Turkey – Self-Employment

How does self-employment work for expats in Turkey?

The reality of self-employment for foreign nationals in Turkey differs considerably from what the written law might initially suggest. Turkey offers very limited pathways to unsponsored work authorisation; the International Workforce Law does technically contain a self-employment work permit category, but in practice the Ministry of Labour declines to approve such applications. This is a critical distinction that many arriving expats fail to appreciate at the outset.

Under the law as written, a foreign national may submit an application for a self-employment work permit provided they have lived in Turkey continuously for the preceding five years and can produce documentation confirming uninterrupted residence permits throughout that period. In practice, however, self-employment work permits are almost never granted. The legal pathway formally exists, but the door is effectively shut.

The Independent Work Permit is intended for foreigners who wish to operate as independent professionals or launch a business in Turkey. This category has attracted renewed attention in 2025 given the increasing number of remote workers, digital entrepreneurs, and foreign investors drawn to Turkey’s expanding economy. Nevertheless, given the near-zero rate at which these permits are actually approved, the vast majority of expats turn instead to company incorporation.

The dependable route is to form a Turkish company and then pursue a work permit in the capacity of director or manager of that entity. Simply holding shares in a company does not confer the right to work in Turkey; a valid work permit must be obtained separately. This contrasts with the approach taken in many other countries — in France or Germany, for instance, registering as a sole trader grants immediate working rights without any additional permit. In Turkey, the corporate formation process and the work permit application are two independent procedures that must each be completed correctly.

Foreign nationals who enter Turkey on a tourist visa or hold a short-term tourist residence permit and conduct remote work for an employer based abroad may find themselves in a compliance grey area. Tourist visas and short-term tourist residence permits do not authorise any form of work. Anyone operating in this undefined space faces meaningful legal and financial exposure.

What are the different self-employment and business structures available in Turkey?

The Turkish Commercial Code recognises five distinct company types: the Limited Liability Company (Limited Şirket, or Ltd. Şti.), the Joint Stock Company (Anonim Şirket, or A.Ş.), the Collective Company, the Commandite Company, and the Cooperative. For the vast majority of foreign entrepreneurs, the first two are the structures worth examining in depth.

Limited Liability Company (Ltd. Şti.)
The LLC is the most widely selected legal structure for company formation in Turkey, particularly for small and medium-sized businesses and foreign investors. Following the 2024 reforms, the minimum required capital stands at 50,000 TRY, and the company may have between 1 and 50 shareholders. The LLC provides limited liability protection alongside a straightforward governance framework. This is broadly equivalent to a Private Limited Company in the UK, a GmbH in Germany, or a SARL in France. Founders’ personal liability is generally confined to their committed capital contributions and any additional obligations set out in the partnership agreement, meaning the company’s own assets bear primary responsibility for settling its debts — offering meaningful financial protection to founders.

Joint Stock Company (A.Ş.)
A Joint Stock Company is a more elaborate corporate structure suited to larger operations. It carries a minimum capital requirement of 250,000 TRY and allows for the issuance of share certificates and public offerings, with oversight provided by a board of directors and a general assembly. This structure is well suited to ventures planning an initial public offering or seeking substantial external capital.

Branch Office and Representative Office
A Branch Office enables a foreign company to establish a presence in Turkey without creating a separate legal entity. A Representative Office permits foreign companies to carry out market research and promotional activities within Turkey but prohibits direct revenue generation or commercial operations.

For most expats planning to operate a small or medium-sized business in Turkey, the LLC is almost universally the recommended starting point, owing to its relative simplicity of formation and the protection it offers against personal liability for business debts.

How do you register as self-employed in Turkey?

Because standalone individual self-employment permits are almost never approved in practice, the process of “registering as self-employed” for most expats is effectively synonymous with incorporating an LLC and then applying for a work permit as its manager. The steps below outline this combined process. Always confirm current requirements and fees with the Turkish Ministry of Trade and the Ministry of Family, Labour and Social Services.

