CONTENT
INTRODUCTION
Türkiye continues to attract the attention of the world with its natural riches. Every year millions of tourists come to the country for reasons such as holidays, health visits. Again, thousands of foreign companies are established every year, thousands of foreign employees start their business life in Türkiye, thousands of people prefer Türkiye to spend the rest of their lives in Türkiye. We have prepared this post for those who want to live in Türkiye, we have tried to be a guide that will be useful for everyone who comes to Türkiye for short or long term. We tried to bring together what is daily life like in Türkiye, what you need to know in the legal and tax system, how the health system works, how to open a bank account, what are the working and rest days and many more useful information.
Of course, these are short information, you need to come and see and live to get more detailed information. Our door is always open to you, we are happy to answer any questions you may have.
OVERVIEW
Türkiye is a bridging country between Asia and Europe. Türkiye, where four seasons can be experienced at the same time, is a place with very rich historical, cultural and economic resources. The history of the country dates back to the first years when civilization began. The cultural accumulation brought by this historical past has made Türkiye a center of attraction. Istanbul, which was the capital of the Eastern Roman and Ottoman Empires, and cities such as Ankara, Izmir, Antalya, Bursa, Konya, Sivas, Gaziantep and Diyarbakır are almost a cultural feast.
Türkiye closely follows the cultural, commercial and technological developments in the world. In these respects, foreigners' access to life and services in the country is becoming increasingly easy. Foreigners will be able to get used to Türkiye in a short time in many respects. However, there are also challenging factors for foreigners such as foreign language speaking rate, legal, economic and cultural differences. Now let's consider in detail what foreigners coming to Türkiye need to know.
GEOGRAPHY / CLIMATE
Türkiye is positioned in an area that offers both climate diversity and geopolitical importance. The total area of Türkiye is calculated as 783,562 square km. Most of Türkiye's territory is located in the geography called Anatolia, which is the last western extension of the Asian continent. Its land neighbors are, from south to west, Syria, Iraq, Iran, Armenia, Georgia, Bulgaria and Greece. Since Türkiye is surrounded by seas on 3 sides, it can also be defined as a peninsula. The Black Sea in the north, the Aegean Sea in the West and the Mediterranean Sea in the south are the seas that are the coast of Türkiye.
All of Türkiye experiences spring, summer, autumn and winter climates, but the prominence of the climate may vary according to the regions. The northern coast is generally rainy; while the central and eastern parts are dry in summer and cold in winter; The southern and western parts are warm in summer and mild in winter. One of Türkiye's major cities, Istanbul is located in the northwest and has a generally mild, humid climate. The capital Ankara is located in the central part and has a generally cool climate. Izmir is located in the west of the country and has a mild climate.
HISTORY OF THE COUNTRY
Türkiye is a country whose geographical history and political history go back a long time. Traces of this history can be found throughout the country. The first settlements in Anatolia date back to the Old Stone Age. The archaeological site called Göbeklitepe, which is estimated to date back to around 9,600 BC , is known as the oldest man-made. Çayönü is an ancient settlement estimated to have been founded between 8200 and 6000 BC. Çatalhöyük in Central Anatolia, which is thought to date back to 7500 BC or 5700 BC, dates from the Polished Stone Age and Copper Age periods. The territory of Türkiye has been home to many civilizations and empires, large and small, such as the Hittites, Urartians, Phrygians, Lydians, Assyrians, Ancient Greek sites, Armenians, Persians, Byzantines, Seljuks, Ottomans.
A new era began with the Republican regime declared on October 29, 1923, and the Republican regime wanted to carry out the political, economic, religious and cultural accumulation it had inherited from the Ottoman Empire with a new and modern style of administration. Mustafa Kemal Atatürk, the founder of the new regime and the country, implemented many arrangements between 1923 and 1938 as a westward orientation. The country, where political and economic fluctuations were intensely experienced afterwards, experienced great economic acceleration especially after the 1990s with the goals of full transition to free market economy and EU membership.
CULTURE
In Türkiye, the depth and diversity of the country's history has nurtured cultural richness. It is possible to find artifacts from many different languages and cultures throughout the country. In western cities, which are seen as the modern face of the country, a secular and western-oriented culture is experienced. As you go to the central, coastal and eastern parts, it is possible to encounter different cultures. The dominant culture in the country is Turkish-Islamic culture. This culture exhibits a structure that tries to synthesize the teachings of Turkishness with Islamic values and is based on the Central Asian Turkish-Islamic culture. Especially in the southeastern regions of the country, Kurdish culture is dominant. Again, in these regions, especially in places such as Mardin, Urfa and Hatay, Arabic culture is also encountered. The northern parts of the country have traces of Turkish, Laz and Georgian cultures.
Cities that receive migration such as Istanbul, Ankara, Izmir, Antep and Bursa exhibit a multicultural structure. Historical and cultural diversity is intense in these cities. It is also possible to come across traces of Armenian and Greek culture, which is considered as a minority here.
LANGUAGE
The official language of Türkiye is Turkish. The language spoken is also largely Turkish. However, Kurdish is the main language and spoken language, especially in the southeastern region. The knowledge of foreign languages of the country is at an intermediate level. In industrialized big cities such as Istanbul, Izmir, Ankara, Kocaeli, Bursa, the number of people who speak English language is higher than in other cities. Nevertheless, language is seen as an important obstacle for foreigners. Especially in small Anatolian districts, towns and villages, the number of people who can speak a foreign language is quite limited.
Turkish is considered among the difficult languages to learn. Some of the foreigners who want to learn Turkish take private lessons. In some places, such as TÖMER, certified Turkish education is provided. Although learning Turkish may seem difficult at first, it is possible to make rapid progress once you begin to understand what is spoken. Especially foreigners who are in daily life and participate in social activities catch the flow of language in a short time. Thanks to the warm-bloodedness of the Turkish people, it is very easy to find a person and topic to talk about everywhere.
LIVING EXPENSES
Despite the economic problems experienced in recent years, Türkiye is still among the most affordable countries with living expenses. According to Livingcost.org research, the cost of living per person in Türkiye is 515 dollars and is about 2 times cheaper than the world average. In this survey, Türkiye ranks 181st among 197 countries according to the cost of living and 79th best place to live. It is stated that it is a country. The Numbeo survey [1]confirms this finding , according to which living expenses in Istanbul, including rent for one person, are 514 USD per month. In Ankara, a month's living expenses for a single person are as low as approximately 410 USD including rent. The monthly living expenses of a single person in Türkiye are at the same level as Ankara expenses.[2]
The average after-tax wage in Türkiye is 555 USD per month per year, which is enough to cover a person's monthly living expenses. It is stated that the cost of living by the average standards for a family of 4 is about 1300 USD per month. According to a study conducted in 2021, the average monthly income of a qualified foreigner working in Türkiye (Istanbul) is around 3000 USD.[3]
DRIVING
Traffic in Türkiye flows on the right hand side of the world , so the driver's side in vehicles is on the left. Foreigners can use the vehicle for a maximum of six months from the date of entry into the country in Türkiye with the driver's licenses obtained from foreign countries.
