Investor Guide – Chinese Investors – September 2026

Investing in Türkiye: A Practical Guide for Chinese Investors

Opportunities, incentives, tax and legal protection — explained clearly

15 September 2026

Economic and investment relations between Türkiye and China continue to expand, and Chinese companies are building a growing presence in the Turkish market.^[1] In June 2026, Türkiye’s Investment and Finance Office met Chinese investors and industry representatives in Beijing to explore opportunities in energy, information and communication technologies, mobility, construction and food.^[6]

With a large domestic market, an established industrial base and a customs union with the European Union for industrial goods, Türkiye offers Chinese companies both a market in its own right and a production and logistics platform for Europe, the Middle East, Central Asia and North Africa. This guide explains where the opportunities are, how to structure an investment, which incentives and tax rules apply, and how your investment is protected.

How Can You Invest in Türkiye?

Türkiye’s foreign direct investment framework is built on equal treatment. International investors may establish any company type provided under the Turkish Commercial Code, and the conditions for setting up a company or transferring shares are generally the same as for local investors.^[2] Chinese investors most commonly use the following routes:

• Set up a new company — typically a limited liability company (Ltd. Şti.) or a joint stock company (A.Ş.), which can be 100% Chinese-owned.
• Build a production facility (greenfield investment), often with incentive support.
• Acquire shares in an existing Turkish company or form a joint venture with a Turkish partner.
• Open a branch or liaison office of an existing Chinese company.

The right structure depends on your commercial goals, supply chain, tax position and exit plans. Deciding this at the outset avoids costly restructuring later.

Key Sectors for Chinese Investors

Automotive and Electric Mobility

Türkiye’s automotive industry offers significant opportunities in vehicle production, components, batteries, mobility technologies and supply chains. Türkiye produced approximately 1.42 million vehicles in 2025, around 75% of which were destined for international markets, and the country hosts production facilities of more than 30 of the world’s top 50 automotive suppliers.^[7]

Chinese companies are already moving in. BYD signed a USD 1 billion agreement to establish an electric and plug-in hybrid vehicle plant and an R&D centre in Türkiye, and a Chinese automotive-parts company advanced a new manufacturing facility in Edirne in 2026.^[8][9] As Türkiye has applied additional customs duties on certain vehicles imported from China in recent years, local production has become an increasingly attractive route into the market.

Renewable Energy and Green Technologies

Chinese investment has already reached solar energy and solar-cell production, and energy was among the sectors represented at the June 2026 investment meetings in Beijing.^[6][10] Türkiye has approximately 33 GW of battery-integrated wind and solar projects at the pre-licensing stage and a national target of 120 GW of combined solar and wind capacity by 2035.^[11] For Chinese companies with expertise in equipment, batteries and clean-energy technology, this creates opportunities in generation, storage, equipment manufacturing and supply chains.

Technology, ICT and Digital Infrastructure

Türkiye’s ICT market was valued at approximately USD 36.7 billion in 2024, with more than 11,700 active companies.^[12] In June 2026, the government announced approximately USD 3 billion in public funding intended to mobilise USD 10 billion in private investment in data centres and artificial intelligence.^[13] This opens opportunities in data centres, AI, cloud services, digital infrastructure and R&D.

Manufacturing and Industrial Investment

In 2025, manufacturing accounted for 55% of Türkiye’s greenfield FDI projects, led by automotive, electronic components, food, pharmaceuticals and metals — and China was among the main source countries.^[10] Opportunities include new production facilities, investment in Turkish manufacturers, joint ventures and supply-chain operations serving Türkiye and neighbouring markets.^[6][9]

Infrastructure, Logistics and Connectivity

Türkiye’s position between Asia and Europe gives it a natural role in the Belt and Road Initiative and regional supply chains. Chinese investors have already made major commitments, including a Chinese consortium’s acquisition of a majority stake in Istanbul’s Kumport container terminal.^[14] The sector remains on the bilateral agenda: the June 2026 Beijing meetings, held in cooperation with the Silk Road Fund, included companies in construction and mobility.^[6] Trading and logistics businesses may also consider Türkiye’s free zones, which operate under Free Zones Law No. 3218 and offer customs and certain tax advantages for qualifying activities.

Investment Incentives: What Support Is Available?

Chinese investors can benefit from Türkiye’s investment incentive system on the same basis as any other international investor. Depending on the nature, location, scale and strategic importance of the project, qualifying investments may receive support such as VAT and customs-duty exemptions on machinery and equipment, corporate tax reductions, social security premium support, financing support and land allocation.^[15]

Incentives are granted through an investment incentive certificate issued before the investment is made, so eligibility should be checked at the planning stage rather than after purchases have been completed.

