Investing in Türkiye from the US: company, tax and social security
Setting up a company in Türkiye as an investor from the United States: apostille and translation, double tax treaty rates, the investment protection treaty, social security, work permits and bank accounts.
Citizens of the United States of America and companies established in the US 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 this country, in addition to the general formation steps.
Agreements between the two countries
| Agreement | United States |
|---|---|
| Double tax treaty | Signed: 28 March 1996 Official Gazette: 31 December 1997, issue 23217 Withholding rates and conditions |
| Bilateral investment treaty | Signed: 3 December 1985 Official Gazette: 13 August 1989 |
| Social security agreement | None: work in Türkiye longer than three months is insured with the Turkish SGK |
| 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: 5 November 2026.
Tax: dividends, interest and royalties
Dividends paid by a Turkish company to its shareholder in the US are subject to withholding tax in Türkiye. For the reduced treaty rate to apply, the recipient's residence certificate issued by the tax authority of its own country must be held by the Turkish company before payment.
Under the Türkiye–US treaty, the dividend limit is 15% for companies owning at least 10% of the voting shares and 20% in other cases. The Turkish domestic withholding rate on dividends distributed to a shareholder abroad is 15%. Where the treaty limit is above this rate, the domestic 15% applies; the treaty gives a reduction only where it provides for a lower rate. For interest, the limit is 10% on loans granted by financial institutions such as banks and insurance companies and 15% in other cases; for royalties, it is 5% for the use of equipment and 10% in other cases.
| Country | Dividends | Interest | Royalties |
|---|---|---|---|
| United States | 15% – 20% | 10% – 15% | 5% – 10% |
More: Dividend distribution tax · Residence certificate · Withholding rates
Documents: apostille and translation
The US and Türkiye are both parties to the Hague Apostille Convention. If an American company is to be a shareholder, its formation document (certificate of incorporation or formation), the resolution of the authorised body and the power of attorney receive an apostille from the competent authority in the US; no consular legalisation is needed. Documents in English are translated into Turkish by a sworn translator in Türkiye and certified by a notary. In the US, the apostille is issued by the competent authority of the state that issued the document (usually the Secretary of State), and for federal documents by the US Department of State.
For individual shareholders, a notarised Turkish translation of the passport is enough. In the Turkish tax number, trade registry and bank records the name is used exactly as written in Latin letters in the passport; a different transliteration causes mismatches between records. Steps: Company formation for foreigners · Tax number for foreigners
Social security and work permits
There is no social security agreement between Türkiye and the US. A US citizen hired in Türkiye is registered with the Turkish SGK. A person sent to Türkiye on behalf of an organisation in the US who proves insurance in the US is not treated as insured in Türkiye only for work lasting up to three months; for longer work, registration with the Turkish SGK is mandatory.
Being a shareholder does not give the right to work; a shareholder who will work as a manager in the company needs a work permit. Social security of foreign employees · Work permit criteria
Bank account and capital
The company account is opened with a bank in Türkiye. Banks may ask for documents on capital coming from abroad and on the shareholders' identity, and for an explanation of the source of funds. Transferring the capital through a bank creates a record for later profit transfers and foreign capital reporting. Reporting by foreign-owned companies
What does the investment protection treaty provide?
A bilateral investment treaty contains protections such as guarantees against expropriation, free transfer of profits and capital, and access to international arbitration in disputes. Scope and conditions are set by the treaty text.
Sources
- Agreement dates: the Ministry of Trade, Ministry of Labour and Social Security and Hague Conference lists below the table.
- Three-month rule: Ministry of Labour and Social Security, notice on the insurance of foreigners exempt from work permits (22.05.2023)
- General process: Services for foreign investors · All treaty rates