At the end of six months, in order to be able to drive, it is obligatory to replace the driver's licenses obtained from foreign countries with the Turkish driver's license.
Without prejudice to the relevant laws and the provisions of bilateral and multilateral agreements, the procedures and principles regarding the replacement of driver's licenses obtained from foreign countries with Turkish driver's licenses are determined by the General Directorate of Population and Citizenship Affairs.
According to the provisions of the Convention on Road Traffic, to which Türkiye is a party, the Contracting Parties to this Convention have mutually undertaken to accept each other's driving licenses as valid.
It is not possible to convert driver's licenses obtained from other countries into Turkish driver's licenses. These people are required to obtain a driver's license again under the conditions valid in Türkiye. The process of converting the driver's license obtained from foreign countries into a Turkish driver's license is carried out by the General Directorates of Population and Citizenship Affairs.
BANKS
The establishment of banks and the initiation and conduct of banking activities in Türkiye are regulated by the Banking Law, which entered into force on November 1, 2005, and the secondary legislation enacted accordingly.
The Banking Act applies to:
(i) Banks established in Türkiye,
(ii) branches of foreign banks in Türkiye,
(iii) representative offices of foreign banks in Türkiye,
(iv) financial holding companies.
The regulatory authority of the banking sector in Türkiye is the Banking Regulation and Supervision Agency (BRSA), a public legal entity with administrative and financial autonomy that was established in June 1999 and began its activities in 2000.
Bank Establishment
According to the Banking Law, only certain types of banks can be established in Türkiye.
These are deposit banks, participation banks and development and investment banks.
Permission must be obtained from the BRSA for both the establishment and operation of a bank.
In order for a bank to be established, an opening permit must first be obtained from the BRSA approving the establishment.
The Banking Law and its secondary legislation determine the terms and conditions for the establishment of a bank.
For example, a bank can only be established as a joint stock company, must meet capital adequacy requirements and meet certain eligibility criteria regarding its shareholders and board members.
Foreign banks can open branches in Türkiye. Opening a branch by a foreign bank is very similar to establishing a bank in Türkiye.
A branch of a foreign bank has the right to carry out all banking activities specified under the Banking Law and is treated like a Turkish bank licensed by the BRSA.
A foreign bank may also open a representative office in Türkiye instead of a branch; however, a special license must be obtained from the BRSA.
A representative office is not allowed to engage in business transactions or engage in revenue-generating activities in the Turkish market.
Currently, there are fifty-eight banks in Türkiye and a list of them can be found on the BRSA's official website at the link below.
Opening a Bank Account
How can foreigners open a bank account in Türkiye, how can they open it, we will look for answers to these questions. Foreigners can open a bank account in Türkiye. Foreigners must fulfill some conditions in order to open a bank account in Türkiye. In order for foreigners to open a bank account in Türkiye, it may be necessary to go to the nearest bank branch. Even if you want to open an account online, you may be asked to apply to the bank branch. A valid residential address and mobile phone number may be required for password processing.
Documents required to open a bank account in Türkiye
Requested documents may subject to changes. In general, the documents required to open a bank account are:
i. A valid passport
ii. Foreigner's identification number or tax number
iii. Documents proving residence (invoices for residence in Türkiye, etc.)
iv. Residence permit
v. Türkiye phone number
In addition, some additional documents may be requested, it is useful to contact the bank where you decided to open an account to find out.
Most of the banks in Türkiye offer services in English. In addition, some banks offer services in German, Arabic, Chinese.
Some of the banks that offer services in different languages are:
ENGLISH | GERMAN | FRENCH | CHINESE | ARABIC |
ICBC |
WORKING DAYS AND HOURS
Working days in public service places and public institutions in Türkiye are 5 days a week. Public institutions are closed on Saturdays and Sundays. Banks, schools, municipalities, enforcement offices, bar associations, courthouses in Türkiye are closed on Saturday and Sunday.
In the private sector, the holiday day is Sunday, and most companies also work on Saturdays. Although the weekly holiday is two days in the public sector, shopping centers, markets, entertainment venues, cafes, restaurants are open all day of the week.
The working hours of public institutions in Türkiye are mostly between 08:00 and 17:00. In the private sector, working hours are mostly between 09:00 and 18:00. However, shopping malls, markets, entertainment venues, cafes, restaurants are mostly open between 09:00 and 22:00.
It is located in places that are open 24/7 in Türkiye. These include gas stations, emergency services, pharmacies on duty, some restaurants.
PUBLIC AND RELIGIOUS HOLIDAYS
Türkiye has 6 public holidays; January 1, April 23, May 1, May 19, July 15, August 30 and October 29.
There are two religious holidays: Ramadan Feast (Eid ul Fitr), Sacrifice Feast
(Eid ul Adha). The exact dates of these holidays are differ from 3-5 days according to moon calender and goverment decisons on the length of holiday .
POSTAL/COURIER SERVICES
Postal services in Türkiye are carried out by the General Directorate of Postal Telegraph Organization (PTT), which was established in 1840. It is possible to come across PTT branches, which have a very common distribution network, in almost every district. Official notifications are made through the PTT. PTT also offers special cargo transportation services.
In addition to postal services, many cargo companies operate in Türkiye. It is quite easy to send cargo in Türkiye through branches located in each district or through door-to-door pick-up service. Some of the major cargo companies serving in Türkiye are:
- Yurtiçi Kargo
- Mng Cargo
- Aras Cargo
- Sürat Kargo
Mail or cargo delivery times of PTT and other cargo companies usually vary between 1 and 2 days between major cities. Cargo deliveries to smaller cities or district centers are between 3-5 days.
TRANSPORTATION
Türkiye is a country where road, railway, airline and sea transportation are together and connected in intercity transportation. The most developed means of transportation among them is the highway. Then come the airlines and railways.
The most widely networked and most used method of transportation in Türkiye is highways. After significant investments in the field of transportation in recent years, the road network has expanded considerably. As of December 2022, the total road network in Türkiye has a total road network of 68,761 kilometers, of which 29,862 km are bituminous hot mix coated, 36,877 km are surface coated,
and 2,022 km are other roads. A total of 28,906 km (42 percent) of this road network is divided road, of which 3,633 km are highways.[4]
The second most common method of transportation is airlines. Air transportation, the majority of which is provided by Turkish Airlines (THY) and Pegasus, has shown significant developments in recent years. In Türkiye, on the other hand, air transport has shown a rapid development; The number of passengers, which was less than 1 million in the 1960s, exceeded 10 million in 1988, 50 million in 2005 and 100 million in 2010. Before the outbreak, in 2019, approximately 209 million passengers were served at Turkish airports.
Within the scope of the measures taken due to COVID-19 in Türkiye, air transportation has been restricted since March 2020, and as a natural result of the measures taken, there has been a high rate of decrease in aircraft and passenger traffic worldwide. In parallel with the measures taken and the successes achieved in the fight against the epidemic, signs of recovery in aircraft and passenger traffic began to be seen in 2021. Thus, in 2021, 77% of the aircraft traffic and 61% of the passenger traffic in 2019 were reached in all aircraft traffic realizations at Turkish airports. In 2022, 96% of the aircraft traffic and 87% of the passenger traffic of 2019 were reached.[5]
In 2022 in Türkiye; Tokat New Airport was opened on March 25 and Rize, Artvin Airport was opened on May 14, bringing the number of active airports open to civil air traffic to 57. You can reach the list of active airports of Türkiye here. It is possible to reach many regions of Türkiye with airport connection roads.
