Doing Business in the United Kingdom VS Turkey – A Comparison
Entrepreneurs and investors often face the challenge of choosing between established business hubs like the United Kingdom and fast-growing economies such as Turkey. Both offer unique opportunities—while the UK is known for its strong regulatory framework and digital readiness, Turkey stands out for its strategic location bridging Europe and Asia, along with competitive operational costs.
This comparison explores how each country supports business growth and helps you determine which market suits your goals best.
The United Kingdom: The UK boasts political stability, a transparent legal system, and substantial business finance support. It’s a trusted destination for global investors.
Turkey: Turkey has a dynamic economy and pro-business reforms, though it occasionally faces political and currency-related instability which can impact long-term planning.
Taxation
The United Kingdom: With a corporate tax rate of 25% and available incentives, the UK remains attractive for starting a business in the United Kingdom, especially for SMEs and tech ventures.
Turkey: Turkey’s corporate tax rate is 23% (as of 2025), with reduced rates for export-focused and tech companies. However, tax legislation can be complex.
Turkey: Incorporation in Turkey requires in-person steps, notary approvals, and longer processing times compared to UK’s streamlined digital systems.
Cost of Living and Business Operations
The United Kingdom: The UK has moderate to high living costs depending on location, but affordable company setup is available outside major cities.
Turkey: Operational and living expenses in Turkey are considerably lower, attracting businesses looking to minimize overheads.
Access to Markets
The United Kingdom: The UK remains one of the best-connected economies globally, with access to Europe, the US, and Commonwealth nations.
Turkey: Turkey benefits from its location, offering access to Europe, the Middle East, and Central Asia. It’s part of a customs union with the EU, though trade agreements are more limited than the UK’s.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
Factor
The United Kingdom
Turkey
Business Environment
Stable, transparent, investor-friendly
Growing, with occasional political volatility
Corporate Tax Rate
25%
23%
Capital Gains Tax
Yes, with SME exemptions
Yes, but varies depending on asset type and holding period
Ease of Incorporation
Fully digital and fast
Partially manual, slower process
Business Costs
Moderate to high
Low
Market Access
Global reach through trade deals
Strategic regional access with EU customs union
Benefits of Choosing 3E Accounting
When it comes to starting a business in the United Kingdom, navigating the legal and administrative processes can be complex without the right support. That’s where 3E Accounting comes in. As a trusted partner for company incorporation, we provide tailored solutions for entrepreneurs and investors looking to establish a strong business presence. Whether you need help with company registration or expert guidance on setting up businesses in the UK, our experienced team ensures a smooth and efficient process.
The UK offers a stable regulatory framework, digital systems, and strong business finance support, making it more reliable for long-term investment compared to Turkey’s occasionally volatile environment.
The UK applies a 25% corporate tax rate, while Turkey currently offers a 23% rate. You can explore more about setting up businesses in the United Kingdom including tax considerations.
Yes, Turkey offers lower costs for labour, rent, and services compared to the UK, though the UK provides better infrastructure and legal protection.
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.