Short Term Rentals in Turkey: License Application Procedures & Airbnb Listings of Luxury Residences
I. License Requirements for Short Term Rentals & Airbnb As reviewed in detail in our previous article, the Law sets forth that all short-term rentals (rentals up to 100 days) of residential units, including standalone villas and flats in apartment complexes, shall be subject to a prior approval and licensing by the government. Although there…
Recent Constitutional Court Decision Echoes the Importance of Data Protection in M&A Transactions
I. Data Protection Legislation and Rules in Turkey In Turkey, the keystone of data protection legislation is the Law on Personal Data Protection No. 6698 (the LPDP), which established a comprehensive framework for handling personal data. The LPDP was a significant step towards aligning Turkish law with international data protection standards, particularly the European Union’s…
Key Changes to Turkish Citizenship Applications: 2023 Updates
Changes in Turkish Citizenship Application Process: a. In-Person Application Requirement A pivotal change in the Turkish citizenship application process is the introduction of a compulsory in-person presence requirement. This significant shift mandates the physical presence of applicants in Turkey on the application day, marking a departure from the previous provision that allowed initiation of the…
Increased Minimum Capital Requirement for Joint Stock and Limited Liability Companies
The Crucial Role of Minimum Capital Requirements for New Enterprises The Decree’s elevation of the minimum capital requirement for both joint stock and limited liability companies holds particular significance for emerging and small-scale entrepreneurs. These new capital thresholds necessitate careful investment planning and informed decision-making regarding the most suitable company structure. The changes in capital…
Challenges in Name Change During and After the Acquisition of the Turkish Citizenship by Investment
Legal Framework and Bureaucratic Challenges in Turkish Name Changes: Changing one’s name necessitates navigating a maze of legal and administrative procedures. Each country has its own set of rules and regulations that regulate name changes, which might vary greatly. Individuals seeking a name change as part of the process of getting new citizenship may become…
Key Insights from the Constitutional Court: Share Transfer Legitimacy in Joint Stock Companies
I. The Constitutional Court’s Decision: Context and Legal Background This landmark case before the Turkish Constitutional Court arose from the tumultuous aftermath of the July 15th coup attempt. Central to the dispute are allegations of property rights violations during the transfer of shares in a joint-stock company, specifically, Karbon Yıldırım Consulting Services Joint Stock Company,…
Short-Term Rental Regulations in Turkey: New Legal Framework and Impact on AIRBNB Rentals
2024 Update: Clarifications regarding the application procedures and exemptions for luxury residences can be found here. I. Purpose and Scope of the New Short-Term Rental Regulations in Turkey The Law No. 7464 regulates the short-term rental of residences for tourism purposes and ensuring this process is subject certain rules and licenses.It establishes the legal foundation…
Electricity Licensing in Turkey: An In-Depth Guide to Market Regulations
I. General Principles for Electricity Licensing In Turkey a. Overview To participate in the Turkish electricity market, entities must adhere to a set of general licensing principles. First and foremost, license holders must be private legal entities established in accordance with the Turkish Commercial Code (TCC). They typically take the form of either joint-stock companies…
Trade Fairs in Turkey: Unpacking the Regulatory and Procedural Essentials
I. Types of Trade Fairs in Turkey: A Diverse Landscape of Opportunities Organizers have a couple of options to choose from when planning Trade Fairs in Turkey. These fairs, mirroring the country’s multifaceted economy and vibrant cultural diversity, can be broadly bifurcated into general and specialty fairs. General fairs provide a comprehensive platform, encompassing a…
Unpacking Distributor Agreements in Turkey: What Every Business Should Know
I. General outline of Distributor Agreements in Turkey Distributorship agreements play a pivotal role in Turkey’s commercial arena. These agreements serve as the backbone for various industries, connecting manufacturers with retailers, and ensuring products reach consumers efficiently. However, unlike many commercial agreements that have specific regulations, distributorship agreements remain undefined in Turkish legislation. Their scope…
Biometric Signatures in Turkey: Legal Implications and Data Protection Concerns
II. Differentiating Types of Signatures: Electronic, Digital, and Biometric Before we delve deeper into biometric signatures, it’s pivotal to understand the distinction between electronic signatures, digital signatures, and biometric signatures. The eIDAS Regulation provides a structured approach to electronic signatures: While electronic and digital signatures primarily revolve around data validation and user authentication, biometric signatures…
Sealing the Deal: Guidelines for Foolproof Turkish Real Estate Contracts
