Turkish environment is one of the most fertile investment environments in the world, according to the assessment of global growth indicators, and investors from all countries of the world come for it, especially the Arab world, leading them to look for accurate information about investment and its conditions.

Especially with regard to corporate taxes and prices in Turkey, and this has become an urgent necessity, especially after the increase in the number of people wishing to establish their own companies there, and their knowledge of these matters is considered as laying a cornerstone to build projects and companies that are compatible with their ambitions and financial capabilities.

In this regard, we will provide you with an explanation of the types of companies, and all the taxes incurred by them according to the nature of their work, and the size of their activities.

Advantages of investing in Turkey

Your decision to invest in Turkey for obtaining a stable and safe life is the right decision you will make, and once you start doing your various businesses, you will see how card won, as you will find opportunities and advantages that you won’t find in other, and among the most important of those privileges are:

• Giving you great opportunities to buy real estate, register it in your name, and trade in it, if your goal is to settle down, or start your different business.
• It provides you with the desire to take an alternative transition plan over time, to make a better investment, and to enjoy a comfortable and stable life.

How much capital you need to start investing in Turkey?

Many options are available to start investing in Turkey, commensurate with the financial capabilities of the investors. However, the different types of projects and companies in Turkey, and based on the amount of capital owned by their owners.

In order to attract the investor, and to ensure that his rights are preserved and encouraged; Specialized certified companies have been established; It provides accurate and secure financial advice, staffed by highly qualified and experienced financial advisors.

At the head of these companies is Trustus Consultancy Company; The distinguished advisory team, which will provide you with a detailed explanation of the taxes and prices of companies in Turkey, so that you can make your decision and accelerate the establishment of your company that you aspire to establish and build.

Here are samples of various investment projects and companies, which are aligned with different financial capabilities, as follows:

1- Small projects (personal)

Projects suitable for people who have a small capital, estimated at 10,000 Turkish liras, and they are projects that can only be owned by one person, and they do not bear the presence of another partner.

Such a project lacks a commercial name that enables it to be formally registered in the contract, but it is named after its founder owner, and this type is considered suitable for small projects, such as shops.

2- Medium projects such as (Limited Liability Company)

The capital in these companies is divided into shares, and the value of the basic shares is the company’s capital, and the value of one share must be 10,000 Turkish liras as a minimum.

It is possible to establish this company with another partner, or with multiple partners, the number of which may be up to 50 partners, regardless of whether they are real or legal.

A (Limited) company is also established for commercial purposes, and it is the best choice for owners of various projects due to its distinctive specifications and multiple options, it has a commercial name, which is included in the contract when it is established, unlike the personal company, which lacks that.

3- Major projects such as joint stock companies

For the establishment of this company, the capital must exceed 50,000 Turkish Liras, and a minimum quarter of it must be deposited in the bank when it is established; It expresses the nominal values of the company's shares. As for the rest of the amount, it is deposited within 24 months.

These companies are suitable for large investors who intend to establish large projects and large businesses, as they have multiple powers that distinguish them from others, as well as the possibility of licensing them in accordance with the laws in Turkey.

Types of taxes arising from the establishment of companies

Knowing taxes is one of the basic things that you need to know, when thinking about setting up your company in Turkey; It is one of the financial aspects that requires knowing the size of the expenses and the cost that must be considered while you are conducting the feasibility study, and clarifying them as follows:

1-  Rent tax

The value of the tax is collected every three months at the Turkish Tax Authority. The value of this tax is calculated based on a quarter of the value of the lease contract and is applied to the tenant as he is obligated to pay it to the IRS on a regular basis.

2-  Income tax

This type of tax applies to the profits of a legal entity representing the company's business activity, that is, income after distribution and transfer, and not to the company's capital.

Corporate income tax is calculated as follows:

• It is calculated on the profits of commercial companies, a percentage ranging from 20% to 22%.
• The tax rate, when distributing profits to the participants in the company, within the companies residing in Turkey is 15%.
• For companies not residing in Turkey, the tax is estimated at 15%, and it is paid when the profits are transferred to the headquarters in Turkey.

This tax however applies to specific institutions in Turkey.

   3- Profit tax

Profit tax is imposed as result of subtracting the sale value of the property from its original purchase value, that is, on the amount of profit from the basic capital only.

Profit tax rates are estimated based on the amount of capital as follows:

• If the rate of profits from selling the property ranges between 6 to 7 thousand Turkish liras, the profit tax is estimated at 15%.
• If the rate of profits from selling the property ranges between 7 thousand to 18 thousand Turkish liras, it is estimated at 25%.
• If the rate of profits from selling the property ranges between 18 thousand to 40 thousand Turkish liras, it is estimated at 27%.
• If the rate of profits from selling the property is more than 40 thousand Turkish liras, it is estimated at 35%.

Tax Exemptions

Not all projects in Turkey are linked to tax payment laws, there are laws that take into account the investor's situation, encourage you, and give you benefit from the advantages of tax exemptions, including:

- If you sell the property after 5 years of owning it.

- If your profit rate from selling the property is less than 6 thousand Turkish liras.

In nutshell

Dear Investor: We gave you a brief presentation to know the taxes and prices of companies in Turkey, an explanation of the privileges you get when investing in Turkey, and a proposal for multiple options that suit your financial capabilities, meet your great ambitions, and your wild desires. 

We are very pleased to ask any inquiry in this regard, please now request assistance from Trustus Consultancy Company, and be fully confident, that we are your honest advisor that you trust will provide the sincerest advice, and guide you to your desired future.

Edited by: Trustus Consultancy^©