According to the report Inward Foreign Affiliates Statistics, 2023, published by the Turkish Statistical Institute (TurkStat), foreign-controlled companies continue to play a significant role in Türkiye’s economy. In 2023, enterprises under foreign control generated 12.8% of the country’s total economic turnover, compared to 12.7% in 2022, indicating a stable and sustained presence.
For the first time, the total number of foreign-controlled companies in Türkiye exceeded 10,000. While there were 9,287 such enterprises in 2022, their number increased to 10,265 in 2023. Their role in the labor market also expanded: the share of employment in foreign-capital companies rose fr om 5.0% to 5.1%.
Sectors with the highest concentration of foreign capital
The highest level of foreign control in 2023 was recorded in the manufacture of tobacco products, wh ere foreign-controlled companies accounted for 92.6% of sector turnover.
Second place was taken by insurance, reinsurance, and pension funds, with a foreign control share of 43.2%.
Leading countries by foreign presence
Despite notable regional shifts in recent years, Germany remains the leading foreign investor. In 2023, 1,266 companies were under German control, accounting for 13.8% of total turnover generated by all foreign-controlled enterprises in Türkiye.
This is followed by:
• United States — 965 companies, 11.2% of turnover
• United Kingdom — 706 companies, 10.3% of turnover
Rapid growth of Russian and Ukrainian businesses
One of the most striking trends in recent years has been the sharp increase in companies controlled by Russian and Ukrainian shareholders, directly linked to changes in regional geopolitical dynamics after February 2022.
The number of companies controlled by Russian citizens increased more than fivefold:
2021 — 83 companies
2022 — 305 companies
2023 — 483 companies
At the same time, their share of total turnover among all foreign enterprises grew from 0.6% to 3% over two years.
Statistics for companies controlled by Ukrainian citizens:
2021 — 32 companies
2023 — 91 companies
The highest concentration of such businesses is observed in Istanbul and Antalya, which have become key centers of economic relocation.
Overall investment climate assessment
Overall, TurkStat data confirms that foreign companies remain an important component of Türkiye’s economy, contributing a significant share of turnover and employment. Türkiye’s Minister of Finance, Mehmet Şimşek, has repeatedly emphasized the need to further increase the country’s attractiveness to global investors, stating that Türkiye is “once again moving toward becoming a regional hub for foreign direct investment,” which implies continued structural reforms and macroeconomic stabilization measures.
New residence permit opportunities in Türkiye
As of October 2024, important changes have come into force, significantly simplifying conditions for foreigners opening a business in Türkiye.
It is no longer mandatory to hire five Turkish citizens when registering a company.
• A foreign founder may independently obtain a work permit if at least USD 100,000 is contributed to the company’s share capital. These funds are not frozen and may be used for business activities or withdrawn later.
• The founder receives a work visa, allowing residence registration in any district. The spouse and children under 18 receive a residence permit, with registration possible only in districts open for residence permits.
• The requirement to employ five Turkish citizens per foreign employee has been abolished; however, foreign staff may not exceed 50% of total employees.
• After five consecutive years of renewing the work visa, an application for Turkish citizenship may be submitted.
• Foreigners may establish a Limited Şirket (LLC) or an Anonim Şirket (JSC). Registration is carried out through the MERSİS system. Required documents include a passport, Turkish tax number, share capital details, and, if available, a valid residence permit.
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