New in 2026: 20-Year Income Tax Exemption on Foreign Income

Türkiye introduced a major new incentive for people relocating to the country. Law No. 7582, published in the Official Gazette on 4 June 2026, added Article 20/D (repeated) to the Income Tax Law. Under this rule, individuals who become resident in Türkiye — and who had neither a residence nor an income tax liability in Türkiye during the previous three calendar years — can have their foreign-source earnings and income exempted from Turkish income tax for 20 years.^[5]

The exemption applies to individuals considered settled in Türkiye from 1 January 2026. Exempt foreign income does not need to be declared in Türkiye. Income generated inside Türkiye — for example, rent from a Turkish property or profits from local business activity — remains taxable under the normal rules. To benefit, an application must be made to the tax office, generally by the end of the year in which the individual is considered settled in Türkiye (or by the end of February of the following year for those who settle in the last two months of the year).^[16]

Residence Permits and Citizenship through Investment

Many Chinese investors want to live in Türkiye as well as invest there. Foreign nationals who own residential property may apply for a renewable short-term residence permit.^[17] Since 16 October 2023, the property must be worth at least USD 200,000, and it must be located outside neighbourhoods that are closed to new residence registrations for foreigners.^[18]

For those seeking a second citizenship, Türkiye’s exceptional citizenship-by-investment framework offers several routes, subject to the applicable conditions:^[17]

Chinese managers, engineers and technical staff employed by a Turkish company also need a work permit, which the employer applies for through the Ministry of Labour and Social Security. Planning permits early helps keep project timelines on track.

Practical Legal Points: Data, IP and Contracts

• Personal data: technology, e-commerce and data-centre businesses must comply with Türkiye’s Personal Data Protection Law No. 6698, including its rules on transferring personal data abroad.
• Intellectual property: trademarks and patents are territorial. Registering them with the Turkish Patent and Trademark Office before entering the market protects your brand and technology.
• Contracts: supply, distribution and technology-transfer agreements should set out governing law, language and dispute resolution clearly — ideally with an arbitration clause enforceable in both countries.

Tax: The Türkiye–China Double Taxation Agreement

Türkiye and China are parties to the Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, signed in Beijing on 23 May 1995. It entered into force on 20 January 1997 and has applied since 1 January 1998.^[3]

Treaty rates apply only where the treaty conditions are met.^[3]

Under Articles 5 and 7, business profits of a Chinese company are generally taxable only in China unless the company carries on business in Türkiye through a permanent establishment, such as a branch, office, factory or workshop. Where a permanent establishment exists, Türkiye may tax the profits attributable to it. Article 23 eliminates double taxation, generally through a foreign tax credit.^[3]

The treaty should always be read together with domestic tax rules and the structure of the specific investment.

How Your Investment Is Protected

Bilateral Investment Treaty

The China–Türkiye Bilateral Investment Treaty was signed on 29 July 2015 and has been in force since 11 November 2020, replacing the earlier 1990 treaty.^[4] Treaties of this kind generally provide protections such as fair and equitable treatment, protection against unlawful expropriation, the free transfer of investment-related payments, and access to international arbitration for investor–state disputes, subject to their specific terms.

Judicial Assistance in Civil and Commercial Matters

Türkiye and China are parties to the Agreement on Judicial Assistance in Civil, Commercial and Criminal Matters, signed in Beijing on 28 September 1992 and in force since 26 October 1995. The Ministries of Justice of both countries act as central authorities.^[19] The agreement covers matters such as the service of documents and the taking of evidence, and Türkiye’s Ministry of Justice lists China among the countries with which it has a bilateral judicial-assistance agreement in civil matters.^[19][20]

Arbitration, Enforcement and Documents

Both countries are parties to the 1958 New York Convention, so arbitral awards can be enforced in either country under a common framework.^[21] Foreign court judgments may be enforced in Türkiye under Law No. 5718 on International Private and Procedural Law, subject to conditions including reciprocity.^[22] Both countries also apply the Hague Apostille Convention, which simplifies the use of Chinese public documents in Türkiye.^[23] At the multilateral level, both are parties to the United Nations Convention against Transnational Organized Crime, Article 18 of which provides a framework for mutual legal assistance.^[24]

Your Legal Checklist Before Investing

• Choose the right vehicle: new company, production facility, acquisition, joint venture or branch.
• Carry out legal and financial due diligence on any target company or partner.
• Apply for an investment incentive certificate before purchasing machinery or starting construction.
• Confirm sector-specific licences, data protection obligations and IP registrations.
• Check eligibility for treaty tax benefits and plan profit repatriation.
• Plan work permits for Chinese staff and residence arrangements for key individuals.
• Agree clear governing-law, language and dispute-resolution clauses in all key contracts.

