The Turkish economy has been growing steadily since 2012, making the country a very interesting location for investment. The state has simplified all procedures as much as possible, including obtaining a residence permit, which also attracts investors. Those who have invested more than $250,000 in a business or real estate can obtain citizenship under a simplified procedure, although where is it easier?

But what about those who have a great desire to live in comfort and make a good profit, but their start-up capital is more modest? I know several directions for starting a business in Turkey, which are ideal for even the most modest investor. No matter what capital you have, with our help you will always find a place for yourself under the gentle Turkish sun. Today I will tell you about all the features of small and medium-sized businesses in Turkey.

We open our own business in Turkey: what to look for at the start?

It is easy to open your own business in Turkey, but only if you understand all the subtleties and know the whole algorithm of actions. Then all procedures will take one working week. There are a number of nuances that must be taken into account before making such a responsible decision as starting your own business.

Firstly, foreign citizens can only open a company with the status of Limited Şirket here, which corresponds to a “Limited Liability Company” (LLC). The authorized capital of such a company for foreigners cannot be less than 100 thousand Turkish liras. However, this amount will need to be deposited into the account temporarily until the company is registered (that is, for a week), after which the funds can be withdrawn. The law does not require that this capital be kept in accounts at all times.

Secondly, the registration of the company is not free – it will cost you 5-10 thousand lira, depending on the package of documents that you will need to translate and notarize. Compared to Dubai or European cities, this is very little. As a legal address, you can specify the home office – the housing where you are registered. Optimally, if you specify the housing that you have already purchased or rented, and you have documents confirming registration.
Another important issue is taxes. When opening a business in another country, an investor must understand what tax burden he will face. In Turkey, Income Tax and Value Added Tax (VAT) are considered basic.

Income tax is 20%. For VAT, the rate depends on the industry and ranges from 1% to 18%. So, in the field of food production, the minimum rate is 1%. But in the sector of construction and sale of housing, it is the maximum – 18%. The advantage of Turkey is also that you do not have to hire your own accountant and financier – outsourcing is very common in the country. There are companies that provide such services for a small monthly subscription fee.

I can tell you more about taxation in any area, so please contact me or our specialists at any time. The Expert Property agency has created a whole department that deals with consulting and supporting the client’s business. Upon request, we analyze the industries, and then organize a turnkey company.

The next important nuance: the founder of the company can be one person – including a non-resident of the country, but in order to carry out commercial activities, you need to obtain the right to work in Turkey. Otherwise, your business will be blocked. But there is a quick way to circumvent this restriction – to hire a Turkish citizen.

Especially since you will still have to hire Turkish staff in your business. The fact is that there is a special law that requires 5 Turkish citizens to be employed for 1 foreigner. This is how local authorities deal with unemployment. The minimum wage in Turkey is now 3000 lira. Plus social insurance 1450 lira per month minimum. It turns out that one employee with the right to work will cost 4.5-5 thousand lira per month.

But how to transfer your company – your brainchild, to someone unfamiliar and even in another country? I can reassure you, there is a proven solution that will retain full control over your own business. When hiring a director with Turkish citizenship, it is necessary to draw up a contract and notarize it, which will indicate that all documents are gaining force only if they are certified by two signatures – the director and the founder of the company. That is, without your signature, the hired top manager will not be able to manage anything.

In fact, hiring not a fictitious, but a qualified local top manager in a new company is a very good decision, because he knows all the nuances and trends of a new market for you. But such a person still needs to be found and provided with a high salary. Then he will become your “guide” in a new country. However, you cannot rely on another person in everything, even if he is the best specialist in the world. You have to keep control of your business.

In any case, you need to be aware of the affairs and trends of the market in which you work. Therefore, I advise all investors in advance, even before the registration of the company, to live for some time in Turkey, to take a closer look at the customs and mentality, to find out the interests of your potential audience. If you are not familiar with the needs and moods of your potential customers or buyers, then the chances of commercial success will be much higher.

Ideally, if you do not just live here, but apply for the right to work, find a job in some company from the industry you are interested in, and only then, in a year and a half, start your own business.

This, however, does not mean that you have to incur losses all this time. Quite the opposite – you can invest your start-up capital in the purchase of housing, rent it out for short-term rent, for example, to tourists and receive passive income – do you have to live on something while you gain experience in a new country? And when you mature into a business, then sell this property, return your start-up capital, and reinvest it in the company of your dreams.