1. Obtain a Turkish Tax Identification Number (TIN). This can be obtained at any local tax office by presenting your passport. It is a prerequisite for virtually every step that follows and is typically issued on the same day as the application.
2. Choose your company name and verify its availability. Search the Turkish Trade Registry to confirm that your preferred business name has not already been taken. The name must be reserved during the registration process and must include the words “Limited Şirketi” or “Ltd. Şti.” for an LLC.
3. Prepare and draft the Articles of Association. The Articles of Association (Ana Sözleşme) must be drawn up in accordance with the Turkish Commercial Code. This document sets out the company’s name, registered address, scope of business, share capital, shareholders, and management arrangements. Where foreign shareholders are involved, their legal status and shareholding percentages must also be specified.
4. Apply through the MERSİS electronic registration system. Company formation in Turkey is governed by the Turkish Commercial Code (Law No. 6102) and is conducted predominantly online through the MERSİS (Central Registration System). As of 2025, the incorporation process is carried out almost entirely electronically, which reduces processing time and enhances transparency.
5. Deposit the minimum capital and pay the Competition Authority fee. For an LLC, the minimum capital is 50,000 TRY (as of January 2024). A fee of 0.04% of the subscribed capital is payable to the Turkish Competition Authority at the point of registration — on a capital of 500,000 TRY, for example, this amounts to approximately 200 TRY.
6. Submit incorporation documents to the Trade Registry Directorate. The required documents must be notarised and include three copies plus the original of the articles of association, two copies of the signature circulars, two copies of identification documents for company managers, one copy of the passport for each foreign shareholder, and three copies of the establishment notification form.
7. Register with the Tax Office. After the company is established, it must be registered with the relevant tax office. Additional steps include obtaining a corporate tax identification number, registering with the Social Security Institution (SGK) for employees, and ensuring all applicable regulatory obligations are met.
8. Apply for a work permit as company director. Once the company is formally registered, the foreign director must apply for a work permit. Newly established companies must demonstrate a minimum paid-in capital of 500,000 TRY in order to sponsor a work permit application (as of 2025). Note that this threshold exceeds the minimum required for company formation. The Ministry typically renders a decision within approximately 30 days of submission. Always check current fees with the Ministry before applying.

The total cost of incorporating a company in Turkey depends on the chosen structure, the number of shareholders, and the professional services engaged. In 2025, founders should anticipate government and administrative expenses including trade registry fees, notary and translation costs, publication fees in the Turkish Trade Registry Gazette, and potential consultancy or legal fees. Forming an LLC generally costs in the region of 30,000 TRY, while a JSC typically runs to around 50,000 TRY, excluding the share capital itself (as of 2025). Refer to the Ministry of Trade for current fee schedules.

How do you set up a company in Turkey as an expat?

Turkey maintains an open investment environment in which foreign and domestic investors are accorded identical treatment under the principle of “national treatment” — meaning a foreign investor holds the same rights and is subject to the same obligations as a Turkish citizen when establishing a business. Under Turkey’s Foreign Direct Investment Law, full foreign ownership is permitted, and there is no requirement to bring in a local Turkish partner.

Company formation does not require prior residency or a local shareholder, although engaging at least one local tax representative is advisable to facilitate dealings with public authorities. Certain regulated industries — including aviation, media, maritime transport, and energy — may impose specific licensing requirements or ownership restrictions in the national interest, but these are exceptions rather than the standard position.

The step-by-step process for forming an LLC — the structure most commonly chosen by expats — is as follows:

