Free zones in Turkey offer significant advantages to international businesses, including tax exemptions, customs relief, and simplified export operations. With over 18 designated free zones across Turkey—such as in Istanbul, Izmir, and Mersin—these regions serve as ideal gateways for global entrepreneurs. Istanbul Law Firm, a top-tier Turkish Law Firm, provides comprehensive legal assistance on how to establish a free zone company Turkey. Our Turkish Lawyers manage the entire setup process, from license applications to trade registry filings and tax planning. Recognized as the best lawyer firm in Turkey for foreign investment, we enable clients to launch legally secure and tax-efficient operations. Our English speaking lawyer in Turkey supports international clients with bilingual guidance at every step of the process.
1. What Is a Free Zone Company in Turkey?
A free zone company in Turkey operates within a designated geographical area that offers special economic regulations designed to attract foreign investment. Istanbul Law Firm explains that free zones allow 100% foreign ownership, offer customs and VAT exemptions, and provide regulatory flexibility. Our Turkish Lawyers assist clients in understanding the specific activities allowed in each zone, including manufacturing, trading, assembly, storage, or software services. We also assess whether a free zone setup suits your business model compared to mainland incorporation. Our English speaking lawyer in Turkey prepares jurisdiction comparisons and economic impact analyses.
Each Turkish free zone is managed by a regional directorate under the Ministry of Trade, with site-specific incentives and management rules. Istanbul Law Firm helps clients select the most suitable zone based on logistics, sector focus, and export orientation. Our Turkish Lawyers liaise directly with free zone authorities, handle documentation in Turkish, and ensure timely submission of application dossiers. We also provide insight into sector-based permits such as software approvals or R&D licenses. Our English speaking lawyer in Turkey supports investor presentations, interviews, and business plan submissions during the pre-approval stage.
Free zone companies can conduct operations in foreign currency, benefit from simplified customs processes, and enjoy exemptions from certain labor law provisions. Istanbul Law Firm structures your company in a way that maximizes these legal advantages while ensuring compliance with Turkish corporate and tax laws. Our Turkish Lawyers draft company statutes, lease agreements, and employment contracts tailored to free zone requirements. As the best lawyer firm in Turkey for corporate structuring, we help clients build scalable, tax-optimized entities. Our English speaking lawyer in Turkey ensures all legal documents are bilingual and ready for international board approval.
2. Legal Process for Setting Up a Free Zone Company
The legal setup of a free zone company in Turkey requires approval from the relevant Free Zone Directorate and subsequent trade registry procedures. Istanbul Law Firm manages the entire process starting with the application for an Operation License (Faaliyet Ruhsatı). Our Turkish Lawyers prepare the company’s project file, financial plans, activity scope, and site lease negotiations. We also assist in identifying whether a branch or limited company structure is more suitable. Our English speaking lawyer in Turkey communicates with free zone operators and investors to complete the licensing dossier seamlessly.
Once approval is granted, the company must be established through the Turkish Trade Registry system. Istanbul Law Firm handles name reservation, notary documents, chamber registration, and authorized signatory documentation. Our Turkish Lawyers also draft Articles of Association that reflect free zone regulations and Ministry of Trade expectations. We assist with the deposit of share capital, tax office registration, and mandatory social security enrollment. Our English speaking lawyer in Turkey ensures all procedures are properly translated and understood by foreign partners.
The entire incorporation process may take 2 to 4 weeks depending on the zone and complexity of your business. Istanbul Law Firm coordinates every step with the Free Zone Directorate, Ministry officials, and the tax office. Our Turkish Lawyers resolve any document deficiencies or delays to avoid setbacks. As the best lawyer firm in Turkey for fast, compliant incorporation, we deliver full legal clarity from start to finish. Our English speaking lawyer in Turkey provides status reports and investor briefings throughout the formation timeline.
3. Tax Benefits and Incentives for Free Zone Companies
One of the main reasons investors choose to establish a free zone company Turkey is the exceptional tax advantages available. Istanbul Law Firm guides clients in understanding the full scope of fiscal exemptions under Turkish Free Zones Law No. 3218. Our Turkish Lawyers explain how companies engaged in export activities may enjoy corporate income tax exemption, VAT relief, and customs duty exemption. We analyze whether your business model qualifies and structure your financial flows accordingly. Our English speaking lawyer in Turkey prepares bilingual fiscal roadmaps and tax planning strategies tailored to free zone investors.
