest in Turkey - Investment Office
- PwC Worldwide Tax Summaries - Turkey
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.