Recognition of Marriages Conducted Before ForeignAuthorities

For a marriage conducted abroad to be legally recognized inTurkey, it must comply with Turkish legal provisions and public orderregulations. Any marriage that contradicts Turkish law, such as one involvingindividuals below the legally defined marriage age, will not be recognized inTurkey under any circumstances.

Notification of Marriage Conducted Before ForeignAuthorities

According to Article 11 of the Marriage Regulation No. 2169,a marriage performed before the competent authorities of a foreign country isvalid in Turkey as long as it does not violate Turkish legal provisions.However, such marriages must be officially reported to Turkish authorities tobe legally recognized.

Timeframe for Notification

A marriage conducted before foreign authorities must bereported to Turkish authorities within 30 days from the date of the marriage.

Is the 30-Day Notification Period a Mandatory Deadline?

The 30-day period stipulated in the Marriage Regulation isnot a mandatory deadline. If this period expires, the marriage can still bereported; however, failure to notify within this timeframe may result in anadministrative fine.

Consequences of Delayed Notification

Turkish citizens who fail to report their foreign marriageswithin the 30-day period may be subject to administrative fines imposed by theauthorities.

Recognition of Foreign Marriages Through CourtProceedings

Reporting the marriage to Turkish authorities is not theonly way to ensure its legal recognition in Turkey. A marriage conducted beforeforeign authorities between a Turkish citizen and a foreign national—or betweentwo foreign nationals—can also be recognized in Turkey through a recognitionlawsuit (Tanıma Davası).

Without this formal recognition, the marriage will have nolegal effect in Turkey. For instance, if a Turkish citizen marries a Germannational in Germany but fails to notify Turkish authorities within 30 days ordoes not initiate a recognition lawsuit, they will still be considered legallysingle in Turkey.

Competent Court for Recognition Lawsuits

The competent court for a recognition lawsuit is the courtof the defendant’s domicile in Turkey. If the defendant has no domicile inTurkey, the case can be filed in the court of their last known residence. Inthe absence of both, the courts of Ankara, Istanbul, or Izmir areauthorized to handle such cases.

Is Personal Presence in Turkey Required for the Lawsuit?

It is not mandatory for the parties to be physically presentin Turkey to file a recognition lawsuit. Instead, they can appoint a lawyerregistered with the Turkish Bar Association to represent them in courtproceedings.

If you need assistance with the recognition of your foreignmarriage or any other legal matters related to family law, our experiencedlegal team is ready to guide you through the process efficiently andeffectively.

For personalized legal assistance, feel free to contact SARDAGLaw & Consultancy.

Constitutional Court Annuls Article 187 of the Turkish Civil Code: A Milestone for Women’s Rights

On February 22, 2023, the Constitutional Court of Turkey issued its decision (E: 2022/155, K: 2023/38), annulling Article 187 of the Turkish Civil Code. This article mandated that a married woman must take her husband’s surname and could only retain her maiden name alongside it if she wished.

Following an appeal from the Istanbul 8th Family Court, this annulment officially took effect on January 28, 2024, bringing an end to a legal provision that had been in force for nearly 98 years. This ruling is considered a significant advancement in the fight for gender equality and women’s personal rights in Turkey.

Previously, women who wished to retain their maiden names had to file a lawsuit to obtain permission. The Constitutional Court had previously taken steps in favor of women’s rights with its decision dated December 19, 2013 (2013/2187), allowing women to use their maiden names. Additionally, the Supreme Court of Appeals (Yargıtay) ruled on September 30, 2015 (2014/889 E., 2015/2011 K.) that women should be able to keep their maiden names. However, the inconsistency between legal regulations and judicial decisions created obstacles for women seeking to maintain their original surnames.

With the annulment of Article 187, it is expected that new regulations will be introduced, granting spouses the right to choose their preferred surname at the time of marriage registration. This change could also pave the way for men to adopt their spouse’s surname if they choose. Furthermore, women who previously had to change their surname upon marriage may now be provided with legal avenues to revert to their maiden names upon request.

This landmark decision represents a major step forward in ensuring gender equality in Turkey and is expected to contribute significantly to strengthening women’s rights and freedoms in legal and social contexts.

The Ultimate Guide to Investment-Based TurkishCitizenship

Introduction

Turkey’s Citizenship by Investment (CBI) program is one ofthe most sought-after options for investors looking to obtain a secondpassport. With a minimum investment of $400,000 in real estate or a financialcontribution to the Turkish economy, foreign investors can become Turkishcitizens within a few months. This article provides a detailed guide oneligibility, the application process, and the benefits of the program.

Eligibility & Investment Options

To qualify for Turkish citizenship, investors must chooseone of the following investment routes:

1-Real Estate Investment –Purchase property worth at least $400,000 and hold it for a minimum of threeyears.
2-Capital Investment – Deposit $500,000 in aTurkish bank, invest in government bonds, or contribute to a venture capitalfund.
3-Job Creation – Establish a businessthat employs at least 50 Turkish citizens.

