Company Formation & Tax in Türkiye
A large economy at the crossroads of Europe, the Middle East and Central Asia — the Limited Şirket, the joint-stock A.Ş., and a digital registration route via MERSIS.
Türkiye gives foreign investors a large domestic market and a bridge between European, Middle Eastern and Central Asian trade, with a Customs Union with the EU and a treaty network of more than eighty agreements. Companies can usually be wholly foreign-owned, and formation runs through a centralised online system.
Choosing an entity
The two common vehicles are the Limited Şirket (LLC) and the Anonim Şirket (A.Ş., joint-stock company). The 2024 reforms raised minimum capital, broadly to around TRY 50,000 for an LLC and TRY 250,000 for a JSC; an LLC's capital can be paid within twenty-four months, while a JSC must deposit 25% up front. Formation runs through MERSIS, the Ministry of Trade's central registry, and is finalised at the local Trade Registry Office, with the incorporation published in the Trade Registry Gazette. Foreign founders must first obtain a Turkish tax identification number. Tax is administered by the Revenue Administration (GİB). Because capital thresholds and the lira move, confirm current figures before filing.
Corporate tax and VAT
| Tax | Rate |
|---|---|
| Corporate income tax | 25% (30% for financial institutions) |
| Domestic minimum corporate tax | ~10% of pre-incentive income |
| VAT (KDV, standard) | 20% |
| VAT (reduced) | 10% / 1% |
Corporate income tax is 25% (raised in 2023), rising to 30% for banks and financial institutions, with reductions of several points for qualifying export and manufacturing income. A domestic minimum corporate tax, effective from 2025, generally ensures the charge is not below about 10% of pre-incentive income. VAT (KDV) is 20% standard (also raised in 2023) with reduced rates of 10% and 1%, and exports are zero-rated. Dividend withholding tax is broadly in the 10–15% range, reduced under Türkiye's extensive treaty network — for several GCC states it falls to between 5% and 12%, supporting efficient profit repatriation. The corporate return is filed annually with quarterly advance payments.
Frequently asked questions
What is the corporate tax rate in Türkiye?
25% (raised in 2023), rising to 30% for financial institutions, with a domestic minimum corporate tax of around 10% of pre-incentive income from 2025.
How much capital do I need for a Limited Şirket?
Following the 2024 increase, broadly around TRY 50,000 for an LLC (payable within 24 months) and TRY 250,000 for a JSC; confirm current figures before filing.
What is the Turkish VAT rate?
20% standard (raised from 18% in 2023), with reduced rates of 10% and 1%; exports are zero-rated.
Official sources
This guide is general information prepared by ARM Management and is current as at June 2026. It is not legal or tax advice; rules, thresholds and capital requirements change, and the lira is volatile. Confirm against the Revenue Administration (GİB), or with an advisor, before acting.
Set up in Türkiye with confidence.
ARM Management advises international companies on Turkish entity formation, registration and tax compliance, alongside wider GCC and EU structuring. Begin with a confidential conversation.