Turkey: An Overview

Introduction to the Legal and Business Landscape

In 2025, Türkiye maintained its profile as a noteworthy, multi-layered and strategic market for both regional and international investors. Serving as a natural bridge between Europe, the Middle East, North Africa and Central Asia, the country offers a dynamic ecosystem where production, trade, technology and entrepreneurship intersect. Despite macroeconomic fluctuations, the Turkish market continues to attract foreign capital, thanks to its flexible structure and strong resilience to shocks.

Economic Outlook and Investment Climate

As of 2025, the Turkish economy entered a new period of equilibrium where market mechanisms are strengthened, and predictability is prioritised. The decisive tightening and rationalisation steps implemented in monetary and fiscal policies offer a more stable foundation, particularly for actors making medium- and long-term projections.

While inflation and foreign exchange movements remain key parameters that businesses must navigate, these indicators are increasingly viewed by investors not as “barriers”, but as “variables” to be managed through correct financial structuring and effective risk management tools. This approach positions Türkiye as a market where high growth potential is paired with identifiable and, in practice, increasingly manageable risks for foreign funds and multinational corporations.

Market Depth and Diversity

Türkiye stands out not only for its robust domestic demand but also as a sophisticated hub for production, technology and operations. Its population exceeding 85 million, young talent pool, advanced industrial infrastructure and integrated logistics networks make the country unrivalled in terms of access to surrounding markets.

This multifaceted structure creates tangible investment opportunities that extend beyond the retail and consumption sectors into high-value-added areas such as technology, software, financial services, healthcare, energy and logistics.

Employment, Workforce and Operational Agility

The 2024–2025 period saw Türkiye evolve into a strategic talent hub for foreign investors, driven by its qualified workforce and operational scalability options. The country’s geopolitical position has transformed it from merely a production base into an ideal location for human resources and regional management hubs.

In recent years, employment law practice has evolved to meet the requirements of the modern business world. Remote and hybrid working models have become standard, particularly in the technology and service sectors, with legislation and established judicial precedents providing legal certainty for employers. In practice, this flexibility has made it significantly easier for multinational companies to align their global human resources policies with their Turkish operations, without the need for extensive localisation. Furthermore, contractual flexibility regarding remuneration policies and fringe benefits grants employers significant latitude in managing operational costs and retaining talent. The streamlining of foreign personnel employment processes into a more predictable administrative framework is another crucial factor supporting the operational continuity of international companies.

Venture Capital and the Start-Up Ecosystem

The entrepreneurship ecosystem in Türkiye is experiencing a period of maturity, supported by investment instruments and a legal infrastructure at international standards. Models such as direct equity investments, convertible notes, and strategic partnerships can be implemented with confidence under Turkish law. Shareholders’ agreements (SHAs), share transfer restrictions and exit mechanisms can be structured in full compliance with global customs.

Additionally, Türkiye possesses a deep-rooted joint venture culture. Foreign investors often prefer establishing strategic collaborations with Turkish partners, particularly in regulated sectors, to leverage local know-how and ensure rapid market entry. From an advisory perspective, the flexibility embedded in Turkish contract law allows parties to structure key matters – such as management rights, profit distribution and dispute resolution – in a way that closely mirrors international deal practice.

Real Estate and Commercial Lease Dynamics

In the 2024–2025 period, the real estate sector settled into a pragmatic balance that generates solutions within an inflationary environment. The continuation of the CPI-indexed increase regime in commercial and residential leases is critical for cost predictability. In the retail sector, the widespread adoption of turnover-based rent models has created a sustainable co-operation ground where risk is shared between shopping mall investors and retailers.

The binding of common expenses (CAM charges) to a transparent and auditable regulatory framework has reinforced trust within the sector. Regarding disputes, thanks to the effective use of the mandatory mediation mechanism, a significant portion of rent determination and adaptation cases are resolved without litigation, providing time and cost advantages.

On the project development side, “sustainability” and “efficiency” stand out as key themes. Alongside large-scale mixed-use projects and urban regeneration, there is an observable increase in investments focused on nature-oriented, flexible living spaces, such as tiny house villages in tourism regions.

Consumer Law, E-Commerce and Product Safety

The process of alignment with EU legislation continues to be the driving force behind Türkiye’s regulations on product safety, e-commerce and consumer protection. Structural reforms implemented recently aim to strike a balance between consumer protection and the flow of commerce. This makes Türkiye a familiar and safe harbor for global companies seeking to conduct operations at AB standards. Regulations in e-commerce and retail in particular provide the necessary legal infrastructure for the market’s long-term and healthy growth.

IT Law and Digital Regulations

2025 was a year where IT law in Türkiye both expanded normatively and deepened through secondary legislation. Developments in digitalisation, fintech and artificial intelligence have necessitated a more proactive and holistic approach from regulatory authorities.

• Cybersecurity: The enactment of the new Cybersecurity Law and the establishment of a central cybersecurity organisation mark a turning point in the sector. This new structure consolidates cyber risk management in the public and private sectors under a single roof, increasing compliance obligations, especially for critical infrastructure operators.
• Crypto assets: The regulatory framework for Crypto Asset Service Providers (CASPs) has been clarified; standards regarding establishment conditions, capital adequacy and custody services have been determined. The implementation of the “Travel Rule” and updates to MASAK (Financial Crimes Investigation Board) communiqués demonstrate Türkiye’s determination to comply with international standards in anti-money laundering (AML).
• Digital trade and payments: New inspection regulations regarding products offered via distance communication tools and limitations introduced on the use of virtual POS are significant steps aimed at increasing security in digital trade.
• Data privacy: Steps such as the Personal Data Protection Board’s (KVKK) principle decision regarding SMS verification processes illustrate the practical reflections of the data minimisation principle. Furthermore, the submission of AI-related legislative proposals to the parliament signals that Türkiye is adopting a risk-based regulatory approach in this field.

Legal Infrastructure and General Assessment

Türkiye’s legal infrastructure is competent to meet the needs of modern commercial life regarding corporate law, competition rules and intellectual property rights. This structure, which is largely harmonised with EU norms, provides great convenience for foreign investors in integrating their Turkish operations into their global systems.

In conclusion, Türkiye stands out in 2025 and beyond as a market with strong commercial reflexes and a settled legal infrastructure, offering opportunities across a wide spectrum from venture capital to real estate, and from technology to heavy industry. With the right legal counsel and strategic structuring, the Turkish market remains an indispensable hub for investors targeting sustainable growth.

Antitrust and Competition Law

While Turkish Competition Law is largely aligned with EU legislation, the distinguishing factor for Türkiye is the Turkish Competition Authority (TCA). Indeed, in terms of the number of on-site inspections and investigations, as well as the level and amount of administrative fines imposed, the TCA is currently one of the most active competition authorities in the world.

In 2025, in addition to imposing administrative fines totalling nearly EUR300 million, the TCA introduced far-reaching regulations that significantly reshaped market dynamics through its interim measures across a wide range of sectors, including digital services, finance, food and retail. The TCA has also been highly active in the review of M&A notifications, having examined 416 merger and acquisition transactions in 2025 alone.

As a result of these developments, the importance of designing and implementing a comprehensive competition compliance programme – covering elements such as internal audits, employee training, and the review of contracts and projects – has become even more critical for companies and their employees.