A recent decision by the High Court in the case of C & J Clark International Limited (trading as Clarks) v Trek Bicycle Corporation has served as a reminder of the importance of keeping to the terms of historic co-existence agreements and the need for renegotiation if a business branches out into other areas. The case also highlights that informal arrangements discussed, for example, in meetings, are unlikely to overturn formal written conditions.

In brief, the dispute concerned the use of the word 'TREK'. By means of a co-existence agreement entered into in 2001, an arrangement was reached whereby Trek could use the name for cycling goods and apparel, and Clarks could use it for footwear. Despite successful co-existence over many years, Trek's expansion in 2016 into TREK-branded cycling shoes ultimately led to formal litigation.

Interpretation of Co-Existence Agreements in UK Trade Mark Law

Trek argued that cycling shoes were not footwear according to the agreement and that the term 'footwear' was not intended to include cycling shoes, since Clarks did not operate in that area. In addition, Trek claimed that it had informal consent from Clarks (via a 2018 meeting) to venture into that field. The Court disagreed, finding that 'footwear' includes shoes designed to be worn on the feet, regardless of specialisation and that the informal meeting discussion fell short of clear consent, especially in view of the formal, carefully negotiated written co-existence agreement.

Risks of Co-Existence Agreements for Brand Owners

The case is a reminder of the benefits and drawbacks of co-existence arrangements; whilst they are a useful tool, providing the ability for potentially confusing trade marks to co-exist in the marketplace, these arrangements can impose unduly onerous restrictions on the use of a mark. Effectively managing these arrangements requires robust internal processes, to ensure compliance with the terms.

Drafting and Future-Proofing Trade Mark Agreements in the UK

It is vital that any agreement includes the following points:

⟢ Clearly identify the parties and the trade marks involved, including their registration status and the classes of goods and/or services they cover;
⟢ Detail the commercial activities and geographical locations in which co-existence will be permitted;
⟢ Set out any restrictions on use, such as limitations on online marketing or keyword advertising;
⟢ Consider expansion plans and how the potential use of global websites for marketing will impact the arrangement. Future commercial strategies and emerging technologies should be considered;
⟢ A start date and, if appropriate, end date must be included;
⟢ Include a statement about which law applies and in which country any legal action should be brought.

In summary, whilst co-existence agreements can be a practical solution to avoid disputes, they require careful drafting so that each party’s rights are not disproportionately restricted. If drafted too tightly, the scope of a business' expansion into new markets can be severely impacted.

Next Steps

If you would like advice on trade mark co-existence agreements or ensuring your arrangements remain fit for purpose, please contact a member of Boyes Turner's Commercial and Technology team.

As part of Türkiye's Foreign Direct Investment (FDI) Strategy (2024-2028), which serves as the official national roadmap to transform the country from a regional economic hub into a global powerhouse, Turkey has enacted one of the most far-reaching tax reform packages in its recent investment history. Law No. 7582, published in the Official Gazette dated 4 June 2026 (No. 33270) and its implementation communiqué for the 20-year exemption (Income Tax General Communiqué Series No. 333), is now in force; featuring a 20-year income tax exemption on foreign-sourced earnings and a 1% inheritance tax rate.

This regime aims to attract high-net-worth individuals, returning Turkish citizens (diaspora), foreign investors, and global entrepreneurs. Below, our team at AVK breaks down how this reshapes the legal landscape for those considering relocation, citizenship, and/or asset transfer to Turkey.

Key Benefits & Scope

⬩➤ 0% Income Tax on Foreign Wealth: Qualified individuals will pay zero Turkish income tax on overseas dividends, bank interest, rental income, capital gains (from international property or securities), and foreign employment salaries for two decades. Domestic income generated within Turkey remains subject to normal tax brackets.

⬩➤ 1% Generational Wealth Transfer: Inheritances passed down during the exemption period bypass Turkey's standard progressive tax rates (which reach up to 10%) and are taxed at a statutory flat rate of just 1%.

⬩➤ Flexible Timeline: The 20-year window is asset-owner specific. It does not expire on a collective date but starts from the individual's specific date of establishing residency (e.g., moving in 2027 covers you until 2047).

Eligibility Conditions

1. Three-Year Non-Residency: Applicants must not have maintained a registered domicile (ikametgah) or had active tax liabilities in Turkey during the three calendar years preceding their relocation. (Prior passive Turkish rental or securities income is not a cause to disqualify).

