Open a Trust in Turkey
Open a Trust in TurkeyUpdated on Saturday 15th December 2018
based on 1 reviews.
The Turkish Civil Code provides for various ways in which the citizens of this country can protect their assets. Among these are creating a testament or a foundation. However, the Turkish legislation does not cover one of the most common asset protection solutions available in most European countries: the trust.
In Turkey, the private foundation is the most resembling solutions offered to those interested in setting up a trust. It should be noted that Turkish companies and citizens can open trusts in other jurisdictions.
Our lawyers in Turkey can offer information on the Civil Code’s provisions related to the protection of assets.
What do Turkish foundations and trusts have in common?
As mentioned above the alternative to the trust in Turkey is the private foundation. This is because it implies the same requirements when established which includes:
- - the settlor who is the individual or entity seeking to protect certain assets or an estate;
- - the trustee who can be an individual or company and who will be in charge with the protection of the assets on behalf of the third party, called a beneficiary;
- - the beneficiary who will be the heir of the estate.
An advantage of a Turkish foundation over a trust is that it can be established for more than one purpose, which includes for offering public services. You can rely on our law firm in Turkey if you want to create a foundation in this country.
Foreign citizens and trusts in Turkey
Foreign citizens moving to Turkey cannot set up trusts here but they are allowed to create them in their home countries. These trusts will not be affected by the Turkish taxation system. Their alternative is to create private foundations in Turkey which will be set up by preparing documents signed before a notary. The foundation deed, which the foreign citizen’s country of origin is known as a trust deed, must also be notarized in order to be valid. Foreign citizens establishing trusts in other countries can appoint Turkish companies or citizens as the beneficiaries of these trusts.
For full information on the creation of trusts by Turkish citizens, please contact our local lawyers. You can also count on our attorneys in Turkey if you want to open a company in this country.