Free zone companies can also benefit from employee income tax exemption when over 85% of production or services are export-linked. Istanbul Law Firm calculates qualification thresholds, monitors financial ratios, and prepares compliance reports. Our Turkish Lawyers draft salary agreements and payroll structures optimized for exemption eligibility. We also assist in resolving tax audits or post-incorporation disputes with the Revenue Administration. Our English speaking lawyer in Turkey ensures foreign executives understand how to maintain exemption status and avoid disqualification.
Additional incentives include exemption from stamp duty, property tax, and real estate acquisition tax for operations inside the zone. Istanbul Law Firm helps clients register their leases, investment declarations, and site improvements in a way that maximizes tax efficiency. Our Turkish Lawyers prepare tax ruling applications when legal clarity is required. As the best lawyer firm in Turkey for fiscal optimization in free zones, we protect your company’s economic advantage. Our English speaking lawyer in Turkey provides strategic memos and financial integration plans for global finance teams.
4. Eligible Sectors and Operational Scope
Not all sectors are eligible to operate in free zones, and some require prior approval. Istanbul Law Firm advises clients on whether their planned activity—such as manufacturing, logistics, software development, or e-commerce—meets legal requirements. Our Turkish Lawyers assist in choosing the correct NACE codes, drafting operational scopes, and securing technical clearances from free zone authorities. We help clients avoid rejections by ensuring project compatibility with sectoral and regional priorities. Our English speaking lawyer in Turkey translates business models into legally compliant licensing strategies.
Free zone companies can conduct export, import, manufacturing, R&D, and service activities depending on the zone’s focus. Istanbul Law Firm aligns operational design with these permitted scopes to maximize legal and commercial feasibility. Our Turkish Lawyers also advise on split operations—where certain services remain in the free zone while others are conducted under a mainland company. We structure the necessary agreements, subcontracts, and transfer pricing documentation. Our English speaking lawyer in Turkey ensures cross-border service lines remain fully compliant with zone rules.
Special rules apply to IT companies, pharmaceuticals, and defense projects. Istanbul Law Firm navigates the layered permission structures involving the Ministry of Trade, Defense Industry Directorate, or ICT Authority. Our Turkish Lawyers coordinate technical filings, R&D declarations, and IP registration inside the zone. As the best lawyer firm in Turkey for sector-focused compliance, we help tech founders, manufacturers, and logistics groups secure legal approval. Our English speaking lawyer in Turkey assists in managing due diligence and interagency communication for complex project applications.
5. Free Zone Employment Law and Work Permit Strategy
Employment in Turkish free zones is subject to a hybrid legal framework combining Turkish Labor Law and zone-specific rules. Istanbul Law Firm advises on drafting compliant employment contracts for Turkish and foreign staff. Our Turkish Lawyers help clients understand which labor regulations apply, how social security contributions are calculated, and how to manage income tax exemptions. We also prepare internal policies covering disciplinary rules, termination processes, and dispute resolution mechanisms. Our English speaking lawyer in Turkey ensures HR teams understand the nuances of zone-specific labor governance.
Foreign personnel must obtain work permits even in free zones, but approvals are streamlined for zone-licensed companies. Istanbul Law Firm prepares full work permit application files, supporting letters, and site authorization documents. Our Turkish Lawyers monitor quotas, coordinate with the Ministry of Labor, and respond to objections or delays. We also advise clients on Blue Card, Turquoise Card, and long-term work visa alternatives. Our English speaking lawyer in Turkey ensures foreign executives are properly documented and protected during their assignment in Turkey.
We also assist with compliance audits by free zone authorities or labor inspectors. Istanbul Law Firm defends employers against claims of misclassification, wage violations, or social security irregularities. Our Turkish Lawyers represent clients in employment court cases, administrative hearings, and workplace mediation. As the best lawyer firm in Turkey for labor compliance, we secure your workforce operations inside the zone. Our English speaking lawyer in Turkey prepares executive briefings and compliance checklists for international management teams.
