Turkey (TR)
Turkey is a transcontinental nation straddling Europe and Asia across the Bosphorus Strait, uniting 85 million people under a rich civilisational heritage stretching from the ancient Hittites and Romans to the Byzantine Empire and Ottoman Empire.
Capital: Ankara
Region: Europe
Language: Turkish
Currency: TRY (₺)
Cost of living: Very affordable (index 35)
Emergency: 112
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Business Setup
Start a business or go freelance in Turkey.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Obtain your VKN (Vergi Kimlik Numarası — tax number) from the Vergi Dairesi if you do not already have one — required for all business activity.
- 2 Visit your local Vergi Dairesi to register as a "mükellef" (taxpayer) — choose the appropriate income type (serbest meslek / gerçek usul).
- 3 Hire a licensed accountant (Serbest Muhasebeci Mali Müşavir / SMMM) — this is MANDATORY in Turkey, not optional. A SMMM must file your returns.
- 4 Open a business bank account (most Turkish banks offer this with your VKN and tax registration).
- 5 Register for KDV (VAT) if your annual turnover will exceed the threshold (currently TRY 500,000+ — check current level at gib.gov.tr).
- 6 Register for SGK as a self-employed person (Bağ-Kur) to access public healthcare and build pension rights.
- 7 Issue invoices (fatura) for all services — Turkey requires formal invoicing; many freelancers use e-Fatura (electronic invoice) system.
- 8 Consider work permit implications — foreigners cannot work as sole traders without a work permit unless income is from abroad (foreign clients, remote work).
Tax registration
Self-employed income (serbest meslek kazancı) is taxed at personal income tax rates (15–40%). Register at the Vergi Dairesi in your district. Monthly advance tax (Geçici Vergi) paid quarterly. Annual return by 31 March. Turkish accounting system requires formal invoicing — all income must be documented. Your SMMM accountant handles returns, payroll, and filing.
VAT threshold
KDV (Katma Değer Vergisi / VAT) registration required above approximately TRY 500,000 annual turnover (threshold adjusted periodically — verify at gib.gov.tr). Standard KDV: 20%. Serbest meslek (professional service) invoices: usually 20% KDV. File monthly or quarterly KDV returns via e-Beyanname. Issue e-Fatura (electronic invoice) mandatory for most registered businesses.
Invoicing
Turkish law requires formal invoices (fatura) for all business transactions. e-Fatura (electronic invoice) system mandatory for annual turnover above threshold. e-Arşiv for smaller businesses. Invoice must include: VKN/TCKN of both parties, invoice number, date, description of service, amount ex-KDV, KDV rate and amount, total including KDV. Invoices must be issued within 7 days of service delivery. Paper invoices still valid for some transactions.
Social security
Self-employed persons in Turkey must register with SGK as Bağ-Kur (4/b status). Bağ-Kur contributions are approximately TRY 15,000–20,000+/month (2026 — based on minimum contribution base, adjusted for inflation). These contributions provide access to public healthcare (GSS) and build state pension rights. Minimum Bağ-Kur contribution must be paid even in low-income months. Many small freelancers delay Bağ-Kur registration (illegal but common) due to the cost — risk is back-payment demands and healthcare access loss.
💡 Turkey's self-employment environment has some unique aspects: the SMMM accountant requirement adds a fixed cost of TRY 1,000–4,000/month even for small freelancers. Digital nomads and remote workers for foreign companies technically need a work permit to be self-employed, but many operate on tourist/residence permits — this is a grey area. The Turkish government has discussed a formal digital nomad visa but has not introduced one as of 2026. The most common legal route for remote workers earning from abroad: obtain a short-term ikamet (residence permit) as a property owner or on other grounds; keep foreign-source income in foreign accounts; tax position: consult a specialist mali müşavir. Istanbul has a thriving startup ecosystem with access to TÜBİTAK grants and tech zone (teknopark) incentives for qualifying companies.
🏢 Business Structures
Şahıs Şirketi · Şahıs Şirketi (Gerçek Kişi)
Sole proprietorship / Self-employed individual
TRY 0 (no minimum capital)
Min. capital
1–3 business days for tax registration; immediately operational.
Setup time
Liability: Unlimited personal liability — the owner is personally responsible for all business debts.
Setup cost: Registration free via e-Devlet or local Vergi Dairesi. Notary and accountant fees: TRY 2,000–5,000. Monthly mandatory accountant (serbest muhasebeci mali müşavir / SMMM): TRY 1,000–3,000/month.
Best for: Freelancers, consultants, tradespeople, and small service businesses. Note: sole traders must have a mandatory accountant (SMMM) — unlike Denmark, Turkey requires businesses to use a licensed accountant. Common for expat freelancers doing remote work but note work permit implications.
Limited Şirket · Limited Şirketi (Ltd. Şti.)
Private limited liability company
TRY 10,000 minimum share capital (approximately €280 at 2026 rates — one of the world's lowest minimums)
Min. capital
3–7 business days with prepared documents. Online via MERSİS (Merkezi Sicil Kayıt Sistemi).
Setup time
Liability: Limited — shareholders are not personally liable beyond their capital contribution, except for public debts (taxes, social security) where personal liability can extend.
Setup cost: Registration fee: TRY 2,000–3,000 notary fees + TRY 10,000 minimum capital. Mandatory SMMM accountant: TRY 1,500–4,000/month.
Best for: Most popular company form for small and medium businesses, foreign investors, and citizenship-by-investment buyers operating a company. Can be single-member. Foreigners can own 100% of a Limited Şirketi. Corporate tax rate: 25% (2026).
Anonim Şirket · Anonim Şirketi (A.Ş.)
Public joint stock company
TRY 250,000 minimum share capital
Min. capital
1–2 weeks with legal assistance.
Setup time
Liability: Limited — shareholders liable only for their share capital.
Setup cost: Notary fees, registration fees, and advisory costs: TRY 15,000–50,000+. Plus minimum TRY 250,000 capital.
Best for: Larger companies, those planning to raise capital from external investors, companies with more than 50 shareholders, or entities in regulated sectors (banking, insurance) requiring A.Ş. structure. Required if planning a future IPO on Borsa Istanbul (BIST).
Kollektif Şirket · Kollektif Şirketi
General partnership
TRY 0
Min. capital
3–5 business days.
Setup time
Liability: Unlimited joint and several liability for all partners.
Setup cost: Registration via notary: TRY 2,000–5,000.
Best for: Small business partnerships where partners trust each other completely. Uncommon in practice due to personal liability exposure. Requires partnership agreement.
Komandit Şirket · Komandit Şirketi
Limited partnership
TRY 0
Min. capital
3–5 business days.
Setup time
Liability: General partners have unlimited liability; limited partners' liability limited to their capital contribution.
Setup cost: TRY 2,000–5,000 notary and registration fees.
Best for: Rarely used in modern Turkish business. Historically used for family businesses. Limited partners are purely investors with no management rights.
Kooperatif · Kooperatif
Cooperative
Minimum 7 founding members
Min. capital
2–4 weeks.
Setup time
Liability: Limited to member's share capital.
Setup cost: Complex registration process; legal fees TRY 5,000–15,000.
Best for: Agricultural cooperatives, housing cooperatives (yapı kooperatifi for group property purchase), and worker cooperatives. Yapı kooperatifi is traditionally how Turks pool resources to build apartment blocks.
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