Turkey
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Company Formation Options
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.
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.
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.
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.
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.
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.
Work Permit & Working Conditions
Public holidays observed in Turkey. Religious holidays may follow lunar calendars.
| Holiday Name | Local 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 |
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FAQ
What does GiniTalent’s Turkey Destination Guide cover?
GiniTalent helps global companies hire and manage talent in Turkey compliantly—covering payroll, benefits, taxes, work permits, and more.
What services does GiniTalent provide in Turkey?
We provide end-to-end Recruitment, Employer of Record (EOR), Technology Consulting, and Business Setup services in Türkiye.
What is the capital city and currency of Turkey?
The capital is Ankara , and the currency is the Turkish Lira (TRY, ₺) .
What is the population of Turkey?
Approximately 85,518,661 people.
What are standard working hours and flexibility in Turkey?
The standard is 40-45 hours per week , and flexible/remote arrangements are increasingly common.
What are employer social security & tax contributions?
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).
How is termination handled and severance calculated?
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.
What worker rights and benefits are guaranteed?
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.
What industries and professions are strong in Turkey?
Popular sectors include tourism, construction, software development, textiles, engineering, and healthcare.
How do taxes and filings work?
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.
How can a company begin hiring in Turkey via GiniTalent?
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.
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