Setting Up a Gaming Company in Turkey for Foreigners
Setting Up a Gaming Company in Turkey for Foreigners
Setting Up a Gaming Company in Turkey for Foreigners
A Comprehensive Legal and Strategic Guide (2025 Edition)
Executive Summary
Turkey's gaming sector has rapidly evolved into a high-growth, export-oriented industry, attracting global attention due to its government-backed incentives, young tech-savvy talent pool, and strategic geographic location. For foreign investors and gaming entrepreneurs, Turkey offers a compelling landscape to establish and scale game development companies, provided that the legal, fiscal, and operational frameworks are well understood and navigated with professional care.
This guide provides a thorough examination of the regulatory framework, incorporation options, licensing requirements, tax incentives, and practical considerations involved in setting up a gaming company in Turkey as a foreign investor.
1. Why Turkey? Strategic Advantages for Foreign Game Developers
1.1 Government Support
Turkey offers generous grants and subsidies to game developers, especially those targeting international markets. The Ministry of Trade and TÜBİTAK actively support game startups via cash incentives, R&D tax credits, and promotional support.
1.2 Growing Export Capacity
Gaming is among the top digital export verticals in Turkey, with several studios securing multi-million-dollar exits in recent years. Turkish-developed mobile games consistently rank among global top downloads.
1.3 Workforce & Cost Efficiency
Turkey’s population is young, digitally fluent, and cost-effective compared to the EU or North America. Cities like Istanbul, Izmir, and Ankara are home to numerous game design schools and technical universities.
2. Legal Framework for Foreign Investment in Turkey
2.1 Equal Treatment Principle
According to the Foreign Direct Investment Law No. 4875, foreign investors are treated equally with local investors. There are no sector-specific restrictions for foreign ownership in the gaming sector.
2.2 Entity Options
Foreign individuals or entities can establish the following types of companies:
| Type | Description | Typical Use Case |
| Limited Liability (Ltd.) | Requires minimum one shareholder and one director | Indie or small gaming studios |
| Joint Stock (A.Ş.) | Suitable for larger ventures or those seeking investment | Mid to large-scale studios |
| Branch Office | Extension of a foreign entity; no separate legal personality | Non-operational structures |
Note: In practice, most foreign game companies prefer a Limited Liability Company (LLC) due to its simpler setup and reduced compliance costs.
3. Step-by-Step: Incorporation Process in Turkey
3.1 Pre-Incorporation Checklist
Before setting up, the following preparations are advised:
Obtain a potential tax ID for the foreign shareholder(s)
Appoint a local legal representative or advisor
Determine the company name (must be unique in Turkey)
Define business activity codes (NACE codes) aligned with gaming, IT, or software
3.2 Company Registration Timeline
| Step | Responsible Authority | Duration (Est.) |
| Drafting Articles of Association | Notary or Legal Counsel | 1 day |
| Registration with Trade Registry | Turkish Chamber of Commerce | 3–5 days |
| Opening Bank Account & Deposits | Turkish Bank | 2–5 days |
| Obtaining Tax Number & Registration | Local Tax Office | 1–2 days |
| Social Security Registration (if employees hired) | SGK | 1–2 days |
3.3 Minimum Capital Requirements
LLC: Minimum TRY 10,000 (advised: TRY 50,000+ for smoother banking and grants)
Joint Stock Company: TRY 250,000 minimum
4. Sector-Specific Considerations for Gaming Companies
4.1 Selecting the Correct NACE Code
To benefit from gaming-related incentives, companies must register under the correct economic activity code, such as:
62.01.01: Computer programming activities
62.02.01: Consulting on computer systems
58.21.01: Publishing of computer games
4.2 Licensing and Content Considerations
There is no special license required for game development. However, content should comply with Turkish regulations around data privacy, child protection, and online publishing ethics under the Law No. 5651 on Internet Broadcasts.
