Free PDF guide · 2026 Edition
Doing Business in Türkiye: A Practical Guide for Foreign Founders
A foreign founder in Türkiye passes four stops: forming the company, which can be done remotely by power of attorney; opening the bank account, where the signatory must appear in person; permits, where working in your own company needs a work permit and at least TRY 500,000 of paid-in capital; and taxes. The two biggest changes in 2026 are the 100% service export deduction and the 20-year foreign income exemption for new residents.
11 pages · Last checked 24 October 2026 · Sahin Tuhan CPA
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Chapter 1
How does a foreigner set up a company in Turkey?
A foreigner can set up a Turkish company without a Turkish partner or director, remotely through a power of attorney, in two to four weeks. Under the Foreign Direct Investment Law (Law No. 4875), foreign investors have the same rights as Turkish citizens: a single foreign shareholder can own 100% of the company, and the director can be a foreign national.
Full answer: How to Register a Company in Turkey as a Foreigner in 2026: The Complete Step-by-Step Guide
Chapter 2
Can a non-resident open a business bank account in Turkey?
Yes, but not remotely: the company's authorized signatory must sign in person at the branch, and a power of attorney cannot replace that step. At least one trip to Turkey is unavoidable for the person who will operate the account.
Full answer: Opening a Business Bank Account in Turkey as a Non-Resident: What Actually Works in 2026
Chapter 3
Do you need a residence or work permit to run a Turkish company?
Owning a Turkish company needs no immigration status; working in it in person needs a work permit, which in 2026 requires at least TRY 500,000 of paid-in capital. Ownership does not give the right to live in Turkey, and a residence permit does not give the right to work.
Full answer: Do You Need a Turkish Residence Permit to Own a Company in Turkey? Myths vs. Facts (2026)
Chapter 4
Which tax rules matter most for a company in Turkey in 2026?
Three: the 100% service export deduction, the 10% domestic minimum corporate tax, and the 31 December 2027 minimum capital deadline. A company or self-employed professional providing a listed service from Turkey to a client abroad can deduct 100% of the earnings from that service in 2026; it was 80% in 2023–2025.
Full answer: Turkey's Service Export Earnings Deduction (GVK 89/13, KVK 10/1-ğ): The 2026 Conditions for 100%
Chapter 5
What is Turkey's 20-year foreign income exemption?
Individuals who become Turkish tax residents on or after 1 January 2026, and who had neither a domicile nor a Turkish tax liability in the three prior calendar years, are exempt from income tax on foreign-source income for 20 years. Nationality is irrelevant. Rent, dividends, interest and capital gains in the prior years do not disqualify you; employment or business income does.
Full answer: Turkey's 20-Year Tax Exemption on Foreign Income for New Residents: What It Covers and Where It Stops (2026)
Chapter 6
How much does it cost to start a company in Turkey?
Setup is a one-time cost; the larger number is the monthly running cost, which starts from the month of registration and is driven mainly by whether you have employees. The one-time costs for a standard LLC in Istanbul in 2026, excluding share capital and professional fees:
Full answer: The True Cost of Starting a Business in Turkey (2026): Setup, Accounting, and Hidden Fees Explained
Chapter 7
Does online content or tutoring income qualify for Turkey's 20/B exemption?
Yes, for individuals: Article 20/B of the Income Tax Law exempts people who share content online, provide online courses, tutoring or product promotion over the internet, or sell apps through app stores. Since 1 January 2024 the content no longer has to be on a social network; a personal website is enough. Income earned through a company does not qualify.
Full answer: Turkey's Content Creator and Online Tutor Exemption (Article 20/B): Which Income Qualifies? (2026)
Sources
- Foreign Direct Investment Law No. 4875 — Mevzuat Bilgi Sistemi
- Turkish Commercial Code No. 6102 — Mevzuat Bilgi Sistemi
- Ministry of Trade communiqué extending the minimum capital deadline to 31 December 2027 — Official Gazette, 17 October 2026, no. 33403 — Resmî Gazete
- Corporate Tax Law No. 5520 — Mevzuat Bilgi Sistemi
- Income Tax Law No. 193, including Article 89/13 (service export deduction), repeated Article 20/B and repeated Article 20/D — Mevzuat Bilgi Sistemi
- Law No. 7582 (repeated Article 20/D; Inheritance and Gift Tax Law, Article 16) — Official Gazette, 4 June 2026, no. 33270 — Resmî Gazete
- General Communiqué on Income Tax No. 333 (20-year foreign income exemption) — Official Gazette, 4 July 2026, no. 33300 — Resmî Gazete
- General Communiqué on Income Tax No. 318, amended by No. 325 (Article 20/B) — Official Gazette, 12 January 2022, no. 31717 — Resmî Gazete
- VAT Law No. 3065, Article 17/4-a — Mevzuat Bilgi Sistemi
- Central Bank of the Republic of Turkey, Capital Movements Circular
Get the full 11-page guide as a PDF · Every article on the topic is gathered in the Forming the Company Is the Easy Part guide.