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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
Regulatory and Supervisory Authorities
Infrastructure and Logistics
Macroeconomic Indicators
FDI in Turkey
Foreign Trade
Investment Legislation
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Cost of Doing Business in Turkey  

Minimum Monthly Wage (gross and net)

 

USD

Net Minimum Wage

398.88

Gross Minimum Wage

504.97

  • Social security premium payment (14%)

70.70

  • Payment for the unemployment insurance fund (1%)

5.05

  • Income tax (15%)*

26.51

  • Minimum living allowance**

37.87

  • Stamp tax (0.759%)

3.83

Total Deduction

106.09

Cost for Employer

  • Gross minimum wage

504.97

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

78.27

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

10.10

Total Cost for Employer****

593.34

* Calculation of income tax is [(504.97 - 70.70 - 5.05) x 0.15] - 37.87

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

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

**** USD 0.95/day of the total cost for the employer will be covered by the Undersecretariat of the Treasury according to the eligibility conditions.

Source: Ministry of Labor and Social Security

Valid for January 1, 2017 – December 31, 2017

USD 1 = TRY 3.52 as of December 2016

Cost of Electricity*

Captive Customers

Eligible Customers

 

USD/kWh

USD/kWh

Industry mid-voltage (Double-Term Tariff)

0.072

0.060

Industry mid-voltage (Single-Term Tariff)

0.074

0.062

Source: Energy Market Regulatory Authority (EMRA), January 2017

* Excluding VAT

 USD 1 = TRY 3.52 as of December 2016

Cost of Water for Industrial Use

Reference Price USD/m3

Type of Customer

Water

Waste Water

Water VAT (%)

Industry

2.88

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

Mersin OIZ (with joint treatment plant)

0.85

8

-

-

Source: Istanbul Water and Sewerage Administration (ISKI)

Eskişehir Water and Sewerage Administration & Mersin Water and Sewerage Administration

USD 1 = TRY 3.52 as of December 2016

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

0.020

0.216

OIZ

0.018

0.199

More than 300,001 Sm³

0.018

0.200

Source: Petroleum Pipeline Corporation (BOTAS), January 2017

* Excluding SCT and VAT

USD 1 = TRY 3.52 as of December 2016

Cost of Broadband Services

Fibernet and Hypernet

(USD/month)

Download Speed (Mbps) - unlimited tariffs

Rates

Up to 24

71.30

Up to 35

87.20

Up to 50

113.90

Up to 100

162.20

Up to 1000

316.75

Metro Ethernet and G.SHDSL

Requirement specific

All taxes included.

Source: TTNET

USD 1 = TRY 3.52 as of December 2016