Gençer & Coll. Competencecentre Turkey

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Topic:

1 Culture.
2 Politics.
3 Economy.
4 Regulatory framework.
- 4.1 Solutions to disputes.
- 4.2 Investment law and real estate law.
  - 4.2.1 Investment law for foreigners.
  - 4.2.2 General investment support.
  - 4.2.3 Real estate law.
- 4.3 Corporate law.
- 4.4 Social security system.
5 Corporate culture.
6 Building business relations successfully.

Start > You are here: gc.factbook turkey > Regulatory framework > Investment law and real estate law

Investment law - with an eye on Europe

Turkey has been in the Customs Union since 1996. At the end of 2005, negotiations towards entry into the EU were started and large-scale reform efforts have characterised the Turkish legal landscape since then. In the meantime, foreign investments in Turkey are no longer subject to approval. Now, foreign capital participation can even amount to 100 %.
The minimum capital threshold of fifty thousand US$ for each foreign shareholder has also been abolished. Companies founded with foreign capital are placed on an equal footing with domestic companies in Turkey.

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.

Investment law for foreigners

General investment support

Turkey offers numerous support programs for foreign investors.
However, the transparency of the support programs suffers from their multitude. Intensive investigations are necessary in order to exploit the existing possibilities. Support is granted to exports, free-trade areas, technology parks, research and development, specific regions, branches of trade and small and medium-sized companies.

General investment support

Real estate law

Since 11 March 2008, the legal situation for a foreign investor when buying real estate has not always been easy. Since the ruling of the Turkish Constitutional Court of 11 March 2008, domestic companies with foreign capital are in principle no longer treated equally with domestic companies with domestic capital.

Learn more about the legal situation regarding the purchase of real estate in Turkey