Business in Turkey 2026: Company Types, Capital and Taxes

In 2026, capital and tax requirements for businesses in Turkey have increased. Find out how to register a company and obtain a work permit

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Turkey remains one of the few countries where a foreigner can open a company with 100% of its own capital without a Turkish partner and manage it remotely by power of attorney. From 2023 to 2026, both tax rates and the capital threshold for obtaining a work permit have changed significantly in the country, so data that was considered relevant last year may be misleading today.

The material contains the requirements for registering a business in Turkey, the amount of authorized capital, taxes and conditions for obtaining citizenship through investment, which are current as of September 2026.

Also read who is entitled to tax holidays in Turkey in 2026.

A personal lawyer for business is a specialist who accompanies an entrepreneur at every stage: from choosing an organizational and legal form and registering a company to concluding contracts and dismissing employees. He helps to minimize tax risks, manages document flow and represents the interests of the company in government bodies. Whether you are just planning to open a business or have been working in the market for a long time, consulting a personal lawyer will help you avoid costly legal mistakes.

Order a consultation with a personal lawyer for business today.

Why is business in Turkey still profitable in 2026?

Turkey's economy grew by about 3.6% in 2025, and for 2026, forecasts are at 3.2-3.4% - one of the best indicators among the G20 countries. Unemployment is at 8.5-9%, among young people - about 16%, and there is still a demand for qualified personnel in the labor market. At the same time, it is worth immediately considering the downside: inflation in the spring of 2026 was about 32%, and the central bank keeps the discount rate at 37% to contain it. The Turkish lira has depreciated significantly in recent years - the exchange rate has exceeded 46 liras per dollar, while a few years ago it was around 8-9. For exporters, this reduces the cost of Turkish goods and labor, but for any business it also means additional currency risks that should be built into the financial model, and not perceived as a weak lira only as an advantage.

What is a green passport of Turkey and how to get it can be found in this material.

To the practical advantages it is worth adding:

- Customs union with the European Union, which allows for duty-free import of goods of Turkish origin to EU countries;

- 18 free economic zones with zero corporate tax, exemption from VAT and customs duties;

- A network of double taxation agreements with more than 85 countries, including the USA, Great Britain, Germany and France;

- Benefits for technology parks and R&D companies – up to 0% income tax under appropriate conditions.

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What types of companies can a foreigner open in Turkey?

95% of companies registered in the country are Limited Liability Company (Limited Şirket, an analogue of LLC) or Joint Stock Company (Anonim Şirket, AJSC). LLC remains the most popular format for foreign investors: according to the Law on Foreign Direct Investment No. 4875, a company can be fully owned by a foreigner or a foreign legal entity, a Turkish partner is not required, and there can be from 1 to 50 founders. AJSC is chosen mainly for larger projects – the shares of such a company can be listed on the stock exchange, and it is managed by a director or board of directors.

In addition, a foreign company can open a branch or representative office in Turkey. A branch has the right to conduct commercial activities and make a profit in the country, while a representative office only concludes and supports contracts and coordinates financing from abroad, without the right to its own income. The individual entrepreneur format also exists, but is available only to holders of a valid residence permit or Turkish citizenship, so foreign investors almost always choose an LLC.

You can find out about the countries in which it is easiest for foreigners to open a business in the guide from Visit World.

How much authorized capital is needed in 2026 to start a business in Turkey?

The minimum authorized capital of an LLC in Turkey is 50,000 Turkish liras (approximately $ 1,400 at the exchange rate of September 2026). An important nuance: unlike previous years, it is not necessary to pay this amount before registration - it can be paid within 24 months after the company is established. For a JSC, the minimum is 250,000 liras, of which 25% (62,500 liras) must be paid upon registration and the remainder within two years; if the company uses the registered capital system (kayıtlı samsele), the threshold can rise to 500,000 liras.

Work Permit and Turkish Citizenship for Business Owners

Owning a stake in a Turkish company does not in itself give you the right to work in the country - the owner, who physically works at his own enterprise, needs a separate work permit from the Ministry of Labor. Previously, the company's capital of 100,000 liras was sufficient for this, but from 2024-2026 the threshold was raised to 500,000 liras of paid-up capital, while the applicant's own share must be at least 20% and be worth at least 500,000 liras, and the company as a whole must employ at least 5 Turkish citizens. There is also a benefit: if the investor's personal contribution exceeds $ 100,000, most of these criteria can be relaxed - such applicants are considered "high-value investors".

Citizenship through business is a separate, more demanding program, the current condition is the creation of at least 50 jobs for Turkish citizens, officially confirmed through SGK (social security) - without a separate monetary threshold for this particular route. Alternatively, citizenship can be obtained through the purchase of real estate from $ 400,000, a bank deposit, government bonds or an investment in fixed capital from $ 500,000 - in all these options, the mandatory investment holding period is three years.

We have collected everything an investor needs to know about the Turkish real estate market in the material at the link.

Taxes for business in Turkey in 2026

The standard corporate income tax rate has increased to 25% (for certain categories of institutions - up to 30%), although export transactions can receive a discount of 5 points, and production transactions - by 1 point under the appropriate conditions. VAT has three rates: basic 20%, reduced 10% (textiles, furniture, some food and catering) and preferential 1% (basic necessities). Personal income tax is progressive, up to 40%. Total social security contributions are approximately 34.75% of the payroll, divided between the employer and the employee. In addition, there are stamp duties on contract execution and a tax on the repatriation of dividends to non-residents of 15%, which can be reduced if there is an agreement on the avoidance of double taxation with the investor's country.

What legal and accounting services will a businessman need in Turkey?

For most foreign entrepreneurs, the process of registering and supporting a business in Turkey includes:

- Choosing the legal form and taxation system, preparing constituent documents;

- Notary support, obtaining an electronic signature and KEP (registered email);

- Opening a bank account and going through KYC procedures;

- Obtaining a work permit and supporting document flow with the Ministry of Labor;

- Monthly accounting and tax reporting, representation of interests in the tax service.

Are you planning to open a company in Turkey, but are not sure which organizational and legal form is right for your project - LLC or JSC?

A personal lawyer for business will help you understand the requirements for authorized capital, prepare constituent documents and coordinate the registration procedure taking into account the rules in force in 2026. If your goal is to obtain a work permit or subsequently apply for citizenship through investment, a specialist will assess the amount of capital and the number of employed Turkish citizens that will be needed in your case. The lawyer also supports opening a bank account, obtaining an electronic signature and agreeing on contracts with Turkish counterparties. This is especially important if some of the processes have to be carried out remotely by power of attorney.

Order a consultation from a personal lawyer for business and get a step-by-step plan for entering the Turkish market.

Reminder! Tax burden is one of the key factors that affects a business's decision to enter new markets. In Europe, income tax rates vary significantly: from a minimum of 9% to over 30%. We have already told you in which countries businesses pay the most taxes and where it is more profitable to open a company.

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