Foreign investors can establish different legal entities in Türkiye, including Limited Liability Companies, Joint Stock Companies, branch offices, and liaison offices. The Limited Liability Company is the most preferred option due to its low capital requirement and flexible management structure.

Minimum Capital & Bank Account

Türkiye offers competitive minimum capital requirements, with lower thresholds for Limited Liability Companies compared to Joint Stock Companies. After incorporation, companies are required to open a corporate bank account using official registration and tax documents.

Incorporation Process

Company incorporation in Türkiye is efficient and can be completed within a few working days through digital and physical registration steps. The process includes company name reservation, preparation of articles of association, Trade Registry registration, and tax office registration.

Tax Registration & Compliance

All companies in Türkiye must register for corporate tax and, if applicable, VAT before starting operations. Ongoing compliance includes periodic tax filings, e-invoicing, e-ledger registration, and annual corporate tax returns.

Business Setup Services

Mandatory SGK Registration

All foreign employees holding a valid Turkish work permit must be registered with SGK by their employer before employment begins. SGK registration must be completed within 30 days of permit approval and becomes effective from the first working day.

Premiums & International Agreements

SGK premiums are calculated based on gross salary and are jointly paid by the employer and the employee on a monthly basis. Türkiye’s bilateral social security agreements may provide exemptions from double contributions or allow temporary coverage under a home country system.

SGK Coverage & Benefits

Once registered, foreign employees are entitled to social security and healthcare benefits on equal terms with Turkish citizens. Coverage includes public healthcare, maternity benefits, work accident insurance, disability protection, and retirement rights.

Compliance, Extensions & Exit Procedures

Continuous and accurate SGK premium payments are essential for work permit extensions and ongoing legal employment. Upon employment termination, employers must notify SGK on time and foreign employees must secure a new work permit or change their residence status.

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Tax Residency Status

Tax liability in Türkiye is determined by physical presence, with individuals staying more than 183 days in a calendar year classified as tax residents. Tax residents are subject to taxation on their worldwide income, while non-residents are taxed only on income sourced in Türkiye.

Mandatory Deductions & Employer Tax Duties

In addition to income tax, statutory deductions such as stamp tax and SGK employee contributions must be applied through payroll. Employers must also comply with corporate tax obligations, including salary withholding, VAT where applicable, and regular tax declarations.

Salary Income Tax & Payroll Withholding

Foreign employees working in Türkiye are subject to personal income tax on their gross salary under a progressive withholding system. Employers are legally responsible for payroll calculations, monthly tax withholding, and timely declarations to the tax authorities.

Treaties, TIN & Compliance Risks

Türkiye’s double taxation treaties help prevent income from being taxed in both Türkiye and the employee’s home country, subject to proper documentation. Obtaining a Turkish Tax Identification Number and maintaining accurate payroll and tax records are critical to avoiding penalties and work permit-related compliance risks.

Taxation of Foreign Employees

Types of Employment Termination

Employment contracts in Türkiye may be terminated through resignation, employer-initiated dismissal, mutual agreement, expiration of fixed-term contracts, retirement, or force majeure. Each termination type carries different legal consequences regarding notice periods and severance entitlement.

Notice Periods, Probation & Severance Pay

Statutory notice periods range from 2 to 8 weeks depending on the employee’s length of service, unless termination is for just cause. Employees who meet legal conditions are entitled to severance pay calculated as 30 days of gross salary per year of service, subject to a statutory cap.

Just Cause vs. Without Just Cause

Employer-initiated termination may be based on just cause or without just cause under Turkish Labor Law. If termination occurs without just cause, the employer is legally required to pay both severance and notice compensation.

Foreign Employee Termination & Post-Termination Compliance

Termination of foreign employees must be reported to SGK and the Ministry of Labor in line with work permit regulations. Employers must complete final payroll, tax declarations, and SGK exit notifications, while foreign employees must secure a new work permit or change their residence status to remain legally in Türkiye.

Employment Termination

Public Schools (MEB)

Foreign children with a valid residence permit can enroll in Turkish public schools free of charge under the Ministry of Education (MEB). Instruction is primarily in Turkish, with language support available to help foreign students integrate into the local education system.

Early Childhood, Special Education & Higher Education

Türkiye provides diverse education options ranging from international preschools to globally recognized universities with English-language programs. Special education services and individualized support are also available for children with special needs, subject to residency status.

Private & International Schools

Private and international schools in Türkiye offer bilingual or English-medium education based on globally recognized curricula. These schools are especially popular among expat families seeking international academic standards and continuity for short- or medium-term assignments.