1. Select your legal structure. Choose between a Limited Liability Company (Ltd. Şti.) and a Joint Stock Company (A.Ş.). Under regulations in force from 1 January 2024, the minimum capital required is 50,000 Turkish Lira for an LLC and 250,000 Turkish Lira for a JSC.
2. Draft your Articles of Association. This foundational corporate document should be prepared with the assistance of a Turkish corporate lawyer or notary. It defines the rights and obligations of the shareholders, the company’s purpose, and its operating procedures. Ensuring the document is comprehensive and contains all elements required by law is critical to avoiding difficulties at a later stage.
3. Register through MERSİS. An application is submitted via the Central Registry System (MERSİS), through which an application number is obtained and an appointment is scheduled to complete the remaining steps.
4. Open a Turkish corporate bank account and deposit capital. Establish a corporate bank account with a Turkish bank and deposit the required minimum capital. For LLCs, full payment of the subscribed capital is not required before incorporation — shareholders have 24 months following establishment to pay in the full amount.
5. Submit documents to the Trade Registry Directorate. Deliver the notarised articles of association, evidence of the capital deposit, and any other required documentation. Identification materials for foreign shareholders and/or managers — such as translated and notarised registry extracts for legal entities, or passports for natural persons — are required, along with a Chamber of Commerce Membership Form and the Incorporation Declaration Form.
6. Obtain the company’s Tax Identification Number. Register the company with the local tax office to receive a corporate Tax Identification Number. This is distinct from your personal TIN and is required for the company to issue invoices and function legally.
7. Register with the Social Security Institution (SGK). Once the company takes on staff — including the foreign director — registration with SGK is compulsory. This registration covers health insurance and pension entitlements. Employing a foreign national in Turkey requires a work permit alongside fulfilment of all employer obligations relating to wages, SGK registration, and notifications to the relevant authorities.
8. Apply for the director’s work permit. To sponsor their own work permit as a director, the shareholder must hold a capital contribution of at least 500,000 TRY and own no less than 20% of the company (as of 2025). Verify current thresholds at the Ministry of Labour and Social Services. As of spring 2024, the government filing fee for a work permit was approximately EUR 210 for one year’s validity and EUR 420 for two years’ validity. Fees are subject to change; always confirm the current amounts before applying.

By granting a Power of Attorney (PoA) to a reputable Turkish law firm, the entire formation process — encompassing document notarisation, bank account opening, and Trade Registry filing — can be handled by your legal representative without requiring your physical presence in Turkey. This is particularly advantageous for expats who wish to complete the incorporation process before relocating.

Can you work as a digital nomad in Turkey?

Turkey formally launched its Digital Nomad Visa programme in April 2024, introducing a dedicated immigration pathway for remote workers from qualifying countries who wish to reside in Turkey while working online. This places Turkey among a growing number of nations — alongside Portugal, Spain, and Greece — that offer a clear legal framework for location-independent professionals.

Who is eligible?
Turkey’s Digital Nomad Visa is open to remote workers between the ages of 21 and 55 from 36 eligible countries, including EU member states, the UK, the United States, Canada, Norway, Switzerland, Ukraine, Russia, and Belarus. To qualify, applicants must work for a foreign employer or be self-employed abroad, hold a university degree, and demonstrate a minimum monthly income of $3,000 USD ($36,000 annually). It is important to note that holders of this visa are not permitted to work for Turkish companies or generate income from services provided to Turkish clients.

Key requirements (as of 2024/2025):

• A valid passport with at least six months’ validity remaining from the date of arrival, a university degree certificate or diploma, documentation confirming work in the digital nomad field (such as an employment contract or a self-employment contract with a non-Turkish company), a biometric photograph, and evidence of a monthly income of at least $3,000 USD or $36,000 USD per year.
• Valid health insurance providing coverage throughout your stay in Turkey.

How to apply:
The application involves two stages. First, you submit an online application for a Digital Nomad Identification Certificate through the GoTürkiye Digital Nomads portal. Once this certificate is issued, you present it at a Turkish consulate or visa application centre in your home country to apply for the Digital Nomad Visa itself. You then travel to Turkey using this specific visa, after which you may apply for a residence permit based on your nomad visa status.

Processing time and costs:
Applications are initially lodged online but typically require a consular interview before approval, with processing times ranging from two to four weeks (as of 2025). The Digital Nomad Identification Certificate is issued at no cost through the GoTürkiye Digital Nomads portal. Document preparation — including notarisation of diplomas and certification of employment contracts — may cost in the region of $100–$200. Visa application fees differ by country; check with your nearest Turkish consulate for the figure applicable to you.