6. Customs, Logistics, and Free Zone Trade Operations
Turkish free zones are considered outside the national customs territory, which provides a major advantage for international trade operations. Istanbul Law Firm helps companies benefit from customs duty exemptions on imported raw materials, machinery, and equipment. Our Turkish Lawyers guide clients in structuring import-export operations, warehouse procedures, and bonded transportation logistics. We also advise on applicable documents such as ATR, EUR.1, and Certificate of Origin. Our English speaking lawyer in Turkey ensures global supply chain teams fully understand Turkey’s free zone customs regime.
Goods brought into the free zone are not subject to Turkish import regulations unless they enter the domestic market. Istanbul Law Firm prepares declarations, customs agent agreements, and transit documents in compliance with Turkish Trade and Customs Law. Our Turkish Lawyers help navigate free circulation procedures, inward processing regimes, and re-export documentation. We also assist with export declaration digitization and coordination with the Ministry of Trade. Our English speaking lawyer in Turkey ensures logistics teams and customs brokers stay compliant throughout operations.
Free zone companies can use bonded storage and operate in foreign currency without restrictions. Istanbul Law Firm assists clients in preparing internal transfer pricing policies, logistics contracts, and customs audit defense plans. Our Turkish Lawyers also represent clients in administrative penalty appeals before Customs Directorates. As the best lawyer firm in Turkey for customs law in free zones, we mitigate regulatory and financial risk. Our English speaking lawyer in Turkey provides ongoing legal guidance to warehouse managers and shipping coordinators.
7. Real Estate and Facility Leasing in Turkish Free Zones
Unlike mainland commercial areas, land and buildings in Turkish free zones are controlled by zone operator companies, and cannot be purchased outright. Istanbul Law Firm advises clients on long-term lease negotiations and investment-based build-operate agreements. Our Turkish Lawyers review zone operator contracts, negotiate favorable terms, and draft bilingual lease agreements. We also assist in site plan approvals, zoning compliance, and infrastructure compatibility. Our English speaking lawyer in Turkey ensures real estate decisions align with your investment goals and operational needs.
Each free zone has its own real estate availability, pricing, and technical standards. Istanbul Law Firm evaluates free zone real estate offers in Istanbul, Izmir, Mersin, and Bursa based on sectoral specialization and proximity to ports. Our Turkish Lawyers conduct title research, construction permit reviews, and leasehold dispute resolution. We also assist in custom build contracts for warehouses, logistics centers, or R&D campuses. Our English speaking lawyer in Turkey prepares executive reports comparing real estate options across zones.
Investment in fixed assets in free zones may qualify for additional incentives or long-term permits. Istanbul Law Firm helps secure Free Zone Activity Certificate extensions based on investment value. Our Turkish Lawyers prepare facility registration forms, depreciation schedules, and related documentation. As the best lawyer firm in Turkey for industrial leasing, we protect investors through detailed legal due diligence. Our English speaking lawyer in Turkey ensures your real estate strategy is fully integrated with free zone compliance requirements.
8. Banking, Currency Regulations, and Financial Operations
One of the most important benefits of Turkish free zones is the ability to conduct operations in convertible foreign currency. Istanbul Law Firm structures bank accounts, invoicing protocols, and payment mechanisms to optimize legal and financial control. Our Turkish Lawyers coordinate with local and international banks for multi-currency operations, SWIFT registration, and export loan applications. We also advise on cash pooling, FX hedging, and currency accounting procedures. Our English speaking lawyer in Turkey ensures CFOs and treasury teams remain compliant with Turkish currency regulations.
Free zone companies are not subject to the Central Bank’s FX repatriation regulations when trading internationally. Istanbul Law Firm ensures clients benefit from liberalized currency rules by registering contracts, preparing currency movement statements, and updating annual declarations. Our Turkish Lawyers also advise on currency risk for long-term leases, material imports, and debt servicing. We draft bilingual bank agreements, guarantee letters, and liquidity frameworks. Our English speaking lawyer in Turkey assists with cross-border transaction structuring for holding companies and SPVs.
Financial audits and reporting are still required under Turkish Tax Procedure Law. Istanbul Law Firm works with CPAs and auditors to ensure accurate booking, foreign exchange reconciliation, and free zone reporting. Our Turkish Lawyers prepare financial statements, VAT-exempt documentation, and tax position memos. As the best lawyer firm in Turkey for financial operations in free zones, we help clients stay compliant while maximizing profit retention. Our English speaking lawyer in Turkey ensures transparency and audit readiness for international investors.