5. Taxation and Incentives: What Foreign Founders Must Know
5.1 Corporate Taxation Overview
| Tax Type | Rate (2025) | Notes |
| Corporate Income Tax | 25% | May be reduced through incentives |
| VAT (General Rate) | 20% | Software licenses may be zero-rated if exported |
| Withholding Tax (Dividends to non-residents) | 10%-15% | Treaty-dependent |
| R&D Incentives (Techdev) | Up to 100% | Under 5746 R&D Law and Technopark Law |
5.2 Government Grants and Cash Incentives
| Incentive Type | Max Amount Per Game | Notes |
| Export-based Advertising Refund | TRY 15 million/game | For Meta, Google, Applovin, TikTok, etc. |
| App Store Commission Refund | TRY 3.7 million/game | Includes Apple AppStore and Google Play commissions |
| Employee Salary Support | TRY 210,000/employee | Covers 50% of eligible engineer salaries |
| Report & Database Support | TRY 1.8 million | For accessing analytics tools and development SDKs |
Note: Up to TRY 72.5 million in cumulative advertising support is possible per entity based on game count and structure.
5.3 VAT on Exported Games
Under Turkish VAT Law, services rendered to non-resident clients (outside of Turkey and used abroad) are generally exempt from VAT. Most mobile and PC games sold to overseas users qualify.
6. Employment, Payroll and Compliance
6.1 Hiring Foreign Developers
Foreigners can be employed as long as:
The company secures a work permit on behalf of the employee
The company meets local-to-foreign employee ratio requirements (typically 5:1)
6.2 Payroll Requirements
Companies must register with:
SGK (Social Security Institution) for social insurance payments
İŞKUR (Turkish Employment Agency) for compliance with labor reporting
Payroll taxes include:
Employer's Social Security Share (~20.5%)
Employee Withholding Tax (based on income brackets)
Stamp Duty
6.3 Intellectual Property Rights
Games developed in Turkey are protected under Turkish Intellectual Property Law. Trademarks, software codes, and character designs can be registered with the Turkish Patent and Trademark Office (TÜRKPATENT).
7. Practical Challenges & How to Mitigate Them
7.1 Banking and Foreign Currency Controls
Setting up a bank account requires:
Apostilled foreign documents
Turkish translations notarized
Personal visit by at least one company officer
7.2 Currency Volatility
Although Turkey permits foreign-currency-based capital contributions, day-to-day operations are affected by FX fluctuations. Hedging strategies are recommended.
7.3 Grant Application Complexity
While grants are significant, documentation requirements are detailed and processing times may be long. Engaging a local consultancy with prior approval experience is highly advised.
8. Establishing a Subsidiary vs. Acquiring a Turkish Studio
| Option | Pros | Cons |
| New Company | Full operational control; eligibility for all grants | More setup time; initial bureaucracy |
| Studio Buyout | Existing teams & projects; faster GTM | Due diligence risk; existing liabilities |
9. Ongoing Obligations After Setup
Monthly VAT and withholding declarations
Quarterly temporary tax filings
Annual corporate tax return (due by April)
Payroll reporting and SGK filings
Independent audit if revenue exceeds thresholds (TRY 40 million as of 2025)
10. Conclusion: Is It Worth It?
For game studios targeting international growth, Turkey offers one of the most lucrative government support environments globally. The ecosystem favors digital-native exporters, and labor and operational costs remain competitive. However, navigating the local legal, tax, and administrative landscape requires expert guidance, especially for foreign founders unfamiliar with the Turkish system.
Investing in legal and tax consultancy from day one is not a luxury — it’s a necessity.
Reach us
Are you considering setting up your game development company in Turkey? Whether you are launching your first title or expanding from the EU, we can help you navigate incorporation, grants, taxation, and compliance.
📩 Contact us at info@ozmconsultancy.com to schedule 30-minute consultation with a bilingual legal and tax advisor specialized in Turkey’s digital sectors.