Tax implications:
Turkey applies the standard 183-day rule for tax residency purposes, meaning digital nomads who remain in the country for more than six months within a calendar year may be classified as tax residents. Turkey does maintain a network of double taxation agreements that can help visa holders avoid being taxed twice on the same income. Applicants should review the provisions of any relevant tax treaty between Turkey and their home country before committing to an extended stay. The Turkish Revenue Administration (GİB) publishes the current list of countries with which Turkey has concluded double tax treaties. Consulting a qualified tax adviser before making any long-term residency decisions is strongly recommended.

Practical realities:
The Digital Nomad Visa gives remote workers a legitimate legal basis for staying in Turkey beyond the standard 90-day tourist limit — and that represents a genuine advance in a region where grey-area arrangements have historically been the norm. That said, early participants in the programme reported that some local immigration offices were unfamiliar with the new visa type when it launched in 2024, leading to inconsistencies in the documents requested and the procedures followed. Having a local immigration lawyer available to assist is strongly advisable for a smooth experience.

What taxes and social contributions apply to self-employed expats and business owners in Turkey?

Your tax obligations in Turkey will depend on whether you are operating as an individual (where permitted) or through a corporate entity, and on your residency status. The authoritative body for all tax matters is the Turkish Revenue Administration (Gelir İdaresi Başkanlığı, or GİB). Always consult this institution or a qualified local accountant to obtain the most current rates and thresholds.

Corporate Income Tax
Turkish companies pay Corporate Income Tax on their profits. As of 2024/2025, the standard rate is 25%, with financial sector institutions such as banks subject to a higher rate. This is notably higher than the 19% rate applied in the UK or the 15% rate found in some Eastern European jurisdictions, and it is an important variable in any business planning exercise. Always verify the current rate with the GİB, as Turkey’s corporate tax rate has been revised on more than one occasion in recent years.

Personal Income Tax
Turkey levies a progressive income tax on individuals, with the tax year running from 1 January to 31 December. Foreign nationals who spend no more than 183 days per year in Turkey are not considered tax residents and are liable to Turkish tax only on income arising from Turkish sources. Those who exceed 183 days in a year acquire tax resident status and become liable for tax on their worldwide income. Consult the GİB for current income tax brackets, as thresholds are revised annually.

VAT (Katma Değer Vergisi, or KDV)
Companies must comply with value-added tax regulations when selling goods or services within Turkey. The standard VAT rate is 20% (increased from 18% in 2023), with reduced rates of 10% and 1% applying to specific categories of goods and services. Businesses exceeding the VAT registration threshold are required to submit regular VAT returns. Refer to the GİB for current registration thresholds.

Social Security Contributions (SGK)
When obtaining a work permit, you will need to factor in the monthly social security and healthcare premiums payable to the Social Security Institution (SGK). Maintaining active status in the social security system — including state health insurance coverage and the accumulation of retirement and pension entitlements — is a legal requirement for anyone working in Turkey. Unlike many countries where employer and employee contributions are deducted automatically through payroll, in Turkey the business owner must proactively register with SGK and make contributions both for themselves and for any employees they take on. Current contribution rates are published by SGK.

Double Tax Treaties
Turkey has concluded double taxation agreements with a substantial number of countries. These treaties can prevent visa holders from being taxed on the same income in two jurisdictions. If your home country has such a treaty with Turkey, it may materially alter your overall tax position. The full list of treaty countries is available on the GİB website. Always seek professional advice before making residency decisions based on tax planning considerations.

Are there any incentives, grants, or programmes to encourage expat entrepreneurs in Turkey?

Turkey has put in place a range of programmes designed to draw in foreign entrepreneurs, technology professionals, and startups. These span established mechanisms such as Free Trade Zones through to newer initiatives aimed at the technology sector.

Turkey Tech Visa (TechVisa)
The Turkey Tech Visa is open to both startups and individual talent, with a duration of three years in either case, and applicants may include their spouse and minor children in the application. Companies and individuals operating within a technopark under the Tech Visa gain access to a variety of incentives, including exemptions from value-added tax, corporate tax, customs duties, and staff premium contributions. The government also covers the insurance premiums of startup employees. Although the Tech Visa had not yet been officially launched at the time of writing, the associated tax advantages, government incentives, and health and social security benefits have already been legislated. There is no nationality restriction under the Tech Visa scheme. For the latest launch information, monitor the Ministry of Industry and Technology.