Türkiye is also among the leading countries in the world in terms of international flight destinations. Turkish Airlines, which has the title of the airline that flies to the most countries in the world, organizes flights to 121 countries. It also has the world's largest flight network, reaching 287 international destinations.
The railway network in Türkiye is 13,128 km. Approximately 1460 km of this network is a high-speed train line. Finally, the Sivas-Ankara high-speed train line was put into service. In addition, between Karaman - Ulukısla and Mersin Adana - Osmaniye -Gaziantep, double-track, electric and signaled high-speed railway line projects suitable for 160-200 km / h speed are continuing. Foreigners can buy train tickets online in Türkiye. To buy a train ticket in Türkiye, you need your passport number. You can use [6]the TCDD e-ticket page to buy train tickets.
COMMUNICATION
The electronic communication sector in Türkiye continues to progress as broadband internet-centric. While the number of mobile subscribers in Türkiye exceeded 90 million with an annual increase of 4 million, a significant part of the increase here was due to the increase in the number of 4.5G subscribers, which approached 83 million.
Important GSM operators operating in Türkiye are Türk Telekom, Turkcell, Vodafone. Foreigners can easily get a phone line in Türkiye with the required documents. They can continue to communicate in Türkiye by taking these prepaid lines known as tourist cards. In order to get this line, it is enough to go to any GSM operator branch with one of the following documents in the passport. You can find branches of GSM operators at airports, city centers, shopping centers.
Foreigners who want to get a postpaid line in Türkiye are asked to show a residence based on a residence permit or work permit.
HEALTH SYSTEM
Health services in Türkiye consist of a mix of public and private health services. Türkiye has universal health services under the General Health Insurance (GHI) system. Under this system, all residents registered with the Social Security Institution (SSI) can receive free medical treatment in hospitals contracted with SSI.
It will be beneficial for you to have insurance in order to benefit effectively from the health system during your time living in Türkiye. If you take out private health insurance, you can receive services according to the scope of your insurance policy. Private health insurance is determined by many insurance companies with different scopes and different fees. In order to choose the most suitable insurance for you, it will be useful to meet with insurance agencies and do detailed research.
General health insurance is the insurances made by the provincial directorates of social security, that is, by the public authority. In order to have general health insurance, it is required to reside in Türkiye for 1 year. However, foreign students studying in Türkiye can obtain general health insurance if they make a claim within three months from the date of first registration to their school, regardless of the one-year residence requirement.
You can apply to the provincial directorates of social security with the following documents to get general health insurance:
- Residence permit certificate,
- The original or photocopy of the letter showing the social security status in terms of the general health insurance application obtained from the relevant foreign country Social Security Institution or the labor attaché,
- Letter of Undertaking (request) form
Foreigners with international protection applications and status, Syrians under temporary protection and persons recognized as stateless are registered in the general health insurance system and their premiums are paid by the state.
PHARMACEUTICAL SERVICES
After the examination, if your doctor thinks you need the medicine, he or she may write you a prescription. You can get your medicines from pharmacies. Many medications, such as antibiotics, are only available by prescription. It is indicated how, at what dose, how often (2 times a day, 12 hours apart, etc.), how long (how many days) to use the drugs and under what conditions they will be stored. The medicine should be used for the period of time recommended by your doctor. The use of the drug should not be interrupted and the dose should not be changed without consulting the doctor. You need to carefully read the labels and instructions on the medications and ask if you don't understand them. Between 19:00 and 09:00, only pharmacies on duty are on duty. The addresses and telephones of pharmacies near you are indicated in the windows of other pharmacies and published in local newspapers and websites. You can also reach the pharmacies on duty every day through the e-government page at the link.
HEALTH INSTITUTIONS
Turkish health system; Emergency medical services consist of primary, secondary and tertiary health centers. Emergency health services include health services provided to people in emergency situations such as accidents, injuries, sudden health problems.
Primary health care services are provided in Family Health Centers, Community Health Centers, Migrant Health and Voluntary Health Centers. In these centers, in general; Outpatient diagnosis and treatment, immunization (vaccination) services, infectious disease and epidemic fighting services, women and reproductive health services, infant, child and adolescent health.
Secondary and tertiary health services are health facilities where diagnosis, diagnosis and treatment services are provided apart from primary health services. Secondary Health Care Institutions: State hospitals that are not training and research hospitals, branch hospitals, oral and dental health centers, private hospitals and medical centers. Tertiary Health Care Institutions: It includes training and research hospitals, branch hospitals and university hospitals affiliated to the Ministry of Health.
In addition to emergency health services, outpatient diagnosis and treatment services, inpatient treatment services, surgical procedures (surgery, etc.), mental health services, oral and dental health services are provided in these health institutions.
As a rule, public hospitals in Türkiye work with the appointment system. You can make an appointment at public hospitals at https://mhrs.gov.tr/vatandas/#/. Making an appointment reduces your waiting time in hospitals and allows you to receive better quality service. However, university hospitals and private hospitals are not included in the appointment system. For university hospitals and private hospitals, you need to make an appointment or get information from each hospital's own website or communication channels. In addition, for all kinds of information and appointments, you can get information from the Ministry of Health's 182 numbers free health line.
SOCIAL SECURITY SYSTEM
The Social Security Law regulates the social security rights of the workers, government officials and self-employed persons and covers the social risks such as (i) work accidents and occupational illnesses, (ii) healthcare, (iii) child birth and child care, (iv) disability, (v) seniority, (vi) death, and (vii) unemployment. The Social Security Institution is the relevant authority.
1. Contributions For Social Insurance And Taxes
The main financing tool of the Turkish social insurance system is the contributions paid by employers and employees along with the state contribution. Contribution of the employees is deducted from the salaries of the employees in specified rates. Such premiums are paid both by employees and employers on behalf of employees to the Social Security Institution. Premium rates are determined in accordance with the type of risks the social security insurance covers.
TYPE OF RISK[7]
| EMPLOYEE’S SHARE | EMPLOYER’S SHARE | TOTAL |
SHORT TERM | 0 | 2% | 2% |
DISABILITY, PENALTYAND DEATH | 9% | 11% | 20% |
GENERAL HEALTH INSURANCE | 5% | 7,5% | 13% |
UNEMPLOYMENT INSURANCE | 1% | 2% | 3% |
TOTAL | 15% | 22,5% | 37,5% |
2. General Health Insurance
Under the Social Security Law, employees working with an employment agreement who reşide in Türkiye and foreigners with a residence permit (or work permit) if they do not have national health insurance in another country, and their dependents shall be subject to the general health insurance in Türkiye.
