Guide to Forming a Company Abroad for Turkish Investors
A guide for Turkish investors on forming a company abroad, holding structures, choosing between the Netherlands and Malta, and tax treaties.
This guide to forming a company abroad for Turkish investors considers not only “which country should the company be incorporated in?” but also taxation, holding structures, trademark protection, and exit strategies together. The right structure is generally selected based on three criteria: the type of investment, dividend flows, and the target market.
Key criteria:
- Holding jurisdiction: the Netherlands, Malta, or another EU structure
- Tax treaty: the impact of double taxation and withholding tax
- Operations: banking, accounting, trademark registration, and compliance obligations
Which structure should you choose when forming a company abroad?
For Turkish investors forming a company abroad, the most common model is to separate the operating company from the holding company. The holding company manages equity interests, trademark rights, or dividend flows, while the operating company handles sales, services, or local activities.
“An international corporate structure should be designed around where cash flow is generated before considering tax rates.”
The Netherlands stands out for holding structures because of its strong treaty network and reputation for investment within the EU. According to PwC data, the corporate income tax rate in the Netherlands in 2026 is 19% on the first 200.000 euro of profit and 25,8% above that threshold. Malta’s standard corporate income tax rate is 35%; however, the official Malta Tax and Customs Administration describes a system of partial or full tax refunds to shareholders following dividend distributions.
| Structure | Who is it suitable for? | Main advantage |
|---|---|---|
| Netherlands holding company | EU investment and subsidiary management | Treaty network and corporate reputation |
| Malta company | Dividend/international income planning | Effective tax advantage through the refund system |
| Trademark + corporate structure | E-commerce, software, and franchising | Separating IP from revenue flows |
The critical point in practice is this: forming a company is easy; establishing sustainable banking and accounting processes is more difficult.
Why are double taxation treaties critical?
Double taxation treaties are used to prevent the same income from being taxed twice, both in Türkiye and abroad. For Turkish investors, the main issue is where dividends, interest, royalties, and capital gains will be taxed and at what rate.
“A structure without a tax treaty may appear inexpensive, but it can become costly when profits are distributed.”
Regarding the Türkiye-Netherlands corridor, KPMG states that dividends from Netherlands subsidiaries may qualify for an exemption in Türkiye under certain conditions and that the minimum 10% ownership requirement is important. The general dividend withholding tax rate in Türkiye is 15%; PwC explains that some double taxation treaties may reduce this rate, subject to certain conditions.
Checklist:
- Will the investor be an individual or a company in Türkiye?
- Are dividend distributions planned?
- Will income from trademarks, software, or licenses be kept separate?
- Is there local substance—that is, evidence of genuine business activity?
- Are the bank account and accounting reports in place?
→ Choosing the wrong country affects the company; choosing the wrong flow increases the tax burden.
What does MarcaWorld’s investor advisory service provide?
MarcaWorld’s investor advisory service addresses company formation together with trademark registration, jurisdiction selection, and investment structuring. This approach is particularly important for high-net-worth Turkish investors because forming a company abroad does not, by itself, provide asset protection.
“The safest structure for an investor is one in which the company, trademark, and tax plan are designed as part of the same strategy.”
One practical insight stands out: when a company is formed before its trademark is registered, disputes over ownership may later arise during negotiations with distributors, franchisees, or investors. The World Intellectual Property Organization (WIPO) emphasizes that trademark rights operate on the principle of territorial protection; therefore, a trademark application is as strategically important as company formation when expanding abroad.
To form a company or register a trademark abroad with MarcaWorld, request a quote at marcaworld.com/iletisim.
Key Points
- For Turkish investors, the decision to form a company abroad should be planned together with the tax, banking, and trademark structure.
- A Netherlands holding structure is a strong option because of its EU reputation and treaty network.
- Malta should be carefully considered by investors planning dividend distributions because of its tax refund system.
- A double taxation treaty directly affects the net return when profits are distributed.
- A company formed abroad without trademark registration provides incomplete protection for the investor.
Tax and substance pressures
In 2026, the risks associated with companies that exist only on paper are increasing. PwC’s 2026 corporate income tax rates for the Netherlands demonstrate that establishing a low-tax structure alone is not sufficient. Moreover, although Malta’s refund system remains in place, genuine business activity, place of management, and proper documentation are becoming more decisive in investor reviews.
Frequently Asked Questions
Which country is best for a Turkish investor?
There is no single best country. A Netherlands holding company may be suitable for holding structures, Malta for dividend planning, and Estonia for digital operations. The choice should be based on the type of investment.
Which is more advantageous: the Netherlands or Malta?
The Netherlands stands out for its corporate reputation and treaty network. Malta may offer advantages for certain dividend structures because of its tax refund system.
Is a company formed abroad to evade taxes?
No. A properly designed structure is established for tax compliance, investment planning, trademark protection, and international growth.
Should a trademark be registered before forming the company?
In most cases, the trademark search and application plan should proceed at the same time as the company formation process.
