NLI Global · Legal FAQ

Answers to the questions
our clients ask most

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

Practice Area 01

Turkish Citizenship
by Investment

Investment thresholds, timelines, family inclusion, due diligence, and what happens after your passport is issued.

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What is the minimum investment required for Turkish citizenship?

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

How long does the citizenship process take?

From instruction to passport issuance, 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 the relevant ministry. We manage the full timeline and keep you informed at each stage — there are no procedural steps you need to handle directly.

Can my family be included in the application?

Yes. Your spouse and children under 18 are included in the same application at no additional investment threshold. Each family member receives an independent Turkish passport and citizenship status in their own right. Children aged 18 and over must submit a separate application. We prepare all family member documentation as part of the single instruction.

Do I need to live in Turkey to obtain or maintain citizenship?

No. Turkish citizenship carries no minimum residency requirement — before, during, or after naturalisation. You are not required to live in Turkey or spend any minimum time in the country. A short-term residence permit is required for the application process, but this does not impose a residency obligation.

Does Turkey allow dual citizenship?

Yes. Turkey permits dual and multiple citizenship without restriction on the Turkish side. You are not required to renounce your existing citizenship. Whether your current nationality also permits dual citizenship is a matter for your home country's law — we advise on this point during the initial assessment.

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

In most cases, you are not required to be present in Turkey throughout the process. We act under a notarised power of attorney, which allows us to represent you at government offices, land registry appointments, notaries, and all official filings. Some applicants choose to be present for specific stages — this can be arranged — but it is not a legal requirement.

What is the most commonly used investment route?

Real estate is by far the most widely used route, accounting for the majority of approved applications. The $400,000 threshold is lower than other routes in relative terms, the property retains underlying market value, and the legal process is well established. We conduct full title deed verification and legal due diligence on every property before any commitment is made.

What legal checks do you conduct before the investment?

For real estate, we conduct a full land registry search covering ownership chain, encumbrances, mortgage status, court orders, and citizenship eligibility. We verify that the property has not been used in a prior citizenship application and confirm the valuation meets the statutory threshold. No purchase agreement is executed before this process is complete. For other routes, we verify fund or institution eligibility and confirm statutory compliance before any funds are committed.

Can I sell the property after receiving my passport?

Yes, but only after the mandatory three-year holding period has elapsed. Selling before this period expires constitutes a breach of the citizenship conditions and could result in revocation of the citizenship grant. We track all holding period milestones and notify you when the restriction lapses.

What are the tax implications of Turkish citizenship?

Turkish citizenship does not automatically create a tax residency obligation. Tax residency in Turkey is determined by physical presence — spending more than 183 days per year in Turkey — not by citizenship status. However, rental income from Turkish property is subject to Turkish income tax regardless of your residency. We coordinate tax registration as part of the real estate acquisition process and can advise on your specific position.

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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 own property in Turkey?

Yes. Foreign nationals from most countries can own freehold property in Turkey without a local partner and without any requirement to establish a Turkish company. The legal basis is Article 35 of the Land Registry Law, as amended in 2012. Restrictions apply only in certain military zones and to nationals of a limited number of countries — we confirm eligibility for your nationality during the initial assessment. There are no limits on the number of properties a foreigner may own, subject to certain area-based limits in designated zones.

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

The Tapu is the official title deed registered at the land registry (Tapu Sicil Müdürlüğü). It is the only legally recognised proof of property ownership in Turkey. Before any Tapu transfer, we conduct a full land registry search to confirm the ownership chain is clean, there are no encumbrances, mortgages, court orders, or annotations that could affect the transfer, and the seller has the legal capacity to sell. This search is the most critical step in any transaction.

What does legal due diligence cover?

Our due diligence covers the full legal status of the property — ownership chain verification, encumbrance and mortgage search, court order and annotation check, zoning and planning status, and citizenship eligibility where applicable. For citizenship purchases, we also confirm the property has not been previously used in a citizenship application and that the government valuation meets the $400,000 statutory threshold. No purchase contract is signed and no funds are transferred until this process is complete.

How long does a real estate transaction take?