General health insurance is mandatory. General health insurance provides the insured employees with (i) protective healthcare; (ii) healthcare in case of illness including medical examinations, blood and other tests and emergency healthcare; and (iii) childbirth related healthcare. These healthcare services shall be provided by the public and private hospitals and medical institutions in agreement with the SSI within Türkiye and abroad to the general health insurance holders.
3. State Pension
Under Turkish law, there is a compulsory premium contribution for state pension in the amount of 20% along with the disability and death insurance. 9% of this is paid by the employee and 11% is paid by the employer.
The main benefit of the state pension is the retirement salary which employees are entitled to under certain conditions. In order to be entitled to retirement salary, the employee must reach a certain age and have to complete a certain number of working days which may vary depending on the date when they registered with the Social Security Institution for the first time.
Moreover, automatic participation to the Turkish private pension scheme was introduced by a new law amendment entered into force on 1 January 2017. Accordingly, employers must pay 3% of their employees’ income on behalf of their employees in order to cover the private pension of them under the age of 45 and the Turkish State shall provide a one-time only additional subsidy per employee for participating in the private pension scheme.
INSURANCE
Most of the private insurances are not compulsory in Türkiye. Compulsory insurances include road compulsory liability insurance, known as compulsory traffic insurance. In addition, an earthquake insurance policy is requested when subscribing to electricity and water.
Another type of insurance that foreign nationals must take out is foreign health insurance. It is a type of insurance that foreign individuals who will reside in Türkiye for a minimum of 1 year or longer must have compulsory. In other words, it is the health insurance purchased by foreigners who do not have Turkish citizenship to obtain a residence permit or residence permit. It is obligatory to make health insurance within the policy limits in Article 1 of the Circular on Health Insurance to be Made in Visa and Residence Permit Requests dated 10/5/2016 and numbered 2016/16. Additionally, all applicants are required to have a medical insurance that will be valid during their stay in Türkiye.
To get more information about Visa and Residence information, you can see our article on how to issue visas and residence permits in Türkiye at maykanat.com
COMPANY/BUSINESS OPENING CONDITIONS AND PROCESS
Türkiye’s FDI Law Numbered 4875 is based on the principle of equal treatment and allows international investors to have the same rights and liabilities as local investors.
The conditions for setting up a business and transfer of shares are the same as those applied to local investors. International investors may establish any form of company set out in the Turkish Commercial Code (TCC), which provides for a corporate governance approach that meets international standards, fosters private equity and public offering activities, creates transparency in managing operations and brings the Turkish business environment in compliance with EU legislation as well as with the EU accession process.
Türkiye has initiated reforms with a view to making it easier to do business in order to enhance the investment environment, eliminating red tape in setting up a business and minimizing costs and procedures. To this end, establishing a company is now only carried out at Trade Registry Directorates located in Chambers of Commerce and designed to be a ‘one-stop shop’. The process is completed within the same day.
1. Company Types under TCC and Alternative Forms
There are corporate and non-corporate forms of companies under the TCC, which states that companies may be established under the following types:
a. Corporate forms
Joint Stock Company (JSC)
Limited Liability Company (LLC)
Although some financial thresholds (i.e., minimum capital) and organs differ from each other, the procedures to be followed for establishing a JSC or an LLC are the same.
b. Non-corporate forms
General Partnership
Limited Partnership
Partnership Limited by Shares
Although companies may be established according to these five different types, JSC and LLC are the most common types chosen both in the global economy and Türkiye.
2. Steps of Establishing A Company
In this section, the stages to be followed in the establishment of a company in Türkiye will be explained with examples from practice.
a. Preparation Phase
This stage is very important. At this stage, the selection of company partners, capital and company type is completed. The company name and address are determined, the MERSIS registration of the partners is completed, the draft articles of association of the company is prepared. Potential tax numbers for the shareholders is obtained.
b. Pre-Registration Phase
Pursuant to the Trade Registry Regulation, trade registration transactions must be fulfilled through MERSIS (Central Registry Record System). At this stage, the documents and information prepared are entered into the MERSIS system and an appointment is made.
A unique number is given to legal entities that are actively involved in business. Online establishment of new companies is possible on MERSIS, and already-established companies may operate through the system after the transfer of their records.
c. Document Preparation
The following documents are required for registration application at the relevant Trade Registry Directorate:
Articles of incorporation signed by all the founders before Trade Registry Directorate authorized personnel or a Notary Public (four copies, one original)
In case the foreign partner is a real person, the required documents are:
For each real person shareholder, two copies of their passports (translated notarized copy of passport; if residing in Türkiye, notarized residence permit, tax identification number obtained from the tax office.)
In case the foreign partner is a legal entity, the required documents are:
- The Certificate of Activity of the legal entity designated as the shareholder issued by the relevant authority in the investor’s country. The certificate must bear information regarding the current status and signatories of the company.
- Resolution(s) of the shareholders of the competent corporate organ of legal entity shareholder(s) authorizing the establishment; if there is any specific condition for the prospective company to be incorporated (name of the company, field of activity, etc.) it must be stated in the resolution for the sake of clarity.
- In case a legal entity is going to be appointed as a member of the board of directors of the prospective company to be incorporated, the name of the real person who will act in the name of the legal entity and the legal entity’s board member’s appointment must be stated within the same or with a separate resolution for the sake of clarity.
- If the process is going to be followed by an attorney, a notarized copy of a power of attorney authorizing the attorneys who will follow up the application before the competent Trade Registry Directorate and other official authorities in order to proceed with the application (where applicable).
- Notarized signature declarations (two copies)
- Notarized identity cards of the company managers (one copy)
- It should be noted that, except the first item above, all necessary documents that will be issued and executed outside of Turkiye must be notarized and apostilled or alternatively legalized by the Turkish Consulate located in the country of transaction. The original executed, notarized, and apostilled documents must be officially translated and notarized by a Turkish notary.
d. Deposit of Required Capital and Competition Authority Share
0.04% of the company's capital must be deposited as "Competition Authority Share" into the bank account of this institution. There is no need to go to the bank for this process. Together with other establishment procedures, this fee can be paid at the trade registry directorate. In addition, at least 25% of the shares committed in cash in joint stock companies must be deposited in a bank account opened in the name of the company before the registration of the company.
e. Application to the Trade Registry Office for registration
Upon the application of the founders to the trade registry directorate with the relevant documents, the trade registry directorate completes the registration process. In addition, in the establishment of joint stock and limited liability companies and cooperatives, the commercial books to be kept by these companies shall be certified by the trade registry directorate and given to the relevant person following the registration. It is also possible to carry out the establishment procedures through a representative authorized by a power of attorney
The Trade Registry Directorate’s authorized personnel will certify the following books during the establishment process:
- Journal
- Ledger
- Inventory book
- Share ledger
- Manager's meeting minutes book
- General assembly meeting minutes book
f. Complete The Establishment
Follow up with the tax office on the Trade Registry Directorate’s company establishment notification
Issue a signature circular before authorized Trade Registry Directorate personnel or notary public.
