Investing in Türkiye from the Netherlands: company, tax and social security
Setting up a company in Türkiye as a Dutch investor: apostille and translation, double tax treaty rates, the investment protection treaty, the social security agreement, the customs union and work permits.
Dutch citizens and companies established in the Netherlands 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 | Netherlands |
|---|---|
| Double tax treaty | Signed: 27 March 1986 Official Gazette: 22 August 1988, issue 19907 Withholding rates and conditions |
| Bilateral investment treaty | Signed: 27 March 1986 Official Gazette: 13 April 1989 |
| Social security agreement | In force (since 1 February 1968) |
| 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 Netherlands 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–Netherlands treaty, the dividend limit is 15% for companies holding directly at least 25% of the capital 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 debts with a term of more than two years and 15% in other cases; for royalties, it is 10%.
| Country | Dividends | Interest | Royalties |
|---|---|---|---|
| Netherlands | 15% – 20% | 10% – 15% | 10% |
More: Dividend distribution tax · Residence certificate · Withholding rates
Documents: apostille and translation
The Netherlands and Türkiye are both parties to the Hague Apostille Convention. If a Dutch company is to be a shareholder, its commercial register (KvK) extract, the resolution of the authorised body and the power of attorney receive an apostille from the competent authority in the Netherlands; no consular legalisation is needed. Documents in Dutch 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–Netherlands social security agreement has been in force since 1 February 1968. An employee temporarily sent to Türkiye by an employer in the Netherlands can remain insured in the Netherlands under the conditions and for the period set in the agreement; a certificate of posting obtained from the Dutch 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
Trade: customs union
Under the customs union between Türkiye and the European Union, industrial goods move between the Netherlands 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. 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