Setting Up in Turkey: A Guide to Corporate Immigration and Work Permits

Setting Up in Turkey: A Guide to Corporate Immigration and Work Permit Rules

Turkey's position as a bridge between continents makes it a prime location for international companies to establish a base, relocate key personnel, or tap into its dynamic market. However, a successful expansion into Turkey hinges on a clear understanding of its corporate immigration laws. The Turkish government has a robust framework designed to protect the local workforce while attracting strategic talent and investment.

For a foreign company, whether you're establishing a new entity, relocating your own managers, or acting as an Employer of Record (EOR), navigating the work permit system is your most critical legal task.

This guide provides a detailed breakdown of the work permit evaluation criteria from a corporate perspective, focusing on the sector-specific exemptions and special conditions that are vital for strategic business planning.

Part 1: The Foundation – General Criteria for Hiring Foreigners

Before exploring the exemptions, it's essential to know the standard rules that apply by default. A Turkish company must generally meet these criteria for each foreign work permit application:

• The 5-to-1 Rule: Employ at least five Turkish citizens for every one foreign employee.

• Financial Sufficiency: Meet specific capital or sales thresholds.

• Salary Requirements: Pay the foreign employee a salary that is a legally mandated multiple of the Turkish minimum wage, based on their job title.

While these are the baseline, the real strategy for corporate immigration lies in understanding the numerous exemptions available.

Part 2: Strategic Advantage – Key Sector-Specific Exemptions

The Turkish government waives the standard employment and financial sufficiency criteria for certain industries and roles to attract specialized talent and investment.

Information Technology (IT) Sector

• Full Exemption: For companies whose primary activity is in the IT sector, the 5-to-1 and financial criteria are waived for foreigners hired in specialized roles like software development, database management, mobile software, and network/security.

• Partial Exemption: For companies outside the IT sector, these criteria are waived for a maximum of two foreign IT specialists in the roles mentioned above.

High-Tech, R&D, and Technology Development Zones

• High-Value Investments: For investments deemed to make a high contribution to the economy or employment, or in fields requiring advanced technology, the general criteria can be partially or fully waived by the Directorate General.

• R&D and Design Centers: For companies with official "R&D Center" or "Design Center" certificates, or for those operating within official Technology Development Zones (Teknoparks), the employment and financial criteria are waived for foreign R&D, innovation, and design personnel, subject to a positive opinion from the Ministry of Industry and Technology.

Education Sector

• Pre-Approval is Key: A work permit application for a foreign academic or teacher requires pre-approval from the Ministry of National Education (MEB) or the Council of Higher Education (YÖK).

• University Staff: The standard evaluation criteria are waived for foreign teaching staff who have received pre-approval from YÖK.

• Private & International Schools: For roles requiring pre-approval under the Ministry of Education's regulations, the employment and financial criteria are waived.

Tourism Sector

• 10-Employee Waiver: For tourism-certified businesses, the 5-to-1 rule is waived if the business already employs at least ten Turkish citizens.

• Small Business Waiver: In businesses operating under contract within a tourism-certified facility (e.g., hairdressers, jewelers, souvenir shops), the employment and financial criteria are waived for a maximum of two foreign employees.

• Health Tourism Waiver: For travel agencies certified in health tourism and authorized by the Ministry of Health, the employment and financial criteria are waived for up to five foreign employees for in-country applications.

Other Key Sector Exemptions

• Aviation: The employment and financial criteria are waived for senior executives or specialists at the Turkish representative offices of foreign airline companies.

• Public Projects & Government Contracts: The criteria are waived for foreigners working on projects governed by bilateral/multilateral agreements or for companies (and their subcontractors) that have won government tenders.

• Health Sector: Pre-approval from the Ministry of Health is mandatory. For foreign professionals working in public health institutions, the employment, salary, and financial criteria are waived.

Part 3: Bringing in Leadership – Rules for Foreign Company Partners

A common scenario involves a foreigner who establishes or becomes a partner in a Turkish company and needs a work permit for themselves. The rules are specific:

• The company's paid-in capital must be at least 500,000 TL.

• The foreign partner's capital share must be at least 20%, which must correspond to a minimum of 100,000 TL.

• Crucial Exemption: If the foreign partner's capital share is 100,000 USD or more, the standard financial sufficiency and 5-to-1 employment criteria do not apply.

• Phased Employment: For partners who don't meet the 100k USD exemption, the 5-to-1 rule is applied progressively. The initial work permit is granted with a note, and the company is required to hire the five Turkish citizens within the second half of the permit's first year.

Part 4: The Talent Pool – Hiring Foreigners with Existing Exemptions

Your company may be fully exempt from the standard employment, financial, and salary criteria if the foreigner you intend to hire falls into a special category. This can dramatically simplify the process. These individuals include foreigners who:

• Are a parent, child, or spouse of a Turkish citizen (for at least 3 years for spouses).

• Hold a long-term residence permit in Turkey.

• Have legally resided in Turkey for at least eight years.

• Are of "Turkish descent" as declared by the Ministry of Interior or Foreign Affairs.

• Hold a "Stateless Person" identity document.

• Are citizens of the Turkish Republic of Northern Cyprus (TRNC).

• Are beneficiaries of humanitarian residence permits or are recognized victims of human trafficking.

Part 5: Considerations for Employers of Record (EOR) & Payroll Companies

As an EOR, your company is the legal employer in Turkey. Therefore, your entity is responsible for meeting all work permit criteria for each foreign employee you onboard for your clients.

• Baseline Responsibility: Your EOR entity must satisfy the 5-to-1 rule and financial sufficiency criteria for every foreigner under its payroll.

• Strategic Advantage: The key to a successful EOR model in Turkey is leveraging the exemptions. By specializing in sectors like IT, R&D, or Tourism, an EOR can bypass the standard criteria for qualifying roles.

• Hiring Exempt Individuals: Onboarding foreign talent from the pool described in Part 4 is the most straightforward way to manage corporate immigration, as it removes the primary company-level obligations.

Yılmaz Attorneys: Your Guide to Turkish Corporate Immigration

Success in the Turkish market requires not just a solid business plan, but a sophisticated corporate immigration strategy. Understanding the nuances between the general rules and the many sector-specific and individual exemptions is the key to building a talented, international team efficiently and legally.

At Yılmaz Attorneys, we exclusively advise foreign companies and individuals on these critical matters. As a firm referenced by numerous embassies, our expertise is tailored to the unique challenges of corporate immigration. Our founder, Mert Veysel Yılmaz, and our expert partner, Büşra Nişancı, provide strategic counsel to help you establish your presence, relocate key personnel, and operate in full compliance with Turkish law.

From our offices in Antalya, Ankara, and our network across Turkey—and with our planned expansion to the Netherlands in 2026—we are your dedicated legal partner for entering the Turkish market.

Whether you are launching a new company, relocating an executive, or building a remote team through an EOR, contact Yılmaz Attorneys today for a strategic consultation on your corporate immigration needs.