Tax Advantages and Incentives for Foreign Investors in Türkiye (2024-2025)

Türkiye is rapidly becoming a prominent destination for international entrepreneurs and investors. The country offers a range of tax incentives and regulatory reforms aimed at attracting foreign investment. Below is an overview of the key business incentives and tax advantages available to entrepreneurs interested in doing business in Türkiye during the 2024-2025 period.

Double Taxation Agreements

Türkiye has signed numerous double taxation agreements with various countries to prevent investors from being taxed twice on the same income. This arrangement allows foreign investors to streamline their taxation process and minimizes the overall tax burden, making Türkiye an attractive destination for international trade and investment. You can learn more about Türkiye’s double taxation agreements on the Republic of Türkiye Investment Office website.

Ease of Setting Up Branches

Foreign companies planning to establish a presence in Türkiye benefit from significant regulatory ease. Revisions within the Turkish Commercial Code (TCC) provide opportunities for foreign companies to establish joint stock (anonim), limited, or ordinary partnerships. Furthermore, the capital requirement for establishing a company has been eliminated, reducing entry barriers for investors. For detailed information on establishing a foreign branch, visit the Union of Chambers and Commodity Exchanges of Türkiye.

Corporate Tax Reductions

In 2025, changes to Türkiye’s corporate tax policies were introduced. The corporate tax rate cannot drop below 10% of a company’s pre-discount and pre-exemption profits. In addition, investment funds or partnerships can benefit from corporate tax exemptions for earnings derived from immovable assets, provided they distribute at least 50% of their profits. These measures ensure sustainability while offering lucrative opportunities for certain types of investment funds.

Balanced Tax Policies for Foreign and Domestic Investors

Türkiye emphasizes fairness and transparency in its tax policies to balance the responsibilities of foreign and local investors. This approach ensures trust across both investor groups, contributing to the stability and growth of financial markets. A clear taxation strategy benefits everyone involved in building a robust economic foundation in Türkiye.

Investment Program for 2025-2027

The investment program for the 2025-2027 period focuses on optimizing public investments and prioritizing projects with short-term economic and social benefits. This program provides a clear framework for foreign investors to identify profitable and impactful opportunities in Türkiye. For updates on public investment priorities, refer to the Presidency of Strategy and Budget website.

Key Takeaways for Entrepreneurs

Türkiye is committed to fostering a business-friendly environment tailored to the needs of international investors. From tax advantages to simplified establishment processes, entrepreneurs can benefit from:

• Strengthened double taxation agreements to reduce tax liabilities
• Ease of setting up branches and partnerships with minimal capital requirements
• Corporate tax exemptions and reductions for compliant business structures
• Clear and equitable tax policies ensuring transparency
• A structured investment program for prioritizing rewarding opportunities

If you’re considering expanding your business to Türkiye, these initiatives reflect the country’s dedication to supporting foreign investment and economic growth. For more information, explore resources available through the Republic of Türkiye Investment Office.