Published on and written by Cyril Jarnias
In an ever-changing world, freelance work is establishing itself as an attractive option for many professionals in Turkey. This flexible work model, which has gained momentum in recent years, offers new opportunities but also presents unique challenges.
In Turkey, the legal status of freelancers and tax declaration procedures are central concerns, as the government seeks to balance the need for regulation with that of stimulating entrepreneurship.
In this article, we will explore the basics of the legal status, government incentives, and necessary administrative steps to effectively navigate the Turkish economic landscape as a freelancer.
Understanding the Self-Employed Status in Turkey
A self-employed individual in Turkey is a person who engages in independent activity, typically as a sole proprietorship or a single-member limited liability company. Unlike the French system, the Turkish status does not use the term “auto-entrepreneur,” but allows individual entrepreneurship through quick and simplified company formation or registration as an independent worker. The main particularity lies in the requirement for foreigners to obtain a specific work permit and comply with strict local residency conditions, distinguishing this status from more flexible systems found in some European countries.
Requirements and Administrative Procedures:
- Obtain a self-employment work permit (for foreigners), issued after five years of continuous legal residence.
- File documents with the trade registry via the MERSİS electronic system.
- Obtain a tax identification number (TIN) or “yabancı kimlik no” for non-residents.
- Submit articles of association, register signature, and receive the certificate of incorporation and accounting books.
- Proof of local address: rental contract or property deed for the office/business location.
Typical Required Documents:
- Passport
- Residence permit
- Work permit
- Drafted and notarized articles of association
- Local commercial lease/contract
- Proof of capital deposit in a Turkish bank account
| Advantages | Disadvantages |
|---|---|
| Quick procedures via MERSİS | Increased complexity for foreigners |
| Competitive taxation | Mandatory local address |
| Professional flexibility | Mandatory social security contributions |
| Access to local market | Work permit requirement |
Annual Legal and Tax Obligations:
- Regular maintenance of accounting records required by Turkish law.
- Annual income declaration to the tax office; payment of Corporate Tax (CT) if applicable.
- Quarterly/annual payment of social security contributions based on chosen status (independent or LLC).
Summary of Main Obligations:
- VAT registration if threshold exceeded
- Payment of mandatory social security contribution
- Compliance with tax declaration schedule
Typical Professions Adopting This Status in Turkey:
Common List:
- Independent consultants (business, IT)
- Freelance translators/interpreters
- Local artisans
- Individual merchants
- Independent real estate agents
- Medical/legal liberal professions
Practical Tips & Useful Resources:
Recommendations:
- Hire a specialized lawyer during initial filing to optimize document compliance.
- Stay informed about tax updates through local chambers of commerce or Turkish government websites.
- Obtain professional insurance tailored to specific risks of the activity.
Useful Resources:
- MERSİS electronic platform for all official procedures
- Turkish Ministry of Labor for self-employment permit questions
- Local CCI-Turkey chambers for administrative support
Good to Know:
In Turkey, the self-employed status allows individuals to manage their own business with administrative simplification, similar to the micro-entrepreneur status in other countries. To obtain it, applicants must register with the local Chamber of Commerce and provide a tax identification number. Self-employed individuals benefit from tax advantages such as simplified taxation but must nevertheless pay quarterly social security contributions and declare their income annually. Sectors like graphic design or IT services often see professionals adopt this status for its flexibility, although social coverage is generally less advantageous than that of an employee. Those considering this path are advised to consult an accountant to avoid costly mistakes and stay updated on regulations, which may vary locally.
Administrative Procedures for Self-Employed Workers
Administrative Procedures for Self-Employed Workers in Turkey
Official Registration Steps
- Obtaining a Tax Identification Number
- Visit the local tax office (Vergi Dairesi).
- Provide identification (Turkish ID card or “yabancı kimlik no” for foreigners).
- Fill out the application form and obtain the personal tax identification number.
- Registration with Tax Authorities
- Declare business commencement to the relevant tax office.
- Complete forms related to self-employment (activity type, business address).
- Register in the self-employed taxpayers registry.
- Registration with Trade Registry (for certain statuses)
- Prepare a file including articles of association.
- Enter articles of association into the MERSİS system (centralized company platform).
- Appointment at trade registry for signing articles.
- Receive incorporation documents: certificate of incorporation, accounting books, etc.
