Advantages, Disadvantages, Costs and Tax Considerations

When establishing a business in Turkey, one of the most critical decisions is choosing the company address type.
The selected address affects taxes, costs, operations and corporate image.

This guide compares home office, virtual office and physical office models in 2025.

1) Home Office

A home office means using your residential address as your official company address.

Advantages

• Zero additional cost

• Fastest setup

• Fully legal

• Ideal for digital services

Disadvantages

• Lower corporate credibility

• Rent cannot be deducted (if not rented)

• Some companies do not accept home-address invoices

• Not suitable for customer traffic

Best For

• Developers

• Hosting & digital service providers

• Freelancers

• Early-stage entrepreneurs

2) Virtual Office

A virtual office provides address and legal correspondence without renting a physical space.

Advantages

• Much cheaper than a physical office

• Prestigious location

• Mail & reception services

• Fully tax-compliant

Disadvantages

• No dedicated workspace

• Meeting rooms may require extra fee

• Not suitable for industries needing physical presence

Best For

• Startups

• IT, software, hosting, consulting

• Businesses that do not require a physical office

Best price-performance option for most new companies.

3) Physical Office

Renting or owning a traditional office.

Advantages

• Strong corporate image

• Workspace for staff

• Rent and utilities are deductible expenses

• Suitable for client meetings

Disadvantages

• Highest cost

• Maintenance and utility expenses

• Long-term rental commitments

Best For

• Corporate-focused businesses

• Call centers

• Sales teams

• Growing companies requiring staff presence

4) Tax Differences Between Address Types

5) Cost Comparison (2025)

6) Which Address Type Should You Choose?