A standard purchase transaction from instruction to title deed transfer typically concludes within 4 to 8 weeks, depending on the property, the seller's responsiveness, and whether financing is involved. The main variables are the time required for the government valuation report and any delays at the land registry. We manage the entire timeline on your behalf and keep you updated at each stage.

Do I need to be in Turkey to complete the purchase?

No. The entire transaction can be completed remotely under a notarised power of attorney. We attend the land registry appointment, sign all transfer documents, and manage every government interaction on your behalf. You receive the completed title deed. Many of our clients complete their Istanbul property purchase without visiting Turkey at all — though some choose to be present for the land registry transfer, which can be arranged.

What taxes apply to a property purchase in Turkey?

The main costs on acquisition are title deed transfer tax at 4% of the declared value, shared equally between buyer and seller by convention, and the government valuation report fee. VAT at 1%, 8%, or 18% may apply to new-build properties depending on the property size and developer's tax status — resale properties are generally VAT-exempt. Annual property tax (emlak vergisi) applies from the year following acquisition. We provide a full cost schedule before you commit.

What is involved in an eviction or rent adjustment proceeding?

Eviction proceedings in Turkey are governed by the Turkish Code of Obligations and must be initiated through the enforcement courts or civil courts depending on the grounds. The most common grounds are non-payment of rent, expiry of the lease term, or the owner's need of the property. Rent adjustment proceedings allow landlords to seek market-rate increases beyond the statutory CPI cap where the current rent has become disproportionate. We manage both processes from initial notice through to court proceedings and enforcement.

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

We obtain a notarised power of attorney from you — this can be signed before a notary public in your home country and apostilled — which authorises us to act on your behalf for all legal steps in Turkey. Under this authority, we open your Turkish tax number, coordinate the bank account if required, attend all government appointments, sign the purchase contract, and complete the title deed transfer. We provide a full written report and scan of the completed Tapu as soon as the transfer is registered.

Can a property qualify for both investment and citizenship purposes?

Yes — many clients purchase Istanbul property both as an investment and as a qualifying route to citizenship. The property must meet the $400,000 statutory threshold, pass our legal due diligence, and receive a government valuation confirming the price. We manage both the real estate transaction and the citizenship application as a coordinated process, which reduces overall timeline and ensures all legal conditions are met for both purposes.

What are the main legal risks in a Turkish property purchase?

The most material risks are title defects, undisclosed encumbrances, mortgage obligations, and planning status irregularities — all of which are only discoverable through a proper land registry search and municipal records review. A secondary risk is purchasing a property that has already been used in a prior citizenship application, which would disqualify it from a new citizenship route. We conduct a comprehensive search covering all of these issues before any funds move or documents are signed.

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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 are available to foreign nationals in Turkey?

Turkish immigration law, under Law No. 6458, provides for several residence permit categories: Short-Term Residence Permit (up to two years, renewable — covers property ownership, business activity, and tourism-to-residence conversion), Long-Term Residence Permit (indefinite, available after eight years of lawful residence), Family Residence Permit (for dependants of Turkish citizens or permit holders), and Student Residence Permit. The appropriate category depends on your purpose of stay, and errors in category selection are a common cause of application rejection.

How is a work permit obtained in Turkey?

Work permits in Turkey are issued by the Ministry of Labour and Social Security and require employer sponsorship. The employer must be a registered Turkish legal entity and must meet quota requirements — in most cases, the ratio of foreign employees to Turkish staff is capped at 1 in 5. The application is submitted jointly by the employer and the foreign national, with the employer filing first through the Ministry's online system. We manage the process on behalf of both parties, ensuring the documentation meets current regulatory standards and the filing is submitted within the required windows.

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

A residence permit authorises you to live in Turkey but does not grant the right to work. A work permit is issued separately and, once granted, also functions as a residence permit for the duration of its validity — you do not need a separate residence permit while holding a valid work permit. The citizenship by investment route requires neither a work permit nor an active residence permit beyond the initial short-term permit obtained during the application process.

What is an apostille and when is it required?

