Investing in Türkiye from Russia: company, tax and social security
Setting up a company in Türkiye as a Russian investor: apostille and translation, double tax treaty rates, the investment protection treaty, social security, work permits and bank accounts.
Citizens of the Russian Federation and companies established in Russia 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 Russia, in addition to the general formation steps.
Agreements between the two countries
| Agreement | Russia |
|---|---|
| Double tax treaty | Signed: 15 December 1997 Official Gazette: 17 December 1999, issue 23909 Withholding rates and conditions |
| Bilateral investment treaty | Signed: 15 December 1997 Official Gazette: 11 May 1999 |
| Social security agreement | None: work in Türkiye longer than three months is insured with the Turkish SGK |
| Apostille (Hague Convention) | Applies (since 31 May 1992) |
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.
Documents: apostille and translation
Russia and Türkiye are both parties to the Hague Apostille Convention, which removes the legalisation requirement for foreign public documents. If a Russian company is to be a shareholder, its extract from the Russian register of legal entities, the authorising board resolution and the power of attorney receive an apostille in Russia; in Türkiye they are translated into Turkish by a sworn translator and certified by a notary. No consular legalisation is needed.
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 from Cyrillic causes mismatches between records. Steps: Company formation for foreigners · Tax number for foreigners
Tax: dividends, interest and royalties
Dividends paid by a Turkish company to its shareholder in Russia are subject to withholding tax in Türkiye. For the reduced treaty rate to apply, the shareholder's residence certificate issued by the Russian tax authority must be held by the Turkish company before payment.
| Country | Dividends | Interest | Royalties |
|---|---|---|---|
| Russia | 10% | 10% | 10% |
The Turkish domestic rate on dividends is 15%; the treaty reduces it to 10%. More: Dividend distribution tax · Residence certificate
Social security and work permits
There is no social security agreement between Türkiye and Russia. A Russian citizen hired in Türkiye is registered with the Turkish SGK. A person sent to Türkiye on behalf of an organisation in Russia who proves insurance in Russia 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 detailed documents on capital coming from abroad and on the shareholders' identity, and for an explanation of the source of funds; this step usually takes the longest. 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