Free Zone

Establishing a Free Zone Company
TRNC has become an investment hotspot with Free Zone companies (FZC) the preferred form of incorporation by both domestic and foreign investors. A FZC in TRNC offers proximity and ease of access to Türkiye, Europe and the Middle East and is particularly appealing due to tax advantages it offers.
The Free Trade Zone in TRNC is located at the port of Famagusta. Long established as the center of transit trade, import-export, warehousing and production, today companies providing remote services such as IT, tourism and consultancy are attracted and the number of companies established in the zone is increasing day by day. Free zone companies are established in the free trade zone but carry out their commercial activities abroad. Although they're subject to TRNC Companies Law, they operate with a special company status. The biggest advantage of FZC is that since they're accepted to be outside of the customs line, they're completely exempt from all taxes such as customs tax, income tax, corporate tax, VAT etc. on income from all activities carried out with any country other than the TRNC.
Dividends are also tax-exempt and the earnings can be freely transferred abroad. Since FZC are completely legal entities, the revenue obtained from a FZC can be transferred to any other country the same way as any foreign company. As long as the transfer of income is not carried out illegally, you shouldn't expect to encounter any problems in the process. FZC can be established both in offices and/or warehouses/factories located in the Free Port Area. Mailboxes can also be used and are the preferred method used by consultancy, software development, advertising, or companies that provide virtual services as they don't need a physical office. Many online service providers recognized in the Republic of Türkiye and around the world have established a FZC and are active in the TRNC Free Trade Zone due to its tax benefits. The minimum initial capital required for the establishment of a FZC is currently 50,000 Euros which can be used for company activities after approval for the establishment of the company. Apart from admin fees and taxes payable during establishment, FZC don't pay an annual fixed fee. FZC can use banks registered in TRNC as well as branches of Turkish banks. Banks will search shareolder's business activity, trsutworthiness and background before authorising any new bank accounts. Decisions to provide accounts are entirely at the discretion of the bank so past and/or ongoing relations with them are definitely an advantage.