2. Mandatory Exemption Certificate: The benefit is not automatic. New residents must proactively apply to their local tax office to secure an Exemption Certificate for Foreign-Sourced Income.

3. Strict Deadlines: Applications must be submitted by the end of the calendar year of relocation (or by the end of the second month of the following year if arriving during November/December). Missing this window results in losing the benefit for that period.

Türkiye Qualified-service-center staff gain a salary tax exemption on wages up to three times the gross minimum wage, or five times in approved industrial zones and the Istanbul Finance Center (IFC).

⬩ IFC relief now reaches all participants, not only financial institutions, and its sunset moves from 2031 to 2047.

⬩ A 12.5% corporate tax rate covers manufacturers and agricultural producers from the 2027 tax year. Qualified service centers and transit-trade operations gain a 95% to 100% deduction on qualifying foreign earnings.

The Repatriation Pillar (Varlık Barışı)

Alongside the income exemption, Turkey has opened an existing offshore wealth amnesty window until July 31, 2027. Individuals can transfer foreign cash, gold, or securities into the Turkish banking network at tax rates scaling from 5% down to 0% (if assets are committed to a 5-year deposit or government bond lock). Filing before December 31, 2026, guarantees no rate surcharges.

Citizentship by Investment (CBI)

The exemption complements also Türkiye’s citizen by investment (CBI) program. Naturalize through the US$400,000 real estate route, relocate to become a tax resident, and the 20-year shelter on foreign income follows.

Qualification turns on one test: No Turkish domicile or tax liability in the three calendar years before becoming resident. The law then adds a carve-out: Anyone who paid Turkish tax on local rental income, securities income, or capital gains before relocating still qualifies.

FDI Program Opportunities and Benefits for Companies

Türkiye’s aim to stand out as a highly attractive and resilient destination for global direct investment offers opportunities and benefits also to companies. Driven by an aggressive economic reform agenda, the Turkish government has unified its investment frameworks to offer extensive tax, capital, and operational advantages aimed at positioning the country as a primary trade and financial hub.

The primary benefits and incentives for companies investing in Türkiye are outlined below:

1. General Investment Incentives (Core Reductions)

Companies securing an Investment Incentive Certificate (IIC) through the centralized system unlock powerful tools designed to minimize upfront capital expenditures (Capex) and lower active operation costs:

ㆍ VAT Exemption: Complete exemption from value-added tax for imported or domestically sourced machinery and equipment.

ㆍ Customs Duty Exemption: Waiver of import duties on investment-related machinery, lowering the cost of setting up assembly and production lines.

ㆍ Corporate Tax Reduction: Tax reduction rates are scaled based on the investment location and industry.

ㆍ Social Security Support: The state covers the employer’s share of social security premiums for a period ranging from 2 to 12 years depending on the project region.

ㆍ Land Allocation: Free or heavily subsidized government land allocation is made available for large industrial projects.

2. Multi-Tiered Incentive Systems

Beyond the baseline benefits, projects are classified into specialized categories providing higher thresholds of state support:

ㆍ Priority Investments: Specific high-value areas—including data centers, renewable energy components manufacturing, pharmaceutical production, and defense—automatically bypass regional limitations to receive top-tier incentives.

ㆍ Project-Based Incentives: Designed for mega-scale, critical investments (typically exceeding 2 billion TRY), these offer direct grants covering 30% to 40% of the cost, public purchase guarantees, corporate tax exemptions, and up to 49% government capital contribution support.

ㆍ HIT-30 Industrial Transformation: Focuses on over 30 advanced fields such as semiconductors, mobility, quantum computing, industrial robotics, and green energy, providing deep financing and energy subsidies.

3. Specialized Business Regimes & Export Perks

Türkiye features a highly optimized corporate tax environment for multinational corporations and trading groups:

ㆍ Exporters’ Tax Reductions: While the standard corporate tax is 25%, manufacturing exporters enjoy a reduced tax rate of 9%, and regular exporters pay 14%.

ㆍ Qualified Service Centers: Multinational groups operating across multiple countries can set up shared regional service centers in Türkiye, enjoying a massive 95% deduction on corporate tax for foreign-sourced services. If established within specialized industrial zones or the Istanbul Finance Centre, the deduction reaches 100%.

ㆍ Transit Trade Exemption: A 95% to 100% corporate tax exemption applies to earnings generated from intermediary transactions and transit trade conducted via Türkiye.

