Investing in Türkiye from Germany: company, tax and social security
Setting up a company in Türkiye as a German investor: apostille and translation, double tax treaty rates, the social security agreement, the investment protection treaty, the customs union and work permits.
German citizens and companies established in Germany can set up a limited or joint stock company in Türkiye, become a shareholder in an existing company, or open a branch or liaison office. Foreign Direct Investment Law No. 4875 gives foreign investors equal treatment with Turkish investors; no prior approval is needed. This article sums up the points specific to Germany.
Agreements between the two countries
| Agreement | Germany |
|---|---|
| Double tax treaty | Signed: 19 September 2011 Official Gazette: 24 January 2012, issue 28183 Withholding rates and conditions |
| Bilateral investment treaty | Signed: 20 June 1962 Official Gazette: 2 November 1963 |
| Social security agreement | In force (since 1 November 1965) |
| Apostille (Hague Convention) | Applies (since 29 September 1985) |
Sources: Ministry of Trade, bilateral agreements · Ministry of Labour and Social Security, social security agreements · Hague Conference, Apostille Convention status table. Last checked: 4 November 2026.
Tax: dividends, interest and royalties
The Türkiye–Germany treaty signed in 2011 applies to income derived from 1 January 2011. Turkish withholding tax on dividends paid by a Turkish company to its shareholder in Germany is limited to 5% for companies (other than partnerships) holding directly at least 25% of the capital, and 15% in other cases. Interest paid to the government or central bank of the other state is exempt in the source country.
| Country | Dividends | Interest | Royalties |
|---|---|---|---|
| Germany | 5% – 15% | 10% | 10% |
For the reduced rate to apply, the recipient's residence certificate issued by the German tax authority must be held by the Turkish company before payment. More: Dividend distribution tax · Residence certificate
Documents: apostille and translation
Germany and Türkiye are both parties to the Hague Apostille Convention. If a German company is to be a shareholder, its commercial register extract, the resolution of the authorised body and the power of attorney receive an apostille from the competent authority in Germany; no consular legalisation is needed. Documents in German are translated into Turkish by a sworn translator in Türkiye and certified by a notary. For individual shareholders, a notarised Turkish translation of the passport is enough. Steps: Company formation for foreigners
Social security: employees posted temporarily
The Türkiye–Germany social security agreement has been in force since 1 November 1965. An employee temporarily sent to Türkiye by an employer in Germany can remain insured in Germany under the conditions of the agreement; a certificate of posting obtained from the German insurance institution is submitted to the SGK. Without the certificate, the employee is registered with the Turkish SGK. The agreement also allows insurance periods in both countries to be combined for pension rights.
A German employee hired in Türkiye is subject to the Turkish SGK. A work permit is needed in both cases. Social security of foreign employees · Work permit criteria
Trade: customs union
Under the customs union between Türkiye and the European Union, industrial goods move between Germany and Türkiye without customs duty; an A.TR movement certificate is issued for the goods. Agricultural products and some product groups follow separate rules. Customs and foreign trade
Bank account and capital
The company account is opened with a bank in Türkiye. Transferring the capital from abroad through a bank creates a record for later profit transfers and foreign capital reporting. Reporting by foreign-owned companies
Sources
- Agreement dates: the Ministry of Trade, Ministry of Labour and Social Security and Hague Conference lists below the table.
- General process: Services for foreign investors · All treaty rates