A German company can own 100% of a Turkish company and register it in a day once the documents are in order. Dividends paid to the German parent carry withholding tax of 5% if the German parent holds at least 25% of the Turkish company, and 15% otherwise. Germany is a party to the Apostille Convention, so German company documents are notarised, apostilled in Germany and then translated by a sworn translator in Turkey.
How much business do Turkey and Germany do?
Trade between Turkey and Germany reached USD 52 billion in 2025. More than 8,000 companies with German capital operate in Turkey. A bilateral investment treaty has been in force since 1965.
How are dividends to a German parent taxed?
Pending lawyer reviewA Turkish company pays 25% corporate income tax. When it pays a dividend to its German parent, Turkey withholds tax. The domestic rate is 15%. Under the tax treaty the rate is 5% if the German parent holds at least 25% of the Turkish company, 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 a German shareholder need?
Pending lawyer reviewGermany is a party to the Apostille Convention, so German company documents are notarised, apostilled in Germany 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 German staff to Turkey?
Pending lawyer reviewYes, 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 Germany and Turkey has been in force since 1965, which matters when you post staff. German citizens can enter Turkey without a visa for stays of up to 90 days. 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 a German supplier?
Pending lawyer reviewYou can start enforcement proceedings in Turkey without a judgment, and the debtor has 7 days to object. Germany and Turkey are both parties to the 1954 Hague Convention on Civil Procedure, which exempts German companies from posting security for costs in Turkish courts. There is no judgment treaty between the two countries, but Turkish courts accept that reciprocity exists in practice, so a final German judgment can be enforced in Turkey through an enforcement action. Routes, costs and fixed prices are on the debt collection page.
Who can help on the ground?
For introductions and trade events, the German-Turkish Chamber of Commerce and Industry (AHK Türkiye) 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
Pending lawyer reviewWhat is the dividend withholding tax between Turkey and Germany?
Turkey's domestic rate is 15%. Under the tax treaty the rate is 5% if the German parent holds at least 25% of the Turkish company, and 15% otherwise.
Do German company documents need an apostille for Turkey?
Germany is a party to the Apostille Convention, so German company documents are notarised, apostilled in Germany and then translated by a sworn translator in Turkey. No consular legalisation is needed.
Does a German creditor have to post security in Turkish courts?
Germany and Turkey are both parties to the 1954 Hague Convention on Civil Procedure, which exempts German companies from posting security for costs in Turkish courts.
Can a court judgment from Germany be enforced in Turkey?
There is no judgment treaty between the two countries, but Turkish courts accept that reciprocity exists in practice, so a final German judgment can be enforced in Turkey through an enforcement action.
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