Overview of Liaison Office Regulations in Turkey

The relatively recent foreign investment laws and regulations of Turkey have made it easy for foreign companies to set up representative (Liaison) offices in Turkey. Even though, liaison offices are not allowed to engage in commercial activities and dealings in Turkey, they are nevertheless an attractive option for companies who would like to gain regional expertise, develop local networks and even promote their goods and services to the Turkish market while benefiting from tax exemptions.

It is important to bear in mind that liaison offices are strictly forbidden to generate income in Turkey. Hence they are not allowed to make business deals (such as offering and accepting offers), issue invoices, or advertise for goods and services. Please see the list of activities allowed to be performed by liaison offices.

Since the activities of Liaison offices are closely monitored by the Ministry, liaison office representatives should be diligent in the way they introduce themselves to the public (i.e., refrain from using terms like ‘sales’ in the business cards of their employees). As liaison offices cannot generate income, their expenditures must be entirely financed from abroad. They cannot ask for transfer of profits except for registration and closure. Note that liaison offices are exempt from corporate tax. Liaison office employees receive their salary in foreign currency sent from abroad and therefore are not subject to income tax.

QUICK FACTS

Authorized Government Agency

Ministry of Industry and Technology – General Directorate on Incentive Management and Foreign Investment

Application Processing Times

15-20 business days from the date of application

Initial Permit Valid for

Maximum 3 years

Extension of Permit

Up to a maximum of 5 years

Extension of Permit for Regional Management Center

Up to a maximum of 10 years

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