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FATF removal · Euro operations · EU market access

Why Turkish businesses are incorporating in Spain.

EU market access, euro-denominated operations, and the banking window that opened when Turkey came off the FATF grey list in June 2024. Three things now align that were not simultaneously true in 2022.

Start your Spain incorporation ↗ Structure defined before the first transfer
FATF grey list
Removed
June 2024, after nearly three years of increased monitoring. The single largest change for Turkish-owned Spanish companies.
Bilateral trade
$19.2B
Spain-Turkey trade in 2024, against a $25 billion target set by both governments.
Golden Visa
Closed
Ended 3 April 2025. Company formation is now the operative route to a European position.

Turkey occupies a specific position in European commercial geography: close, economically integrated through the EU Customs Union, and yet formally outside the single market. That distinction is not academic. It determines what a Turkish-registered company can and cannot do when it turns to face Europe.

The gap a Turkish company is actually solving.

The Customs Union gives you
  • Export of goods to the EU at reduced tariffs
  • Deep integration into EU supply chains
  • Established commercial relationships across the bloc
It does not give you
  • Invoicing EU clients under an EU legal framework
  • Native SEPA access
  • Assets held in a stable EU-regulated currency
  • A credible EU operational presence for clients and partners

For a Turkish entrepreneur with European clients, European suppliers or European ambitions, that right-hand column has always needed a solution. A Spanish SL is increasingly that solution — and the reasons now go well beyond market access.

The currency dimension.

The Turkish lira has lost the majority of its value over the past decade, reaching a record low of around ₺41.8 per US dollar in late 2024 and continuing a long depreciation trend that has steadily eroded the purchasing power and balance sheet value of lira-denominated assets. Periods of political and market volatility — including the events of March 2025, which triggered capital outflows and central bank intervention — have reinforced the case for holding assets and operating revenues outside Turkey.

A Spanish SL provides something the domestic system structurally cannot: euro-denominated operations, EU-regulated banking and an anchor outside the lira's volatility. This is not a judgment about Turkey. It is ordinary treasury and structural risk management, of the kind any exporter running two currencies would recognise.

What changed in June 2024.

This is the fact most Turkish entrepreneurs — and a good number of advisers — have not fully processed.

October 2021
Turkey added to the FATF grey listIncreased monitoring for strategic deficiencies in anti-money laundering and counter-terrorism financing frameworks. Grey-listing does not make transactions unlawful, but it changes how EU banks classify the risk.
2021-2024
Elevated scrutiny in Spanish onboardingSpanish banks, operating under EU AML directives and SEPBLAC oversight, applied heightened diligence to Turkish-owned structures throughout the period.
June 2024
Turkey removed from the grey listFATF concluded that the required action points had been addressed — enhanced banking supervision, cryptocurrency regulation and improvements to financial intelligence frameworks.
The practical consequence

A Turkish passport is no longer a grey-list signal to a Spanish compliance department.

Documentation requirements remain rigorous, but the baseline risk classification has shifted. For founders who attempted Spanish banking in 2022 or 2023 and hit walls, the environment is materially different now — and the difference is structural, not a matter of finding a friendlier branch.

How the two entities divide the work.

Turkey's relationship with the EU through the Customs Union creates a specific commercial logic for a Spanish subsidiary. The division is clean and immediately legible to Spanish tax authorities, banks and European clients.

Typical parent-subsidiary split
Turkish parentProduction, sourcing, engineering, service delivery, domestic operations and the core team.
Intercompany
arm's length
Spanish SLEU client invoicing in euro, EU VAT and intra-community trade, SEPA payments, EU contract execution.

Spain's bilateral relationship reinforces the logic. Trade between the two countries reached $19.2 billion in 2024, against a stated $25 billion target. Catalonia — home to Turkish companies including the logistics group Ekol and automotive supplier Orhan — maintains a dedicated trade office in Istanbul. The commercial infrastructure for Turkish business in Spain exists and is growing.

For Turkish IT companies, professional services firms, digital businesses and trading companies, Spain offers a credible EU anchor that is proportionately accessible: lower setup costs, a reduced corporate rate for qualifying new companies, and a simpler compliance environment than Germany or the Netherlands.

