Investing in Türkiye from Azerbaijan: company, tax and social security
Setting up a company in Türkiye as an Azerbaijani investor: apostille and translation, double tax treaty rates, the investment protection treaty, the social security agreement, work permits and bank accounts.
Citizens of Azerbaijan and companies established in Azerbaijan can set up a limited or joint stock company in Türkiye, become a shareholder in an existing company or open a branch. 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 | Azerbaijan |
|---|---|
| Double tax treaty | Signed: 9 February 1994 Official Gazette: 27 June 1997, issue 23032 Withholding rates and conditions |
| Bilateral investment treaty | Signed: 25 October 2011 Official Gazette: 2 May 2013 |
| Social security agreement | In force (since 9 August 2001) |
| Apostille (Hague Convention) | Applies (since 2 March 2005) |
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 Azerbaijan 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.
The Turkish domestic rate on dividends is 15%; the Türkiye–Azerbaijan treaty reduces it to 12%. The treaty rate on interest and royalties is 10%.
| Country | Dividends | Interest | Royalties |
|---|---|---|---|
| Azerbaijan | 12% | 10% | 10% |
More: Dividend distribution tax · Residence certificate · Withholding rates
Documents: apostille and translation
Azerbaijan and Türkiye are both parties to the Hague Apostille Convention. If an Azerbaijani company is to be a shareholder, its registration certificate, the resolution of the authorised body and the power of attorney receive an apostille from the competent authority in Azerbaijan; no consular legalisation is needed. Documents issued in Azerbaijani or Russian 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. 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
The Türkiye–Azerbaijan social security agreement has been in force since 9 August 2001. An employee temporarily sent to Türkiye by an employer in Azerbaijan can remain insured in Azerbaijan under the conditions and for the period set in the agreement; a certificate of posting obtained from the Azerbaijani 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; scope and periods are set by the agreement text.
An employee hired in Türkiye is subject to the Turkish SGK. A work permit is needed in both cases; being a shareholder does not by itself give the right to work. 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.
- General process: Services for foreign investors · All treaty rates