The global tech industry has undergone a major shift in recent years, with more companies seeking flexible, compliant, and cost-effective ways to expand their operations and access international talent. For many, Turkey has emerged as a key destination for hiring top-tier developers, engineers, and IT professionals. But instead of opening subsidiaries or setting up complex legal entities, a growing number of tech companies are turning to Employer of Record (EOR) services in Turkey.
In this sector spotlight, we explore why tech companies are increasingly using EOR solutions in Turkey, and how this model supports rapid expansion, legal compliance, and access to a skilled workforce.
What Is an Employer of Record (EOR)?
An Employer of Record (EOR) is a third-party organization that legally employs workers on behalf of another company, handling all the administrative and regulatory responsibilities of employment. This includes:
- Drafting compliant employment contracts
- Registering employees with tax and social security authorities
- Managing payroll and income tax deductions
- Ensuring compliance with local labor laws
- Overseeing benefits, terminations, and HR documentation
For tech companies hiring in Turkey, an EOR allows them to quickly onboard developers, data scientists, IT project managers, and more—without opening a local branch or subsidiary.
Why Turkey Is Attractive to Global Tech Companies
Before diving into the EOR model, it’s important to understand why Turkey has become a hotspot for tech hiring:
1. Large Pool of Skilled Tech Talent
Turkey produces over 200,000 STEM graduates annually, with a strong focus on engineering, computer science, and information technology. Universities like Middle East Technical University, Boğaziçi University, and Istanbul Technical University are recognized for producing highly skilled developers and IT professionals.
2. Competitive Labor Costs
Compared to Western Europe or North America, tech salaries in Turkey are significantly lower, making it an attractive destination for companies looking to optimize development costs without sacrificing quality.
3. Favorable Time Zone
Turkey’s time zone (GMT+3) allows for real-time collaboration with both European and Middle Eastern markets, and manageable overlap with North American teams.
4. Growing Tech Ecosystem
Turkey is home to a booming startup scene, government-backed tech parks, and a growing number of unicorns like Trendyol, Getir, and Peak Games. This has created a tech-savvy workforce accustomed to global platforms and agile work environments.
Why Tech Companies Prefer EOR Services in Turkey
Here are the top reasons why technology companies use EOR solutions to build their workforce in Turkey:
1. Fast and Flexible Market Entry
Tech companies often operate in fast-paced environments. When a project scales or funding is secured, they need to hire quickly—sometimes in a matter of days.
Setting up a legal entity in Turkey can take weeks or even months. It requires:
- Trade registry filings
- Local bank accounts
- Tax registrations
- Hiring local directors and accountants
With an EOR, tech companies can hire developers or engineers in Turkey in under 10 business days, allowing them to scale teams without delay.
2. Remote-First Compatibility
Many global tech companies now operate on remote-first or hybrid models. Hiring in Turkey through an EOR allows them to:
- Onboard remote Turkish employees legally
- Avoid establishing a physical presence
- Expand their distributed engineering teams efficiently
EORs are especially valuable for fully remote startups and SaaS companies with no physical headquarters.
3. Access to Top Talent Without Legal Complexity
Turkey’s tech workforce is in high demand. However, hiring full-time employees directly—without a local entity—exposes foreign companies to risks such as:
- Misclassification (freelancer vs. employee)
- Tax violations
- Immigration issues
- Labor law non-compliance
An EOR eliminates these risks by acting as the legal employer while the tech company retains operational control.
4. Compliance with Turkish Labor Laws
Turkey has strict labor protections under Law No. 4857. These include:
- Minimum wage and overtime pay
- Paid annual leave
- Severance pay requirements
- Social security and healthcare contributions
An EOR ensures:
- Proper employment contracts (in Turkish and English)
- Monthly payroll processing
- Income tax and SGK compliance
- Correct onboarding, benefits, and terminations
This shields tech companies from legal disputes, audits, and penalties.
5. Payroll and Tax Simplicity
EOR providers manage the entire payroll lifecycle:
- Calculate gross-to-net salaries
- Deduct income tax, stamp tax, and social security
- Submit payments and declarations to Turkish tax authorities
- Issue payslips and employment records
This is particularly helpful for companies unfamiliar with:
- Turkey’s progressive income tax system
- Social Security Institution (SGK) obligations
- Public holiday entitlements and benefit structures
6. Avoiding Permanent Establishment Risks
A common concern for global tech firms is permanent establishment (PE)—the legal threshold that triggers local tax obligations.
Hiring employees directly without a registered entity can inadvertently create a PE, subjecting the company to:
- Corporate income tax in Turkey
- Local VAT registration
- Tax audits
By hiring through an EOR, the legal employer is the local EOR provider, not the foreign company. This mitigates PE exposure and keeps the parent company tax-efficient.
7. Scalability and Exit Flexibility
Tech startups need to scale up or down depending on product cycles, funding, and market demand.
With an EOR:
- You can hire one developer or build a full agile team
- Contracts can be open-ended or project-based
- Employees can be terminated in compliance with Turkish law
- There’s no legal wind-down if the operation ends
This makes EOR a low-risk, high-agility hiring model for growing tech businesses.
Use Cases: How Tech Companies Leverage EORs in Turkey
| Use Case | Description |
|---|---|
| Startups entering new markets | Hire local developers without launching a subsidiary |
| R&D and product development | Build an affordable and skilled engineering hub in Istanbul or Ankara |
| Remote tech teams | Onboard Turkish employees with full legal protections |
| Pilot projects | Test a market or product with a small local team |
| Client support & QA | Hire Turkish professionals for customer-facing or QA roles |
What Kind of Roles Are Commonly Hired Through EORs in Turkey?
- Software Developers (Frontend, Backend, Full Stack)
- DevOps Engineers
- Mobile App Developers
- Data Analysts & Data Scientists
- UI/UX Designers
- QA Testers
- IT Support & SysAdmins
- Project Managers & Scrum Masters
- AI/Machine Learning Engineers
Turkey has become a top destination for tech companies looking to hire internationally—thanks to its skilled workforce, cost advantages, and thriving innovation ecosystem. By using an Employer of Record, tech companies can access this talent pool without setting up a local company, without worrying about labor law compliance, and without taking on unnecessary legal risks.
We specialize in providing fast, compliant, and cost-effective EOR services in Turkey for technology companies of all sizes—from early-stage startups to global enterprises.
Looking to build your tech team in Turkey?
Contact us today to discover how our EOR services can help you hire top talent in Turkey quickly and compliantly.