NLI Global · Legal FAQ

Answers to the questions
our clients ask most

Five practice areas. Fifty questions. All written by the independent legal team that handles these matters every day.

Disclaimer: NLI Global is an independent legal consultancy and law firm providing legal representation and legal advisory services. We do not issue or directly process government documents or status grants.

Practice Area 01

Legal Consultancy for Turkish
Citizenship by Investment

Statutory investment thresholds, legal procedures, family qualification rules, due diligence, and legal obligations following naturalisation under Turkish law.

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What is the minimum statutory investment required for Turkish citizenship legal qualification?

The current statutory minimum for the real estate route is $400,000 USD under Turkish immigration law. Other routes — bank deposit, government bonds, and venture capital fund contribution — carry their own statutory thresholds set by the relevant government ministry. The investment must be maintained for a mandatory three-year holding period following government approval. As legal advisors, we verify the applicable threshold and property eligibility for your chosen route before any contractual commitment is made.

How long does the legal process typically take?

From legal instruction to official decision by relevant government authorities, the process typically takes between 6 and 8 months, depending on the investment route, the completeness of the applicant's documentation, and current processing volumes at government ministries. Our legal team manages all procedural filings, document preparation, and official follow-ups on your behalf.

Can my family be included in the legal application?

Yes. Under Turkish law, your spouse and children under 18 can be included in the same application without requiring an additional investment threshold. Upon official approval by the authorities, each family member is granted citizenship status under Turkish law. Children aged 18 and over must qualify under an independent application. We prepare all family legal documentation as part of a single coordinated instruction.

Do I need to live in Turkey to apply for or maintain citizenship status?

No. Turkish law imposes no minimum physical residency requirement — before, during, or after naturalisation. You are not legally required to reside in Turkey or spend a minimum number of days in the country. A temporary short-term residence permit is required solely for procedural processing, which our legal team assists in obtaining.

Does Turkey permit dual citizenship under its legal framework?

Yes. Turkish legislation allows dual and multiple citizenship without requiring you to renounce your existing nationality. Whether your country of origin permits dual citizenship depends on its domestic laws — our legal team provides a preliminary legal assessment on this during your initial consultation.

Do I need to be physically present in Turkey during the legal process?

In most cases, you are not required to be present in Turkey throughout the process. We act under a notarised power of attorney (POA), authorizing our lawyers to represent you before land registries, notary offices, government bureaus, and official filings. Certain stages may require minimal presence or biometric submission, which we coordinate according to your schedule.

What is the most common investment route under Turkish law?

Real estate acquisition is the most widely utilized legal route for qualifying under the statutory program. The $400,000 threshold allows investors to acquire real property while meeting statutory eligibility conditions. NLI Global conducts comprehensive title deed verification, encumbrance checks, and valuation reviews before any property purchase agreement is finalized.

What legal due diligence checks do you conduct before an investment?

For real estate investments, our legal team conducts a full land registry title search covering ownership chains, mortgages, liens, court attachments, and statutory eligibility checks. We confirm that the property has not been involved in prior qualifying applications and that official valuation reports comply with government regulations. For capital deposits or fund investments, we verify banking compliance and statutory requirements prior to transfer.

Can I sell the qualifying property after citizenship status is granted?

Yes, but only after the mandatory 3-year statutory holding period has expired, as registered in the land registry annotation. Transferring or selling the property before this period lapses violates statutory conditions and may impact legal status. We assist in tracking holding period annotations and handling the legal removal of land registry encumbrances upon completion of the term.

What are the tax implications of acquiring Turkish citizenship?

Holding citizenship in Turkey does not automatically establish tax residency. Tax residency under Turkish law is determined by physical presence (spending more than 183 days in a calendar year in Turkey) or primary center of legal/economic interest. However, local real estate ownership or local income remains subject to Turkish tax laws. Our legal team provides advice on tax registration and structuring associated with real property transactions.

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Practice Area 02

Real Estate
Law

Title deed verification, due diligence, transaction timelines, foreign ownership rights, and lease and eviction proceedings.

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Can foreign nationals legally own property in Turkey?