Step-by-Step Application Process

 Step 1: Select YourInvestment Type – Decide on the investment route that best suits yourfinancial goals.
Step 2: Purchase Property or Make a Financial Investment – Ensure thatthe investment meets the minimum threshold and is verified by Turkishauthorities. 

Step 3: Obtain a Certificate of Conformity – This document confirms thatthe investment complies with Turkish citizenship regulations.
 Step 4: Apply for a Turkish Residence Permit – Although there is norequirement to reside in Turkey, a short-term residence permit is part of theapplication process.
Step 5: Submit Your Citizenship Application – The final step involvessubmitting your application and required documents to the Directorate Generalof Migration Management.

Key Benefits of Turkish Citizenship

* Visa-Free Travel– Turkish passport holders enjoy visa-free or visa-on-arrival access to 110+countries.
* No Residency Requirement – Investors do not need to live in Turkey tomaintain their citizenship.
* Dual Citizenship Allowed – Turkey permits dual citizenship, allowinginvestors to retain their original nationality.
* Access to a Strong Economy – Turkey’s growing economy and traderelationships provide significant business and investment opportunities.

If you are interested in obtaining Turkish citizenshipthrough investment, our experienced legal team can guide you through every stepof the process. Contact us today for expert legal advice and assistance!

Setting Up a Business in Turkey as a Foreigner

Why Start a Business in Turkey?

Turkey has become a prime destination for foreign entrepreneurs and investors due to its strategic location between Europe and Asia, dynamic economy, and business-friendly policies. The country offers a large consumer market, a skilled workforce, and access to international trade networks. Additionally, Turkey allows foreigners to establish businesses with 100% ownership, providing numerous investment incentives and tax advantages. Whether you are looking to start a new venture or expand your existing business, Turkey offers a stable and growing business environment.

Business Structures in Turkey

When setting up a business in Turkey, selecting the right legal structure is crucial. The main types of business entities available to foreign investors include:

1. Limited Liability Company (LLC)

• The most preferred business structure due to its flexibility and limited liability.
• Requires at least one shareholder and a minimum capital of 50,000.
• Suitable for small to medium-sized businesses.

2. Joint Stock Company (JSC)

• Ideal for larger businesses seeking investment and stock issuance options.
• Requires a minimum capital of 250,000.
• Shareholders’ liability is limited to their capital contributions.

3. Branch Office

• Suitable for foreign companies looking to operate in Turkey without establishing a separate legal entity.
• The parent company is fully responsible for the branch’s liabilities.

4. Liaison Office

• Cannot engage in commercial activities but serves as a representative office.
• Typically used for market research and networking before establishing a full-scale business.

Steps to Register a Business in Turkey

Establishing a business in Turkey involves several legal and administrative steps. Here’s a step-by-step guide:

1. Choose the Right Business Structure

Decide whether you want to set up an LLC, JSC, branch, or liaison office based on your business goals.

2. Obtain a Tax Number

Foreigners must apply for a Turkish tax number at the local tax office or online.

3. Prepare Required Documents

The necessary documents include:

• Passport copies of foreign shareholders
• Tax identification number
• Articles of Association (AoA)
• Signature declaration
• Notarized power of attorney (if applicable)

4. Register with the Trade Registry

• Submit all required documents to the Trade Registry Office.
• Obtain a company registration number.
• Publish the company details in the Turkish Trade Registry Gazette.

5. Open a Business Bank Account

• Deposit the required minimum capital.
• Register for tax and social security obligations.

6. Obtain Necessary Licenses and Permits

• Depending on the business activity, additional permits may be required.

7. Register for VAT and Social Security

• Obtain a VAT number for tax purposes.
• Enroll employees in the Turkish Social Security system.

Legal & Tax Considerations for Foreign Investors

Understanding Turkey’s tax system and legal requirements is essential for running a successful business.

Corporate Tax

• The standard corporate tax rate is 20% (subject to updates).
• Certain investment incentives and tax reductions are available.

Value Added Tax (VAT)

• VAT rates vary based on the business sector:
  • 1% (e.g., some food and agricultural products)
  • 8% (e.g., healthcare and education services)
  • 20% (general rate for most goods and services)

Work and Residence Permits

• Foreign business owners and employees need work and residence permits.
• Investors can apply for a self-employment residence permit.

Benefits of Partnering with a Legal Expert

Starting a business in a foreign country involves navigating complex regulations, contracts, and tax compliance. Partnering with an experienced law firm ensures:

• Seamless company registration without errors or delays.
• Proper drafting of legal agreements to protect your interests.
• Compliance with Turkish corporate laws and tax obligations.
• Efficient handling of work and residence permits for business owners and employees.

