With a young and highly educated workforce, strategic location, and competitive labor costs, Turkey has become a popular destination for international companies seeking to hire skilled professionals. However, for companies without a legal entity in the country, a common question arises: Can I hire a contractor in Turkey legally?
The short answer is yes—but it comes with important caveats. In this guide, we’ll explore what it means to hire legally in Turkey as an international employer, how contractor arrangements are regulated, the risks of misclassification, and the safest alternatives available.
1. Understanding Contractor vs. Employee Status in Turkey
Before hiring in Turkey, it’s essential to understand the legal distinction between an employee and an independent contractor. Turkish labor law defines these two roles very differently.
Independent Contractor (Freelancer):
- Works under a commercial contract
- Sets their own hours and methods of work
- Can work for multiple clients
- Is responsible for their own tax and social security payments
- Does not receive employee benefits like severance, paid leave, or overtime
Employee:
- Works under the control and supervision of the employer
- Has set working hours and deliverables
- Is economically dependent on the employer
- Receives a salary, benefits, and social protections
- Protected under Labor Law No. 4857
If the working relationship resembles that of an employee—even if labeled as a “contractor”—Turkish authorities may reclassify the person as a full employee.
2. Can Foreign Companies Hire Contractors in Turkey?
Yes, international companies can hire independent contractors in Turkey—as long as the arrangement respects Turkish commercial and tax regulations.
However, this method only works if:
- The contractor is genuinely independent
- There is no employer-employee relationship
- The contractor issues invoices, pays their own taxes, and is registered with the tax office as a sole proprietor or company
This is typically suitable for short-term, project-based work or highly autonomous roles, such as freelance designers, translators, developers, or consultants.
3. Legal Requirements for Contractors in Turkey
To hire legally in Turkey as an international company via a contractor model, the individual must:
- Register as self-employed (sole trader or company) with the Turkish tax office
- Obtain a tax identification number
- Issue invoices for services provided
- Pay their own:
- Income tax
- Value-added tax (VAT)
- Social security contributions (Bağ-Kur)
As the hiring company, you should:
- Sign a commercial services agreement in English and Turkish
- Keep documentation of payments and work scope
- Avoid controlling how, when, or where the contractor works
- Ensure that no exclusivity or subordination exists
4. The Risks of Misclassification in Turkey
A growing number of companies make the mistake of treating employees as contractors—leading to misclassification. Turkish labor inspectors actively monitor these situations, especially for foreign companies operating without a local presence.
What happens if you’re found to have misclassified a worker?
- You may be required to retroactively register the person as an employee
- Pay backdated social security contributions, taxes, and benefits
- Be liable for severance pay and other entitlements
- Face fines and penalties from the Turkish Social Security Institution (SGK) and tax authorities
- Risk damage to your company’s reputation and future hiring ability
To hire legally in Turkey, companies must avoid “disguised employment” by only using contractor arrangements when the relationship genuinely fits that definition.
5. Indicators of Misclassification
Turkish labor courts consider multiple factors when determining whether a contractor is in fact an employee:
| Factor | Contractor (✓) | Employee (✗) |
|---|---|---|
| Sets own hours and location | ✓ | ✗ |
| Works for multiple clients | ✓ | ✗ |
| Issues regular invoices | ✓ | ✗ |
| Receives benefits or paid leave | ✗ | ✓ |
| Uses company tools/equipment | ✗ | ✓ |
| Subject to daily supervision | ✗ | ✓ |
| Paid a fixed monthly wage | ✗ | ✓ |
| Has long-term, exclusive contract | ✗ | ✓ |
If your working relationship contains several “employee” indicators, it’s time to consider a different hiring strategy.
6. Alternatives: Hiring Legally Without a Turkish Entity
For companies that want to hire legally in Turkey without the risks of misclassification or the burden of setting up a local company, there is a smart alternative: Employer of Record (EOR) services.
What is an Employer of Record?
An EOR is a third-party service provider that hires employees on your behalf. While your business manages the employee’s day-to-day responsibilities, the EOR:
- Signs a local employment contract with the worker
- Registers the employee with Turkish social security (SGK)
- Handles payroll, taxes, and compliance
- Ensures benefits and labor law obligations are met
This model is fully legal and widely used by companies entering new markets. It removes the need to establish a local branch or worry about labor law violations.
7. Benefits of Using an EOR in Turkey
- ✅ 100% legal hiring: No risk of misclassification or fines
- ✅ Fast onboarding: Employees can start in 1–2 weeks
- ✅ No local entity required: Avoid incorporation costs and bureaucracy
- ✅ Full compliance: Contracts, taxes, benefits handled for you
- ✅ Remote team support: Perfect for distributed workforces
EORs are particularly useful for startups, tech companies, and businesses hiring remote Turkish talent.
8. What About Hiring Turkish Contractors Abroad?
If a Turkish national is living and working outside Turkey, local rules in the country of residence will likely apply. However, if the person is working remotely from Turkey, Turkish tax and labor laws still apply—even if you’re based abroad.
You’ll need to assess the working relationship carefully, and if the contractor is effectively working as an employee, using an EOR remains the safest route to avoid regulatory issues in Turkey.
9. Best Practices for Hiring Contractors in Turkey
If you decide to work with independent contractors, follow these best practices to ensure legal compliance:
- ✅ Sign a clearly written commercial services agreement (in Turkish & English)
- ✅ Verify the contractor’s tax registration and invoicing capability
- ✅ Do not assign set hours, provide tools, or supervise daily work
- ✅ Avoid exclusive arrangements and long-term commitments
- ✅ Keep all documentation (invoices, payments, contract) on file
- ✅ Consult with a local legal or HR expert before proceeding
10. Conclusion: Can You Hire a Contractor in Turkey Legally?
Yes—you can hire legally in Turkey via contractor agreements, but only if the relationship fits the legal definition of independent contracting. For anything resembling a long-term, subordinate, or supervised role, hiring through an Employer of Record (EOR) is the safest and most compliant method.
Summary:
| Hiring Option | Legal in Turkey? | Best Use Case | Risks |
|---|---|---|---|
| Contractor (freelance) | ✅ Yes | Project-based, autonomous roles | Misclassification, fines |
| Employee via EOR | ✅ Yes | Long-term, full-time roles | Low risk, full compliance |
| Employee (direct hire) | ✅ Yes (with entity) | Local operations, expansion | Requires local company setup |
Looking to hire legally in Turkey—without setting up a company?
We help global companies hire employees or contractors in Turkey with full compliance. Our Employer of Record (EOR) solutions ensure you stay legally safe while tapping into Turkey’s incredible talent pool.
📩 Contact us today for a free consultation.