An apostille is a standardised international certification issued under the Hague Convention of 1961, confirming the authenticity of a public document — such as a birth certificate, marriage certificate, or criminal record — for use in a foreign country. Turkish immigration authorities require apostilles on all foreign public documents submitted in support of permit and citizenship applications. The apostille must be obtained in the country where the document was issued, and the document must then be translated into Turkish by a certified translator. We manage this process as part of every immigration instruction.

Can family members be included in a residence permit application?

Yes. Spouses and dependent children of residence permit holders can apply for a Family Residence Permit, provided the sponsor has held a valid permit for at least one year and meets the minimum income threshold set by the Ministry of Interior. The family permit is issued for up to three years and is tied to the duration of the sponsor's permit. Children under 18 are covered — those over 18 must apply in their own right under the appropriate category.

What are the most common reasons for permit application rejection?

The most frequent grounds for rejection are: missing or improperly apostilled documents, incorrectly certified translations, expired supporting documents, failure to appear at the scheduled appointment, or applying under the wrong permit category. A single missing apostille can suspend an application for months. Our process is structured to identify every document requirement for your specific situation before submission, so that no filing is incomplete at the point of appointment.

Do I need to be in Turkey to apply for a residence permit?

The initial online application can be submitted from outside Turkey, but you must attend the scheduled appointment in person at the Provincial Directorate of Migration Management (İl Göç İdaresi Müdürlüğü) on the date assigned by the system. Failure to attend forfeits the appointment and requires a new application cycle. We prepare all documentation in advance and attend the appointment alongside you to manage any queries from the authorities.

Can I work as a freelancer or run an online business in Turkey on a residence permit?

A standard short-term residence permit does not authorise you to work for a Turkish employer or operate a business generating Turkish-sourced income. Freelancers generating income from foreign clients while residing in Turkey are technically required to register with the tax authorities and may require additional permits depending on the nature and structure of their work. We assess the specific situation and advise on the legally compliant structure before any application is submitted.

How long does a residence permit application take?

Processing times vary by permit category and current authority workload. Short-term residence permits typically take between 4 and 10 weeks from appointment to card issuance. Work permits are issued by a separate ministry and can take 3 to 8 weeks once the employer's filing is confirmed as complete. Citizenship by investment follows its own timeline of 6 to 8 months. We give you a realistic expectation for your specific category at the outset and keep you updated throughout.

What is a notarised power of attorney and do I need one?

A notarised power of attorney (POA) is a legal document, authenticated by a notary public, authorising NLI Global to act on your behalf for specified legal matters in Turkey. For most immigration filings — permit renewals, registration updates, and document submissions — a POA allows us to act without your physical presence. POAs issued abroad must be apostilled and may need certified translation into Turkish. We advise whether a POA is appropriate for your specific instruction and provide a template for issue in your country.

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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 a foreign national own 100% of a Turkish company?

Yes. Turkish law permits full foreign ownership of most entity types, including the Limited Liability Company (LTD) and the Joint Stock Company (AŞ), without any requirement for a Turkish national partner or shareholder. Exceptions apply in certain regulated sectors — including media, aviation, maritime transport, and private security — which retain foreign ownership restrictions under sector-specific legislation. We identify any applicable restrictions for your business activity before the entity type and structure are determined.

Which entity type is right for my business?

The appropriate entity depends on your ownership structure, planned activity, capitalisation requirements, and governance preferences. The Limited Liability Company (LTD) is the most widely used structure for foreign investors — it requires a minimum of one shareholder, a minimum capital of 10,000 TL, and a single director. The Joint Stock Company (AŞ) is more suitable for companies with multiple investors, planned share issuances, or those operating in regulated sectors requiring AŞ structure. Liaison offices and branch offices are available for foreign companies seeking a Turkish presence without establishing a separate legal entity. We advise on the correct structure before any formation steps begin.

How long does company registration take in Turkey?

A standard LTD or AŞ registration at the Istanbul Trade Registry typically completes within 3 to 7 business days once all documents are in order and filed. The main timeline variables are the time required to prepare and notarise the articles of association, obtain apostilled foreign documents, and make the statutory capital deposit. We manage the full process and give you a realistic timeline from the point of instruction.

