Turkey is rapidly becoming a preferred destination for international companies seeking to expand into new markets, tap into a highly skilled labor force, and reduce operational costs. However, one of the common challenges foreign businesses face is how to hire employees in Turkey without going through the complex and time-consuming process of establishing a local legal entity.
Fortunately, there are flexible solutions that allow companies to hire in Turkey while staying fully compliant with local labor laws—without opening a branch, subsidiary, or representative office.
In this article, we’ll walk you through everything you need to know about how to hire in Turkey without a legal entity in 2025, including key legal considerations, hiring models, costs, and best practices.
1. Why Foreign Companies Choose to Hire in Turkey
Before diving into the methods, it’s important to understand why Turkey is becoming a talent hotspot for international businesses.
Key advantages of hiring in Turkey:
- Large, young, and educated workforce: Over 30 million people in Turkey are of working age, with a strong presence of STEM and business graduates.
- Cost-effective talent: Salaries and operational costs are much lower than in Western Europe or North America.
- Strategic geographic location: Turkey bridges Europe and Asia, making it ideal for companies operating across regions.
- Multilingual capabilities: A significant portion of the workforce is fluent in English, German, Arabic, and French.
- Government incentives: Special zones and programs encourage foreign investment and employment.
These factors make hire Turkey strategies especially attractive for startups, tech firms, and global enterprises.
2. Is It Possible to Hire Without a Legal Entity in Turkey?
Yes. Foreign companies can hire employees in Turkey without establishing a legal presence in the country by using a solution known as an Employer of Record (EOR) or Professional Employer Organization (PEO).
These services act as the legal employer on behalf of your business, handling all compliance, payroll, tax, and employment obligations—while you manage the day-to-day activities of the employee.
This model is fully legal and widely used by companies entering new markets quickly and cost-effectively.
3. What Is an Employer of Record (EOR) in Turkey?
An Employer of Record (EOR) is a third-party service provider that takes on the legal responsibility of employing your chosen candidate in Turkey.
With an EOR, the provider handles:
- Drafting compliant employment contracts
- Onboarding employees
- Payroll processing
- Income tax and social security contributions
- Benefits administration
- Labor law compliance
- Offboarding and termination procedures
Meanwhile, you retain full control over the employee’s daily tasks, goals, and performance.
Key benefit: You can hire in Turkey in as little as 1–2 weeks, without setting up a company or dealing with Turkish bureaucracy.
4. Benefits of Hiring Through an EOR in Turkey
Choosing an Employer of Record brings numerous advantages, especially for foreign companies testing the Turkish market or expanding remote teams.
Top benefits include:
- ✅ Fast market entry: Hire and onboard employees quickly.
- ✅ No legal entity needed: Avoid the costs and delays of company registration.
- ✅ Local compliance: Stay fully aligned with Turkish labor laws.
- ✅ Reduced HR burden: Let experts handle complex employment tasks.
- ✅ Cost-effective expansion: Focus on growth without unnecessary overhead.
Whether you’re hiring one employee or building a remote team, this is the fastest and safest way to hire in Turkey in 2025.
5. Step-by-Step: How to Hire Employees in Turkey Without an Entity
Here’s a simplified roadmap to help you hire your first employee in Turkey through an EOR:
Step 1: Choose an EOR/PEO Provider in Turkey
Select a reputable EOR provider with a strong understanding of Turkish labor law, experience in your industry, and multilingual support.
Step 2: Identify and Interview Candidates
You can recruit candidates yourself or ask your EOR partner to assist. Once you select the right talent, the EOR steps in.
Step 3: Draft the Employment Contract
The EOR drafts a legally compliant employment contract based on Turkish labor regulations and your specific terms (salary, working hours, benefits, etc.).
Step 4: Onboard the Employee
The EOR registers the employee with the Social Security Institution (SGK) and the tax office. They also handle all mandatory insurance and tax documentation.
Step 5: Run Monthly Payroll
The EOR processes payroll, pays taxes and social contributions, and ensures that the employee receives a payslip and salary on time each month.
Step 6: Manage Ongoing Compliance
The EOR monitors changes in labor law and ensures your employee remains compliant throughout the contract period.
Step 7: Termination or Transition
When the contract ends or the employee transitions to your own legal entity (if you later incorporate), the EOR manages offboarding, severance, and legal obligations.
6. Legal and Payroll Requirements in Turkey
To understand the value of using an EOR, it’s useful to look at what’s legally required to employ someone in Turkey:
Employment Laws:
- Governed by Labor Law No. 4857
- Maximum working hours: 45 hours/week
- Minimum annual paid leave: 14–26 days, depending on seniority
- Legal termination process with notice and severance pay
Payroll Taxes:
- Employer contributions: ~22.5% of gross salary
- Employee contributions: ~15% of gross salary
- Income tax: Progressive rates from 15% to 40%
Without a legal entity, managing these obligations would be impossible. The EOR ensures these are handled correctly on your behalf.
7. How Much Does It Cost to Hire in Turkey via EOR?
The cost of hiring through an EOR generally includes:
- Employee’s gross salary
- Employer contributions (social security, unemployment, etc.)
- EOR service fee (usually a percentage of salary or a flat monthly fee)
Sample cost breakdown (monthly, 2025):
| Item | Estimated Amount (TRY) |
|---|---|
| Gross Salary (Developer) | 50,000 |
| Employer Contributions (~22.5%) | 11,250 |
| EOR Fee (~10%) | 5,000 |
| Total Cost to Company | 66,250 |
Note: Exact costs may vary depending on role, benefits, and provider.
Despite the added EOR fee, companies save money by avoiding legal setup costs, office space, and local HR staff.
8. Common Roles Foreign Companies Hire in Turkey
Foreign companies frequently hire Turkish professionals across a range of fields, especially for remote work or regional expansion.
Popular roles include:
- Software developers (React, Java, Python)
- Sales and business development managers
- Customer support (multilingual)
- Digital marketing specialists
- Finance and accounting professionals
- Engineers (mechanical, industrial, civil)
Many Turkish professionals are already used to remote collaboration and work in international teams.
9. When Should You Consider Setting Up a Legal Entity?
Using an EOR is ideal for:
- Market entry or testing
- Hiring 1–20 employees
- Remote teams
- Time-sensitive projects
However, if your business plans to scale significantly in Turkey, open a physical office, or engage in long-term commercial activity, you may eventually need to incorporate.
That said, you can start with an EOR and transition employees later to your own entity with proper support.
10. Final Thoughts: The Smart Way to Hire in Turkey
Hiring in Turkey without setting up a legal entity has never been easier. Thanks to EOR solutions, foreign companies can access the Turkish talent pool, remain fully compliant, and avoid administrative burdens.
Whether you’re a startup, scale-up, or multinational company, EOR services offer the fastest, safest, and most efficient way to hire in Turkey in 2025.
Ready to hire in Turkey?
We help global companies build strong local teams without the complexity of legal setup. Get in touch to learn how our Employer of Record services in Turkey can support your expansion.