Start Your Business in Turkey with Expert Legal Support

Our law firm specializes in assisting foreign investors with company formation, legal documentation, and tax compliance in Turkey. We provide tailored legal solutions to ensure a smooth and legally sound business setup.

Contact us today for professional guidance on launching your business in Turkey!

The Impact of Recent Amendments to Turkish CitizenshipLaw on Foreign Investors

Turkey has long been a prime destination for foreign investors seeking citizenship through investment. The Turkish Citizenship by Investment(CBI) program has attracted individuals from around the world due to its straight forward process and numerous benefits. However, recent amendments to the Turkish Citizenship Law have introduced new regulations that investors must carefully consider before applying.

Key Changes in Turkish Citizenship by Investment

1. Increased Minimum Investment Requirements
   The Turkish government has periodically updated the financial thresholds for obtaining citizenship. The most notable change was the increase in the minimum real estate investment from $250,000 to $400,000 in mid-2022. There are on going discussions about potential future increases or additional investment options, making it crucial for investors to act promptly.
2. Stricter Property Ownership Rules
   Recent legal amendments have imposed tighter regulations on property purchases for citizenship applications. Foreign buyers must now ensure that the real estate they acquire has not been previously used for another investor’s citizenship application. Additionally, properties purchased through installment payments may no longer be eligible for the program.
3. Enhanced Due Diligence Measures
   To prevent fraud and ensure compliance with international financial regulations, Turkish authorities have strengthened background checks on applicants. Individuals applying for citizenship are now required to provide more comprehensive financial documentation and disclose their source of funds.
4. Regulations on Share Transfers and Business Investments
   The citizenship program is not limited to real estate investment. Foreigners can also obtain Turkish citizenship by investing at least $500,000 in fixed capital contributions, government bonds, or venture funds. However, new amendments have introduced stricter guidelines on share transfers to prevent misuse of corporate structures in the application process.
5. Potential Future Adjustments
   Turkish authorities regularly review the impact of the citizenship program on the national economy and housing market. Some experts anticipate further regulatory changes, particularly regarding eligibility criteria and required investment amounts. Investors should stay informed and consult legal professionals to navigate these evolving regulations.

Why Investors Should Act Now

Despite the new restrictions, Turkey remains one of the mostattractive destinations for investment-based citizenship. Its strategiclocation, visa-free travel opportunities, and favorable tax policies continueto make it a preferred choice for high-net-worth individuals. However, with thepossibility of additional legal changes, those considering Turkish citizenshipshould move forward with their applications before stricter regulations come into effect.

How We Can Assist You

Tax Advantages for Foreign Investors in Turkey

Turkey offers various tax incentives to attract foreigninvestors, making it a competitive destination for business and real estateinvestment. Understanding these tax benefits can help investors maximize theirreturns and ensure compliance with Turkish tax laws. This article explores keytax advantages available to foreign investors in Turkey.

1. Corporate Tax Incentives

Foreign investors who establish a company in Turkey canbenefit from reduced corporate tax rates and various exemptions. The standardcorporate tax rate is 25%, but certain sectors and regions offer taxreductions through investment incentive programs. Additionally, TechnologyDevelopment Zones (TDZs) and Free Trade Zones (FTZs) provide taxadvantages such as:

• Corporate tax exemptions for software and R&D companies in TDZs.
• Income tax exemptions for employees working in TDZs.
• VAT and customs duty exemptions for businesses in FTZs.

2. VAT Exemptions for Foreign Buyers

Foreign individuals and companies purchasing real estate inTurkey can benefit from Value Added Tax (VAT) exemptions if:

• The property is a newly built residential or commercial unit.
• The buyer does not reside in Turkey and pays in foreign currency.

This exemption significantly reduces property acquisitioncosts, making real estate investment more attractive.

3. Double Taxation Agreements (DTA)

Turkey has signed double taxation agreements withover 80 countries, preventing foreign investors from being taxed in both Turkeyand their home country on the same income. These agreements ensure:

• Lower withholding tax rates on dividends, interest, and royalties.
• Tax credits or exemptions for foreign income.

4. Incentives for Industrial and Strategic Investments

Turkey’s Investment Incentive Program offers taxreductions and exemptions for investors in key industries such as energy,manufacturing, and technology. Benefits include:

• Corporate tax reductions up to 70%.
• Social security premium support for employee salaries.
• Land allocation and customs duty exemptions for qualified projects.

5. Capital Gains Tax and Rental Income Tax Benefits

Foreign investors selling property in Turkey can benefitfrom capital gains tax exemptions if they hold the property for at leastfive years before selling. Additionally, rental income tax deductionsallow property owners to offset expenses such as maintenance and depreciation,reducing their taxable income.

Conclusion

Turkey’s tax incentives create a favorable environment forforeign investors in real estate and business sectors. However, navigatingthese regulations requires expert legal and financial guidance. Our law firmspecializes in assisting foreign investors with tax planning, compliance, andinvestment strategies. Contact us today for personalized legal support.