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1 Culture.
2 Politics.
3 Economy.
4 Regulatory framework.
- 4.1 Solutions to disputes.
- 4.2 Investment law and 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

Regulatory framework Turkey

After the founding of the Turkish Republic, all important laws were rewritten.
The new legislation was, in the last instance, a direct adoption of western law.
The reception of the Swiss ZGB (Civil Code) in 1926 became a symbol of the transition from an Islamic to a secular legal system. The German legal system was especially formative for Turkey, particularly in commercial law. Companies from Germany who are keen to invest are on familiar legal ground.

Switzerland, Germany and Italy as origins of the Turkish legal system

In 1926, the Italian Criminal Code of 1889 was adopted in Turkey.
It was reformed to European standards in 2004. In the same year, the Turkish Commercial Code, which to a great extent was modelled on the German code, was also accepted. The Civil Procedure Code of 1925 from the Swiss Canton of Neuchâtel was codified by Turkish legislation in 1927 and is still in force, in spite of numerous amendments.The same can be said for the Bankruptcy and Insolvency Law that was also adopted from Neuchâtel in 1927. In the same year, the German Criminal Procedure Code was also translated into Turkish and codified with only a few changes.

Life is unfair, but remember: not always to your disadvantage. (John F. Kennedy)

Solutions to disputes

According to Article 138 of the Constitution, Turkish jurisdiction is independent and is subject to no instructions whatsoever. At the same time, the Turkish courts are exclusively responsible for the assertion and enforcement of claims. The Turkish judicial system is made up of two instances in all criminal and civil cases: Trial court and appeal on questions of law (temyiz) to the high court (Yargıtay).An appeal on questions of fact is only possible in administrative jurisdiction.

Learn more about the Turkish jurisdiction

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 - with an eye on Europe

Turkish corporate law

Turkish Corporate Law shows great similarities to the corporate structures also known in Germany, not least because the fundamentals of the German Commercial Code were adopted in 1956; some significant differences are noticeable only after closer study of the legislative details.

Turkish corporate law

Social security system in Turkey

Which social insurance institutions exist in Turkey?

Public social security benefits in Turkey are significantly lower than, for instance, in Germany. The child allowance, for example, is approximately 10 Euro per month. Other benefits, such as welfare aid or nursing insurance do not exist (yet). Old people and people in need of care are usually looked after by their families.

Learn more about the social security systems in Turkey