Turkey’s rapidly growing information technology (IT) sector increasingly demands global talent to meet the challenges of innovation and competition. Fields like software development, artificial intelligence, and data analytics require highly skilled professionals from around the world. In light of this, Turkey has introduced new regulations to facilitate the hiring of foreign IT professionals by easing work permit requirements. These new exemptions are particularly advantageous for companies operating in the IT sector. In this blog post, we will explore the key exemptions and regulations that apply to foreign workers in Turkey’s technology industry.
Work Permit Requirements for Foreign IT Professionals
In most sectors in Turkey, employers who hire foreign workers are required to employ at least five Turkish citizens for each foreign employee. However, this rule does not apply to the IT sector. Technology companies can hire foreign professionals without the obligation to employ additional Turkish workers. This offers significant flexibility for companies, especially those involved in software and technology development, where foreign expertise is critical. Additionally, companies with annual net sales exceeding 50 million TL are exempt from the employment requirement for up to five foreign employees.
Financial Adequacy Criteria
Financial adequacy is another critical requirement for obtaining work permits for foreign employees. However, the criteria are not enforced for newly established technology companies or firms operating in technology development zones. For example, the 500,000 TL paid-in capital requirement for new businesses does not apply to the IT sector. Similarly, the condition requiring existing businesses to have 8 million TL in net sales or 150,000 USD in exports is also not applied to tech firms. This exemption allows fast-growing tech startups to hire foreign talent without the financial burden of meeting high capital thresholds.
Additionally, under Law No. 5746 on Supporting Research, Development, and Design Activities, foreign workers employed as R&D or design personnel in companies holding R&D or design center certificates are exempt from both employment and financial adequacy criteria. The same exemptions apply to foreigners working in technology development zones under Law No. 4691 on Technology Development Zones. For these cases, the Ministry of Industry and Technology must issue a favorable opinion for the work permit application to proceed. These exemptions allow faster and more streamlined approval processes for foreign talent working in R&D and innovation roles.
Work Permit for Foreign Students
Foreign students enrolled in undergraduate or associate degree programs in Turkey can apply for part-time work permits after completing their first year of study. Furthermore, graduate students in Turkey are not subject to the restrictions applied to undergraduate students regarding work permit applications. This policy allows foreign students to gain professional experience in Turkey while they pursue their studies, contributing to the local job market and acquiring valuable skills that can benefit Turkish companies, particularly in the IT sector.
Exemptions for Foreign Company Partners
Foreign nationals who own or co-own companies in Turkey are subject to specific financial and employment requirements. A foreigner seeking to open a new business or become a partner in an existing company must ensure the business has a minimum paid-in capital of 500,000 TL, and the foreigner’s equity share must be at least 20%. Additionally, in the first six months of obtaining a work permit, there must be at least five Turkish employees working in the company. However, if the foreign partner’s equity share is 100,000 USD or more, these employment requirements do not apply.
Conclusion
In conclusion, Turkey has introduced significant exemptions and relaxed regulations to support foreign workers in the IT sector. The flexibility in employment and financial adequacy criteria allows technology companies to hire global talent more easily, supporting their growth and innovation efforts. These changes particularly benefit companies operating in R&D centers or technology development zones, where exemptions help to streamline the work permit application process for foreign employees. Turkey’s regulatory adjustments in this area are critical steps toward making the country a global hub for information technology and innovation.
By facilitating foreign talent recruitment, Turkey’s IT ecosystem is set to become more robust and internationally competitive, attracting skilled professionals from around the world. These regulations not only simplify the process for companies to hire foreign workers but also create a more favorable environment for innovation and technological advancement in Turkey.