How to Ensure the Validity of Turkish Real Estate Contracts II. Form and Viability of Turkish Real Estate Contracts A. Language of Turkish Real Estate Contracts One of the initial considerations that demand attention is the language of the Agreement. Turkish legislation, notably Article 1 of the Law on Compulsory Use of Turkish No. 805,…
Setting Up Health Tourism Services in Turkey
A Strategic Guide for Investors II. Legal Framework and Licensing for Services of Health Tourism in Turkey Turkey’s health tourism sector operates within a robust legal framework, ensuring quality and safety standards are upheld. Key legislative texts governing the industry include the Law on the Method of Execution of Medicine and Medical Sciences No. 1219…
Unlocking the Use of Biometric Data in Turkey
Criticial Insights from ECHR and the Turkish DPA II. Applicable Legislation in Turkey for Data and Biometric Data Processing: The primary legislation governing the processing of personal data in Turkey is the Personal Data Protection Law (PDPL), numbered 6698. The PDPL aims to protect the fundamental rights and freedoms of individuals, particularly the right to…
Comprehensive Guide to Arbitration in Turkey
Arbitration Agreements: A Key to Swift and Efficient Dispute Resolution II. Elements of an Arbitration Agreement for Arbitration in Turkey 1. Arbitration Intent One of the primary elements of a valid arbitration agreement is the clear intent of the parties to submit their disputes to arbitration. Parties must mutually and unequivocally express their consent to…
Work Permit in Turkish Free Zones: A Comprehensive Guide for Foreign Employees
Deciphering the Work Permit Regulations in Turkish Free Zones The framework governing the acquisition of work permits for foreign employees in Turkey’s Free Zones is defined by the “Regulation on Working Permits for Foreign Employers in Free Trade Zones.” Introduced on May 27, 2017, this regulation was tailored to refine and expedite the work permit…
Turkish Citizenship by Investment: Your Top 23 FAQ Answered
Contact us today > Additional Resources regarding TR Citizenship by Investment: Acquiring Property and Citizenship Turkish Citizenship Guide Acquisition of Turkish Citizenship
VAT & TAX REFUND PROCEDURES IN TURKEY
Tax Refund in Turkey – Procedures Applicable to Imports & Exports 2. Tax Refund in Turkey & Deductions for Imported Raw Materials There are different exceptions, exemptions, and mechanisms available at law, that allow for the deduction and/or tax refunds for taxes paid by taxpayers for certain products and services, and each mechanism has different…
Liabilities of Board Members of Capital Companies in Turkey
Av. Ali Yurtsever 1. Overview The main legislation governing the duties, responsibilities and the liabilities of board members of capital companies in Turkey, (JSCs and LLCs) is the Turkish Commercial Code No. 6102, (TCC). As a rule, the TCC requires the Board Members to act as cautious executives and protect the interests of the company…
HEALTH TOURISM IN TURKEY
A Guide for New Investors from Av. Ali Yurtsever 1. INTRODUCTION – HEALTH TOURISM IN TURKEY Turkey has been a leading force in medical tourism market around the world for some time now. Although the market did take an initial hit with the emergence of Covid-19, it quickly recovered to pre-pandemic numbers once the travel…
CAPITAL INVESTMENT IN TURKEY
2. FOREIGN CAPITAL INVESTMENT IN TURKEY There are relatively few capital restrictions imposed upon capital investment in Turkey, and Turkey has also taken steps to ease the complexities and procedures the foreigners need to go through in order to incorporate and/or relocate into Turkey. It is important to note that foreigners are allowed to freely…
CORPORATE TAX LAW 102
Tax ID, Cycles, Submission of Declarations & Invoicing in Turkey B. Tax Identification in Turkey Article 2 of the Law No.4358 sets forth that “Public Administrations and offices along with other real and legal persons shall be required to determine the tax ID numbers of real and legal persons who are parties to transactions to…
CORPORATE TAX LAW 101
BEGINNER’s GUIDE FOR FOREIGN INVESTORS The income tax calculations for 2022 are as follows: Income Amount Tax Rate Up to 32.000 TL %15 Above 32.000 TL and up to 70.000 TL %20 (4.800 TL tax for the initial 32.000 TL) Above 70.000 TL and up to 170.000 TL %27 (12.400 TL tax for…
How to Issue Corporate Bonds in Turkey
A Guide to Raising Funds and Issuing Corporate Bonds in Turkey Corporate Bond Issue Limits Since corporate bonds in Turkey are classified as debt instruments, and by virtue as capital markets instruments, they are heavily regulated. Main regulations and restrictions are imposed by the provisions of the Communique and the Board acts as the regulator…
Plastic Surgery Malpractice in Turkey
Understanding Your Rights: Navigating Medical Malpractice Claims in Turkey Medical Malpractice Claims In cases where a patient suspects medical malpractice, including plastic surgery malpractice is committed by either the attending doctor or the supporting medical staff, it is important to understand and determine the rights and obligations of doctors as this will in return, help…
8 Principles for Lawful Personal Data Processing in Turkey
