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Investment law for foreigners

Since 2003, the establishment of foreign companies in Turkey has, for the most part, not been subject to approval. 100 per cent foreign capital is possible and no minimum capital for foreign investors is called for. Companies founded on foreign capital are placed on an equal footing with purely Turkish companies. An exclusive participation of foreign partners is also possible. Necessary information on the type and extent of the business activities is for purely statistical purposes.  Capital and interest payments are freely transferable.

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Low investment barriers characterise the situation

According to the law on foreign direct investments No. 4875 from 2003, the following forms of business activities in Turkey are classified as direct investments:

  • Establishment of a new company
  • Opening a subsidiary
  • Purchase of shares in an existing company not on the stock exchange
  • Purchase of shares in an existing company on the stock exchange, through which a share ratio of a minimum of ten per cent or voting rights at the same level are obtained


Domestic and foreign companies have equal rights. 100 per cent of the capital may be brought in from abroad, whereby alongside cash, shares in companies, machines and tooling, industrial and intellectual property rights are also classified as investments. Also, capital in the form of net profits, dividends, sales and liquidation assets, as well as capital and interest payments can be transferred from the country without further ado. Turkish citizens with residence abroad are treated as foreign investors.

Information obligations

Minimum capital participation or approvals from the General Directorate for foreign investment are no longer necessary.
Only the liaison office (irtibat bürosu) with its representation functions is still subject to approval, may, however, not partake in trade.
All other information to be sent to the  General Directorate for foreign investments serves strictly statistical purposes

•    annual information on business activities and capital invested
•    payments into the capital account within one month’s notice
•    information on share transfers within one month’s notice

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