# Do Foreigners Need to Pay Social Security When Starting a Company in Turkey? (2025 Guide)

# Do Foreigners Need to Pay Social Security When Starting a Company in Turkey? (2025 Guide)

## Introduction

Are you planning to start a business in Turkey?  
If so, you might be wondering:  
**Do foreigners have to pay social security premiums, and what exactly is Bağ-Kur?**

This guide explains everything you need to know about social security obligations, exemptions, and compliance for foreign entrepreneurs in Turkey.

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## Social Security and Bağ-Kur: What Foreigners Should Know

When foreigners establish a company in Turkey and work independently, they are generally **subject to Turkey’s self-employment social security system, called Bağ-Kur (4/b coverage)**.

However, not every foreign national must register and pay Bağ-Kur premiums.  
There are two major exemptions:

### 1\. Already Covered by a Foreign Social Security System

If you are already insured under your home country's social security system and can officially prove it, you are **exempt from Bağ-Kur registration** in Turkey.  
This is applicable under international social security agreements.

### 2\. Living Abroad

If you reside outside Turkey and are still covered by your home country’s social security system, **you are not required** to pay Bağ-Kur premiums, even if you own a Turkish company.

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## Company Types and Social Security Obligations

| Company Type | Bağ-Kur Obligation | Key Notes |
| --- | --- | --- |
| **Limited Liability Company (LLC)** | Managing directors must obtain a work permit and may need Bağ-Kur if residing in Turkey. | Passive shareholders (non-directors) are exempt. |
| **Joint-Stock Company (JSC)** | Only resident board members may be subject to Bağ-Kur. | Board members living abroad are not obliged. |

**Important:**  
Even if you are exempt from Bağ-Kur, you still need to comply with tax filings, accounting, and company obligations in Turkey.

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## Practical Considerations

* Always **document your foreign social security coverage** properly.
    
* **Check with the Turkish Social Security Institution (SGK)** to confirm your exemption.
    
* **Work permit requirements** are separate and must be evaluated individually.
    

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## Conclusion: Ensure Compliance Before You Start

Whether you must pay Bağ-Kur premiums depends mainly on your residency status, your current insurance coverage abroad, and your role within the company.

**Need help setting up your company in Turkey and managing your social security obligations?**  
We can provide tailored solutions for foreign entrepreneurs.

👉 **info@ozmconsultancy.com**

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