Can Foreigners Establish a Foundation in Turkey? Reciprocity, Assets, and Court Registration

Yes. Foreign natural and legal persons can establish new foundations in Turkey. However, pursuant to Article 5 of the Foundations Law No. 5737, the establishment of foundations by foreigners is subject to the principle of legal and de facto reciprocity . In addition, the general establishment conditions under the Turkish Civil Code must be fulfilled, sufficient assets must be dedicated to the foundation, the foundation charter must be prepared in due form, and the majority of those serving on the governing body must be resident in Turkey.

The minimum asset to be dedicated to the purposes in the establishment of new foundations in the year 2026, by the decision of the Foundations Council dated 22.12.2025 and numbered 819/790, is 5,000,000 TL has been determined as. For the current amount and establishment practice, The Directorate General of Foundations' statement on the minimum establishment assets may be examined.

in terms of related matters such as the legal status of foreigners in Turkey, residence and work permits, also our foreigners law practice area and to the residence permit guide in Turkey can be consulted.

1. Is It Possible for Foreigners to Establish a Foundation in Turkey?

Under Turkish law, a foundation is a private law legal entity composed of assets and rights dedicated to a specific and permanent purpose. Pursuant to Article 101 of the Turkish Civil Code, natural or legal persons may establish a foundation by dedicating sufficient assets and rights to a specific and permanent purpose.

The specific regulation regarding foreigners is set forth in Article 5 of the Foundations Law No. 5737. Accordingly:

"Foreigners may establish new foundations in Turkey based on the principle of legal and de facto reciprocity."

Therefore, being a foreigner does not constitute an obstacle to establishing a foundation by itself. However, the reciprocity status between the relevant foreign state and Turkey is evaluated separately. The Directorate General of Foundations also in its official statement regarding the establishment of new foundations states that foreigners may establish foundations in Turkey based on the principle of legal and de facto reciprocity.

2. Fundamental Legal Basis for Foundation Establishment

In the establishment of a foundation with a foreign element, primarily the following regulations are evaluated together:

• Articles 101 et seq. of the Turkish Civil Code No. 4721 regarding foundations,
• Foundations Law No. 5737,
• Foundations Regulation,
• Law No. 5718 on Private International Law and Procedural Law,
• Code of Civil Procedure No. 6100 with respect to litigation,
• Notary, foreign document, apostille, translation, banking, and financial legislation depending on the nature of the specific case.

For the statutory text of the provisions of the Turkish Civil Code concerning foundations The text of Turkish Civil Code No. 4721 published by the Grand National Assembly of Turkey (TBMM) may be examined.

2.1. Definition of a Foundation According to the Turkish Civil Code

According to Article 101 of the TMK, foundations are communities of property possessing legal personality, established by real persons or legal entities by allocating sufficient assets and rights to a specific and permanent objective.

An entirety of assets, realized or reasonably expected revenues, or rights with economic value may be allocated to a foundation.

However, the purpose of a foundation is not unlimited. Foundations cannot be established if their purpose is contrary to the qualifications of the Republic determined by the Constitution, the fundamental principles of the Constitution, law, morality, national unity, and national interests, or if they aim to support members of a specific race or community.

2.2. How is the Intention to Establish a Foundation Declared?

Pursuant to TMK art. 102, the intention to establish a foundation may be declared:

• through an official deed, or
• by a disposition mortis causa

(testamentary disposition).

In establishment via an official deed, the transaction is executed by a notary public in the form of a formal instrument. If the foundation is to be established through an agent, the power of representation must be granted via a document issued by a notary public, and this document must specify the purpose of the foundation as well as the assets and rights to be allocated.

The Directorate General of Foundations' foundation establishment guide also explains the same conditions.

2.3. Capacity of Foreign Legal Entities

When evaluating whether a foreign company, association, foundation, or other legal entity can be a founder of a foundation in Turkey, the legal and operational capacity of the legal entity under its own national law is also of significance.

