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Investment Legislation 

Turkey’s investment legislation is simple and complies with international standards, while it offers equal treatment for all investors. The backbone of the investment legislation is made up of the Encouragement of Investments and Employment Law No. 5084, Foreign Direct Investments Law No. 4875, the Regulation on the Implementation of the Foreign Direct Investment Law, multilateral and bilateral investment treaties and various laws and related sub-regulations on the promotion of sectorial investments.

Legal Framework of Foreign Direct Investment


1. Foreign Direct Investment (FDI) Law No. 4875

The aim of the Foreign Direct Investment (FDI) Law No. 4875 is:

  • to encourage FDI in the country
  • to protect the rights of investors
  • to align the definitions of an investor and investment with international standards
  • to establish a notification-based system rather than an approval-based one for FDI
  • to increase the volume of FDI through streamlined policies and procedures


The FDI Law provides a definition of foreign investors and foreign direct investments. In addition, it explains important principles of FDI, such as freedom to invest, national treatment, expropriation and nationalization, freedom of transfer, national and international arbitration and alternative dispute settlement methods, valuation of non-cash capital, employment of foreign personnel, and liaison offices.


The Regulation on the Implementation of the FDI Law consists of specifying the procedures and principles set forth in the FDI Law. The aim of the FDI Law with regard to the work permits for foreigners is:

  • to regulate the work carried out by foreigners
  • to stipulate the provisions and rules on work permits given to foreigners 

Regulation for Implementation of FDI Law

  • FDI Operations Data Form
  • FDI Capital Data Form
  • FDI Share Transfer Data Form
  • Liaison Offices Activities Data Form
  • Liaison Offices Application Form
  • Letter of Commitment