An Austrian company can own 100% of a Turkish company and register it in a day once the documents are in order. Dividends paid to the Austrian parent carry withholding tax of 5% if the Austrian parent holds at least 25% of the Turkish company and the dividend is exempt from tax in Austria, and 15% otherwise. Austria is a party to the Apostille Convention, and a bilateral treaty allows Austrian judgments to be enforced in Turkey.
How much business do Turkey and Austria do?
Trade between Turkey and Austria reached USD 4.4 billion in 2025 according to the Turkish Ministry of Foreign Affairs. More than 250 Austrian subsidiaries operate in Turkey according to the Austrian Economic Chamber. Industrial goods move under the EU-Turkey Customs Union, and a bilateral investment treaty has been in force since 1992.
How are dividends to an Austrian parent taxed?
A Turkish company pays 25% corporate income tax. When it pays a dividend to its Austrian parent, Turkey withholds tax. The domestic rate is 15%. Under the tax treaty the rate is 5% if the Austrian parent directly holds at least 25% of the Turkish company and the dividend is exempt from tax in Austria, and 15% otherwise. Rates are from PwC Tax Summaries, reviewed in September 2026. The full table for all countries is in the tax chapter.
Which documents does an Austrian shareholder need?
Austria is a party to the Apostille Convention, so Austrian company documents are notarised, apostilled by the president of the competent regional court (Landesgericht) and then translated by a sworn translator in Turkey. No consular legalisation is needed.
- Company registry extract or certificate of activity
- Resolution to establish the Turkish company and appoint its representative
- Power of attorney, if the formation is handled without travel
- Passport copies of the managers
The full process and our fixed price are on the company formation page.
Can you post Austrian staff to Turkey?
Yes, with a work permit. The employer must have five Turkish employees for each foreign employee and paid-in capital of TRY 500,000, or meet the net sales or export test. A social security agreement between Austria and Turkey has been in force since December 2000, which matters when you post staff. Austrian citizens can enter Turkey without a visa for up to 90 days in any 180-day period. Entry rules are published by the Turkish Ministry of Foreign Affairs. Details are in the work permit chapter.
What if a Turkish customer does not pay an Austrian supplier?
You can start enforcement proceedings in Turkey without a judgment, and the debtor has 7 days to object. Austria and Turkey are both parties to the 1954 Hague Convention on Civil Procedure, which exempts Austrian companies from posting security for costs in Turkish courts. A 1989 agreement between Austria and Turkey on the recognition and enforcement of court decisions and settlements in civil and commercial matters has been in force since 1 November 1992. A final Austrian judgment can therefore be enforced in Turkey without proving reciprocity. Routes, costs and fixed prices are on the debt collection page.
Who can help on the ground?
For introductions and trade events, Advantage Austria in Istanbul, the trade office of the Austrian Economic Chamber, is the main bilateral business body. For the legal and tax side of your entry, we give you a written scope and one price.
Common questions
What is the dividend withholding tax between Turkey and Austria?
Turkey's domestic rate is 15%. Under the tax treaty the rate is 5% if the Austrian parent directly holds at least 25% of the Turkish company and the dividend is exempt from tax in Austria, and 15% otherwise.
Do Austrian company documents need an apostille for Turkey?
Austria is a party to the Apostille Convention, so Austrian company documents are notarised, apostilled by the president of the competent regional court (Landesgericht) and then translated by a sworn translator in Turkey. No consular legalisation is needed.
Does an Austrian creditor have to post security in Turkish courts?
Austria and Turkey are both parties to the 1954 Hague Convention on Civil Procedure, which exempts Austrian companies from posting security for costs in Turkish courts.
Can a court judgment from Austria be enforced in Turkey?
A 1989 agreement between Austria and Turkey on the recognition and enforcement of court decisions and settlements in civil and commercial matters has been in force since 1 November 1992. A final Austrian judgment can therefore be enforced in Turkey without proving reciprocity.
Related pages
Company types in Turkey compared
Compare Turkish company types for foreign investors: LLC, joint stock company, branch and liaison office. Capital, liability, tax and when each fits.
ReadTax obligations of foreign-owned companies in Turkey
Turkey tax rates for foreign-owned companies in 2026: 25% corporate tax, 20% VAT, 15% dividend withholding and treaty rates for Germany, NL, UK, UAE, USA.
ReadCan a foreign-owned Turkish company open a bank account?
Can a foreign-owned Turkish company open a bank account? Documents, beneficial owner rules, power of attorney, timelines and foreign currency rules.
ReadHow to recover money from a Turkish supplier
Advance payment lost or defective goods from a Turkish supplier? Notice deadlines under the CISG, enforcement, interim attachment, mediation and costs.
Read