Av. Ali Yurtsever L.L.M The implementation of the LPDP also meant additional compliance requirements and liabilities for businesses that control and/or otherwise process personal data. However, attaining full compliance to LPDP and the Data Protection Authority’s (DPA) decisions is no easy task, as businesses are required to implement various measures, from drafting new documents relating to the personal…
Personal Data Protection in Turkey
Av. Ali Yurtsever L.L.M Fact Check – Does the LPDP Apply to Your Business? One of the main issues with the applicability of the LPDP is that the companies, shareholders, and/or individuals wrongfully interpret the terms noted within the legislation. The most common mistakes concern the terms “data processing” and “data controller”, as most company representatives…
Early Dismissal of Foreign Academics In Turkish Universities
Av. Ali Yurtsever L.L.M II. Wrongful Dismissal of Foreign Academics & Possible Claims The issues briefly summarized above, and the relevant high court precedents are especially important in cases of wrongful early termination of foreign academics, as it directly affects the rights foreign academics can claim with a lawsuit. Typically in a standard employment relationship (subject…
Distributorship Agreements Under Turkish Law
The Intricacies and Legal Implications of Distribution Agreements in Turkey II. Legal Provisions Applicable to Distributorship Agreements Since distributorship agreements are not regulated or otherwise recognized under separate provisions within the legislation, determining the applicable legal provisions and clauses to these agreements can sometimes be challenging. As it stands, clauses and provisions applicable to distributorship…
INTELLECTUAL PROPERTY (IP) STRATEGY FOR START-UPS
Identifying & Prioritizing IP Rights To ensure that intellectual assets are well protected, a startup should first thoroughly analyze its business plan, strategy and products, and effectively identify each possible IP right/class that it needs to register. This is crucial as a failure to anticipate a future development may result in an unregistered IP right,…
Appeals Against Administrative Fines
How to Appeal Against Administrative Fines Imposed by the Turkish Data Protection Authority Av. Ali Yurtsever L.L.M Legal Standing of the Administrative Fines Imposed by the DPA According to Article 22 of the LPPD, the DPA is authorized to impose administrative sanctions to those who violate the obligations set forth at the LPPD. Whereas the sanctions…
Commercial Electronic Messages
Commercial Electronic Messages and Message Management System Registration Process Av. Ali Yurtsever L.L.M Commercial Electronic Message Definition and Obtaining Approval Commercial electronic message is defined in Article 2 of the Law and Article 4 of the Regulation. In accordance with both articles, commercial electronic message is “ a message containing data, audio and video content sent for commercial…
Cross-Border Data Transfers in Turkey & Effects of the Data Protection Board’s Amazon Turkey Decision
Av. Ali Yurtsever L.L.M Transfer of Personal Data to Third Parties Personal data transfers to third parties are quite restrictively regulated under the LPPD (similar to provisions in the GDPR). Article 5 of the LPPD clearly states that data controllers cannot transfer personal data to third parties without the explicit consent of the data owner except for…
DRUG POSSESSION AND CRIMINAL PENALTIES IN TURKEY
DRUG POSSESSION FOR PERSONAL USE As noted above, drug possession for personal use is regulated under Article 191 of the Turkish Penal Code. According to subparagraph 1 of this Article 191, anyone who purchases, accepts, or possesses illegal drugs for personal use shall be sentenced to prison from 2 years up to 5 years. It…
Digital Services Tax Introduced in Turkey
Digital Services Tax Definitions and Applicability With the publication of this law, Turkey aims to tax the digital services. Digital services tax is determined as an indirect tax and is deductible from income/corporate tax bases. According to Article 52 of the Law, digital services tax duty will start to be applied from the beginning of the third…
COVID-19 LEGAL GUIDELINE FOR COMPANIES IN TURKEY
LEGAL EFFECTS OF COVID-19 ON RENT PAYMENTS AND EMPLOYMENT Av. Ali Yurtsever L.L.M II. RENT PAYMENTS FOR OFFICE SPACES a. Brief Review of Legislative Amendments Following the closing down of certain businesses with the above noted mandate, one of the first legislative changes introduced was about office rent payment obligations, which constitutes a significant portion of…
New Decision From Immigration Authority Regarding Touristic Residence Permits
However, as mentioned above, this new review process and restriction of extension for touristic permits does not apply to all foreigners, as certain countries are exempted from the new process. According to the decision of the Immigration Authority, the new rule shall not be applicable to citizens of countries members to the European Union and…
Infographic On Acquisition Of Turkish Citizenship By Investment
This infographic provides a visual summary of acquisition of Turkish citizenship by investment procedures and the contents are examined in detail in our relevant articles and aims to help our clients better understand the complexities of the procedures involved.