Pursuant to Article 9/4 of the Law on Private International Law and Procedural Law (MÖHUK) No. 5718, the legal and operational capacity of legal entities or associations of persons and property is, as a rule, governed by the law of their principal place of administration as set forth in their statutes. However, if the actual principal place of administration is located in Turkey, the application of Turkish law may come into question.

to the official text of Law No. 5718 from the Ministry of Justice legislation source accessible.

for the branch and liaison office options, which differ from foundation establishment, for foreign companies wishing to operate in Turkey our article regarding the opening of branches or liaison offices by foreign companies in Turkey can be examined further.

3. What is the Reciprocity Requirement?

3.1. Legal Reciprocity

Legal reciprocity is evaluated in terms of allowing Turkish citizens or relevant Turkish legal entities to establish a foundation or a comparable legal structure within the legal system of the state to which the foreign founder is subject.

This evaluation cannot be reduced merely to the existence of a provision in the foreign state legislation. The foundation or similar legal entity regime of the relevant country, the restrictions applied to foreigners, and the international conventions to which Turkey is a party may be of joint significance.

3.2. De Facto Reciprocity

Law No. 5737 requires not only legal, but also de facto reciprocity . Therefore, the theoretical permission of foreign state legislation may not be considered sufficient on its own; it may also be investigated whether Turkish citizens and relevant Turkish legal entities can benefit from similar rights in practice.

The Directorate General of Foundations' on the frequently asked questions page regarding new foundations The requirement of legal and factual reciprocity regarding foreigners is explicitly stated.

The assessment of reciprocity for a specific country may be conducted during the proceedings based on information and documents obtained from the relevant official authorities and regarding foreign law. Therefore, generalizations such as "reciprocity definitively exists" or "reciprocity definitively does not exist" should not be made regarding a specific state without conducting up-to-date research.

3.3. Founders with Multiple Nationalities

In the event that a natural person holds multiple nationalities, the applicable law shall be separately evaluated within the framework of the provisions of MÖHUK. If the person is also a Turkish citizen, Turkish law shall apply in determining the competent law based on the principle of nationality pursuant to Article 4/b of MÖHUK.

In cases where citizenship status must be evaluated together with establishment procedures to our explanations in the field of foreigners and citizenship law .

4. What is the Minimum Asset Requirement for Establishing a Foundation in 2026?

The minimum initial endowment asset for foundations to be newly established in 2026 is 5,000,000 TL.

Pursuant to Article 5 of the Foundations Law No. 5737, the minimum assets to be dedicated according to their purposes in new foundations are determined annually by the Foundations Council.

By the Foundations Council's decision dated 22.12.2025 and numbered 819/790 , the amount for the year 2026 has been determined as 5,000,000 TL. Pursuant to the General Directorate of Foundations' official announcement dated January 2, 2026 and the amount has been announced to the public.

4.1. Is the Minimum Amount Sufficient in All Circumstances?

No. 5,000,000 TL is the minimum establishment threshold for the year 2026. However, since TMK art. 101 stipulates the condition of "sufficient assets and rights," there must be a reasonable connection between the foundation's purpose and the allocated assets.

The Directorate General of Foundations also states in its establishment guide that the dedicated assets and rights must be sufficient to achieve the purpose of the foundation, at least initially.

For instance, if a healthcare, education, or infrastructure project requiring very high investments is designated as the primary purpose of the foundation, the allocation of merely the annual minimum amount may also be subject to separate evaluation regarding the adequacy of the purpose-assets.

4.2. Allocation of Cash Assets

According to the implementation guidelines of the Directorate General of Foundations regarding cash foundation assets, funds may be deposited into an account of one of the founders in a bank established in Turkey and blocked on behalf of the foundation, and the bank certificate shall be submitted to the court where the registration application is filed.

