Frontier & Gateway · current conditions as of 11 October 2026 · fundamentals reviewed 16 October 2026
🇹🇷 Doing business in Turkey
Bridge between Europe and Middle East with large domestic market.
Long-term risk: High
Current alert: Monitor
Not a party to the conflict, but energy import costs are elevated (Brent about US$100) and the lira is at record lows (about 49.3 per USD on 10 Oct).
Turkey is not directly involved but faces higher energy import costs (Brent about US$100 in early October 2026) and a lira at record lows (~49.3 per USD). Inflation eased to 29.7% in September; the policy rate is 37%. Trade corridors to the Gulf are disrupted.
Conditions change fast. Check current government travel and trade advisories before acting.
What makes up the long-term score
Highlights: Europe-Middle East gateway · Currency volatility risk · 85M consumer market
Key industries
Manufacturing & Automotive → Stable
Turkey produces 1.4M vehicles annually. Ford, Fiat, Toyota and Renault have major manufacturing plants.
Main investors: Germany, US, Japan, France
Tourism ↑ Strong growth
Turkey welcomed 57M visitors in 2023 making it the 4th most visited country globally. Revenue exceeded $54B.
Main investors: Germany, UK, Russia, Gulf states
Financial Services → Stable
Istanbul is a regional financial hub. Turkish banking sector is large with $1T+ in assets despite currency challenges.
Main investors: EU, UAE, Qatar, US
Defence & Aerospace ↑ Strong growth
Turkey is a top 10 global defence exporter. Bayraktar drones and indigenous fighter jets reflect growing defence capability.
Main investors: Domestic, Gulf states, Eastern Europe
Sector priorities
- Manufacturing & Export: Organised Industrial Zones offer competitive incentives for manufacturing investment targeting EU export markets.
- Tourism & Hospitality: Growing visitor numbers and undersupply of quality hospitality infrastructure creating investment opportunity across the country.
- Renewable Energy: Turkey targeting 30% renewable energy by 2030. Solar and wind tender pipeline is one of the largest in the region.
Talent & work permits
Turkey has 35M strong workforce with strong engineering and manufacturing skills. Turkish is business language with English in multinationals.
- Foreign workers: Work permit from Ministry of Labour required. Employer sponsored. Process takes 4 to 8 weeks for approval.
- Localisation: Minimum 1 Turkish national per 5 foreign employees. Some sectors have specific requirements. Applied by Ministry of Labour.
- Key consideration: Turkey offers strong manufacturing and engineering talent at competitive European cost levels making it attractive for industrial investment.
Summarised from our dataset and not yet linked to sources. Verify with local counsel before acting.
How to enter: first four steps
Turkey has a straightforward company registration process. Investment Office of the Presidency provides facilitation for significant investments.
- Register with MERSİS: central trade registry system for company incorporation. Process takes 1 to 3 days
- Register with tax office: obtain tax number from local tax office before commencing any business activity
- Register with SGK: Social Security Institution for employee registration and social security contributions
- Consider OIZ location: Organised Industrial Zones offer VAT exemptions, subsidised utilities and streamlined permits
Indicative cost: 10-person team
Professional-services team (1 senior manager, 5 professionals, 2 admin, 2 support), Grade A office, registration, legal, audit and tax compliance. Model estimate, not a quote.
First year by industry (10 people)
Regulatory watch
- Mar 2026 · Inflation Accounting Rules: Turkish Revenue Administration issued guidance on mandatory inflation accounting for large taxpayers.
- Mar 2026 · Inflation Accounting Mandatory: Turkish Revenue Administration confirmed mandatory inflation accounting for all large taxpayers for fiscal year 2025 returns due in 2026. Significant impact on reported profits.
Compare with Frontier & Gateway peers
Tap a market to see it side by side with Turkey.
Common questions
Is Turkey a good market to enter in 2026?
Turkey has a long-term score of 5.9/10 on EmergingMarketIQ’s index (long-term risk: High) and scores 5.5/10 now, as of 11 October 2026. Bridge between Europe and Middle East with large domestic market. Turkey is not directly involved but faces higher energy import costs (Brent about US$100 in early October 2026) and a lira at record lows (~49.3 per USD). Inflation eased to 29.7% in September; the policy rate is 37%. Trade corridors to the Gulf are disrupted.
How much does it cost to set up a 10-person office in Turkey?
Our cost model estimates about US$496k for the first year (≈US$39k per month run-rate plus ≈US$13k one-off setup) for a 10-person professional-services team; depending on industry the range is US$413k–US$557k. Indicative only.
What are the first steps to set up a company in Turkey?
Register with MERSİS: central trade registry system for company incorporation. Process takes 1 to 3 days Then: Register with tax office: obtain tax number from local tax office before commencing any business activity Then: Register with SGK: Social Security Institution for employee registration and social security contributions Then: Consider OIZ location: Organised Industrial Zones offer VAT exemptions, subsidised utilities and streamlined permits
Source: EmergingMarketIQ country dataset. Current conditions and alerts updated 11 October 2026; GDP (World Bank 2025) and FX 24 September 2026; structural scores reviewed 16 October 2026. Rules, rates and conditions change, so verify with local counsel before acting. Not legal, tax or investment advice.