Road Map For Foreigner Who Want To Invest in Turkey

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You should make a decision of what kind of business you want to to conduct. Commercial or self-employment? This will shape how to be taxed by the authority.
If a new company or a branch of any any company is established in Turkey, the taxation of the company is carried out depending on “full tax liability”. A new company or the branch established in Turkey by foreigners is not distinguished from other local companies in terms of taxation.
If a foreign company appoints a foreigner (non-citizen of Turkey) as manager (director of member of board) to the established company / branch in Turkey, the manager needs to own ID Number in order to be able to conduct financial transaction of the company such as online banking and make some local transactions easy. The ID number is taken with resident permit by Immigration Office or with work permit by Ministry Of Labour.
A non-resident company in Turkey can establish as many company as it wants, be shareholder in already established company, form a Regular Joint Venture, Corporate Joint Venture or Joint Venture (JV). In case of forming JV, we highly recommend what type of JV should be planned well to establish.
If a non-resident company conducts business in Turkey without establishing a company, in that case the non-resident company is called “limited tax liability” and this can vary based on conducted business by non-resident company.
If a non-resident company form a Regular Joint Venture or Corporate Joint Venture together with a local company whose headquarter based in Turkey, in that case the non-resident company turns into a taxpayer having “full tax liability”. However, if they do business with these structures as part of supply chain, they can be subject to “limited tax liability”
Since this kind of liability directly affects the company regarding how to be calculated taxation, all issues must be evaluated together.
Regarding Limited Tax Liability, it is important to determine about earning method due to the fact that if withholding is calculated or not; If calculated, what rate will be used for the calculation.
One of the most important things is double-taxation agreements. Limit of the taxation can be clarified based on the double-taxation agreement between Turkey and other country where foreign company located in, which has activities in Turkey.

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