Yes. Foreign nationals from designated eligible countries can hold direct freehold title in Turkey under Article 35 of the Land Registry Law. Foreign individuals do not need a local partner or company entity to acquire real estate, though statutory surface-area limits and military zone restrictions apply. Our legal team verifies individual nationality eligibility and property zoning during pre-acquisition due diligence.

What is a title deed (Tapu) and why does it matter?

The Tapu is the official title deed issued and registered by the General Directorate of Land Registry and Cadastre (Tapu ve Kadastro Genel Müdürlüğü). It constitutes sole legal proof of property ownership in Turkey. Prior to title transfer, our lawyers execute official land registry searches to verify clean title, absence of third-party claims, mortgages, or restrictive court annotations.

What does legal due diligence cover in real estate transactions?

Our real estate due diligence includes title chain verification, encumbrance and mortgage checks, municipal zoning status, building permits (İskan), and statutory valuation alignment. Where property is acquired with a view toward investment programs, we also verify that the property complies with statutory rules established by government regulations. No purchase funds are released until due diligence clearance is confirmed.

How long does a real estate legal transaction take?

A standard property acquisition managed by our legal team typically concludes within 4 to 8 weeks, depending on title search outcomes, official appraisal completion, and land registry appointment availability. We handle all contract drafting, escrow setup, and official representation throughout the timeline.

Do I need to be physically in Turkey to complete a property purchase?

No. The entire conveyancing process can be conducted remotely via a power of attorney granted to our attorneys. We execute purchase agreements, represent you at the land registry appointment, oversee payment transfers, and secure the issued title deed on your behalf.

What statutory taxes apply to a property purchase in Turkey?

Acquisition costs typically include title transfer tax at 4% of declared transactional value (statutorily shared or negotiated between parties), land registry service fees, and official valuation fees. Depending on property type and seller tax status, VAT (1%, 10%, or 20%) may apply to commercial or new developments. We provide a full legal breakdown of transactional taxes prior to signing.

What is involved in an eviction or rent adjustment proceeding?

Tenancy matters in Turkey are regulated by the Turkish Code of Obligations. Eviction proceedings must be initiated through enforcement offices or civil courts under statutory grounds (such as non-payment, lease expiration undertakings, or owner's necessity). Rent adjustment litigation allows landlords to petition courts for market adjustment after five years of tenancy. NLI Global represents property owners in drafting notices, mediation, and court litigation.

How do you handle the purchase if I am buying remotely without visiting Turkey?

We draft a specific Power of Attorney (POA) for execution at a Turkish Embassy/Consulate or local notary with an Apostille. Under this POA, NLI Global secures your Turkish tax identification number, opens bank accounts if necessary, negotiates contracts, completes land registry filings, and verifies proper title registration on your behalf.

Can a property qualify for both investment purposes and statutory program requirements?

Yes — properties can be acquired for asset management while simultaneously meeting statutory criteria for government programs. The property must satisfy the $400,000 legal threshold, pass independent valuation criteria, and clear land registry compliance checks. Our legal team coordinates both real estate acquisition and legal qualification processes seamlessly.

What are the primary legal risks in a Turkish real estate transaction?

Primary legal risks include undisclosed liens, mortgages, unauthorized construction, lack of habitation certificates (İskan), or previous use in restricted statutory filings. Conducting formal due diligence with licensed legal counsel before transferring funds mitigates these risks effectively.

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Practice Area 03

Immigration
Law

Residence permits, work permits, family applications, apostille requirements, and the legal framework governing foreign nationals in Turkey.

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What types of residence permits exist under Turkish law?

Under Law No. 6458 on Foreigners and International Protection, categories include: Short-Term Residence Permits (for property owners, commercial activity, or tourism purposes), Long-Term Residence Permits (for continuous lawful residence over 8 years), Family Residence Permits (for dependants of citizens or permit holders), and Student Residence Permits. NLI Global evaluates legal criteria to determine proper application categories.

How is a work permit legally obtained in Turkey?

Work permits are adjudicated by the Ministry of Labour and Social Security. Applications require sponsorship by a registered Turkish legal entity meeting statutory workforce ratios (typically 5 Turkish citizens employed per foreign employee, with exceptions for specific executive roles). We represent employers and foreign professionals in preparing corporate filings and ministry applications.

What is the distinction between a residence permit and a work permit?

