For companies operating between the DACH region (Germany, Austria, Switzerland) and Turkey, navigating the cross-border legal and tax landscape presents a significant challenge. A fragmented approach with separate advisors in each country can lead to inefficiencies, misalignments, and costly delays.
Recognizing this, Aliant+ members Aliant Law (Austria) and Neo Mali Müşavirlik (Turkey) have joined forces to offer an integrated “One-Stop-Shop.” This strategic partnership provides a single, coordinated strategy for legal structuring and tax compliance, ensuring a seamless expansion journey from Vienna to Istanbul.
When to Engage Our Cross-Border Team
This integrated service is designed for businesses at key inflection points, including:
- A DACH-based company planning to establish operations in Turkey.
- A Turkish group seeking to establish an EU holding company or headquarters.
- Any company undergoing a reorganization, M&A activity, or new investment that requires legal and tax alignment across both jurisdictions.
A Coordinated Plan for Seamless Execution
The advantage for clients is clear: a unified team that understands both EU legal standards and Turkish tax realities. This eliminates friction, prevents surprises, and ensures faster execution.
What Aliant Law (Austria) Delivers:
- Guidance on the optimal legal structure (subsidiary, branch, or EU holding).
- Expertise in corporate governance, shareholder arrangements, and cross-border contracts.
- Structuring for efficient dividend and capital flows within the EU framework.
What Neo Mali Müşavirlik (Turkey) Delivers:
- Full-service company incorporation and tax registration in Turkey.
- Ongoing bookkeeping, payroll, and tax compliance management.
- Clear, timely financial reporting tailored for both local and group-level needs.
The Strategic Advantage of an Austrian Holding Structure for Turkish Corporations
A key component of this cross-border strategy is leveraging Austria as a premier location for a holding company. An Austrian holding structure offers significant and tangible benefits for Turkish corporations looking to optimize their European operations.
1. Tax Advantages:
- Reduced Withholding Tax: The Austria-Turkey double taxation agreement limits the withholding tax on dividends to just 5% for holdings of at least 25%.
- Tax-Exempt Dividends: Dividends from international intercompany shareholdings are tax-exempt, provided there is a minimum 10% stake and a holding period of at least one year.
- Tax-Free Capital Gains: Capital gains from the sale of international shareholdings are tax-free after a one-year holding period.
- Limited Interest Tax Burden: The tax on cross-border interest payments is capped at a maximum of 15%.
2. Corporate Law Advantages:
- Flexibility and Protection: Austria offers modern and flexible corporate structures like the GmbH and FlexCo, with a minimum capital requirement of just €10,000 and full liability protection. For larger operations, the AG (stock corporation) provides for flexible capital measures with a minimum capital of €70,000 and no personal liability.
3. Administrative and Legal Stability:
- Ease of Business: Austria imposes no approval requirements for capital transfers or the establishment of holding companies, and there are no foreign exchange restrictions.
- Transparency and Security: The country provides transparent commercial and owner registers, EU-wide freedom of establishment, and robust international investment protection through ICSID and bilateral agreements.
The Power of the Aliant+ Network
The powerful partnership between Aliant Law (Austria) and Neo Mali Müşavirlik (Turkey) is a testament to the core mission of Aliant+. As a global network of carefully selected law and accounting firms, Aliant+ provides clients with seamless, integrated solutions for their cross-border needs. This collaboration is just one example of how our members work together across jurisdictions to deliver coordinated, expert advice. By choosing an Aliant+ firm, clients gain access to a worldwide team of professionals committed to excellence and international success.
Your Next Move
Together, Aliant Law in Austria and Neo Mali Müşavirlik in Turkey provide a powerful, streamlined solution for any company navigating the DACH-Turkey corridor. By combining integrated legal and tax services with the strategic benefits of an Austrian holding company, they offer a clear path to successful cross-border expansion.
To discuss your next move, please contact our teams at Aliant Law (Austria) (www.aliantlaw.at) and Neo Mali Müşavirlik (Turkey) (www.neomusavirlik.com).