What is the minimum capital requirement?

The minimum capital requirements under the Turkish Commercial Code are: LTD — 10,000 Turkish Lira; AŞ — 250,000 Turkish Lira; AŞ requiring a public offering — 500,000 Turkish Lira. The capital must be deposited into a blocked bank account in the company's name before registration, and a bank receipt confirming the deposit is required as part of the Trade Registry filing. At least 25% of the AŞ capital must be paid in cash at the point of registration; the remainder may be paid within 24 months. For LTD companies, there is no mandatory instalment structure.

Do I need to be in Turkey to set up and manage my company?

No. The full formation process can be completed remotely under a notarised power of attorney. We attend the Trade Registry, sign all formation documents, open the company bank account, and complete tax registration on your behalf. Most of our international clients manage their Turkish entities from abroad throughout the lifetime of the company. For ongoing management, we can act as registered legal representative and coordinate all statutory filings without requiring your physical presence in Turkey.

What permits or licences does my company need?

Standard commercial activities — trading, consulting, and most service businesses — operate under a general trade licence obtained at the point of Trade Registry registration. Regulated sectors require additional authorisations from the relevant ministry or regulatory body. These include: financial services (BDDK / CMB), healthcare (Ministry of Health), food and hospitality (municipal licence), education (Ministry of National Education), import/export under customs classification, and construction under municipal building permits. We assess your business activity and identify every licence required before registration so that operations can begin without procedural gaps.

What taxes apply to a Turkish company?

Turkish companies are subject to corporate income tax at 25% on Turkey-sourced profits. Dividend distributions to foreign shareholders are subject to a 10% withholding tax, which may be reduced under an applicable double taxation avoidance treaty — Turkey has treaties with over 85 countries. VAT at 20% applies to most goods and services; reduced rates of 10% and 1% apply to specific categories. Companies with employees are also subject to employer social security contributions. We advise on the appropriate tax structure before formation and manage all ongoing filing obligations.

Can I review and negotiate contracts with Turkish suppliers or partners?

Contract review and negotiation is one of our core ongoing services for Turkish companies. We review every clause, identify every risk, and negotiate clear, enforceable terms on your behalf — in both Turkish and English. Turkish contract law contains specific provisions that differ materially from most Western legal systems, including implied duties, penalty clause limitations, and notice requirements. You do not execute any commercial contract in Turkey without a full legal assessment of what you are agreeing to and what remedies are available if terms are not met.

What ongoing legal obligations apply after registration?

Turkish companies are subject to ongoing annual filing, tax declaration, and corporate governance obligations from the date of registration. These include monthly VAT declarations, quarterly provisional tax filings, annual corporate tax returns, Trade Registry annual report submissions, and general assembly minutes. Board resolutions, share transfers, and any changes to the articles of association must also be filed with the Trade Registry. We manage all of these on your behalf as part of our ongoing corporate legal support.

What is the difference between a branch office and a liaison office?

A branch office is an extension of a foreign company in Turkey — it can conduct commercial activities and generate revenue but has no separate legal personality from the parent company. A liaison office is authorised solely for market research, promotion, and coordination activities — it cannot generate revenue or enter commercial contracts in Turkey. Both require Ministry of Economy approval and must be renewed periodically. The choice depends on whether you need a commercially active Turkish presence or merely a representative function — we advise on the correct structure for your operational model.

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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 steps are required to acquire a Turkish company?

A Turkish company acquisition involves: legal and financial due diligence, share purchase agreement drafting and negotiation, regulatory clearance where applicable, shareholder approval, Trade Registry filing of the share transfer, and post-acquisition integration of governance and compliance obligations. For acquisitions in regulated sectors — banking, energy, telecommunications, healthcare — competition authority (Rekabet Kurumu) notification may also be required. We manage the full legal process from initial due diligence through to completed ownership transfer and post-acquisition restructuring.

What does legal due diligence cover in an M&A transaction?

Our M&A due diligence covers the full legal profile of the target entity: corporate structure and ownership verification, Trade Registry filings and article history, material contracts and supplier agreements, employment obligations and pending disputes, regulatory licences and their transferability, tax compliance status, and outstanding litigation or enforcement proceedings. We produce a structured due diligence report identifying every material legal issue before any price adjustment or deal structuring decision is made.