A residence permit authorizes lawful physical stay in Turkey but does not grant employment authorization. A work permit grants work authorization and statutory right of residence concurrently for its validity duration. Independent investment/advisory options follow distinct statutory provisions.

What is an Apostille and when is it legally required?

An Apostille is an official certification under the 1961 Hague Convention validating public documents (birth certificates, marriage certificates, corporate records) for official legal recognition in Turkey. Turkish administrative bodies require Apostilled (or consular-legalized) originals accompanied by certified Turkish translations. We oversee document legalization compliance for foreign documentation.

Can dependants be included in residence permit applications?

Yes. Spouses and minor children can apply for a Family Residence Permit sponsored by a principal permit holder who meets financial and health insurance statutory benchmarks. We coordinate family immigration filings to ensure aligned approval timelines.

What are common grounds for permit application rejection?

Common administrative rejection grounds include improperly legalized foreign records, deficient health insurance policies, incorrect permit category selection, or failing to meet income/address registration rules. Legal representation ensures all pre-filing requirements strictly conform to Directorate General of Migration Management directives.

Is personal presence required during residence permit processing?

Initial online filings can be submitted abroad or locally, but applicants must attend the designated in-person appointment at the Provincial Directorate of Migration Management for biometrics and original document verification. Our legal team prepares your file and accompanies you to the official appointment.

Can I perform work locally on a standard short-term residence permit?

No. A tourist or short-term residence permit does not grant authorization for local Turkish employment or local revenue generation. Foreign nationals operating businesses or remote structures must comply with tax and corporate regulations. We advise on establishing compliant corporate structures for local operations.

What are typical administrative processing timelines?

Short-term residence permits generally process within 4 to 10 weeks following the official appointment. Ministry of Labour work permit approvals average 3 to 8 weeks. Statutory investment advisory processes follow distinct ministry workflows (typically 6-8 months overall).

What is a Power of Attorney (POA) and how is it utilized in immigration law?

A notarised Power of Attorney authorizes NLI Global attorneys to represent you before administrative agencies, submission desks, and municipal offices in Turkey. A POA permits our lawyers to execute filings, track administrative decisions, and handle administrative appeals on your behalf.

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Practice Area 04

Company
Formation

Entity types, minimum capital, foreign ownership, registration timelines, permits, taxation, and ongoing compliance obligations.

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Can foreign nationals hold 100% equity in a Turkish company?

Yes. Under the Foreign Direct Investment Law (Law No. 4875), 100% foreign ownership is permitted for most commercial entities, including Limited Liability Companies (LTD) and Joint Stock Companies (AŞ), without requiring a local shareholder. Sector-specific rules apply in regulated markets like defense, energy, aviation, and media, where specialized licensing rules exist.

Which corporate entity structure is recommended for international investors?

The Limited Liability Company (LTD) is the standard vehicle for small to mid-sized commercial operations, requiring at least one shareholder and manager. The Joint Stock Company (AŞ) suits larger corporate ventures, capital market activities, or institutional structures requiring flexible board configurations. Foreign entities may also establish branch offices or liaison offices depending on operational objectives.

How long does Trade Registry incorporation take in Turkey?

Standard company incorporation at the Trade Registry typically completes within 3 to 7 business days once foreign corporate/personal records are duly apostilled, translated, and registered via MERSİS (Central Registry System). We handle the complete submission file.

What are statutory capital requirements under the Turkish Commercial Code?

Statutory minimum capital thresholds under current regulations are: LTD — 50,000 Turkish Lira; AŞ — 250,000 Turkish Lira (subject to statutory updates under Commercial Code decrees). Capital amounts must be deposited into corporate bank accounts according to statutory timeline rules. Our legal team confirms updated statutory capital requirements during setup.

Can incorporation be completed without traveling to Turkey?

Yes. Incorporation can be executed completely remotely using a notarized and Apostilled Power of Attorney. Our attorneys execute Articles of Association, register the entity at the Trade Registry, obtain tax numbers, and oversee bank account setup on your behalf.

What commercial permits or operating licenses are required?

General trading and consulting operations require municipal workplace opening licenses (Ruhsat) and tax office registration. Regulated activities (financial services, healthcare, logistics, energy, education) require formal ministry authorization. NLI Global reviews required operational permits prior to registration.

