Investing in Türkiye from Iraq: company, tax and social security
Setting up a company in Türkiye as an Iraqi investor: consular legalisation and translation, the consequences of having no double tax treaty, social security, work permits and bank accounts.
Citizens of Iraq and companies established in Iraq 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 | Iraq |
|---|---|
| Double tax treaty | None: Turkish domestic withholding rates apply |
| Bilateral investment treaty | Not on the Ministry of Trade list |
| Social security agreement | None: work in Türkiye longer than three months is insured with the Turkish SGK |
| Apostille (Hague Convention) | Not a party: documents need consular legalisation |
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
Iraq is not on GİB's list of treaties in force; there is no double tax treaty between the two countries. Therefore, dividends, interest and royalties paid by a Turkish company to its shareholder in Iraq are subject to Turkish domestic withholding rates, and a residence certificate cannot be used for a reduction. The rate on dividends distributed to a shareholder abroad is 15%; for interest and royalties the rate depends on the type of payment.
The same income may also be taxed in Iraq; whether the tax paid in Türkiye is taken into account in Iraq is determined by Iraqi law. More: Withholding rates · Dividend distribution tax · Tax on payments abroad
Documents: consular legalisation and translation
Iraq is not a party to the Hague Apostille Convention. If an Iraqi company is to be a shareholder, its registration certificate, the resolution of the authorised body and the power of attorney are first authenticated by the competent authorities of Iraq (usually the Ministry of Foreign Affairs) and then by the Turkish embassy or consulate general in Iraq. Documents in Arabic or Kurdish are translated into Turkish by a sworn translator in Türkiye and certified by a notary. For documents issued in the Kurdistan Region of Iraq, the authentication chain and the Turkish mission may vary depending on where the document was issued.
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 Iraq. An Iraqi citizen hired in Türkiye is registered with the Turkish SGK. A person sent to Türkiye on behalf of an organisation in Iraq who proves insurance in Iraq 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
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