4.3. Can Movable or Immovable Property Be Allocated?

Yes. It is possible to allocate movable property, immovable property, and rights having economic value to the foundation. The value of the movable or immovable property may be determined during the proceedings, if necessary.

Pursuant to Article 105 of the TMK, the ownership of the properties and rights allocated to the foundation passes to the foundation upon acquiring legal entity status. If there is endowed immovable property, the court ruling on the registration shall notify the land registry office for the registration of the immovable property in the name of the foundation.

4.4. Money Transfer from Abroad

In the event that the initial assets are brought from abroad, legislation regarding banking, the prevention of financial crimes, and the determination of the source of funds may additionally apply. The bank may request documents demonstrating the source of the funds and the economic purpose of the transaction.

If the founder's residence or commercial activity status in Turkey is also of significance residence permit for the purpose of establishing business connections or starting a business the guide prepared regarding this matter may be reviewed separately.

5. Requirement for Foundation Governing Body Members to Be Resident in Turkey

Pursuant to Article 6 of the Foundations Law No. 5737, the governing bodies of new foundations shall be formed in accordance with the foundation charter, and the majority of those serving in the governing body must be resident in Turkey.

This rule applies not only to foundations with foreign founders, but constitutes a general regulation regarding new foundations.

For instance, in a governing body of five members, at least three individuals must be resident in Turkey.

5.1. Is Turkish Citizenship a Requirement for Members of the Governing Body?

No. The law does not stipulate a citizenship requirement, but rather a majority requirement regarding residence in Turkey .

However, a foreign national holding a residence permit and having a domicile within the meaning of the Turkish Civil Code are not identical concepts. While a residence permit is one of the key documents demonstrating a person's lawful stay in Turkey, the assessment of residency must be made based on specific circumstances.

For detailed information on residence statuses, types of residence permits in Turkey, residence permit extension application and long-term residence permit articles can be reviewed.

5.2. Is a Work Permit Required for a Foreign Manager?

Holding a position in a foundation's governing body and carrying out paid or de facto work in Turkey are not the same legal issue. Whether a foreign manager's activities in Turkey require a work permit must be evaluated separately in accordance with the International Labor Law No. 6735 and related legislation.

Regarding the work permit system our guide on work permits for foreigners in Turkey may be examined.

6. The Process of Establishing a Foundation in Turkey by Foreigners

6.1. Preparation of the Foundation Charter

The foundation charter is the fundamental document of the establishment process. Pursuant to Article 106 of the TMK, the charter must at least indicate:

• the name of the foundation,
• the purpose of the foundation,
• the assets and rights allocated to the purpose,
• the organizational and administrative structure,
• the domicile

.

With respect to foreign founders, requirements regarding identity, legal entity status, representation, and the certification and translation of documents issued abroad may also apply.

6.2. Foreign Legal Entity as a Founder

In the event that there is a legal entity among the founders, in accordance with the practice of the Directorate General of Foundations, provisions of the articles of association or a resolution of the competent body authorizing the legal entity to establish a foundation and allocate assets to the foundation must be submitted to the court.

In the case of a foreign legal entity, the requirements for an apostille, consular legalization, or other document verification procedures, as well as Turkish translation, must be evaluated separately based on the country where the document was issued.

6.3. Preparation of the Official Deed before a Notary Public

If a foundation is established via an official deed, the founder's intent to establish the foundation is prepared in the form of a notarized deed. If a representative is used, the power of attorney or representation document must meet the special requirements set forth in Article 102 of the TMK.

Regarding documents drafted in a foreign language or used by a foreign founder, notary and translation rules must be fulfilled in accordance with the specific document.

6.4. Foundation Registration Application

Following the drafting of the official deed, the founder applies to the court. In terms of jurisdiction, the court of first instance (asliye hukuk mahkemesi) comes into question.

Pursuant to Article 102 of the TMK, a foundation acquires legal personality upon registration in the registry kept before the court of the settlement place. However, Article 104 of the TMK separately regulates the possibility of the registration decision being rendered by another court, and in such cases, it provides for the documents to be sent to the court of the foundation's settlement place for registration.

