Freelancing in Turkey: Work Permits, Sole Proprietorship (Şahıs Şirketi), Invoicing & Tax Terms

Many foreigners in Türkiye work as developers, designers, translators or consultants for clients at home or abroad. Doing that legally has two separate parts: the right to work (an immigration and labour question) and tax registration (a tax office question). This guide covers both and gives you the Turkish you will need with your accountant.

Note: This is a language-learning guide, not legal or tax advice. Work-permit rules, tax rates and deadlines change; check with the Ministry of Labour (csgb.gov.tr), the Revenue Administration (gib.gov.tr) and a certified accountant before you start invoicing.

1. First: the right to work (çalışma izni)

• A residence permit is not a work permit. Göç İdaresi’s own guidance says: İkamet izni Türkiye’de çalışma hakkı sağlamaz (“A residence permit does not give the right to work in Türkiye”). Read our residence permit guide for what an ikamet does cover.
• Working on your own account needs an independent work permit. Law No. 6735 defines the bağımsız çalışma izni as a permit that lets a foreigner work in Türkiye in their own name and on their own account (kendi ad ve hesabına). It is issued by the Ministry of Labour and Social Security (Çalışma ve Sosyal Güvenlik Bakanlığı, ÇSGB) for a fixed term.
• How applications are judged. The ministry looks at your education level, professional experience, contribution to science and technology, the effect of your activity or investment on the economy and employment and, for company partners, your share of the capital.
• Fees are high and change every year. Check the current amount on the ÇSGB website or in our work permit guide, which also explains the other permit types.
• Working without a permit has consequences. Law No. 6735 sets administrative fines for foreigners who work without a permit, with a higher fine for those working independently, and it can affect your future permits.

Registering with the tax office does not give you the right to work. You may be able to get a tax number and even open a sole proprietorship, but that is a tax registration, not a work permit. If you work only for clients abroad, get professional advice on your situation rather than assuming the ikamet covers it.

2. The sole proprietorship (şahıs şirketi)

What people call a şahıs şirketi is legally a sole proprietorship (şahıs işletmesi): you and the business are the same legal person, and there is no separate company capital.

• Quick to set up. Compared with a limited company (limited şirket, Ltd. Şti.), registration is simple. Your accountant registers you with the tax office (vergi dairesi), often after you give them a power of attorney at a notary.
• Inspection (yoklama). The tax office checks that your business address really exists. Some freelancers use their home; others rent a virtual office (sanal ofis).
• Tax certificate (vergi levhası). Once registration is complete, you can download your tax certificate.
• Invoice or receipt. Depending on your activity, you will issue either an e-invoice (e-Arşiv fatura) or, for many independent professionals such as consultants and translators, a self-employed receipt (e-Serbest Meslek Makbuzu, e-SMM). Your accountant will tell you which applies.
• Social security. Self-employed people are normally insured under SGK’s self-employed scheme, still widely called Bağ-Kur. Foreigners may be covered by a bilateral social security agreement, so ask your accountant. See also our guide to health insurance and SGK.

3. VAT on services for clients abroad (hizmet ihracatı)

Article 11/1-a of the VAT Law (KDV Kanunu, No. 3065) exempts services provided for customers abroad (yurt dışındaki müşteriler için yapılan hizmetler). Under Article 12/2, two conditions must be met:

1. the service is provided for a customer abroad (someone whose residence, workplace or business centre is outside Türkiye), and
2. the service is used abroad (hizmetten yurt dışında faydalanılmalıdır).

Such invoices are issued with 0% VAT and the exemption code for service exports. Within Türkiye the general VAT rate is 20%. Some service exports may also qualify for an income tax deduction; ask your accountant whether yours does.

4. Dialogue: meeting an accountant (Mali müşavirle görüşme)

Arthur, a software developer, meets an accountant, Ahmet Bey.

Arthur:    İyi günler Ahmet Bey, randevumuz için geldim.
           (Good afternoon, Mr Ahmet. I'm here for our appointment.)

Müşavir:   Hoş geldiniz Arthur Bey, buyurun oturun. Nasıl yardımcı olabilirim?
           (Welcome, Mr Arthur, please sit down. How can I help?)

Arthur:    Yurt dışındaki şirketlere uzaktan yazılım danışmanlığı veriyorum. Türkiye'de şahıs şirketi kurmak istiyorum.
           (I give remote software consulting to companies abroad. I want to set up a sole proprietorship in Türkiye.)

Müşavir:   İkamet izniniz var mı? Peki çalışma izniniz?
           (Do you have a residence permit? And a work permit?)

Arthur:    İkamet iznim var ama çalışma iznim yok.
           (I have a residence permit but no work permit.)

Müşavir:   İkamet izni çalışma hakkı vermiyor. Kendi adınıza çalışacaksanız önce bağımsız çalışma izni almanız gerekiyor.
           (A residence permit doesn't give the right to work. If you'll work in your own name, you first need to get an independent work permit.)

Arthur:    Anladım. İzin çıkarsa vergi tarafı nasıl olacak?
           (I see. If the permit is granted, how will the tax side work?)

Müşavir:   Sizi vergi dairesine kaydettireceğiz. Yoklama yapıldıktan sonra vergi levhanızı alacaksınız.
           (We'll get you registered with the tax office. After the inspection, you'll get your tax certificate.)

Arthur:    Yurt dışındaki müşterilerime KDV'li mi fatura keseceğim?
           (Will I invoice my clients abroad with VAT?)

Müşavir:   Hizmetten yurt dışında faydalanılıyorsa hizmet ihracatı sayılır, KDV'siz düzenleriz.
           (If the service is used abroad, it counts as a service export and we issue it without VAT.)

Arthur:    Çok teşekkür ederim, önce izin başvurusunu yapalım.
           (Thank you very much. Let's do the permit application first.)

Grammar in the dialogue

• Almanız gerekiyor (“you need to get”) is the most common way to say “need to”; compare almalısınız in the necessitative mood guide.
• Kaydettireceğiz, alacaksınız (“we will get you registered, you will get”) are in the future tense -ecek/-acak.
• Çalışacaksanız, çıkarsa, faydalanılıyorsa (“if you will work, if it is granted, if it is used”) all use the conditional -se/-sa.
• Vergi dairesi, gelir vergisi, çalışma izni are noun compounds built with the possessive suffix. See compound nouns (isim tamlamaları).

5. Work and tax vocabulary

6. Key tax dates

Confirm every date with your accountant or the GİB tax calendar, because deadlines are sometimes extended.

• Monthly: the VAT return (KDV beyannamesi) for the previous month, currently due by the 28th.
• Quarterly: provisional income tax (geçici vergi) returns, filed in the second month after each quarter (May, August, November and February).
• Annually: the income tax return (yıllık gelir vergisi beyannamesi) for the previous year, filed in March.

Next steps

The accountant’s key sentences use “need to”, “will” and “if”. Practice them with the conditional -se/-sa guide, and read our Turkish bank account guide before you start receiving payments.