9. Ongoing Compliance, Audit, and Reporting in Free Zones
Operating in a Turkish free zone requires continuous compliance with Ministry of Trade and Free Zone Directorate regulations. Istanbul Law Firm helps companies meet annual reporting obligations, including financial statements, employment declarations, and export-performance submissions. Our Turkish Lawyers monitor deadlines, prepare internal control procedures, and submit documentation on behalf of clients. We also train staff on recordkeeping, zone-specific forms, and site inspection protocols. Our English speaking lawyer in Turkey provides status updates and audit readiness checklists in English.
Free zone authorities conduct regular audits to confirm that companies remain export-focused and compliant with operational licenses. Istanbul Law Firm represents clients during site inspections, tax audits, and Ministry reviews. Our Turkish Lawyers prepare activity logs, expense classifications, and export linkage reports. We also defend companies in cases of license renewal denial or penalty notices. As the best lawyer firm in Turkey for regulatory defense, we help you maintain uninterrupted operations. Our English speaking lawyer in Turkey ensures your management understands all audit findings and remedial steps.
Non-compliance may lead to loss of tax benefits, license revocation, or blacklisting. Istanbul Law Firm structures early detection and response strategies to protect company status. Our Turkish Lawyers prepare legal opinions, submit mitigation petitions, and represent companies before Free Zone Arbitration Boards. We maintain full regulatory calendars for each client. Our English speaking lawyer in Turkey ensures foreign investors are always informed and prepared for ongoing legal obligations.
10. Why Work with Istanbul Law Firm for Free Zone Setup
Istanbul Law Firm provides complete legal services for setting up and managing free zone companies in Turkey. From license application to tax planning and HR compliance, our Turkish Lawyers offer full-spectrum support. We help clients choose the right zone, prepare filings, negotiate leases, and structure business operations. As the best lawyer firm in Turkey for free zone establishment, we deliver speed, legal certainty, and operational clarity. Our English speaking lawyer in Turkey ensures all communication is bilingual and commercially focused.
We represent manufacturing firms, logistics operators, software developers, and international holding structures. Istanbul Law Firm prepares customized incorporation plans aligned with investment goals, industry needs, and tax optimization strategies. Our Turkish Lawyers navigate sector-specific permits, zoning rules, and free zone authority approvals. We also assist with post-formation needs such as licensing renewals, work permits, and export certifications. Our English speaking lawyer in Turkey provides ongoing support for board meetings, shareholder updates, and M&A activity.
Free zones are opportunity zones—but only with the right legal setup. Let Istanbul Law Firm build your foundation in Turkey’s top investment destinations.
Frequently Asked Questions (FAQ)
- Can foreigners own 100% of a free zone company in Turkey? – Yes. Full foreign ownership is allowed in all Turkish free zones.
- What taxes are exempt in free zones? – Income tax, VAT, customs duty, and stamp tax may be exempt depending on activity type.
- Is it mandatory to export? – To retain tax benefits, a minimum percentage of operations must be export-oriented.
- How long does setup take? – Typically 3–4 weeks, including licensing, registry, and tax registration.
- Can free zone firms trade domestically in Turkey? – Limited. Sales into the domestic market are subject to full customs and tax obligations.
- Do employees pay income tax? – In most cases, yes—unless the company qualifies for export-linked exemptions.
- Is a physical office required? – Yes. A lease in the free zone is mandatory for license approval.
- Are free zones sector-specific? – Some zones focus on tech, logistics, or manufacturing. Others are multi-sectoral.
- What is the minimum capital? – There is no fixed threshold, but realistic capital is expected in project plans.
- Can I get a residence permit through company setup? – Yes. Company managers and shareholders can apply for work and residence permits.
- Are there incentives for R&D companies? – Yes. Free zones offer special treatment for software and technology firms.
- Why choose Istanbul Law Firm? – We combine legal precision, bilingual support, and strategic sector knowledge for your free zone success.
Launch Your Free Zone Company with Legal Confidence
Istanbul Law Firm is your legal partner for setting up tax-advantaged, fully compliant free zone companies in Turkey. Our Turkish Lawyers and English speaking lawyer in Turkey provide full support from formation to expansion.