# Turkish Freelancers – Tax and Social Security Made Simple

# Turkish Freelancers – Tax and Social Security Made Simple

As global companies increasingly hire remote talent from Turkey, the demand for reliable, compliant, and tax-efficient freelance structures continues to grow. At OZM Consultancy, we offer end-to-end legal, tax, and social security services for Turkish freelancers operating under international B2B engagements.

Whether you’re an international employer or a Turkish-based freelancer, understanding the legal and fiscal environment is critical. Below is an overview of how we help individuals and organizations navigate these challenges.

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## 1\. Setting Up a Freelance Structure in Turkey

We assist in establishing a **sole proprietorship (Şahıs Şirketi)**, the most cost-efficient and legally recognized business form for freelancers in Turkey. The process is fully online via the national e-Government (e-Devlet) portal and typically completed within 1–3 business days.

**Our setup services include:**

* Company formation through e-Government
    
* Tax and Bağ-Kur social security registration
    
* Referral to a licensed virtual office provider for legal address registration (as required)
    

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## 2\. Accessing the 80% Tax Exemption on Foreign Income

Under Article 89/13 of the Turkish Income Tax Law, freelancers providing services such as software development, design, and data analysis to **clients abroad** are entitled to **an 80% exemption** on their income tax base.

We help our clients:

* Ensure proper documentation for qualifying income
    
* Apply the exemption effectively on monthly and annual filings
    
* Avoid costly mistakes that may lead to retroactive taxation
    

**Key Reporting Requirements Covered:**

* Monthly withholding tax filings
    
* Annual income tax returns
    
* Digital invoicing compliance
    
* Foreign exchange rate tracking and documentation
    

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## 3\. Social Security (Bağ-Kur) Compliance and Young Entrepreneur Support

Freelancers in Turkey must register with **Bağ-Kur**, the social security system for self-employed individuals.

If you're **under the age of 29**, you're eligible for the **Young Entrepreneur Incentive** which includes:

* A **12-month exemption** from Bağ-Kur contributions
    
* Full **income tax exemption** up to the statutory threshold (adjusted annually)
    

We manage your Bağ-Kur registration and monthly tracking to ensure uninterrupted compliance.

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## 4\. Ongoing Accounting and Legal Compliance

Once the freelance company is established, maintaining compliance is essential. Our accounting services are designed to handle this seamlessly:

* Monthly preparation and submission of **income tax and VAT declarations**
    
* Maintenance of **digital invoice archives** and **statutory books**
    
* Monitoring of **exemption thresholds** to avoid overreporting
    
* Real-time updates on **regulatory changes** that impact international freelancers
    

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## Why Clients Trust Us

We currently support numerous foreign companies and Turkish professionals working in sectors like software, marketing, game development, design, and data analytics. Our experience allows us to anticipate challenges and ensure full legal compliance from day one.

We understand that most freelancers are unfamiliar with Turkish tax filing systems or international contract obligations. That’s why our service model is hands-on, responsive, and tailored to your operational structure—whether you're managing one freelancer or building a remote team of 50.

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## Let's Talk

Whether you're a remote-first company sourcing talent from Turkey or a freelancer seeking to legalize your operations and optimize your taxes, we are here to assist.

**Contact us** to arrange a free consultation. We’ll help you evaluate timelines, costs, team structure, and regulatory requirements—so you can work across borders with peace of mind.

info@ozmconsultancy.com

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