One of the first strategic decisions international companies face when expanding into Türkiye is choosing where to establish their first office (Istanbul, Izmir, Ankara…). While remote work and hybrid business models have increased flexibility, selecting the right city remains an important factor that can influence recruitment, operating costs, client relationships, and long-term business growth.
The three cities most commonly considered by foreign investors are Istanbul, İzmir, and Ankara. Each offers distinct advantages depending on your industry, business objectives, and expansion strategy.
At Azkan Group, we help international companies establish and grow their operations across Türkiye by providing Employer of Record (EOR), payroll, HR, accounting, company incorporation, and corporate compliance services nationwide.
Why Location Matters
The choice of office location affects much more than rent.
It can influence:
- Talent acquisition
- Employee retention
- Business development
- Client accessibility
- Operating costs
- Corporate image
- Logistics
- Long-term scalability
Selecting the right location should therefore be based on business strategy rather than popularity alone.
Istanbul: Türkiye’s Commercial Capital
Istanbul is the country’s largest city and the primary commercial center for many international businesses.
Companies often choose Istanbul because it offers:
- Large talent pools
- International business environment
- Extensive transport connections
- Financial institutions
- Multinational corporate presence
- Diverse professional services
For businesses focused on sales, finance, technology, consulting, or international trade, Istanbul is often the first choice.
However, companies should also consider that operating costs may be higher than in other Turkish cities.
İzmir: A Growing Business Hub
İzmir has become increasingly attractive for international companies seeking a balance between business opportunities and operational efficiency.
Businesses are often attracted by:
- Skilled workforce
- Modern business environment
- Strong quality of life
- Growing technology sector
- International outlook
- Competitive operating costs
İzmir is particularly popular among companies seeking regional headquarters, technology teams, shared service centers, and back-office operations.
Many employees also value the city’s lifestyle, which can support long-term talent retention.
Ankara: Administrative and Government Center
As Türkiye’s capital, Ankara offers unique advantages for certain industries.
Companies operating in sectors involving:
- Public administration
- Government relations
- Defence
- Regulatory affairs
- Public tenders
- Policy consulting
often benefit from being located in Ankara.
The city also offers a well-educated workforce and a strong university ecosystem.
Consider Your Recruitment Strategy
Access to talent is often one of the most important factors when selecting an office location.
Companies should evaluate:
- Availability of qualified professionals
- Industry-specific expertise
- Competition for talent
- Recruitment timelines
- Salary expectations
- Workforce mobility
The strongest location depends largely on the roles your business plans to recruit.
Compare Operating Costs
Operating expenses vary between cities.
Businesses should evaluate:
- Office rental costs
- Utility expenses
- Employee salaries
- Professional service fees
- Transportation
- Administrative costs
While cost should not be the only deciding factor, it remains an important consideration during the early stages of expansion.
Think Beyond the First Year
Many companies choose a location based only on immediate needs.
Instead, businesses should also consider:
- Future recruitment
- Team expansion
- Office scalability
- Customer growth
- Regional operations
- Long-term investment plans
Choosing a city that supports future growth often proves more valuable than minimizing short-term costs.
Remote and Hybrid Work Create More Flexibility
Many international companies no longer require every employee to work from the same office.
A hybrid approach may allow businesses to:
- Establish one primary office
- Recruit employees nationwide
- Reduce office costs
- Access broader talent pools
- Improve workforce flexibility
Location decisions have therefore become more strategic than purely operational.
Infrastructure and Connectivity
Businesses should also evaluate practical infrastructure.
Important considerations include:
- International airports
- Public transportation
- Business districts
- Internet infrastructure
- Access to professional services
- Meeting facilities
Efficient infrastructure supports both daily operations and international business travel.
Corporate Services Availability
Foreign investors often require ongoing support beyond office space.
When selecting a city, businesses should ensure access to experienced providers for:
- Payroll administration
- Accounting
- HR consulting
- Tax compliance
- Corporate secretarial services
- Labour law guidance
Reliable professional support contributes significantly to operational success.
Common Mistakes When Choosing an Office
International companies frequently make similar location decisions based on incomplete information.
Common mistakes include:
- Choosing solely based on rental costs
- Ignoring recruitment challenges
- Underestimating future growth
- Overlooking business infrastructure
- Failing to consider employee preferences
- Not evaluating local professional support
- Assuming one city suits every industry
A broader strategic assessment generally produces better long-term results.
Best Practices for Selecting Your First Office
Companies that make successful location decisions generally consider several factors together.
These include:
- Business objectives
- Recruitment strategy
- Operating costs
- Workforce availability
- Long-term expansion plans
- Infrastructure
- Client proximity
- Availability of local business support
The right office location should support both current operations and future growth.
Why Companies Choose Azkan Group
Regardless of where your business establishes its first office, Azkan Group provides nationwide support across Türkiye.
Our services include:
- Company incorporation
- Employer of Record (EOR) solutions
- Payroll administration
- HR consulting
- Accounting services
- SGK compliance
- Corporate secretarial services
- Labour law guidance
- Ongoing corporate compliance
Our specialists support international companies operating in Istanbul, İzmir, Ankara, and throughout Türkiye, helping businesses expand with confidence and remain fully compliant with local regulations.
There is no single « best » city for every international business entering Türkiye. Istanbul offers unmatched commercial opportunities and international connectivity, İzmir provides an attractive combination of talent, lifestyle, and competitive operating costs, while Ankara is particularly well suited for organizations working closely with public institutions and regulated industries.
The ideal location depends on your recruitment strategy, business objectives, operational requirements, and long-term growth plans—not simply on office costs or company size.
Azkan Group helps international businesses choose the right location and successfully establish operations anywhere in Türkiye through comprehensive company incorporation, Employer of Record, payroll, HR, accounting, and corporate compliance services.