Enrollment Requirements & Key Advantages

School enrollment for expat children typically requires a residence permit, previous school records, and address registration. Türkiye offers affordable education, a wide range of international programs, and a family-friendly environment for expatriate families.

Education Options for Expat Children

Public Healthcare (SGK Coverage)

Foreign employees with a valid work permit are mandatorily covered by SGK, granting access to Türkiye’s public healthcare system. SGK coverage includes hospital services, maternity care, pediatric treatment, and prescription medication support at low out-of-pocket costs.

Insurance Requirements & Family Care

SGK is mandatory for foreign employees, while private or international health insurance may be used for supplementary coverage. Türkiye also offers comprehensive family healthcare services, including prenatal, maternity, pediatric, and vaccination programs.

Private & Expat-Focused Healthcare

Private and expat-focused healthcare facilities in Türkiye offer modern medical infrastructure and multilingual medical staff. These services provide faster access to specialists and international-standard care, especially in major cities.

Emergency, Pharmacies & Specialized Treatments

Türkiye provides nationwide emergency care through the 112 system and emergency units in all public and private hospitals. Foreign employees also benefit from easy access to pharmacies, reimbursed medications, and high-quality specialized treatments at competitive costs.

Healthcare Options for Foreign Employees

Holiday Name

Turkish Name

Date

Type

New Year’s Day

Yılbaşı

1 January

National

National Sovereignty and Children’s Day

Ulusal Egemenlik ve Çocuk Bayramı

23 April

National

Labour and Solidarity Day

Emek ve Dayanışma Günü

1 May

National

Commemoration of Atatürk, Youth and Sports Day

Atatürk’ü Anma, Gençlik ve Spor Bayramı

19 May

National

Democracy and National Unity Day

Demokrasi ve Millî Birlik Günü

15 July

National

Victory Day

Zafer Bayramı

30 August

National

Republic Day

Cumhuriyet Bayramı

29 October (1,5 days)

National

Ramadan Feast

Ramazan Bayramı

Variable (3 days)

Religious

Sacrifice Feast

Kurban Bayramı

Variable (4 days)

Religious

Types of Work Permits

Türkiye offers several work permit types based on the duration and nature of employment, including Temporary, Permanent, and Independent Work Permits. Each permit type has specific eligibility criteria and renewal conditions regulated by the Ministry of Labor.

Eligibility Requirements

Both employers and foreign employees must meet legal and financial criteria to qualify for a work permit in Türkiye. Requirements include minimum capital, employee quotas, profession-based salary thresholds, and valid residence status.

How to Apply

Work permit applications are submitted either through Turkish consulates abroad or directly in Türkiye for legally residing foreigners. The process is employer-driven and completed via the Ministry of Labor’s online system.

Required Documents & Extensions

Applications require a complete set of documents from both the employer and the foreign employee to ensure legal compliance. Work permit extensions must be filed before expiry and require uninterrupted SGK premium payments.

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FAQ

Gini Talent simplifies employment in Türkiye by managing payroll, benefits, taxes, and compliance in one platform. With services like EOR, contractor management, and payroll, Gini enables global and local companies to hire in Türkiye seamlessly. Türkiye has a population of ~83.6 million, uses the Turkish Lira, and operates standard 40-hour work weeks. Key employer obligations include social security contributions, income tax, severance pay, and flexible termination rules under contract law.

We provide end-to-end Recruitment, Employer of Record (EOR), Technology Consulting, and Business Setup services in Türkiye.

The capital is Ankara, and the currency is the Turkish Lira (TRY, ₺).

Approximately 85,518,661 people.

The standard is 40-45 hours per week, and flexible/remote arrangements are increasingly common.

Employers pay ~ 22.75% social security + unemployment insurance on top of salary (with possible ~5pp discount under certain conditions). Employees’ payroll deductions include ~ 15% social security + unemployment + progressive income tax (from 15% up to 40%, depending on annual earnings).

Employment contracts in Türkiye may be terminated for just cause or for valid reasons in accordance with the Labor Law. Severance pay (when applicable) is calculated as 30 days’ gross salary per year of service, subject to the statutory ceiling. Notice periods vary based on the employee’s length of service. Probation periods of up to 2 months (extendable to 4 months by collective agreement) allow termination without notice or severance.

Employee protections in Türkiye include statutory annual leave, maternity leave, health insurance coverage, disability benefits, and participation in mandatory social security and unemployment insurance schemes.

Popular sectors include tourism, construction, software development, textiles, engineering, and healthcare.

Income tax returns are filed annually (usually in March). Employers and employees must comply with statutory deductions, with the employer ensuring correct withholding and reporting.

You can initiate contact via the “Get in Touch” section; provide role profiles and locations, and Gini will handle compliance, payroll, and onboarding in Turkey.