Investing in Türkiye from the UK: company, tax and social security
Setting up a company in Türkiye as an investor from the United Kingdom: apostille, double tax treaty rates, the investment protection and free trade agreements, the social security agreement and work permits.
Citizens of the United Kingdom and companies established in the United Kingdom 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 Kingdom |
|---|---|
| Double tax treaty | Signed: 19 February 1986 Official Gazette: 19 October 1988, issue 19964 Withholding rates and conditions |
| Bilateral investment treaty | Signed: 15 March 1991 Official Gazette: 9 May 1996 |
| Social security agreement | In force (since 1 June 1961) |
| Apostille (Hague Convention) | Applies (since 29 September 1985) |
| Free trade agreement | Signed: 29 December 2020 Official Gazette: 24 February 2021 |
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 United Kingdom 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–United Kingdom treaty, the dividend limit is 15% for companies controlling at least 25% of the voting power 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. The treaty limit is 15% on interest and 10% on royalties.
| Country | Dividends | Interest | Royalties |
|---|---|---|---|
| United Kingdom | 15% – 20% | 15% | 10% |
More: Dividend distribution tax · Residence certificate · Withholding rates
Documents: apostille and translation
The United Kingdom and Türkiye are both parties to the Hague Apostille Convention. If a British company is to be a shareholder, its Companies House registration (certificate of incorporation), the resolution of the authorised body and the power of attorney receive an apostille from the competent authority in the United Kingdom; no consular legalisation is needed. Documents in English 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–United Kingdom social security agreement has been in force since 1 June 1961. An employee temporarily sent to Türkiye by an employer in the United Kingdom can remain insured in the United Kingdom under the conditions and for the period set in the agreement; a certificate of posting obtained from the UK 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: free trade agreement
Since the United Kingdom left the European Union, trade in goods between the two countries has followed the Türkiye–United Kingdom Free Trade Agreement signed on 29 December 2020. Duty-free trade in industrial goods requires the goods to meet the rules of origin in the agreement and a proof of origin. 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