A Turkish company can set up or buy a company abroad without prior approval. The Turkish side still involves a corporate decision, transfers through banks, notifications to two ministries, and tax rules that shape how profits come back. Turkish-law and tax work is handled by the Turkish attorneys at Sonmez Partners and your Turkish tax adviser.
- 01
The rule
Free to invest, through banks.
Under Decree No. 32 on the protection of the Turkish lira, Turkish residents may freely set up a company, take a stake or open a branch abroad. Cash capital is sent through banks, which report the transfer.
- 02
Inside the company
A board resolution.
A board resolution approving the investment and naming who signs is normally the starting point. Check the articles of association for any matter reserved to the general assembly.
- 03
Notifications
Two ministries, within 3 months.
Within 3 months of the first capital export, the investor sends an information form to the Ministry of Treasury and Finance and the Ministry of Trade, and a liquidation or transfer is also reported within 3 months. The Ministry of Trade also runs an annual survey of investments abroad.
- 04
Documents
Documents you will likely need.
Registering a company or opening a bank account abroad usually requires documents about the Turkish parent: its registry certificate, articles, board resolution and signature circular, apostilled and translated. See our guide to Turkish company documents.
- 05
Tax · Dividends
The participation exemption.
Dividends from a foreign subsidiary can be exempt from Turkish corporate tax if conditions are met, including at least 10% ownership held for at least a year, foreign tax of at least 15%, and bringing the dividend to Turkiye on time. A 2026 Presidential Decision widened the alternative partial exemption: from 2026, 20% ownership can give an 80% exemption. Check the current rules for your case.
- 06
Tax · Other rules
Controlled foreign companies and pricing.
Undistributed profits of a low-taxed, mainly passive foreign subsidiary can be taxed in Turkiye under the controlled foreign company rules. Transactions with the subsidiary must be at arm's length and documented.
Good to know
Plan the tax structure before the first transfer, not after the first profit.
Rules and office practice change. Turkish-law matters are handled by the Turkish attorneys at Sonmez Partners.
Official sources
- Ministry of Trade – Notification of investments abroad
- Corporate Tax Law No. 5520 (mevzuat.gov.tr)
- Official Gazette, 30 April 2026 (Presidential Decision No. 11257)
Last reviewed: October 2026. General information only, not legal advice. Sonmez Consulting LLC is not a U.S. law firm.