Turkey's investment environment is one of the most attractive in the world, with investors from around the world, particularly from Arab countries, competing to take advantage of the promising opportunities the Turkish market offers. Interest in investing in Turkey is growing, particularly regarding taxes and corporate rates.

This information is of great importance to investors, especially with the significant increase in the number of those seeking to establish their own companies in Turkey. Familiarity with the details of taxes and corporate rates is essential, as it is a vital step toward building projects and companies that match their aspirations and financial capabilities. In this article, we will explain corporate taxes in Türkiye according to the following table of contents:

Advantages of investing in Türkiye:

How much capital can you invest in Türkiye?

Corporate taxes in Türkiye:

Articles related to taxes and companies in Türkiye that may interest you:

Advantages of investing in Türkiye:

Deciding to invest in Türkiye offers you a winning card and opportunities not found in other countries. Among the most important of these advantages are:

The ability to easily purchase real estate and register it in your name, providing you with opportunities to settle down or start your own business.

The opportunity to plan an alternative transition plan over time, enabling you to make better investment decisions and enjoy a happy and stable life.

Job opportunities for expatriate workers in an active labor market.

The possibility of obtaining Turkish citizenship through available investment programs.

An encouraging and supportive investment environment provided by the Turkish government.

A strategic geographical location that combines the European and Asian continents.

Strong infrastructure including ports, airports and roads.

Tax and customs laws are facilitated to encourage investment.

Easy access to regional and international markets.

Financial support from banks and financial institutions.

How much capital can you invest in Türkiye?

Investing in Turkey gives you access to a wide range of options tailored to your capital. Türkiye offers numerous investment opportunities, and accredited financial consulting firms, such as Trustas Consulting, can provide accurate and secure guidance to investors.

Investment projects and companies in Türkiye are diverse and suitable for different levels of capital. Here are some examples:

Small (personal) projects:

It is suitable for small capital owners, as it is possible to start with an amount of 10,000 Turkish liras.

Such projects are suitable for individuals and include examples such as shops.

Medium Enterprises (Limited Liability Company):

Limited companies involve distributing capital into shares, with a share value of at least 10,000 Turkish Liras per share.

It allows it to be established in partnership with one person or a group of partners (up to 50 partners).

The limited company provides a trade name that can be included in the contract.

Major projects (joint stock companies):

Requires a capital of more than 50,000 Turkish Liras, with a minimum quarter of the amount deposited in the bank upon establishment.

Suitable for large projects and has advanced powers and capabilities.

Investors are encouraged to consult financial consulting firms to understand tax details and corporate rates in Türkiye, and to provide the necessary guidance to make the right decision based on their needs and financial capabilities.

Corporate taxes in Türkiye:

Türkiye is one of the most diverse countries in the world, and you could say that the tax system in Türkiye is different from any other country in the world.

1-Income taxes per person in Türkiye:

Individual and corporate taxes have several criteria and standards through which the individual's net income is determined, as well as where the income and tax rates come from. We explain them as follows.

-Individual income tax: It is calculated based on the average annual net income of a foreigner residing in Turkey or a Turkish citizen. It ranges from 15% to 35% of the annual net profits. Annual profits include monthly pensions, rental income from properties, commercial and agricultural profits, and personal services.

2- Taxes imposed on the rental value of the company’s headquarters in Türkiye, or what is called (Stopage):

It is calculated and collected by the tax departments according to the monthly rent value every three months at a value of 75% of the monthly rent value. This means that if the rent value is 100, the company has a rent tax estimated at approximately 75 for every three months.

3- Company income tax in Turkey:

These taxes are imposed on the official profits of companies and not on the value of the company's capital.

It is roughly calculated as a percentage of the company’s income, and this percentage ranges between 20% and 22%.

-Income tax is calculated for partners or participants in the company at a rate of 15%.

Turkish companies operating outside Türkiye are subject to a 15% tax when profits are transferred to the main company in Türkiye. This tax is applied to a limited and specific scope for Turkish companies.

4-Profits tax on movable and immovable property of companies:

A profit tax is imposed on movable and immovable property duly registered in the company's name, i.e., based on the profit on capital. It is estimated approximately as follows:

• If the profit rate exceeds forty thousand Turkish liras, the profit percentage is 35%.

• The profit rate between 18-40 thousand Turkish liras is estimated at 27%.

• The profit rate is between 7 and 18 thousand Turkish liras, with an estimated rate of 25%.

• The profit rate is between 6-7 thousand Turkish liras, which is estimated at 15%.

These percentages relate to immovable property such as real estate, commercial establishments, etc.

Note:

5- Tax exemptions for companies in Türkiye and encouragement of investment in Türkiye:

The Turkish government has developed numerous investment programs, whether in real estate, industry, or commercial sectors. This program specifically focuses on opening factories in developing cities. This allows foreign investors to invest in areas supported by the government's development, benefiting from advantages and facilities, from infrastructure to very low rental rates. Import tax exemptions apply to raw materials and manufacturing machinery for the first time. You can research and verify the suitability of your investment conditions and even obtain preliminary approvals from the relevant governorate or municipality.

- Let's not forget the Turkish state's encouragement of Turkish exporters and manufacturers, which is achieved through tax revenues generated from the export of products manufactured locally in Turkey, made with Turkish or imported raw materials. This also creates sufficient leverage for Turkish products to compete strongly in the market and establish their presence in most Arab and European markets.

This is a summary of the general taxes imposed on individuals and companies operating in Turkey. We, at Tayf Turkey Services, provide you with all the information and advice you need in various investment fields, along with the necessary feasibility studies to assess the investment value and feasibility for investors wishing to start a business in Türkiye.

Articles related to taxes and companies in Türkiye that may interest you:

-Establishing a limited company in Türkiye

-Establishing a personal company in Türkiye

-Establishing companies