Investing in Türkiye from Egypt: company, tax and social security
Setting up a company in Türkiye as an Egyptian investor: consular legalisation and translation, double tax treaty rates, the investment protection and free trade agreements, social security and work permits.
Citizens of Egypt and companies established in Egypt 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 | Egypt |
|---|---|
| Double tax treaty | Signed: 25 December 1993 Official Gazette: 30 December 1996, issue 22863 Withholding rates and conditions |
| Bilateral investment treaty | Signed: 4 October 1996 |
| 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 |
| Free trade agreement | Signed: 27 December 2005 |
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 Egypt 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.
The Turkish domestic rate on dividends is 15%. Under the Türkiye–Egypt treaty, withholding tax on dividends paid to companies (other than partnerships) holding directly at least 25% of the capital cannot exceed 5%; 15% applies in other cases. The treaty rate on interest and royalties is 10%.
| Country | Dividends | Interest | Royalties |
|---|---|---|---|
| Egypt | 5% – 15% | 10% | 10% |
More: Dividend distribution tax · Residence certificate · Withholding rates
Documents: consular legalisation and translation
Egypt is not a party to the Hague Apostille Convention. If an Egyptian company is to be a shareholder, its commercial register extract, the resolution of the authorised body and the power of attorney are first authenticated by the competent authorities of Egypt (usually the Ministry of Foreign Affairs) and then by the Turkish embassy or consulate general in Cairo or Alexandria. Documents in Arabic 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
There is no social security agreement between Türkiye and Egypt. An Egyptian citizen hired in Türkiye is registered with the Turkish SGK. A person sent to Türkiye on behalf of an organisation in Egypt who proves insurance in Egypt 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
Trade: free trade agreement
Türkiye and Egypt have a free trade area agreement signed on 27 December 2005. To benefit from reduced or zero customs duty on goods covered by the agreement, the goods must meet the rules of origin and a proof of origin is required. 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.
- 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