Send some certain documents to electronic format / E-TUYS system, these are:
- Activity Information Form for FDI
- FDI Capital Data Form
- FDI Share Transfer Data Form
TAX SYSTEM
Türkiye has one of the most competitive corporate tax rates among OECD member countries. The Turkish corporate tax legislation has noticeably clear, objective, and harmonized provisions that are in line with international standards. The Turkish tax legislation may be classified under three main headings:
1. Income Taxes
The Turkish tax legislation includes two main income taxes, namely, personal income tax and corporate income tax.
a. Personal Income Tax
Real persons' income is subject to personal income tax. Income is defined as the net amount of all earnings and revenues derived by an individual within a single calendar year. An individual’s income may consist of one or more of the following income elements:
Agricultural profits
Business profits
Salaries and wages
Income from independent personal services
Income from immovable property and rights (rental income)
Income from movable property (income from capital investment)
Other income and earnings
The Turkish income tax scale is progressive, meaning that tax rates increase as one’s income grows. Individual income tax rates vary from 15% to 40%. Individual income tax rates applicable for 2023 are as follows:
Türkiye’s Employment Income Tax Brackets (2023)
Taxable Income (TRY, 000) | | Tax on Lower End (TRY, 000) | Tax on Excess (%) |
Lower End | Upper End | | |
0 | 70 | - | 15 |
70 | 150 | 10,5 | 20 |
150 | 550 | 26,5 | 27 |
550 | 1900 | 134,5 | 35 |
1900 | - | 607 | 40 |
Wages up to the minimum wage are not subject to income tax and stamp duty. This also applies to daily meal and transportation allowances, which have been set at TRY 110 and TRY 56, respectively, for 2023.
Türkiye’s Non-Employment Income Tax Brackets (2023)
Taxable Income (TRY, 000) | | Tax on Lower End (TRY, 000) | Tax on Excess (%) |
Lower End | Upper End | | |
0 | 70 | - | 15 |
70 | 150 | 10,5 | 20 |
150 | 370 | 26,5 | 27 |
370 | 1900 | 85,9 | 35 |
1900 | - | 621,4 | 40 |
Example:
Lower End (TRY, 000) | Upper End (TRY, 000) | Tax Rate (%) | Calculation | Tax Amount (TRY, 000) |
0 | 70 | 15 | 70*0,15 | 10,5 |
70 | 150 | 20 | (150-70)*0,20 | 16 |
150 | 300 | 27 | (300-150)*0,27 | 40,5 |
| | | Total Tax Amount | 67 |
| | | Minimum Wage Tax Exemption* | 20,3 |
| | | Payable Tax Amount | 46,6 |
The income tax exemption amounting to TRY 1,276.02 in the first half of 2023 increased in the subsequent months due to the change in minimum wage and income tax brackets. It will increase to TRY 1,710.35 in July 2023, TRY 1,902.62 in August 2023, and TRY 2,280.47 in the subsequent months.
When the income elements specified in the Income Tax Law are derived by corporations, taxation is applied to the legal entities of these corporations. Corporate taxpayers defined in the law are as follows:
- Capital companies
- Cooperatives
- Public economic enterprises
- Economic enterprises owned by associations and foundations
- Joint ventures
The corporate tax rate in Türkiye for general business income in 2023 is set at 25%. However, for banks and financial institutions such as electronic payment and money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reassurance companies, and pension companies, the tax rate is set at 30%. In addition, exporters will benefit from a reduced corporate tax rate of 5% for their export income.
2. Taxes on Expenditure
a. Value Added Tax (VAT)
The generally applied VAT rates are set at 1%, 10%, and 20% as of July 2023. Commercial, industrial, agricultural, and independent professional goods and services, goods and services imported into the country, and deliveries of goods and services as a result of other activities are all subject to VAT.
b. Special Consumption Tax (SCT)
Four main product groups are subject to SCT at different tax rates:
Petroleum products, natural gas, lubricating oil, solvents, and derivatives of solvents
Automobiles and other vehicles, motorcycles, planes, helicopters, yachts
Tobacco and tobacco products, alcoholic beverages
Luxury products
Unlike VAT, which is applied on each delivery, SCT is charged only once.
c. Banking and Insurance Transaction Tax
Banking and insurance company transactions remain exempt from VAT but are subject to a Banking and Insurance Transaction Tax. This tax is levied on the income earned by banks, such as loan interest. Although the general rate is 10%, certain transactions, such as consumer loans, are taxed at %15 as of July 2023. Moreover, interest generated on interbank deposits is taxed at a lower rate of 1%. A tax of 0.2% has been introduced for the sales of foreign currency.
d. Stamp Duty
Stamp duty applies to a wide range of documents, including contracts, notes payable, capital contributions, letters of credit, letters of guarantee, financial statements, and payrolls. Stamp duty is levied as a percentage of the value of the document at rates ranging from 0.189% to 0.948% or is collected as a fixed price (a pre-determined price) for some documents.
3. Taxes on Wealth
There are three kinds of taxes on wealth:
Property taxes
Motor vehicle tax
Inheritance and gift tax
Property tax is levied on buildings, apartments, and land owned in Türkiye at a rate of 0.1% to 0.6%, while Contribution to the Conservation of Immovable Cultural Property is levied at a rate of 10% of this property tax. Motor vehicle taxes are collected each year in fixed amounts that vary according to the age and engine capacity of the vehicles. Meanwhile, inheritance and gift taxes are levied at a rate of 1% to 30%.
CUSTOMS GUIDE
1. Passengers
All kinds of goods, vehicles and persons entering and leaving Türkiye can be checked and searched by the customs administration. The limits of the type, quantity and value of the goods you can bring when entering Türkiye as a passenger are determined in the customs legislation. Some items that you can buy or bring with you from the stores located at the land border gate, sea and airports where you will enter Türkiye are also exempt from customs duties. You can bring your watches, tablets, cameras, etc. and products such as alcohol, tobacco, cosmetics, medicines, mobile phones and food with you within the following limits. Limits set for tobacco products:
600 pieces of cigarettes
100 pieces of cigarillo, each weighing no more than 3 grams
50 cigars
250 grams of minced tobacco
250 grams of pipe tobacco
Passengers under the age of 18 are not eligible for this exemption. Limits for alcoholic products:
1 liter of alcohol and alcoholic beverages with an alcohol content exceeding 22%,
2 liters of alcohol and alcoholic beverages with an alcohol content not exceeding 22%
Passengers under the age of 18 are not eligible for this exemption. Limits for medicines: You may bring with you a reasonable amount of the medicine you use for your personal treatment, provided that you present a report or prescription. Limits set for food products: You have the right to bring 1 kilogram each of the tea, coffee, chocolate, sugar products. Meat and dairy products cannot be brought with the passenger. Limits set for cosmetic products: You can bring cologne, perfume, lavender, essence or lotion and 5 skin care products and make-up materials with you, provided that they do not exceed 600 ml. Limits set for mobile phone: You can bring 1 mobile phone in three calendar years, provided that you use it with the lines registered to your ID number. The phone is granted an exemption regardless of its value. However, the IMEI registration of the device must be done within 120 days.
