After the founding of the Turkish Republic, all important laws were revised. The new legislation was ultimately a direct adoption of Western law. The reception of the Swiss Civil Code (ZGB) in 1926 became a symbol of the transition from an Islamic to a secular legal system. The German legal system, in particular, significantly influenced Turkey, especially in commercial law. Therefore, German companies keen on investing find themselves on familiar legal ground.
Switzerland, Germany, and Italy as Sources of the Turkish Legal System
In 1926, the Italian Penal Code of 1889 was adopted. In 2004, it was reformed according to European standards. In the same year, the Turkish Commercial Code was also accepted, largely following the German model. The Civil Procedure Code of the Canton of Neuchâtel from 1925 was codified by the Turkish legislature in 1927 and has been in force ever since, despite numerous amendments. The same applies to the Bankruptcy and Insolvency Law, which was also adopted from Neuchâtel in 1927. In the same year, the German Code of Criminal Procedure was translated into Turkish and codified with minor changes.
Dispute Resolution
According to Article 138 of the Constitution, the Turkish judiciary is independent and not subject to any instructions. At the same time, only Turkish courts are competent for the enforcement and execution of claims. The Turkish judicial system for criminal and civil cases generally consists of two instances: the court of first instance and revision (temyiz) to the Court of Cassation (Yargıtay). An appeal exists only within administrative jurisdiction.
Investment Law – Europe in Focus
Since 1996, Turkey has been part of the Customs Union. At the end of 2005, EU accession negotiations (now suspended) began, and significant reform efforts have since shaped the Turkish legal landscape. Foreign investments in Turkey no longer require approval. The foreign capital share can now also amount to 100%. The minimum capital threshold of fifty thousand US dollars for each foreign shareholder has also been abolished. Companies founded with foreign capital are treated equally to domestic companies in Turkey.
Turkish Company Law
Turkish company law shows great similarities with the forms of company known in Germany, not least because the German Commercial Code was largely adopted in 1956. However, significant differences sometimes only become apparent upon closer examination of the legal details.
Social Security in Turkey
State social benefits in Turkey are significantly lower than in Germany. For example, the monthly child benefit is approximately 10 Euros. Other benefits such as social assistance or long-term care insurance do not (yet) exist. Elderly and people in need of care are generally looked after by their families.
