If you’re a foreign freelancer or company looking to hire talent in Turkey, an umbrella company can help you operate legally and efficiently in 2025.
As global workforces become more mobile in 2025, Turkey is emerging as an attractive destination for contractors and remote workers. This guide explains what an umbrella company is, how it works in Turkey, and why it might be the right choice for you in 2025.
What Is an Umbrella Company in 2025 ?
An umbrella company acts as an intermediary between a contractor and the end client. It employs the contractor, manages payroll, handles taxes, ensures legal compliance, and offers access to benefits. This is especially valuable in countries like Turkey, where employment regulations can be complex for foreigners.
Umbrella companies are commonly used in countries with strict labor laws or bureaucratic hurdles. They allow independent professionals to enjoy the benefits of employment (like social security, health insurance, and work permits) while retaining the flexibility of freelancing.
How Umbrella Companies Operate in Turkey in 2025
- Legal Framework: Umbrella companies in Turkey comply with local labor laws, tax codes, and social security regulations. They are typically structured as registered entities with HR and legal departments familiar with Turkish compliance rules.
- Employment Model: Contractors are hired as employees of the umbrella company, even if they work remotely or freelance. The umbrella company signs an employment contract with the contractor and a service agreement with the client.
- Services Offered: Payroll processing, invoicing, tax deductions, legal compliance, work permit sponsorship, and health insurance options. Some umbrella companies also offer optional services such as pension contributions and local tax advice.
Who Can Benefit?
- Freelancers and digital nomads who want legal status without opening a Turkish company.
- Foreign companies hiring talent in Turkey without setting up a local branch.
- Remote teams looking to onboard Turkish workers legally and quickly.
- Expats residing in Turkey who wish to work compliantly for international clients.
Key Advantages
- Legal Work Status: Contractors receive valid work permits and residency cards, ensuring full compliance with Turkish immigration laws.
- Tax and Compliance Management: The umbrella company withholds taxes at source and manages all necessary government filings, eliminating the risk of penalties.
- Visa/Work Permit Facilitation: This is especially crucial for non-EU nationals, who may face additional restrictions when working in Turkey.
- No Need to Open a Company: This simplifies the process, avoids setup fees, and removes the need for annual financial reporting.
- Access to Benefits: Including public healthcare via SGK, optional private insurance, and pension contributions.
What to Look for in a Turkish Umbrella Company
- Experience working with international clients
- Transparent fee structure
- Strong HR and legal support
- Positive client reviews
- Ability to sponsor work permits and offer English-speaking support
Challenges to Consider
- Monthly fees can vary significantly (usually 5–10% of gross income)
- Limited flexibility compared to self-employment
- May not support every industry or remote role
For foreign contractors or companies operating in Turkey, umbrella companies offer a fast, compliant, and cost-effective solution. In 2025, as international hiring continues to grow, this model remains highly relevant and efficient. Whether you’re a freelancer needing legal work status or a company wanting to hire Turkish talent, the umbrella structure can streamline your operations while ensuring full legal compliance.