2. Vehicles
One of the most curious issues about individual customs procedures is the import of free vehicles. Can you bring your vehicle (trailer with vehicle, motorcycle, automobile, private planes, yacht, boat) you bought abroad to Türkiye for sure? How to earn the right to bring a vehicle to Türkiye? In order to have the right to bring a vehicle to Türkiye, certain conditions must be met. If all of these conditions are met, the vehicle can be brought to Türkiye. Who can bring a vehicle to Türkiye?
Real persons who have resided outside Türkiye for at least 24 months and transferred their settlements to Türkiye,
Public servants who have been appointed to national or international positions abroad and returned from these duties,
Persons who permanently transfer their place of residence from a foreign country to Türkiye by acquiring Turkish citizenship,
They can bring vehicles to Türkiye. No customs duty is charged on the vehicles brought by these people. Only VAT and SCT are charged. These taxes are paid during the import of the vehicle into Türkiye.
Upon the death of persons residing outside of Türkiye, their heirs residing in Türkiye also gain the right to bring the vehicle of the deceased. Customs duty, VAT and excise duty are not taken from the vehicles brought by the heirs. It is not possible for persons who transfer their settlements to Türkiye and become Turkish citizens to bring vehicles if they are dual nationals. Within the scope of individual customs procedures, there is another condition regarding the vehicles to be imported: The vehicle must not be older than 3 years of age as of the year of registration abroad in the name of persons, including the model year. These vehicles must also be registered in the name of the person who will bring them in the country where they have been abroad for at least 6 months. Persons cannot make any savings on the imported vehicle unless 12 months have passed. Therefore, the imported vehicle cannot be sold for 12 months and cannot be transferred to anyone else. Within the scope of individual customs procedures, there are certain application periods for vehicles to be brought from abroad. In order to import the vehicle, persons must apply for import to the competent customs authority within these periods with the necessary documents.
3. Household Goods
It is possible to import two types of used household goods into Türkiye exempt from customs duties: 1- Used household goods brought by persons transporting the place of residence to Türkiye. 2- Used household goods brought by persons whose place of residence is outside Türkiye to be used in the housing they have acquired by purchasing or renting in Türkiye
4. Cash and Jewelry
It is not obligatory to declare the cash brought to our country with the passengers from abroad. However, if a declaration is desired, it is obligatory to make a full and complete declaration to the customs officer. Nevertheless; There are cash items that are forbidden to enter our country with the passenger. These are:
• Personal debts
• Gift
• Donation
• Dowry
• Money given by the bride and groom to the other party
• Inheritance
• Assets of immigrants
• Loans taken from abroad
• Raw diamond export costs, etc. This cash can only be brought through banks. There is no harm in bringing cash to our country except for those who are forbidden to enter our country with passengers. If it is determined that the cash, which is forbidden to enter, is brought with the passenger, the cash will be confiscated. In addition to the declaration of the passengers voluntarily, the customs officers may request an explanation of the amount and source of the cash from the passenger. In this case, passengers are obliged to provide a full and accurate explanation. If no explanation is made by the passenger or if it is understood that a false or misleading explanation has been made, an administrative fine of 10% of the undisclosed amount will be applied and all cash will be kept with the passenger. The situation is reported to the public prosecutor's office and the Financial Crimes Investigation Board. Cash: Turkish Currency, foreign currencies and those providing payment therewith; bonds, policies and checks, traveler's checks, postal checks, money orders issued by domestic or foreign organizations, etc. documents.
LEGAL PROCEEDINGS
1. Labor Law and the Work of Foreigners
Employee-employer relations in Türkiye are mostly carried out in accordance with the provisions of the Labor Law No. 4857 and the Turkish Code of Obligations No. 6098. In Turkish Labor Law, where the principle of interpretation in favor of the worker is valid, workers generally get positive results if they seek their rights. The main issues to be known in labor law are the types of employment contracts, wages and termination of the employment contract.
Employment contracts are concluded for a definite or indefinite period. These contracts may be full-time or part-time or probationary or other types of contracts in terms of their mode of operation. In addition, business models such as on-call work and remote work are also allowed. Employment contracts with a duration of one year or more must be made in writing. These documents are exempt from stamp duty and all kinds of duties and charges.
One of the essential elements of employment contracts is the payment of wages. Wages, premiums, bonuses and all kinds of rations of this nature are paid in the workplace or in a bank account opened privately. The statute of limitations for wage receivables is five years. For fees not paid on the day, the highest interest rate applied to the deposit is applied. There is also a minimum wage application in Türkiye, according to which the employer provides the employee with the following provisions as determined in the contract or collective bargaining agreement; In cases where there is no provision in the contract, it is obliged to pay the exemplary fee not less than the minimum wage. Workers have the right to at least 24 hours of weekly vacation every week, provided that they perform the work determined per week, they are not made to work on the days of the week holiday, and their wages are paid in full. Again, it is essential not to work on national and general holidays, and in case of work, a daily wage payment must be made.
In general, the working time in Türkiye is a maximum of forty-five hours per week, this period is applied in workplaces by dividing it equally among the days of the week worked. Workers are entitled to at least 14 days of paid annual leave each year according to their seniority.
The termination of the employment contract is subject to certain conditions in Turkish law, and termination that does not comply with these conditions is considered invalid termination. In case of invalid termination, if the other conditions listed in the law are met, the employee may file a reinstatement case and decide to return to work. In the event of an invalid termination, the employer may also have to pay compensation such as severance pay.
Regulations on the working procedures of foreigners in Türkiye are included in the International Labor Force Law No. 6735 and related legislation
Unless otherwise stipulated in bilateral or multilateral agreements to which Türkiye is a party, foreigners must obtain permission before starting to work as a dependent or independent in Türkiye. A work permit or work permit exemption replaces a residence permit in accordance with Article 27 of the Law on Foreigners and International Protection Law No. 6458. The foreigner who has been granted a work permit based on the application made from abroad must come to Türkiye within six months from the date of the start of the validity of the work permit. The work permit of the foreigner who does not come to Türkiye within this period is canceled.
a. Work Permit Applications
Work permit applications are made directly to the Ministry of Labor and Social Security in the country and to the embassies or consulates general of the Republic of Türkiye in the country where the foreigner is a citizen or legally resides abroad. Work permit applications made abroad are forwarded to the Ministry of Labor and Social Security by the embassies or consulates general of the Republic of Türkiye.
The application for a work permit extension shall be made from the date of sixty days before the expiry of the work permit and, in any case, before the expiry of the work permit. Extension applications made after the expiry of this period will be rejected
It is mandatory to obtain prior permission in the evaluation of work permit applications of foreigners who will work in health and education services requiring professional competence. Applications for the extension of such work permits are also subject to the prior permission of the relevant ministry or the Council of Higher Education.
Holders of a temporary protection identity document may apply to the Ministry of Family, Labor and Social Services to obtain a work permit in sectors, business lines and geographical areas (provinces, districts or villages) to be determined by the President of the Republic.
i. Temporary Work Permit
If the application is evaluated positively, the foreigner shall be granted a work permit valid for a maximum of one year in the first application, provided that he / she works in a certain workplace belonging to a real or legal person or public institution or organization or in the workplaces in the same branch of business, provided that the duration of the employment or service contract does not exceed.