What tax liabilities apply to Turkish corporate entities?

Turkish corporate entities are subject to corporate income tax (standard rate 25%) on net profits. Dividend distributions to non-resident shareholders are subject to withholding tax (typically 10%, subject to Double Taxation Treaties). Value Added Tax (VAT) applies at standard 20% or reduced rates (1%, 10%) depending on goods and services.

Do you assist in reviewing and drafting commercial contracts?

Yes. Commercial contract review and negotiation is a primary core service. We draft and review supplier agreements, commercial leases, shareholder agreements, and distribution contracts in dual-language formats under Turkish contract law standards.

What ongoing corporate governance obligations apply post-incorporation?

Companies must fulfill monthly/quarterly tax declarations, annual general assembly meetings, Trade Registry updates for changes in management or capital, and statutory accounting maintenance under Turkish Tax Procedure Law.

What is the distinction between a Branch Office and a Liaison Office?

A Branch Office is a commercial extension of a foreign parent company allowed to engage in commercial transactions and generate local revenue. A Liaison Office (approved by the Ministry of Industry and Technology) is limited strictly to market research and representation, and cannot execute commercial sales or generate revenue in Turkey.

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Practice Area 05

Corporate
Law

M&A transactions, board governance, share transfers, AML compliance, joint ventures, and ongoing legal obligations for companies operating in Turkey.

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What legal procedures govern acquiring a Turkish company?

Corporate acquisitions require legal/financial due diligence, Share Purchase Agreement (SPA) and Shareholders' Agreement (SHA) drafting, regulatory merger control clearances (Competition Authority where applicable), notary share transfers, and Trade Registry publication. NLI Global structures M&A transactions from letter of intent to closing.

What scope is included in M&A legal due diligence?

Our legal due diligence evaluates corporate capital history, material commercial agreements, employment liabilities, pending litigation, regulatory compliance, IP assets, and real estate titles to identify legal risks before transaction execution.

How are share transfers legally executed in Turkey?

In Limited Liability Companies (LTD), share transfers require execution before a Turkish Notary Public, shareholder assembly approval, and registration at the Trade Registry. In Joint Stock Companies (AŞ), share transfers follow share certificate endorsement and share ledger entries, offering greater transactional flexibility.

What anti-money laundering (AML) legal compliance applies to entities?

Regulated businesses and corporate entities are subject to Law No. 5549 on Prevention of Laundering Proceeds of Crime monitored by MASAK (Financial Crimes Investigation Board). Rules require ultimate beneficial ownership (UBO) reporting, customer due diligence (KYC), and compliance recordkeeping.

Can foreign directors manage a Turkish corporate entity remotely?

Yes. Foreign managers and board members can direct corporate governance remotely under structured delegation resolution frameworks. NLI Global provides legal support for drafting board resolutions, general assembly minutes, and Trade Registry compliance filings.

What legal rules govern annual general assembly meetings?

Turkish entities must hold an Ordinary General Assembly annually within 3 months following the end of the financial year to approve financial statements, elect managers/directors, and decide dividend distribution. Resolutions must be minuted and filed with official registries as required by law.

How are joint ventures structured under Turkish corporate law?

Joint ventures are typically structured via a jointly owned corporate entity (LTD or AŞ) or an unincorporated joint venture contract. Key legal provisions include reserved matters, minority protection, deadlock resolution, non-compete covenants, and exit mechanisms.

What legal liabilities apply to company directors and managers?

Under the Turkish Commercial Code and Tax Procedure Law, company directors bear fiduciary duties of care and loyalty. Directors can face joint personal liability for unpaid public debts (taxes, social security duties) if the entity defaults. We advise boards on risk mitigation and compliance.

Can foreign legal entities act as corporate shareholders in a Turkish company?

Yes. Foreign corporate bodies can hold shares in Turkish entities. The foreign parent entity must submit apostilled incorporation certificates, articles of association, and board resolutions authorizing the investment to the Trade Registry.

What key legal principles apply to commercial contracts in Turkey?

Contracts are governed by the Turkish Code of Obligations. Mandatory rules apply regarding good faith performance, statutory interest caps, penalty clause judicial review, and formal notice rules. Choosing foreign governing law is permissible for international contracts, subject to mandatory local public policy provisions.

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