The Golden Visa is gone. Formation is the route.

Until 3 April 2025, Turkish investors could obtain Spanish residency through the Golden Visa by investing at least €500,000 in Spanish real estate. Spain closed the programme on housing affordability grounds. For anyone who was treating it as the residency plan, this requires a rethink — and the remaining routes are more operationally relevant anyway.

Route 01
Entrepreneur VisaPart of the Startup Act framework. Residency for non-EU founders establishing an innovative business, assessed by ENISA, typically within 20-30 days. No minimum investment, and extendable to family members.
Route 02
Digital Nomad VisaFor professionals working remotely for non-Spanish clients. Income thresholds rather than investment requirements.
Route 03
No relocation at allA Turkish national can own and direct a Spanish company without living in Spain, provided the governance structure reflects genuine operational activity.

Banking: where the real work is.

With Turkey off the grey list the compliance baseline has improved, but Turkish-owned companies still need careful preparation for one specific reason: source of funds documentation from Turkish financial institutions.

The Turkish banking system operates in lira, with currency conversion and capital movement controls that have tightened during periods of central bank intervention. For a founder capitalising a Spanish SL, the question a Spanish compliance team asks is simple: where did this money come from, and how did it move from Turkey to Spain? The documentary answer needs:

  • Lira-to-euro conversion records showing the mechanism and the dates.
  • Turkish bank statements covering the origin account, in the name of the shareholder or parent company.
  • Evidence of business income in Turkey — contracts, invoices, audited accounts where available.
  • A written explanation of the conversion route, so the compliance officer does not have to infer it.

This is not a political judgment about Turkey. It is a standard source-of-funds requirement that the recent macro environment simply makes more work to satisfy.

The narrative question

Why does this Spanish company exist, if the clients and revenue are Turkish?

A Spanish SL owned by a Turkish founder, with Turkish clients and Turkish-sourced revenue, has to explain what the Spanish entity actually does. "To hold euro assets and invoice European clients" is a legitimate and perfectly explainable answer — provided it is documented rather than assumed. The applications that fail are the ones where nobody wrote it down.

Treaty framework and transfer pricing.

Spain and Turkey have a Double Taxation Agreement signed in 2002 and effective from 2004. It allocates taxing rights between the two states, sets residency rules, determines where business profits are taxable, and caps withholding on dividends, interest and royalties flowing between the jurisdictions. The applicable caps depend on the type of income and, for dividends, on the size of the shareholding — which is why the shareholding structure should be settled before the first distribution rather than after.

Transfer pricing becomes operationally relevant from day one. Both Spain and Turkey apply transfer pricing rules to related-party transactions, requiring intercompany prices — for services, goods, IP licensing and management fees — to reflect arm's length market rates. The Agencia Tributaria has intensified enforcement in this area in recent years, and a parent-subsidiary pair with cross-border invoicing is precisely the profile that attracts review.

Understanding the treaty framework before incorporation, rather than after the first intercompany invoice has been issued, prevents the class of retrospective compliance problem that is substantially more expensive to unwind than to design around.

Why now is a better moment than 2022.

Three conditions now hold at the same time, which was not the case three or four years ago.

First
The compliance signal clearedThe FATF removal took away the single most significant obstacle to Spanish banking for Turkish founders. The window that opened in mid-2024 is currently open.
Second
The currency incentive persistsContinued lira depreciation creates an ongoing structural reason to establish euro-denominated operations. Waiting makes the same capital cost more in euros.
Third
The infrastructure maturedThe Startup Act, the Entrepreneur Visa, ENISA's faster evaluation and the growth of the Barcelona and Madrid tech ecosystems make Spain a more practical EU base than it was.

For Turkish founders deciding where to anchor European operations, the combination of accessible incorporation, improved banking conditions and genuine bilateral commercial momentum makes Spain the most actionable option in Southern Europe right now.

Trade, currency and regulatory figures are stated as at the dates indicated. General information only, not tax, legal or immigration advice — treaty relief, transfer pricing outcomes, banking acceptance and visa eligibility are fact-specific and require professional review in both jurisdictions.

The window opened in 2024. It will not stay open by itself.

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