Technoparks (Teknokentler)
Turkey has developed a network of business incubators offering services tailored to specific industries alongside business accelerators providing advisory support. Facilities within technoparks include co-working spaces and office rentals, with access to financial and analytical resources. Companies operating within designated technoparks benefit from meaningful tax advantages, including exemptions from corporate and income tax on revenues derived from research and development activities. This is broadly comparable to R&D tax relief schemes in countries such as France and the UK, though in Turkey these benefits are specifically tied to physical presence within a technopark location.

Free Trade Zones (Serbest Ticaret Bölgeleri)
Turkey operates more than 20 Free Trade Zones across the country, offering benefits including exemption from customs duties, VAT exemptions on goods entering and leaving the zones, and streamlined administrative procedures. Companies operating in Free Trade Zones that export at least 85% of their output also benefit from income tax and corporate tax exemptions on wages and profits respectively. Refer to the Ministry of Trade for the current list of zones and eligibility conditions, as the applicable terms are subject to revision.

Foreign Investment Incentives
Foreigners investing $100,000 in a company may be exempt from certain criteria and qualify for a work permit (as of 2025). Turkey’s investment promotion body, the Investment Office of the Presidency of the Republic of Turkey (Invest in Turkey), provides comprehensive guidance on regional investment incentives, sector-specific support, and available grants. For larger-scale investments, strategic investment incentive certificates can deliver significant benefits including VAT exemptions, customs duty exemptions, and employer social security premium support. Eligibility conditions and thresholds vary and should always be verified directly through the Investment Office.

What are the practical challenges of being self-employed or running a business in Turkey?

Language barriers in bureaucratic processes
Turkish is the sole official language for business registration, tax submissions, contracts, and all correspondence with government bodies. Although the MERSİS electronic registration system has made company formation considerably more accessible, the majority of official documents — including the Articles of Association — must be prepared in Turkish. Founders should budget for translation and apostille costs when foreign-language documents are involved. For foreign nationals without Turkish language skills, retaining a qualified local lawyer or accountant is not merely advisable — it is practically indispensable.

The role of a local accountant (Mali Müşavir)
Every company operating in Turkey is legally required to retain a licensed Certified Public Accountant (Serbest Muhasebeci Mali Müşavir, or SMMM). Unlike in some countries where smaller businesses can manage their own bookkeeping and file self-assessments online, Turkish law requires that monthly accounts, VAT returns, and payroll be handled or formally certified by a registered SMMM. This represents an ongoing operational cost but also provides valuable protection and ensures ongoing compliance. Accountancy fees vary widely depending on region and the complexity of the business; this expense should be factored into your cost planning from the very beginning.

Banking access for foreign business owners
Opening a corporate bank account in Turkey as a foreign national can be a protracted process. Turkey’s banking sector is well regulated and varied, encompassing public, private, and international institutions. In practice, many banks require an in-person visit, a Turkish tax number, proof of company registration, and in some cases evidence of Turkish residency or a local guarantor. Allowing several weeks for this step is prudent. Having a local legal representative holding Power of Attorney can help smooth this process considerably.

Work permit compliance risks
Penalties for non-compliance as of 2024 include approximately EUR 694 imposed on a foreign national working without a valid work permit, approximately EUR 1,734 per foreign worker levied on an employer who engages unauthorised foreign staff, and approximately EUR 1,388 imposed on a self-employed foreigner working without a permit — with the additional possibility of workplace closure. Where a violation is repeated, the applicable penalty amounts double. Operating without proper authorisation therefore carries serious financial and personal consequences.

Invoicing foreign clients
If your Turkish company issues invoices to clients based outside Turkey, you will need to ensure that your contracts and invoices comply with Turkish commercial law, including the correct VAT treatment for cross-border services. Revenue received in foreign currency must generally be reported in Turkish Lira equivalent for tax purposes. The significant exchange rate volatility that has characterised the Turkish economy in recent years means that foreign currency income can fluctuate substantially when converted to Lira, with material implications for both tax liabilities and cash flow management.

