Istanbul, Türkiye · · Distributed by MarketersMEDIA
Foreign direct investment into Türkiye reached USD 13.1 billion in 2025, a 12.2 percent increase on the previous year, according to balance-of-payments data published by the Central Bank of the Republic of Türkiye and cited by the Investment Office of the Presidency of the Republic of Türkiye.
Bayraktar Attorneys, an Istanbul law firm acting for foreign individuals and companies, notes that inflows at this level bring a corresponding rise in the legal questions that accompany cross-border investment. Four areas account for most of the firm's incoming enquiries.
Company formation and shareholding
Foreign investors may hold the entire share capital of a Turkish company, and there is no requirement for a Turkish partner. The choice between a limited liability company and a joint stock company affects minimum capital, shareholder liability, share transfer procedure and the tax position, and is difficult to reverse once trading has begun.
Work and residence permits
Foreign staff require a work permit, which is applied for by the employing company rather than the individual, and which carries employment-ratio conditions that depend on the employer's size and turnover. Residence permits are handled separately through the e-ikamet system and are finalised by the Presidency of Migration Management.
Real estate acquisition
Title passes only on registration at the Land Registry, and a valuation report is mandatory for acquisitions by foreign nationals. Annotations on the title deed, zoning status and, where the property is unfinished, the developer's position, are the points on which transactions most often fail.
Taxation of cross-border income
Tax residence, double taxation treaty relief, VAT exemption on qualifying first-hand property purchases and withholding obligations on outbound payments each turn on facts that are established at the outset of a transaction rather than at the end of the tax year.
About Bayraktar Attorneys
Bayraktar Attorneys is a law firm in Istanbul, Türkiye, representing foreign individuals, families and companies. The firm works in English, Turkish, Arabic and Chinese, and publishes legal guidance on residence and citizenship, real estate, corporate and tax matters, inheritance, criminal defence and maritime law. Further detail is available on the firm's service pages and legal guides.
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Media contact
Bayraktar Attorneys · Esentepe, Talatpaşa Cd. No:5/1, 34394 Şişli, Istanbul, Türkiye
Media enquiries: [email protected]
We respond to media enquiries in English, Turkish, Arabic and Chinese. Contact page.