SHARE TRANSFERS IN TURKEY – PART III RESTRICTIONS ON SHARE TRANSFERS
We reviewed the general rules and procedures of share transfers in Turkey relating to share transfers in joint stock companies..
Legal Liabilities of Board Members in Joint Stock Companies
Liabilities of Board members are regulated under Article 553 of TCC. Accordingly, board members may only be responsible of the damages caused to the company to it’s shareholders and to the creditors of the company (related third parties) in case they fail to fulfill their obligations arising from the law and articles of association at…
SHARE TRANSFERS IN TURKEY – A VISUAL SUMMARY
As part of our share transfer and corporate law series, we already analyzed the rules and procedures of share transfers in Joint Stock Companies (Part-I) and the role of share ledgers in such transactions (Part-II). Due to the complex nature of these transactions, we also created an infographic in order to make the information more…
SHARE TRANSFERS IN JOINT STOCK COMPANIES IN TURKEY – PART II
THE ROLE OF COMPANY SHARE LEDGERS IN SHARE TRANSFERS IN TURKEY Av. Ali Yurtsever L.L.M a) The Problem of Attaining Shareholder Status in a JSC Owning shares in a JSC and claiming the shareholder title before the company are two different things. This may be kind of confusing, as in order to become a shareholder of…
SHARE TRANSFERS IN JOINT STOCK COMPANIES – PART I
SHARE TRANSFERS IN TURKEY – PART I Av. Ali Yurtsever L.L.M Share transfer Procedures The TCC sets forth that the principle of transferability shall be applicable to shares of JSCs. This means that as a rule, the shares of JSCs can be freely transferred by shareholders of the relevant company to third parties without any…
Copyright Protection in Turkey
Copyright protection in Turkey is regulated under the Intellectual and Artistic Works Law No. 5846 (hereinafter will be referred as “the Law”). Copyright arises automatically on creation of work, whereas “work” is defined as any intellectual or artistic product bearing the characteristic of its author, which are works that fall under the categories below
COMPANY FORMATION IN TURKEY (INCORPORATION)
II. COMPANY TYPES Although the Law does allow for the incorporation of “personal companies” (where company owners are fully liable with their personal assets for any and all company debts), capital companies are the most common form of business entities in Turkey utilized by both local and foreign investors. Investors may either choose to incorporate…
RTUK Supervision to Online Media Services
RTUK is Now Entitled To Supervise Online Media Service Providers Emir Aksoy LL.M, LL.M. IP Licensing and Authorization Such media service providers will have to apply for a license or authorization within a month starting from the effective date of this Regulation(01.08.2018). Depending on the type of the media service(INTERNET RADIO, INTERNET TV, ON-DEMAND STREAMING…
Notice and Takedown Procedure for Digital Copyright Infringements in Turkey
Emir Aksoy LL.M, LL.M. IP First stage is the notice and takedown for copyright infringements , which requires the content provider to takedown the infringing content from the website within three days following the notice to be made by the right holders. Second stage starts if the content provider does not take down the infringing content in the given…
TERMINATION OF EMPLOYMENT CONTRACTS BY EMPLOYERS AS PER TURKISH LABOR LAW
II. CONDITIONS FOR EMPLOYMENT SECURITY Article 18 of the law clearly defines the conditions of employment security. Accordingly, any worker/employee who has been working for at least six months in a workplace that employs at least 30 employees shall benefit from the employment security rules. Although the conditions set forth for the employment security system…
DEBT COLLECTION IN TURKEY
Av. Ali Yurtsever L.L.M II. DEBT COLLECTION PROCEDURES Debt collection claims can be separated into two general categories, those that are based on an independent legal promissory note and those that are not. In both cases, the execution office submits an order of payment to the debtor once the claim is made. If the claim is not…
DISCONTINUATION OF PARTNERSHIP (İZALE-İ SUYU)