How is a share transfer executed in Turkey?

For a Limited Liability Company (LTD), share transfers must be executed before a notary public and registered with the Trade Registry to become legally effective. The transfer is ineffective between the parties and unenforceable against third parties until the Trade Registry annotation is complete. For a Joint Stock Company (AŞ), the transfer procedure depends on whether the shares are bearer or registered — each carries different documentation and endorsement requirements. We prepare all transfer documentation and manage the full notarisation and registry process.

What are the AML compliance obligations for Turkish companies?

Turkey's anti-money laundering framework is governed by Law No. 5549 on Prevention of Laundering Proceeds of Crime and administered by MASAK (Financial Crimes Investigation Board). Obligations apply to all companies in designated sectors — including real estate, financial services, asset management, and legal and accounting services — and require: customer due diligence (KYC), beneficial ownership disclosure, suspicious transaction reporting, and record retention. Non-compliance carries significant administrative and criminal liability. We conduct an AML compliance audit, implement the required internal procedures, and provide ongoing compliance management for companies subject to these obligations.

Do I need to be physically present in Turkey to manage a Turkish company?

No. Turkish companies can be fully managed remotely by foreign shareholders and directors through a properly structured power of attorney arrangement. Board resolutions, general assembly decisions, and management instructions can be executed and filed without the director being present in Turkey. We act as legal representative for many international clients managing their Turkish entities from abroad, handling all Trade Registry filings, government correspondence, and statutory compliance on their behalf.

What are the requirements for holding a general assembly?

Turkish companies are required to hold an Ordinary General Assembly within three months of the close of each financial year to approve the annual accounts, profit distribution decisions, and board appointments. An Extraordinary General Assembly can be convened at any time by the board or on the written request of shareholders holding at least 10% of the capital. Notice requirements, quorum thresholds, and voting majorities vary by resolution type and are set by the Turkish Commercial Code and the company's articles of association. We prepare the agenda, minute the assembly, and file the results with the Trade Registry.

Can a foreign company enter a joint venture with a Turkish partner?

Yes. Joint ventures in Turkey are typically structured as a jointly owned Turkish company (LTD or AŞ), with the foreign and Turkish parties as co-shareholders. The joint venture agreement defines the governance rights, profit distribution, management authority, deadlock resolution mechanisms, and exit provisions. We draft and negotiate joint venture agreements and manage the company formation, ensuring that the foreign party's position is protected under both the agreement and the Turkish Commercial Code's shareholder rights framework.

What are the ongoing legal obligations of a Turkish company's board?

Board members of Turkish companies are subject to fiduciary duties, loyalty obligations, and personal liability provisions under the Turkish Commercial Code. Ongoing obligations include: convening general assemblies within statutory deadlines, filing any changes to the company's articles or management structure with the Trade Registry, maintaining accurate corporate records, and ensuring the company meets its annual reporting and tax obligations. Personal liability can attach to board members for company tax debts and certain regulatory violations. We advise boards on their obligations and ensure all filings are made within statutory deadlines.

Can a corporate entity (not an individual) be a shareholder in a Turkish company?

Yes. Foreign and Turkish corporate entities can hold shares in Turkish companies without restriction. The corporate shareholder must be identified in the Trade Registry through its constituent documents — articles of association, certificate of incorporation, and authorised signatory list — each of which must be apostilled and, where applicable, translated into Turkish. We prepare the complete corporate shareholder documentation package and manage the Trade Registry filing process.

What should I know before signing a commercial contract in Turkey?

Turkish contract law contains specific provisions that differ materially from most common law and civil law systems, including: implied good faith obligations, limitations on contractual penalty clauses, mandatory notice periods for termination, and specific rules on adaptation of contracts in changed circumstances. Contracts signed in Turkey are presumed to be subject to Turkish law unless otherwise agreed — and even where foreign law is chosen, Turkish mandatory rules may still apply. We review every commercial contract before signature and advise on any clauses that carry particular risk under Turkish law.

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