Frequently Asked Questions

Can a Chinese company own 100% of a Turkish company?

Yes. International investors may establish any company type under the Turkish Commercial Code on the same terms as Turkish investors.^[2]

Are incentives available to Chinese investors?

Yes. Chinese investors can use Türkiye’s incentive system on the same basis as other international investors, depending on the project’s nature, location and scale.^[15]

Will our profits be taxed twice?

The Türkiye–China Double Taxation Agreement prevents this and limits Turkish tax on dividends, interest and royalties to 10%, provided its conditions are met.^[3]

Can a Chinese arbitral award be enforced in Türkiye?

Both countries are parties to the New York Convention, so awards can generally be recognised and enforced in Türkiye through the Turkish courts.^[21]

References

1. Republic of Türkiye Ministry of Trade, “Minister of Trade Ömer Bolat Speaks at the 3rd Türkiye–China Conference,” February 2026.
2. Presidency of the Republic of Türkiye Investment and Finance Office, “Establishing a Business.” Source
3. Agreement between the Government of the Republic of Türkiye and the Government of the People’s Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, signed 23 May 1995; in force 20 January 1997.
4. UNCTAD Investment Policy Hub, International Investment Agreements — Türkiye. Source
5. Law No. 7582, Official Gazette of the Republic of Türkiye No. 33270, 4 June 2026 (Income Tax Law, Article 20/D (repeated)).
6. Presidency of the Republic of Türkiye Investment and Finance Office, “Investment and Finance Office Meets Chinese Investors and Industry Representatives in Beijing,” June 2026.
7. Presidency of the Republic of Türkiye Investment and Finance Office, “Automotive.”
8. Presidency of the Republic of Türkiye Investment and Finance Office, “BYD Announces Landmark USD 1 Billion EV Plant Investment in Türkiye.”
9. Presidency of the Republic of Türkiye Investment and Finance Office, “Türkiye Reinforces Investment Infrastructure through New Chinese FDI,” January 2026.
10. Presidency of the Republic of Türkiye Investment and Finance Office, “2025 Türkiye FDI Projects Report.”
11. Presidency of the Republic of Türkiye Investment and Finance Office, “Energy,” 2026. Source
12. Presidency of the Republic of Türkiye Investment and Finance Office, “ICT.”
13. Presidency of the Republic of Türkiye Investment and Finance Office, “Minister Kacır Announces USD 3 Billion Public Funding Program to Accelerate Data Center and AI Investments,” June 2026.
14. Presidency of the Republic of Türkiye Investment and Finance Office, “COSCO Pacific Buys Majority Stake in Turkish Kumport,” 2015.
15. Presidency of the Republic of Türkiye Investment and Finance Office, “Incentives Guide,” 2026. Source
16. Income Tax General Communiqué (Serial No. 333), Official Gazette of the Republic of Türkiye, 4 July 2026.
17. Presidency of the Republic of Türkiye Investment and Finance Office, “Acquiring Property and Citizenship.” Source
18. Presidency of Migration Management, implementing instruction on property-based short-term residence permits, 16 October 2023.
19. Agreement between the Republic of Türkiye and the People’s Republic of China on Judicial Assistance in Civil, Commercial and Criminal Matters, signed 28 September 1992; in force 26 October 1995.
20. Republic of Türkiye Ministry of Justice, Directorate General for Foreign Relations and European Union, bilateral judicial-assistance agreements in civil matters – China.
21. Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958) — status of parties, UNCITRAL.
22. Law No. 5718 on International Private and Procedural Law (MÖHUK), Articles 50–54.
23. Hague Conference on Private International Law (HCCH), status tables of the Apostille, Service and Evidence Conventions.
24. United Nations Treaty Collection, United Nations Convention against Transnational Organized Crime – treaty text and status of parties. Source

Disclaimer: This guide is provided for general information only and does not constitute legal or tax advice. Laws, thresholds and administrative practice may change, and the application of any rule depends on the facts of each case. Specific advice should be obtained before making an investment decision. Information is current as of 15 September 2026.