When a company abroad wants to employ one or a few people in Türkiye there are three routes: set up a company or branch in Türkiye, contract the person as an independent contractor, or use the employer of record (EoR) model in which a local company formally employs the person. Each has different tax, social security and labour law consequences.
Short answer
Turkish law has no specific regulation called "EoR". The model rests on an employment contract between the local employer and the employee and a service agreement between the local employer and the foreign company. If the model works in practice as labour supply (the employee does none of the local employer's work but works entirely under the foreign company's direction at its premises in Türkiye), private employment agency rules and the limits on temporary employment may apply. The structure must therefore follow the actual working arrangement.
Which structure fits?
| Situation | Suitable structure |
|---|---|
| 1–3 people, non-sales support and development team, market test | Employment through a service provider or a liaison office |
| Sales team signing contracts with customers in Türkiye | Company or branch (permanent establishment risk) |
| Individual specialists such as software or design, running their own business | Independent contractor (self-employed); beware of reclassification as an employee |
| Long-term, growing team | Company formation. Limited company formation |
Who is responsible?
| Topic | Local employer | Foreign company |
|---|---|---|
| Employment contract, SGK notifications, payroll, tax withholding | ✓ | |
| Severance and notice payments | ✓ (recharged under the agreement) | |
| Occupational health and safety | ✓ | |
| Work permit application (foreign employee) | ✓ | |
| Candidate selection, salary, job content, performance | ✓ | |
| IP assignment, confidentiality, cross-border transfer of personal data, termination decision | Agreed together in the contract |
How the cost is built
Gross salary + employer SGK and unemployment premiums (23.75% without incentives) + annual leave and severance accrual + benefits + service fee (fixed or a percentage of salary). VAT is added to the service fee; a service invoiced to the company abroad may be VAT-exempt if conditions are met. See the cost from gross salary with the salary calculator.
Risks the model does not remove
- Permanent establishment / dependent agent: if the employee negotiates or signs contracts in Türkiye on behalf of the foreign company, it may be taxable in Türkiye.
- Reclassification of the relationship: SGK and tax may be claimed retroactively for someone who looks like a contractor but works like an employee.
- Intellectual property: rights arise first with the local employer; assignment to the foreign company must be in writing.
- Personal data: a transfer mechanism under the Personal Data Protection Law must be set up from the start for transferring employee data abroad.
- Job security: dismissing an employee with 6 months' seniority at a workplace with 30 or more employees requires a valid reason. Severance calculator
- Foreign employees: work permit and Turkish employee ratio rules also apply. Work permits
Process
Role analysis and cost model → drafting the agreements → hiring and SGK notification → monthly payroll and reporting → when the team grows, transfer of employees to the company the foreign company sets up in Türkiye. Onboarding a Turkish citizen usually takes 2–4 weeks; longer if a work permit is required.
Note: our office is not a private employment agency. In this model we handle payroll, SGK, tax and cost, and set up the structure together with an employment lawyer.
Sources
Labour Law No. 4857 (art. 2 subcontractors, art. 7 temporary employment, art. 18 job security); İŞKUR Law No. 4904 (private employment agencies); Corporate Tax Law No. 5520 and Income Tax Law No. 193 (place of business and dependent agent); Personal Data Protection Law No. 6698 art. 9; VAT Law No. 3065 arts. 11–12 (service exports).