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10 Reasons to Invest in Turkey
Investors' Guide
Prior to Arrival in Turkey
Work Permit
Residence Permit
Establishing a Business in Turkey
Transferring Assets
Cost of Doing Business in Turkey
Access to Finance
Incentives
Employees and Social Security
Terms of Employment
Termination of Employment Contract
Turkish Social Security System
Taxes
Investment Zones
Demographics
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Macroeconomic Indicators
FDI in Turkey
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Cost of Doing Business in Turkey  

Minimum Monthly Wage (gross and net)

 

USD

Net Minimum Wage

425.23

Gross Minimum Wage

538.33

  • Social security premium payment (14%)

75.37

  • Payment for the unemployment insurance fund (1%)

5.38

  • Income tax (15%)*

28.26

  • Minimum living allowance**

40.37

  • Stamp tax (0.759%)

4.08

Total Deduction

113.10

Cost for Employer

  • Gross minimum wage

538.33

  • Employer’s share of the social security premium (15.5%)***

83.44

  • Employer's payment for the unemployment insurance fund (2%)

10.77

Total Cost for Employer

632.54

* Calculation of income tax is [(538.33 - 75.37 - 5.38) x 0.15] - 40.37

** For single individuals without children, and may vary according to marital status and the number of children.

*** For premiums that are paid in due time, as an incentive, a five-point reduction is applied (down from 20.5% to 15.5%).

Source: Ministry of Labor and Social Security

Valid for January 1, 2018 – December 31, 2018

USD 1 = TRY 3.77 as of December 2017

Cost of Electricity

Consumers Purchasing Electricity from Commissioned Supply Companies

Distribution System Users

Capacity

Active Energy + Distribution

Capacity Charge

Over-Capacity Charge

Standard

Daytime

Peak

Nighttime

Kurus/kWh

Kurus/kWh

Kurus/kWh

Kurus/kWh

Kurus/kWh

Kurus/kWh

Medium Voltage

Double Term

Industry

204,2996

408,5992

28,4967

28,3475

46,1681

15,5934

Single Term

Industry

N/A

N/A

29,1012

28,9520

46,7726

16,1979

Low Voltage

Single Term

Industry

N/A

N/A

32,3150

32,1658

49,9864

19,4117

System Usage Tariffs for Consumers Purchasing Electricity from Private Suppliers*

Private System Users

Capacity

Distribution Tariff

Capacity Charge

Over-Capacity Charge

Kurus/kWh

Kurus/kWh

Kurus/kWh

Medium Voltage

Double Term

Industry

204,2996

408,5992

5,5153

Single Term

Industry

N/A

N/A

6,1198

Low Voltage

Single Term

Industry

N/A

N/A

9,3336

Multiple tariff application for November-March period: 07.00-18.00 daytime; 18.00-22.00 peak; 22.00-07.00 nighttime.
Multiple Tariff application for April-October period: 06.00-17.00 daytime, 17.00-22.00 peak; 22.00-06.00 nighttime.

 

Capacity Charge: Monthly fixed-fee calculated per kW based on the “contract power” specified in connection contract and charged to double-term consumers connected to distribution system.

 

Over-Capacity Charge: Monthly fee calculated per kW for the power exceeding the “contract power” specified in connection contract and charged to double-term consumers connected to distribution system.

 

Double-Term Tariff: Tariff class charged for “distribution fee over the amount of active energy flow (kWh) received from the distribution system or given to the distribution system”, plus capacity-charge calculated per kW specified in connection contract, plus over-capacity charge for the power (in kw) exceeding the “contract power.”

 

Single-term Tariff: The tariff class charged for distribution fee only through the amount of active energy flow (kWh) received from the distribution system or given to the distribution system.
*Active energy price is not reflected in the table as the price is determined bilaterally between consumer and supplier.

Cost of Water for Industrial Use

Reference Price USD/m3

Type of Customer

Water

Waste Water

Water VAT (%)

Industry

2.99

Included

8

Reference Price USD/m3

Organized

Industrial Zones (OIZs)

Water

Water VAT (%)

Waste Water

Waste

Water VAT (%)

Eskişehir OIZ

0.18

8

0.18

8

Antalya OIZ

0.13

8

-

-

Source: Istanbul Water and Sewerage Administration (ISKI)

Eskişehir Water and Sewerage Administration & Antalya Water and Sewerage Administration

USD 1 = TRY 3.77 as of December 2017

Cost of Natural Gas*

Gas Sales Tariff for Customers that have a Signed Gas Sales Agreement with BOTAS

USD/kWh

USD/Sm³

Less than 300,000 Sm³

0.019

0.203

OIZ

0.020

0.211

More than 300,001 Sm³

0.020

0.212

Source: Petroleum Pipeline Corporation (BOTAS), January 2018

* Excluding SCT and VAT

USD 1 = TRY 3.77 as of December 2017

Cost of Broadband Services

Fibernet and Hypernet

(USD/month)

Download Speed (Mbps) - unlimited tariffs

Rates

Up to 24

62

Up to 35

76

Up to 50

97

Up to 100

137

Up to 1000

296

Metro Ethernet and G.SHDSL

Requirement specific

All taxes included.

Source: TTNET

USD 1 = TRY 3.77 as of December 2017