If the extension application to be made is evaluated positively, the foreigner is granted a work permit for a maximum of two years in the first extension application and up to three years in the subsequent extension applications depending on the same employer.
ii. Indefinite Work Permit
Foreigners who have a long-term residence permit in Türkiye or a legal work permit for at least eight years can apply for an indefinite work permit. However, the fact that the foreigner meets the application requirements does not provide absolute rights to the foreigner.
The foreigner who has an indefinite work permit benefits from all the rights provided by the long-term residence permit. Foreigners who have an indefinite work permit shall benefit from the rights granted to Turkish citizens, provided that their acquired rights regarding social security are reserved and subject to the provisions of the relevant legislation in the exercise of these rights, except for the regulations in special laws. The foreigner who has an indefinite work permit does not have the right to vote, to be elected and to enter public duties and to perform military service.
iii. Company Partners Work Permit
Established in accordance with the Turkish Commercial Code dated 13/1/2011 and numbered 6102; Foreigners who are a) the director of the limited liability companies who are the company partners, b) the member of the board of directors of the joint stock companies who are the company partners, c) the limited partners of the limited liability companies whose capital is divided into shares, can work by obtaining a work permit.
iv. Independent Work Permit
Foreigners who are members of professional professions may be granted an independent work permit provided that the special conditions specified in other laws are met.
v. Turquoise Card
In line with international labor policy; Turquoise Cards are issued to foreigners whose applications are deemed appropriate according to their level of education, professional experience, contribution to science and technology, the impact of their activity or investment in Türkiye on the country's economy and employment, and the recommendations of the International Labor Policy Advisory Board and the procedures and principles determined by the Ministry.
The Turquoise Card is issued on the condition that the first three years are a transition period.
vi. Foreign students
Foreign students enrolled in formal education programs in a higher education institution in Türkiye can work provided that they obtain a work permit. Foreign students who are studying at the associate and undergraduate level can apply for a work permit after the completion of the first year of their education and can work part-time in accordance with the Labor Law No. 4857 dated 22/5/2003. These limitations do not apply to graduate students enrolled in formal education programs.
If the foreigner who has completed his/her higher education in Türkiye applies for a work permit within one year from the date of graduation, the application is evaluated in accordance with the principles determined by the International Labor Policy Advisory Board.
vii. Foreign engineers and architects
Foreigners who have completed their education in the engineering and architecture faculties of a higher education institution in Türkiye or in a higher education institution recognized by the relevant country authorities and the Council of Higher Education abroad and have obtained the titles of engineer and architect can practice engineering and architecture professions by obtaining a project-based and temporary work permit.
viii. Work Permit Refusal Decision Appeal and Administrative Litigation
The rejection of the application for work permit or work permit exemption and the cancellation of the documents issued shall be notified to the employer who employs the foreigner or to the foreigner who holds an independent work permit, indefinite work permit or Turquoise Card in accordance with the provisions of the Notification Law No. 7201 dated 11/2/1959.
An appeal against these rejection or cancellation decisions may be filed with the Ministry within thirty days from the date of notification, and if the objection is rejected, an administrative judicial remedy may be applied.
2. Marriage and Divorce Procedures
a. Marriage
In Türkiye, a Turkish citizen and a foreigner or two foreigners who are not citizens of the same state can only marry in front of an authorized Turkish marriage officer.
According to Article 13 of the Private International Law Law: "The national law of each of the parties at the time of marriage shall apply to the license and conditions of marriage. The form of marriage is subject to the law of the place where it is performed. The general provisions of marriage are subject to the common national law of the spouses. If the parties have separate citizenships, the common habitual residential law is applied, and if not, the Turkish law is applied.
With regard to marital property, the spouses may expressly choose one of their customary residential or national laws at the time of marriage; In the event that such a choice has not been made, the common national law of the spouses at the time of marriage shall apply to the marital property, the common habitual dwelling law at the time of marriage in the absence of it, and the Turkish law in the absence of it.
In the liquidation of property, the law of the country in which they are located applies to the immovables.
Two foreigners who are citizens of the same state may marry before the Turkish authorities as well as in front of the representative offices of that state in Türkiye if authorized by their national law.
The applications of foreigners regarding their desire to marry are accepted by the marriage office and the provisions of the Marriage Regulation on the marriage of Turkish citizens are also applied to foreigners. From foreigners within the scope of the Law on Foreigners and International Protection dated 4/4/2013 and numbered 6458; The applications of stateless, refugee, conditional refugee, secondary protection status holders and international protection applicants and foreigners under temporary protection who are in Türkiye other than residence permits are accepted by marriage officers. According to the information and documents in the files kept by the provincial directorates of migration management, whether they have marriage obstacles or not, the provincial migration management directorates determine and a marriage license certificate is issued.
A family certificate is issued to a foreign national man and woman who marry before the competent Turkish authorities, as well as a multilingual marriage certificate upon their request.
b. Divorce
According to Article 14 of the Private International Law Law: "The reasons and provisions for divorce and separation shall be subject to the common national law of the spouses. If the parties have separate citizenships, the common habitual residential law is applied, and if not, the Turkish law is applied.
The common national law of the spouses is applied to the alimony claims between the divorced spouses, the common habitual residential law is applied if the parties are of separate citizenship, and the Turkish law is applied if there is not.
In case of separation and marriage, the common national law of the spouses, in case of separate citizenship of the parties, the common habitual residential law, if not, the Turkish law is applied.
Problems related to custody and custody in divorce are applied to the common national law of the spouses, common habitual residential law if the parties are of separate citizenship, and Turkish law if not.
Alimony claims are subject to the law of the habitual abode of the alimony creditor.
3. Lawsuits And Enforcement Proceedings Of Foreigners
In Türkiye, foreigners have the right to sue and have their debts collected through forced execution. However, the exercise of this right has been subject to the obligation to deposit collateral, with some exceptions.
a. Collateral Obligation
The obligation to deposit collateral depending on the reason for foreignness is regulated in the Law on International Private Law and Procedural Law dated 12.12.2007 and numbered 5718.
According to Article 48, paragraph 1 of the Law; "Foreign real and legal persons who file a lawsuit in the Turkish court, participate in the case or pursue enforcement proceedings must show the guarantee to be determined by the court in order to cover the damages and losses of the other party with the costs of the trial and follow-up."
In the 2nd paragraph of the said article, which regulates the exemption from collateral; it is submitted that the court will exempt the plaintiff, the respondent or the executor from the security on the basis of reciprocity.
The purpose of reciprocity is to ensure that the same exemption can be granted to Turkish citizens in the state to which the plaintiff, the participant (intervenor) or the foreigner engaged in the execution proceedings belong.
Reciprocity can be achieved in three different ways as contractual, legal and de facto within the scope of Turkish Private International Law.
