A Guide to Opening a Business in Istanbul as a Foreigner
Istanbul is not only Turkey’s cultural capital, but also its economic engine. With a young population, strategic location between Europe and Asia, and a fast-growing consumer market, the city continues to attract foreign entrepreneurs, investors, and business owners from around the world.
For many foreigners, opening a business in Istanbul goes hand in hand with purchasing property — whether for office space, retail, or residential living. This guide breaks down how foreigners can legally start a business in Istanbul and what to consider from a real estate perspective.
Why Foreigners Choose Istanbul for Business
Foreign entrepreneurs are drawn to Istanbul for several key reasons:
Access to markets across Europe, the Middle East, and Central Asia
A large domestic consumer base
Competitive operating costs compared to Western Europe
A growing startup, tech, and services ecosystem
Residency and citizenship opportunities through investment
From retail and hospitality to consulting, tech, and manufacturing, Istanbul offers diverse opportunities.
Can Foreigners Open a Business in Turkey?
Yes — foreigners are legally allowed to establish and own businesses in Turkey. In most sectors, foreign investors enjoy the same rights as Turkish citizens when it comes to company ownership and operation.
The most common business structure for foreigners is a Limited Liability Company (Ltd. Şti.), though joint stock companies and branch offices are also options.
Types of Businesses Foreigners Commonly Open
Some of the most popular business types among foreign investors include:
Real estate and property management
Restaurants and cafés
Retail shops and showrooms
Consulting and professional services
Tourism and hospitality
E-commerce and digital services
Your business type will influence your location and property requirements.
Step-by-Step Overview: Opening a Business in Istanbul
1. Choose a Business Structure
Most foreigners opt for a Limited Liability Company due to its flexibility and relatively simple setup process.
2. Register the Company
The company must be registered with the Istanbul Trade Registry Office. Required documents generally include:
Passport translations
Tax number
Company address
Articles of association
3. Obtain a Tax Number
All shareholders and company directors must obtain a Turkish tax number, which can be issued quickly.
4. Open a Turkish Bank Account
A corporate bank account is required to deposit the company’s share capital and manage business transactions.
5. Register with Social Security & Tax Offices
If the business employs staff, registrations with relevant authorities are mandatory.
Do You Need Residency or a Work Permit?
To actively manage or work in your company, you will need a work permit. In many cases, this permit also serves as a residency permit.
Owning property in Turkey can make residency applications smoother, but it is not legally required to open a business.
Choosing the Right Property for Your Business
Real estate plays a critical role in business success. Foreign entrepreneurs should consider:
Office Space
Popular areas include:
Levent
Maslak
Kağıthane
Şişli
These districts offer modern office buildings, metro access, and proximity to business hubs.
Retail & Commercial Space
High-footfall areas such as:
Nişantaşı
Karaköy
Kadıköy
Beyoğlu
are ideal for shops, cafés, and showrooms.
Residential Property
Many business owners choose to purchase residential property close to their workplace, combining lifestyle with investment.
Real Estate Investment & Long-Term Benefits
Buying property as a foreign business owner offers multiple advantages:
Stable long-term investment
Rental income opportunities
Residency through property ownership
Eligibility for Turkish citizenship (if investment criteria are met)
For many entrepreneurs, real estate becomes both a business asset and a pathway to long-term stability in Turkey.
Common Mistakes to Avoid
Choosing an unsuitable business address
Underestimating zoning and licensing requirements
Not consulting professionals for legal and tax guidance
Renting or buying property not zoned for commercial use
Working with experienced advisors can help avoid costly delays.
Final Thoughts
Opening a business in Istanbul as a foreigner is a realistic and attractive option — especially when combined with a smart real estate strategy. With proper planning, legal support, and the right location, Istanbul offers strong potential for long-term success.
Thinking of Starting a Business in Istanbul?
We help foreign entrepreneurs find the right commercial and residential properties, navigate legal requirements, and invest with confidence.
Contact us today to begin your business and property journey in Istanbul.