Therefore, regarding the establishment application, rather than drawing a general conclusion that "the court at the foundation's headquarters is exclusively competent in all cases," the provisions of the TMK and HMK must be evaluated together with respect to the specific application.

6.5. Opinion of the Directorate General of Foundations

According to the official establishment guide of the Directorate General of Foundations, the court renders a decision on registration by obtaining the opinion of the Directorate General, hearing the founder when necessary, and having an expert examination conducted.

During the examination, the purpose of the foundation, the foundation charter, the dedicated assets, the establishment conditions, and special conditions arising from the foreignness element may be subject to evaluation.

6.6. Reciprocity Investigation

Since the founder is a foreign national, it shall be investigated whether the legal and de facto reciprocity condition stipulated in Article 5 of Law No. 5737 has been fulfilled.

Obtaining information regarding the legislation and practice of the relevant state through foreign legal documents or relevant official authorities may come into question. The conclusion must be evaluated based on the founder's nationality and the current law and practice of the relevant country.

6.7. Registration Decision and Acquisition of Legal Personality

The foundation acquires legal personality upon registration in the registry maintained before the settlement court.

Article 103 of the TMK contains a special provision regarding the appeal of the court decision concerning registration by the applicant or the General Directorate of Foundations within one month starting from the notification date. In terms of the current appellate system, the nature of the decision and the applicable procedural provisions must be evaluated separately on a case-by-case basis.

6.8. Central Registry and Official Gazette Announcement

Pursuant to Article 104 of the TMK, upon the notification of the settlement court, the foundation is registered in the central registry maintained at the General Directorate of Foundations and is published in the Official Gazette.

The Directorate General of Foundations' in the establishment guide the central registry, announcement, and transfer of allocated assets to the foundation are explained in detail.

7. Court Security (Cautio Judicatum Solvi) for Foreign Founders

Regarding the reciprocity concerning the right to establish a foundation and what foreigners may encounter when filing a lawsuit or making a judicial application in Turkish courts security for litigation costs ( cautio judicatum solvi ) are distinct legal matters.

Pursuant to Article 48 of the MÖHUK, foreign natural and legal persons who file a lawsuit, intervene in a lawsuit, or initiate enforcement proceedings in a Turkish court are, as a rule, subject to the obligation to provide security. According to the second paragraph of the same article, the court shall exempt the person from providing security based on the principle of reciprocity.

In this regard, Explanation by the Directorate General for Foreign Relations and European Union of the Ministry of Justice regarding the security deposit obligation of foreigners. may be examined.

Therefore, whether a court-ordered security deposit is required for a foreign founder must be determined on a case-by-case basis, taking into account the person's nationality, applicable international conventions, and the principle of reciprocity.

8. The Issue of Authority in Foundations in Yargıtay Decisions

The significance of the place of residence in disputes concerning foundations is also reflected in the precedents of the Yargıtay.

In the decision of the 8th Civil Chamber of the Yargıtay, dated 15.10.2025, numbered E.2025/4979 and K.2025/6363,, the issues of the foundation's place of residence and jurisdiction were examined in a dispute regarding the annulment of findings contained in an audit report drawn up concerning a foundation.

The decision does not directly concern a request for the establishment and registration of a new foundation. Therefore, it would be incorrect to rely on this decision as a basis for the broad conclusion in establishment and registration lawsuits that "the court at the location of the foundation headquarters has exclusive jurisdiction." The subject matter of the decision is the lawsuit arising from the audit report filed against the foundation and the jurisdictional issue in that lawsuit.

The citation of the decision Court of Cassation (Yargıtay) Case Search system can be verified using the case numbers E.2025/4979 and K.2025/6363.

9. Sample Scenarios

9.1. Establishment of an Educational Foundation by a Foreign Real Person

Let us assume that a foreign national real person wishes to establish a foundation in Turkey aiming to provide scholarships to students.