Emir Aksoy LL.M, LL.M. IP In the case of dissolution of the partnership, the court in charge is the civil court of peace, and if the subject of the lawsuit is a movable, it is the last place of residence of the testator. The stakeholder who brought the case in the Izale-i Şuyu case is…
The Importance of Due Diligence
Emir Aksoy LL.M, LL.M. IP Intellectual Property of a company in most of the cases determines the price of the company and should be carefully analyzed during the DD process. Especially the national and international patents and pending patents of the Company should be reviewed. It is also important to check if any rights are…
END OF THE FREE INTERNET OR THE MODERNIZATION OF THE EU DIGITAL COPYRIGHT REGIME
Although tech giants might create their own Upload Filter, as they have more than enough resources to do so, the new directive will mostly hit the smaller platforms. The cost of deploying such a filter will not only solidify the tech giants place in the market, it will also make it harder for smaller platforms…
WORK PERMIT APPLICATIONS FOR FOREIGNERS IN TURKEY
II. METHODS OF WORK PERMIT APPLICATION There are two methods to apply for a work permit; the first is overseas applications submitted to the relevant Turkish consulate at the appropriate country, and the second method is the domestic applications to be made directly to the Ministry of Labor and Social Security via the online application…
PERSONAL DATA PROTECTION AND USE OF BIOMETRIC DATA IN TURKEY
II. DEFINITION OF PERSONAL DATA AND PROCESSING METHODS Article 2 of the Law defines personal data as “all information relating to an identified or identifiable natural person”, whereas Article 6 sets forth that “personal data relating to the race, ethnic origin, political opinion, philosophical belief, religion, sect or other belief, clothing, membership to associations, foundations…
ANTI-COUNTERFEITING RAIDS UNDER TURKISH LAW
Emir Aksoy LL.M., LL.M. IP According to a new report by the OECD and the EU’s Intellectual Property Office (EUIPO), Turkey now stands at 3.3% of global trade in counterfeit and pirated goods. Counterfeit products especially in sectors like medical products, cosmetics and food industry constitutes a serious health and safety hazard for the consumers. There…
THE IMPORTANCE OF CONFIDENTIALITY AGREEMENTS
Emir Aksoy LL.M., LL.M. IP The general industry practice is to keep these NDA’s as short as possible in order to make them appear as simple and straightforward agreements, so that they will not raise any red flags when reviewed by an uneducated eye. Unfortunately, many of the startups and/or small businesses fall for this…
INTERNET BANS IN TURKEY
Banning/Blocking Access to Certain Websites Av. Ali Yurtsever L.L.M II.PREVENTION OF THE VIOLATION OF PERSONAL RIGHTS AND BLOCKING OF ACCESS The Law set forth definitions and organizational structure, catalogue crimes and the legal framework for banning websites and a few procedures. The Information and Communication Technologies Authority (BTK), which was initially established as the regulatory authority…
Turkish Citizenship by Investment
Turkish Citizenship Applications Based on Real-Estate Investments Av. Ali Yurtsever L.L.M II.SUMMARY OF RECENT FRAMEWORK CHANGES a) Amendments Made in Early 2017 As noted above, the Council of Ministers adopted a new decision which amended the ‘Regulation on Amending the Regulation Regarding the Implementation of Law of Turkish Citizenship’ and therefore introducing a new policy for…
Acquisition of Property By Virtue of Statute of Limitations
II. VALIDITY CONDITIONS In order to benefit from the right mentioned in article 713 above, certain conditions must be met. Pursuant to paragraph 1 of the relevant article, in order to benefit from these rights, it is necessary to “hold an immovable that is not registered in the land registry for twenty years without a lawsuit and…
ANTI-DAMPING MEASURES APPLICATION PROCEDURE
Circumstances Requiring Precautions Pursuant to Article 3 of the Law, “situations requiring measures; It is defined as the import subject to dumping or subsidy causing material damage in a production branch in Turkey or creating a threat of material damage or physically delaying the establishment of a production branch”. Therefore, in order for anti-dumping measures to be…