I would advise you to start your business activity with market and industry research, which can be ordered from a consulting company. This is necessary to see the full picture of demand and competition – both in Turkey as a whole and in individual regions. Without such analysis and without immersion in local traditions, the chances of success will be 50/50.

I also went through this – my first business in Turkey was not successful, but I learned useful experience from my failures, which I am now sharing with you. For 15 years, I have mastered all the intricacies of doing business in Turkey. Expert Property will expertly help you with starting a company, analyzing the industry and finding housing to generate passive income. I will add that real estate in Turkey is growing annually by 18-22%, which can also increase your start-up capital. We will tell you which real estate is best to invest in, so that you can then get out of it with a good return.

Whichever region or area you choose, the minimum threshold for entering a business in Turkey is 50 thousand dollars, and preferably euros. If you have less money, then you will not be able to achieve much. I myself went all this way when I came to Turkey for the first time, and therefore I know exactly what I am talking about.

Promising industries to start your business in Turkey

For some reason, immigrants from the CIS immediately ask me about beauty salons. Literally 80% of the questions start with how to open a beauty salon in Turkey. It is really easy to launch it, but the attitude towards the beauty industry here is not at all the same as in the post-Soviet space. This market is very specific, because local men and women do not attach such great importance to their appearance as in Eastern Europe and are not ready to spend a lot on salon services. This is a good example of the fact that before starting your business in another country, you must first understand the mentality of the residents.

Another example is the restaurant business. This is the second most popular query that is addressed to me: “How to open a restaurant in Turkey?”. I usually answer that even in the best of times, before the coronavirus, cafes and restaurants founded by foreigners could not compete with local establishments. 95% of them were closed after 1-2 years, because the owners do not take into account the tastes and gastronomic preferences of local residents.

It will be much easier and wiser to enter this area with some local home delivery franchise. The demand for sushi and fast food is growing most actively in Turkey and around the world – especially for doner (the Turkish version of shawarma). There are a number of local popular doner brands that offer franchises with minimal investment – up to $ 100,000. They have already developed the operational part, their specialists help to build a menu, a delivery system, train employees, etc. They will set up the entire operational part of the business for you.

I note that I do not advise you to buy expensive and large franchises at once, such as Starbucks. There is a high probability that you will not be able to return your investment even if there are many clients. They are too expensive to start their own business. A doner with home delivery can be a more profitable investment with a lower entry threshold.

Therefore, I advise you to take a closer look at less risky and not so capital-intensive areas that are less dependent on mentality and traditions. For example, car rental. This is the easiest and simplest business in terms of management. In addition, it requires a minimum staff. At the same time, the service is in high demand, especially among tourists. Including domestic tourists – Turks actively travel around their country. By handing over 5-10 cars, you can get 50-60 thousand euros per year. net profit.

Another type of business that is in demand here is the provision of services for hiring employees – HR outsourcing. When you work for two countries, you can easily set up a consulting company to attract specialists from your homeland to Turkey. But, again, it is necessary to launch such a business together with a Turkish partner who has an understanding of the local labor market and the necessary connections. Qualified personnel in IT and marketing, as well as in the service sector, are especially in demand now. There is still a great demand for translators and staff training.

The logistics industry will also be convenient for starting your own business in Turkey – the delivery of goods between cities. In the off-season, the services of small companies that serve hotels, shops, recreation areas, and less often supermarkets are in great demand here. Their best earnings are in autumn and spring. Another niche is home delivery of food and other goods to foreigners, which are difficult to find on open sale in Turkey. Only about 40 thousand Russian-speaking migrants live here, and many of the products familiar to the CIS are not in Turkey, which forms a good and stable demand.

Another interesting area for business can be construction. Turkish developers willingly cooperate with investors from abroad on a 50/50 basis. Even in the construction of elite and club houses. That is, the investor finances half of the cost of construction of the facility, and then receives half of the profit from the sale of housing.

If you do as I previously advised and even before registering a company buy yourself a house for rent, then you will already be familiar with this area, which will help you develop success. Moreover, we will be able to find you the most reliable partners in the construction market, where we have the highest expertise and the widest connections.

Write to me and then I can share with you the business ideas that work best in Turkey. I have a lot of them because I’ve been in business for two decades and can help with insights across a wide variety of industries. Moreover, my agency has many narrower specialists who are ready to provide advice on any issue.
Always with you, Tatiana Güneş