In this case, legal and factual reciprocity within the meaning of Law No. 5737 must first be investigated with respect to the state to which the founder is subject. The requirement of a minimum initial endowment capital of 5,000,000 TL for the year 2026 shall be taken into account; however, a higher endowment capital may be required depending on the designated purpose of the foundation.

The majority of those serving on the governing body must be resident in Turkey, and the foundation charter must contain the mandatory elements set forth in the TMK.

9.2. Establishment of a Foundation by a Foreign Company

A foreign company may plan to establish a foundation in Turkey for social, scientific, educational, or other lawful and continuous purposes.

In such cases, the company's legal personality and capacity under its own law, the authorized body resolution regarding the establishment of the foundation and the allocation of assets, representation documents, the legalization and translation procedures of foreign documents, and the reciprocity requirement are evaluated together.

If the foreign company intends to directly conduct commercial activities in Turkey, alternative structures to a foundation may come into question, therefore branch and liaison office options for foreign companies must be examined separately.

9.3. Absence of Reciprocity

If it is determined that the legal or de facto reciprocity requirement is not met with respect to the state of which the founder is a national, the establishment condition specific to foreigners under Article 5, Paragraph 4 of Law No. 5737 is not fulfilled.

Therefore, it is important to investigate the current legal status regarding the relevant state before initiating the establishment process.

10. Comparison of Foundation Establishment by Turkish Citizens and Foreigners

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11. Frequently Encountered Legal Risks in Foundation Establishment

11.1. Illegality of the Foundation's Purpose

A foundation containing any of the prohibited purposes set forth in TMK Art. 101 cannot be established. The purpose provisions must be specific, understandable, lawful, and permanent.

11.2. Insufficiency of Assets

Even if the minimum threshold of 5,000,000 TL for the year 2026 is met, whether these assets are sufficient with regard to the purpose of the foundation is also of significance.

11.3. Absence of Special Authority in the Power of Attorney

If a foundation is to be established through a representative, the power of attorney issued by a notary public must specify the purpose of the foundation and the assets and rights to be dedicated to the foundation.

11.4. Failure to Meet the Residency Requirement in the Governing Body

The failure of the majority of those serving on the governing body to be residents in Turkey is one of the primary issues that may require the amendment of the foundation charter pursuant to Article 6 of Law No. 5737.

11.5. Lack of Authorized Body Resolution of a Foreign Legal Entity

If a foreign company or other legal entity is to be a founder, the intent to establish a foundation and allocate assets to the foundation must be duly declared by the authorized body of the legal entity.

11.6. Improper Preparation of Foreign Documents

Depending on the country where the document is issued and the nature of the document, procedures such as an apostille, consular legalization, notary certification, or sworn translation may be required.

11.7. Confusion Between Residence Status and the Concept of Residency

The mere possession of a residence permit by a foreigner does not automatically mean that the residency requirement for the foundation's governing body is met in every case.

For matters such as the expiration or revocation of residence status revocation of residence permit and its consequences can be reviewed separately.

12. Frequently Asked Questions

Can a foreign national establish a foundation alone in Turkey?

Yes. There is generally no obstacle to the establishment of a foundation by a single natural or legal person. However, the legal and de facto reciprocity requirement must be met for a foreign founder, and the majority of those serving on the governing body must be residents in Turkey.

What amount of assets is required to establish a foundation in 2026?

By the resolution of the Council of Foundations dated 22.12.2025 and numbered 819/790, the minimum initial asset endowment for 2026 has been determined as 5,000,000 TL . A higher asset endowment may be required if the purpose of the foundation so necessitates.

Can a foreign company establish a foundation in Turkey?

In principle, a foreign legal entity may act as a founder. However, the legal entity's capacity, status under its own laws, authorized body resolution, authority to allocate assets to the foundation, representation documents, and the reciprocity requirement under Law No. 5737 must be evaluated together.

