International transactions through Turkey: legal models and important nuances

How to properly organize international trade through a Turkish company

Turkey remains a strategic trade hub between Europe, the Middle East, the CIS, and Asia. Its developed banking system, flexible corporate law, and convenient logistics make it attractive for international trade. However, using a Turkish company as a transit clearinghouse without a well-thought-out structure creates high compliance risks.

Turkish banks work in close coordination with MASAK and assess transactions comprehensively, including analyzing the economic rationale of the transactions, the source of funds, the structure of the contracts, and the compliance of the activities with the declared NACE codes.

Main legal models of work

1. Classic trading model (buy–sell)

The Turkish company acts as a full-fledged seller: it enters into a contract with the supplier, takes ownership of the goods, and resells them to the end customer. This is the most sustainable model from the perspective of banks and tax authorities, as it creates real added value.

2. Agency model

The company acts as an intermediary and receives a commission. It's important to properly formalize agency agreements and report income as a commission, not as the full transaction turnover.

3. Transit trade (re-export / drop shipment)

The goods do not enter Turkey, but the company is legally involved in the transaction. In this case, the economic purpose of the transaction and its margins require particularly careful justification.

Key nuances

• Correspondence of turnover to declared types of activities
• Confirmed source of funds
• Contractual basis before the start of cash flow
• Clear logistics and product routing
• Transparent structure of beneficiaries

Tax aspects

It's important to consider corporate tax, VAT on imports and exports, and transfer pricing rules when working with related parties. Errors in the structure can lead to additional assessments and audits.

Risks of incorrect structure

• Blocking a bank account
• Requests from the bank's compliance service
• Additional audits by tax authorities
• Freezing of funds during the period of analysis of operations