ㆍ R&D Ecosystem: Dedicated tech and R&D parks afford a 100% deduction of R&D expenses from the corporate tax base, alongside a 95% income tax exemption on personnel salaries.

4. Operational & Strategic Advantages

Investing companies also benefit from the country's unique geographical and socio-economic position:

ㆍ Seamless Market Access: Through its Customs Union agreement with the European Union and numerous Free Trade Agreements (FTAs), Türkiye gives businesses barrier-free access to over 1 billion regional consumers.

ㆍ One-Stop Digital Investment Office: Handled by the official Presidency Investment Office, incorporation procedures, tax registration, environmental approvals, and incentive certificates are accelerated through a single, digitized administrative hub.

ㆍ Competitive & Skilled Talent: Türkiye offers a highly cost-competitive, young, and productive labor force, with roughly half the country's population under the age of 35.

ㆍ Strategic Investment Zones: Operating within Organized Industrial Zones (OIZs) or Free Zones adds further perks, including five-year real estate tax exemptions, no VAT on land acquisition, and lower utility tariffs.

All these regulations are giving rise to consequences that should be carefully assessed. Our firm advises companies, foreign investors, financial institutions, manufacturing enterprises, technology startups, family offices, Tech-Nomads and multinational groups and individuals considering the establishment of a regional center and / or relocation in/to Türkiye.

For further information, initial confidential consultation and legal assistance, please contact AVK through the following email addresses: info@avk.com.tr and/or alev@avk.com.tr

Anyone wishing to install solar panels on their own roof should familiarise themselves with the legal framework at an early stage. When is it sufficient to simply notify the local council – and when is planning permission actually required?

First, Clarify: Is the Plot of Land Within the Building Zone?

As with any building project, the first step is to clarify whether the plot of land on which the solar installation is to be built is within or outside the building zone. This distinction is crucial, as stricter regulations apply outside building zones and a formal planning permission process is more often required.

Federal Law: When Solar Installations Are Exempt From Planning Permission

The key provisions at national level are set out in the Spatial Planning Act (RPG) and the Spatial Planning Ordinance (RPV). As a general rule, solar installations on roofs in building and agricultural zones do not require planning permission if they are sufficiently integrated into the surroundings. In such cases, a notification to the relevant authority is sufficient.

Article 32a of the Spatial Planning Ordinance (RPV) defines the conditions under which solar installations on roofs are considered ‘sufficiently integrated’ within the meaning of Article 18a of the Spatial Planning Act (RPG) and are therefore subject to notification but do not require planning permission. This is particularly the case where the installations protrude only slightly above the roof surface, do not extend beyond the roof surface when viewed from above, are designed to minimise reflection and are arranged compactly.

Solar installations on flat roofs are also considered sufficiently adapted if they protrude no more than one metre above the upper edge of the roof, are set back sufficiently from the roof edge so that they are not visible from below at a viewing angle of 45 degrees, and are also designed to minimise reflection in accordance with the state of the art.

Specific Provisions in the Canton of Lucerne

In addition to federal law, the Canton of Lucerne applies additional provisions set out in the Planning and Building Ordinance (PBV). In particular, the size of the installation is a decisive factor.

Solar installations with an area of less than 20 m² are, in principle, neither subject to notification nor requiring authorisation in building and agricultural zones, provided they are sufficiently adapted to the building envelope and the surrounding area. However, this does not apply in areas subject to townscape protection or in the case of listed buildings worthy of protection.

Systems with an area of more than 20 m² are subject to notification, provided the requirements under federal law are met. The notification must be submitted to the relevant local authority at least 20 days before work commences.

If the requirements under federal law are not met, or if there are conflicting public or private interests, a standard building permit procedure is required. Under certain conditions, however, the application may be assessed and approved via a simplified procedure.

Special Rules for Listed Buildings

If a building is listed or subject to townscape protection, stricter requirements apply. In such cases, a standard planning permission is usually required. The local planning authority will assess, in particular, whether the solar installation would adversely affect the appearance of the building or its surroundings, and will seek the approval of the cantonal heritage conservation authority. If the building or installation is located outside the building zone, approval from the Department of Spatial Planning and Economic Affairs is also required.

Should you have any questions regarding building law or planning permission procedures, the attorneys-at-law at Pilatushof AG will be happy to assist you.