What is reciprocity?

Reciprocity is the condition of mutuality required by Law No. 5737 in terms of foreigners establishing foundations in Turkey. The law provides for both legal and factual reciprocity.

Can citizens of every country establish a foundation in Turkey?

No. The establishment of a foundation by foreigners is subject to the fulfillment of the legal and factual reciprocity requirement with respect to the relevant state. Therefore, the founder's nationality must be examined on a case-by-case basis.

What is the status of a dual citizen?

If the person is also a Turkish citizen, Turkish law applies in determining the applicable law based on nationality pursuant to Article 4/b of MÖHUK. The specific establishment procedure must still be evaluated according to the individual's status.

Can the board of directors of the foundation consist entirely of foreigners?

Foreign membership alone is not prohibited. However, those serving on the governing body must predominantly be resident in Turkey .

Is it necessary to be a Turkish citizen in order to be a resident in Turkey?

No. The law does not mandate Turkish citizenship as a prerequisite. However, an individual's legal and factual residency status in Turkey must be evaluated based on concrete documents.

Is a foreigner holding a residence permit automatically considered a resident in Turkey?

While a residence permit is an important document, holding a residence permit and being domiciled under civil law are not identical concepts. Residency must be evaluated in conjunction with the specific circumstances of the case.

Can real estate be dedicated during the establishment of a foundation?

Yes. Under the TMK, it is possible to endow real estate with economic value to a foundation. Valuation and title deed registration are carried out separately during the establishment process.

Is the foundation published in the Official Gazette after registration?

Yes. Upon notification by the court of settlement, the foundation registered in the central registry of the Directorate General of Foundations is announced in the Official Gazette.

Is a foreign founder required to deposit security in court?

Article 48 of the MÖHUK provides for a security deposit obligation for foreign natural and legal persons. However, pursuant to the same article, an exemption from the security deposit applies when reciprocity exists. International conventions to which Turkey is a party must also be taken into consideration.

How long does foundation registration take?

There is no fixed statutory timeframe applicable to every file. The scope of the file, completion of foreign documents, reciprocity investigations, the opinion of the Directorate General of Foundations, and examinations conducted by the court may affect the duration. Therefore, it is not appropriate to guarantee a definitive or average timeframe.

13. Conclusion

It is legally possible for foreign natural and legal persons to establish a foundation in Turkey. However, regarding foreign founders, in addition to the general foundation establishment requirements applicable to Turkish citizens, legal and de facto reciprocity condition must be fulfilled.

minimum assets to be allocated for the purposes of a new foundation as of 2026 5,000,000 TL has been determined as. The purpose of the foundation may require an initial asset amount above this threshold.

During the establishment process, the foundation charter must be prepared in compliance with the TMK, documents belonging to the foreign founder must be validly submitted, the representation authority must meet specific conditions, the majority of the governing body must reside in Turkey, and the reciprocity condition must be evaluated on a country-specific basis.

Regarding other legal transactions and residence statuses of foreigners in Turkey, on our immigration and aliens law services page general explanations can be reviewed.

Author Information

Attorney Batın YILMAZ
Istanbul Bar Association Bar Registry No: 77008

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This content has been prepared for general legal informational purposes. It does not constitute a legal opinion, guarantee of outcome, or commitment regarding any specific person, company, foundation establishment, or dispute. The applicable legal path may vary depending on the founder's citizenship, legal entity status, relevant foreign state law, reciprocity status, the purpose of the foundation, the assets to be allocated, and other circumstances of the specific case.

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Contact

Attorney Batın YILMAZ
Istanbul Bar Association Bar Registry No: 77008
Address: Yakuplu Mahallesi, Hürriyet Bulvarı, Skyport Residence Kat:12 No:133, Beylikdüzü / İstanbul
Phone: +90 532 669 34 90
E-mail: info@batinyilmaz.av.tr

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