Investing in Türkiye from Japan: company, tax and social security
Setting up a company in Türkiye as a Japanese investor: apostille and translation, double tax treaty rates, the investment protection treaty, social security, work permits and bank accounts.
Japanese citizens and companies established in Japan 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 Japan.
Agreements between the two countries
| Agreement | Japan |
|---|---|
| Double tax treaty | Signed: 8 March 1993 Official Gazette: 13 November 1994, issue 22110 Withholding rates and conditions |
| Bilateral investment treaty | Signed: 12 February 1992 Official Gazette: 21 November 1992 |
| Social security agreement | None: work in Türkiye longer than three months is insured with the Turkish SGK |
| 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: 4 November 2026.
Tax: dividends, interest and royalties
In the Türkiye–Japan treaty the reduced dividend rate depends on a holding period: for the 10% rate, the Japanese company must own at least 25% of the shares of the Turkish company throughout the six months before the dividend is paid; otherwise the rate is 15%. On interest, the 10% rate applies to the financial institutions listed in the treaty; other interest is taxed at 15%.
| Country | Dividends | Interest | Royalties |
|---|---|---|---|
| Japan | 10% – 15% | 10% – 15% | 10% |
For the reduced rate to apply, the recipient's residence certificate issued by the Japanese tax authority must be held by the Turkish company before payment. More: Dividend distribution tax · Residence certificate
Documents: apostille and translation
Japan and Türkiye are both parties to the Hague Apostille Convention. If a Japanese company is to be a shareholder, its commercial registry extract, the resolution of the authorised body and the power of attorney receive an apostille in Japan; no consular legalisation is needed. Documents in Japanese are translated into Turkish by a sworn translator in Türkiye and certified by a notary. Powers of attorney and resolutions for use in Türkiye should be signed, with the signature notarised in Japan and apostilled; the company seal (inkan) commonly used in Japan may not be accepted on its own. For individual shareholders, a notarised Turkish translation of the passport is enough. Steps: Company formation for foreigners
Social security and work permits
There is no social security agreement between Türkiye and Japan. A Japanese citizen hired in Türkiye is registered with the Turkish SGK. A person sent to Türkiye on behalf of an organisation in Japan who proves insurance in Japan 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. As contributions may then be due in both countries, the assignment structure should be planned in advance.
Being a shareholder does not give the right to work; a person 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. Transferring the capital from abroad 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