Investing in Türkiye from Iran: company, tax and social security

Citizens of Iran and companies established in Iran 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

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 Iran 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–Iran 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. The treaty rate on interest and royalties is 10%.

More: Dividend distribution tax · Residence certificate · Withholding rates

Documents: consular legalisation and translation

Iran is not a party to the Hague Apostille Convention. If an Iranian 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 in Iran (usually the Ministry of Foreign Affairs) and then by the Turkish embassy or consulate general in Iran. Documents in Persian 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–Iran social security agreement has been in force since 1 May 2023. An employee temporarily sent to Türkiye by an employer in Iran can remain insured in Iran under the conditions and for the period set in the agreement; a certificate of posting obtained from the Iranian 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

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