Investing in Türkiye from the Gulf: UAE, Saudi Arabia, Qatar and Kuwait
Setting up a company in Türkiye as an investor from the Gulf: apostille and consular legalisation, double tax treaty rates, investment protection treaties, social security and work permits.
Citizens of the United Arab Emirates, Saudi Arabia, Qatar and Kuwait, and companies established in these countries, 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 shows side by side the points that differ between the four countries.
Agreements with Türkiye
| Agreement | United Arab Emirates | Saudi Arabia | Qatar | Kuwait |
|---|---|---|---|---|
| Double tax treaty | Signed: 29 January 1993 Official Gazette: 27 December 1994, issue 22154 Withholding rates and conditions | Signed: 9 November 2007 Official Gazette: 3 February 2009, issue 27130 Withholding rates and conditions | Signed: 18 December 2016 Official Gazette: 30 December 2018, issue 30641 Withholding rates and conditions | Signed: 6 October 1997 Official Gazette: 28 November 1999, issue 23890 Withholding rates and conditions |
| Bilateral investment treaty | Signed: 28 September 2005 Official Gazette: 15 June 2011 | Signed: 8 August 2006 Official Gazette: 3 February 2009 | Signed: 25 December 2001 Official Gazette: 2 August 2008 | Signed: 27 May 2010 Official Gazette: 20 January 2012 |
| Social security agreement | None: work in Türkiye longer than three months is insured with the Turkish SGK | None: work in Türkiye longer than three months is insured with the Turkish SGK | None: work in Türkiye longer than three months is insured with the Turkish SGK | None: work in Türkiye longer than three months is insured with the Turkish SGK |
| Apostille (Hague Convention) | Not a party: documents need consular legalisation | Applies (since 7 December 2022) | Not a party: documents need consular legalisation | Not a party: documents need consular legalisation |
Sources: Ministry of Trade, bilateral agreements (United Arab Emirates) · Ministry of Trade, bilateral agreements (Saudi Arabia) · Ministry of Trade, bilateral agreements (Qatar) · Ministry of Trade, bilateral agreements (Kuwait) · Ministry of Labour and Social Security, social security agreements · Hague Conference, Apostille Convention status table. Last checked: 4 November 2026.
Documents: apostille or consular legalisation?
If a foreign company is to be a shareholder, its registration certificate, the resolution of the authorised body and the power of attorney are authenticated before use in Türkiye. The method depends on the country:
- Saudi Arabia: a party to the Hague Apostille Convention; an apostille obtained in Saudi Arabia is enough.
- UAE, Qatar and Kuwait: not parties to the Apostille Convention. The document is first authenticated by the competent authorities of the issuing country (usually the Ministry of Foreign Affairs) and then by the Turkish embassy or consulate general in that country.
Authenticated documents are translated from Arabic (or English) 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 of an Arabic name causes mismatches between records. Steps: Company formation for foreigners
Tax: dividends, interest and royalties
Dividends paid by a Turkish company to its shareholder abroad are subject to withholding tax in Türkiye. For the reduced treaty rate to apply, the shareholder's residence certificate issued by the tax authority of its own country must be held by the Turkish company before payment.
| Country | Dividends | Interest | Royalties |
|---|---|---|---|
| United Arab Emirates | 5% – 12% | 10% | 10% |
| Saudi Arabia | 5% – 10% | 10% | 10% |
| Qatar | 5% – 10% | 10% | 10% |
| Kuwait | 10% | 10% | 10% |
The Turkish domestic rate on dividends is 15%. The lowest treaty rates depend on conditions: for example, the UAE, Saudi Arabia and Qatar treaties have a 5% rate for dividends paid to the state or to wholly state-owned bodies; for corporate shareholders the rate depends on the percentage held. All conditions are on the country pages. More: Dividend distribution tax · Residence certificate
Social security and work permits
Türkiye has no social security agreement with any of the four countries. An employee hired in Türkiye is registered with the Turkish SGK. A person sent to Türkiye on behalf of an organisation abroad who proves insurance in their own country 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
Real estate and residence permits
Investors from the Gulf often ask about investments outside a company: acquiring real estate in Türkiye and the related residence permit follow separate rules. Real estate acquisition by foreigners
If you have a company in the UAE
If the investment in Türkiye is made through a company established in the UAE, the Türkiye–UAE treaty applies to dividends and other payments only if the company is resident in the UAE and can obtain a residence certificate. Corporate tax and accounting obligations on the UAE side: UAE (Dubai) company and accounting
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