The importance of professional support
For foreign nationals, working through the legal and administrative landscape of company registration in Turkey can feel overwhelming. Engaging experienced legal advisers, accountants, or incorporation specialists who have a strong track record of assisting foreign investors is strongly recommended. The upfront cost of quality professional guidance typically represents a sound investment when weighed against the potential cost of errors, penalties, and delays.

Frequently asked questions

Can I be both employed by a Turkish company and run my own business at the same time?

If you hold employment with a Turkish company and wish to take on freelance work alongside it, that freelancing must be conducted entirely outside Turkey. The work permit granted by your Turkish employer covers only the activities you carry out on their behalf. It is not possible to hold an independent work permit and a standard employee work permit from a Turkish company simultaneously. In practical terms, this means you cannot legally operate a separate Turkish-registered business while working under a regular employee work permit.

Does owning shares in a Turkish company mean I can legally work there?

Holding shares in a Turkish company does not automatically confer the right to work in Turkey. A valid work permit remains a separate requirement. You must apply for and receive a work permit in your capacity as a director or manager before carrying out any work-related activities on behalf of the company in Turkey.

How long does the company registration process typically take?

Company formation is governed by the Turkish Commercial Code and is conducted largely online through MERSİS. As of 2025, the electronic nature of the process has shortened timelines and improved transparency. In practice, the registration itself may be completed within a few business days once all documentation is in order, but obtaining the subsequent work permit adds approximately 30 days to the overall timeline. Allowing four to six weeks in total before being fully operational is a sensible expectation.

What happens to my company and work permit if my residency status changes?

Your work permit is linked to both your company and your lawful status in Turkey. Unbroken employment, compliance with tax and insurance obligations, and a clean legal record are all essential to maintaining your position. If your residence or work permit expires or is revoked, you must immediately cease all work activities and resolve your legal status before resuming. Changes to your company’s structure — such as a reduction in capital or a shift in your shareholding percentage — can also affect your eligibility for a work permit. Consulting a Turkish immigration lawyer before making any structural adjustments to your company is strongly advisable.

Can I invoice foreign clients from my Turkish company without paying Turkish VAT?

In general, services provided by a Turkish company to clients based outside Turkey may qualify for VAT exemption, provided the service is genuinely delivered outside Turkey and payment is received in foreign currency. The applicable rules depend on the nature of the service and the specific facts of each case. Turkish VAT law shares principles with EU VAT frameworks but has its own procedural requirements. Always confirm the appropriate VAT treatment with your licensed accountant (SMMM) before issuing invoices to foreign clients.

Do I need a local Turkish partner or director to register a company?

No. Turkey’s Foreign Direct Investment Law accords equal rights to foreign investors, and 100% foreign ownership of a Turkish company is fully permitted. There is no requirement to involve a Turkish partner. Company formation does not depend on prior Turkish residency or a local shareholder, though engaging at least one local tax representative is advisable to ease communications with government institutions.

Are there age restrictions on the Turkey Digital Nomad Visa?

Yes. Applications are accepted only from individuals aged between 21 and 55 years. Turkey is among the few countries to have established an age bracket as an eligibility criterion for its digital nomad programme. If you fall outside this range, the Digital Nomad Visa is unavailable to you, and you would need to explore alternative residence options — such as a property-based residence permit or another applicable visa category. Consult the official GoTürkiye Digital Nomads portal for the latest eligibility conditions.

Can I gain Turkish citizenship through my business investment?

There are two distinct routes to Turkish citizenship for business owners. After completing five continuous years (60 months) of legally authorised work and maintaining regular SGK contributions throughout that period, you may apply for citizenship through the standard naturalisation process. Separately, Turkey operates a citizenship by investment programme for those making qualifying real estate or financial investments, administered by the Ministry of Interior. These are entirely separate pathways; the work-based route requires sustained, lawful employment over five years. Verify the current investment thresholds and conditions for both routes with the Invest in Turkey agency.