Self-Employed Tax Declarations and Obligations
| Declaration Type | Frequency | Submission Deadline | Main Penalties for Delay/Omission |
|---|---|---|---|
| Income Declaration | Annual | March 25 of following year | Fines calculated based on undeclared amount |
| VAT Declaration | Monthly | 24th of month following tax period | Fixed fine + late interest |
| Social Security Contributions | Monthly/Quarterly | Varies by status (SGK, Bağ-Kur) | Suspended social coverage, progressive fines |
| Accounting Book | Annual | Before March 31 | Non-compliance: administrative sanctions |
Other Obligations:
- Maintain up-to-date accounting records (income, expenses, purchases, sales books).
- Keep invoices and supporting documents for legal period (generally 5 years).
Differences Between Turkish Residents and Foreigners
| Procedures / Status | Turkish Residents | Foreigners in Turkey |
|---|---|---|
| Tax Identification Number | Turkish ID card (TC Kimlik No) | Foreign identification number (“yabancı kimlik no”) |
| Work Permit | Not required for citizens | Mandatory: issued after 5 years continuous residence (except exceptions) |
| Company/Activity Registration | Standard procedure | Requires residence permit and sometimes specific work permit |
| Access to Trade Registry | Direct | Additional documentation required (proof of residence, etc.) |
Checklist of Essential Procedures:
- Obtain a tax number.
- Declare business opening to tax office.
- Register with trade registry if applicable (depending on chosen status).
- Maintain compliant accounting.
- Submit tax declarations by required deadlines.
- Pay social security contributions.
- For foreigners: have valid residence permit and, except exceptions, self-employment work permit (possible after 5 years continuous residence, or faster in some exceptional cases).
⛔️ Failure to comply with deadlines or obligations may result in:
- administrative fines,
- suspended social coverage,
- or, for foreigners, residence or work restrictions.
⚠️ Administrative procedures for foreigners are longer and require more anticipation, particularly for obtaining the self-employment work permit.
Good to Know:
In Turkey, to register as self-employed, it is first necessary to obtain a tax identification number from the local tax office. Then, the worker must create a file with Turkish tax authorities by providing documents such as a residence permit for foreigners. Self-employed workers are required to submit quarterly income declarations, VAT declarations if applicable, and other tax obligations with strict deadlines, typically before the 25th of the month following the relevant quarter. Turkish residents have a simplified registration process compared to foreigners who often must prove additional residency and legal compliance elements. Failure to meet deadlines can result in significant financial penalties, emphasizing the importance of strictly adhering to deadlines set by the Turkish tax administration.
How to Declare Income as an Expatriate in Turkey
Legal Obligations for Income Declaration in Turkey by Expatriates:
- Obtaining Turkish tax number (Vergi Numarası): essential for any tax or administrative procedure. Obtained free at any tax office (“Vergi Dairesi”) by presenting passport and completed form.
- Work or residence permit required depending on status (employee, self-employed, retiree).
- Affiliation with Turkish social security (SGK) for employees; registration with BAĞ-KUR system for self-employed.
Deadlines and Declaration Forms:
| Tax Year | Declaration Period | Platform / Form |
|---|---|---|
| 2024 Income | March 1-31, 2025 | Portal www.gib.gov.tr or paper |
| Departure/Arrival France | April/May following departure | Forms No. 2042 & No. 2042-NR |
Annual declaration is done online via the official portal. Taxpayers can also be assisted by a certified accountant (“Yeminli Mali Müşavir”).
Differences Between Temporary and Permanent Residents Regarding Taxation:
- Turkish tax resident: taxed on worldwide income if physical presence >183 days/year in Turkey.
- Non-resident (stay <183 days): taxed only on Turkish-source income.
Always keep all digital supporting documents (e-fatura), especially if you are freelance.
Never omit foreign income even if exempt under treaties—it must often be reported “for information purposes” under penalty of fines.
Penalties for Non-Compliance:
Strictly adhere to deadlines to avoid:
- Fines up to 50% of amount due
- Automatic surcharges
Useful Resources:
- Certified accountant (“Yeminli Mali Müşavir”)
- Official portal www.gib.gov.tr
- Embassy/consulate – social/fiscal service
- Local French-speaking specialized firms
For any complex or doubtful situation, prioritize professional assistance to optimize your tax situation and avoid disputes with Turkish authorities.
Good to Know:
In Turkey, expatriates must declare their income via tax declaration forms that must be submitted before March 31 each year. Temporary residents are generally taxed only on their Turkish-source income, while permanent residents may be taxed on their worldwide income. Tax payments can be made online or through accredited banks. Turkey has signed bilateral tax treaties with many countries to avoid double taxation, which can influence expatriate taxation. Deductions for rental income or credits for healthcare expenses may be available, depending on individual cases. Ensuring accuracy of provided information is crucial to avoid costly errors; consulting a local tax advisor or specialized services can greatly facilitate this process.
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