Contractual reciprocity shall be ensured in the presence of a bilateral or multilateral agreement stipulating exemption from collateral between the Republic of Türkiye and the natural or legal person claimant, intervenor or the state of which the party carrying out the enforcement proceeding is a citizen.
b. Exclusion of Guarantee
Among the sources of international law that offer exemptions for foreigners to deposit collateral in Türkiye, there are multilateral agreements as well as some bilateral agreements. The multilateral conventions and their provisions are set out below. For bilateral contractual provisions, please visit our maykanat.com address.
i) The Hague Convention on Civil Procedure of 1954:
Article 17 of the Convention provides as follows:
"A citizen of a Contracting State residing in one of the Contracting States and acting as a plaintiff or intervenor before the courts of another State shall not be required to pay any security or deposit, under whatever name, on account of the fact that they are foreigners or have no domicile or domicile in that State. The same rule shall apply to the relief sought from the plaintiff or respondent to cover court costs. Contracts under which the Contracting States provide for the exemption of their nationals from the security deposit without the requirement of residence or from the provision of court costs shall continue to be applied."
In the letter dated 17.01.2005 and numbered 904.30/2005/KOPR/20078 received from the Ministry of Foreign Affairs; It is stated that the provision of Article 17 of The Hague Convention on Civil Procedure of 1954 was interpreted by J.H.A.Van Loon, Secretary General of the Hague Private International Law Conference at the time, and Christophe Bernasconi, Legal Expert, to include legal persons.
ii) European Residence Convention
Article 9 of the Convention provides as follows:
"1. No security or deposit money of any kind whatsoever shall be demanded from a national of another Contracting Party appearing before the courts of one of the Contracting Parties as a plaintiff or an intervenor, if he has his domicile or habitual abode in the territory of one of the Contracting Parties, either because of his status as a foreigner or because he has no domicile or domicile in that country.
2. The same rule applies to the payment to be made by the plaintiff or respondent in order to secure the costs of the court.
3. Convictions in respect of court costs and other expenses awarded to the plaintiff or respondent who are exempt from guarantees, deposits or payments pursuant to one of the preceding paragraphs or under the law of the country in which the case is heard may be carried out by the competent authority in the territory of one of the other Contracting Parties upon request by diplomatic means, without the need to pay any fees."
4. Real Estate Purchase/Rental Transactions Of Foreigners
The acquisition of immovable property in Türkiye by foreign real persons is regulated in Article 35 of the Land Registry Law No. 2644. On 18 May 2012, the legislator introduced some amendments to the issue of immovable acquisition of foreign real persons and Article 35 of the Land Registry Law was revised. In general; Provided that the legal limits are complied with, international bilateral relations and the interests of the country require this, the citizens of the country determined by the President of the Republic may obtain immovable and limited in-kind rights from our country within the conditions specified in the legislation.
Foreign trade companies with legal personality established in foreign countries in accordance with the laws of these countries can acquire immovable and limited in-kind rights in Türkiye only if there is a special provision in the laws. Laws with special provisions in the legislation; Turkish Petroleum Law, Tourism Promotion Law and Industrial Zones Law.
It is not possible for all legal entities (foundations, associations, cooperatives, societies, communities, communities, etc.) other than foreign trade companies with legal personality established in accordance with the laws of these countries in foreign countries to acquire immovable property in our country and to establish limited in-kind rights in their favor.
Foreigners can buy immovable property to use as a workplace or residence in Türkiye, provided that they comply with legal restrictions. However, even if it is in different cities, the total area of the immovable properties that a foreigner can buy in Türkiye cannot exceed 30 hectares.
Before the purchase of immovable property by foreigners, it is also necessary to obtain permission from the military authorities in the region. Since it will not be possible to sell the property to foreigners if the immovable in question is located within the security zone, it is important to clarify this issue before payment.
a. Applications
The immovable owner or his authorized representative can apply by going to the Land Registry Directorate with the necessary documents. (applications are usually made before the lunch break, by obtaining the sequence number at the Land Registry Office.) In addition, foreigners who have Turkish citizenship or have a foreigner's identity number can make an appointment online through the Alo 181 call center or through the e-appointment (https://randevu.tkgm.gov.tr/) and WEBTAPU (webtapu.tkgm.gov.tr) service.
In the applications of real persons of foreign nationality to the relevant land registry directorates for the acquisition of immovable property:
- Identity documents and/or passports,
- Residence permits issued from the relevant security directorates of foreigners whose immovable acquisitions are subject to residence permits,
- In case they make a proxy transaction on the basis of the power of attorneys given from abroad, the original of the power of attorneys together with their translations or have a certified copy with them.
b. Sales Transaction
Documents required for sale:
- Identity Document or Passport (with translation if necessary)
- Identity Declaration Form
- 1 photo.
- Power of attorney, guardian decision, authorization certificate, etc., if any (If the transaction is to be carried out with the power of attorney issued abroad, the original or certified copy of the power of attorney must be submitted with its translation)
- The title deed of the immovable property subject to sale is requested if there is one.
- Valuation report of the property
- Compulsory earthquake insurance policy
- Sworn translator (if there is a party who does not speak Turkish)
c. Recommendations
Before the sale contracts are made, issues such as whether the real estate is registered with limited in-kind rights, whether there are any obstacles to its mortgage or sale should be checked from the relevant Land Registry Office.
- Foreigners who want to buy property in our country should sign and pay legally binding contracts with obtaining information about the immovable property in question at the Land Registry Directorates,
- It will be appropriate to start their transactions with researching the seller individuals or companies and to work with the individuals or companies that prove that they are serious and reliable.
IMPORTANT PAGES AND APPS
IMPORTANT NUMBERS
Emergency Assistance : 112
Other Emergency Numbers
114 National Poison Advisory Center
122 Disaster and Emergency (AFAD) Call Center
158 Coast Guard Hotline and Demand Line
168 Red Crescent Donation and Hotline
177 Forest Fire Alert
182 Central Physician Appointment System
183 Social Support Line: Women and Social Services
187 Natural Gas Leakage188 Ambulance and Funeral Line
Breakdown Notification Numbers
121 Telephone Breakdown Phone
125 Radio-Tv Breakdown Phone
126 Cable Tv Breakdown Phone
185 İSKİ (Istanbul Water Cut inquiry)
186 Electrical Breakdown
187 Natural Gas Fault Phone
Notice and Complaint Numbers
150 BİMER
153 Police Call Center Phone
157 Human Trafficking Victims Emergency Help and Warning Line
184 Cigarette Hotline
189 Finance Hotline
181 Environment and Urbanization Line (Alo Noise Complaint Phone)
Information, Consultation and Support Numbers
119 Postal Code Counselling
171 Smoking Cessation Hotline
174 Food Hotline
175 Consumer Hotline
182 Mental Crisis Hotline
184 Health Hotline
191 Anti-Drug Counseling and Support Line
[1] General Directorate of Highways Data Access September 2023 [2] DHMI General Directorate Data Access: September 2023 [3] TCDD General Directorate Access: September 2023 [4] https://livingcost.org/cost/Türkiye [5] https://www.numbeo.com/cost-of-living/in/Istanbul [6] https://expatguideTürkiye.com/minimum-wages-paid-to-foreigners-in-Türkiye/
[7] Investing in Turkiye, available on https://www.invest.gov.tr/en/pages/home-page.aspx
* All links are for information and facilitation purposes, there is no commercial relationship.
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