In a recent online event organized by the Chamber of Commerce of Valencia in collaboration with the consultant EMS (Executive Mobility Services)The main challenges and opportunities facing Spanish companies when relocating employees to Turkey were outlined. Experts in the field addressed the complex migration processes, tax obligations in both countries, and key aspects of social security, offering a roadmap to ensure regulatory compliance and the success of expatriation in a rapidly growing market.
A market of opportunities with cultural ties
The session began with an overview of Türkiye as an investment destination. Begum Mazzi, a Turkish-based consulting firm specializing in EMS, highlighted the strong foundation of business cooperation between the two countries. "Bilateral trade has reached billions of euros annually, making Spain one of Türkiye's key European partners."He noted that Spanish direct investment has exceeded €10.000 billion in recent decades, demonstrating long-term confidence in sectors such as infrastructure, renewable energy, automotive, and banking.
Mazzi highlighted the surprising cultural similarities that facilitate business: "Both countries place great importance on personal relationships, trust, and direct communication."His advice to Spanish companies was clear: "investing time in building relationships" y "visit Türkiye" to gain a real understanding of the energy and potential that the country offers, beyond preconceived perceptions.
The migration labyrinth: from visa to work permit
Fabiana FranqueEMS's chief operating officer warned from the outset that "Türkiye is a very bureaucratic country where the processes themselves are quite complex and tedious."However, he detailed the different ways to operate legally in the country. For short stays for business purposes (meetings, trade fairs), Spanish and EU citizens do not need a visa. However, the situation changes drastically when it comes to working.
"If someone is really going to work in Türkiye, it is always necessary to apply for a work permit, and there is only one."Franque stated. This is the main challenge, since the process, which can last between three and four months, requires a local sponsor. The Turkish company that hires the expatriate must meet strict requirements, such as a minimum capital and, above all, a staff quota: "They need to have at least five Turkish workers for every foreigner they want to bring in."This requirement often complicates management for newly established companies.
Once you have obtained a work permit, it is mandatory to apply for a residence permit, an additional process that requires demonstrating a fixed address in the first month of arrival.
The 'Employer of Record' (EOR) model as a strategic solution
For companies that do not have a legal entity in Türkiye or do not meet the employee quota, Franque introduced the figure of the Employer of Record (EOR)This solution allows a local third party (in this case, managed by EMS) to act as the legal employer of the worker on behalf of the Spanish company. "We take care of finding the local employer, managing the immigration permit, and complying with all labor and social security obligations."He explained. The EOR is ideal for exploring the market, running temporary projects, or hiring your first employee in the country without needing to incorporate.
Beyond the paperwork: the adaptation of the expatriate and their family
The success of an expatriation depends on more than just regulatory compliance. Franque also addressed the "soft" aspects of relocation. Although the overall cost of living in Turkey is lower than in Spain, there are two items that can significantly increase the budget: housing and education. "Education will have to be private, one way or another, because of the language issue.", with costs that range between 8.000 and 25.000 euros per year per child. It is recommended to start the school search well in advance due to the scarcity of places.
Regarding housing, it's common for expats to live in secure, gated communities, especially in Istanbul, where the choice between the European (more business-oriented) and Asian (more residential) sides is key. The biggest daily challenge, according to the expert, is the traffic. "If we complain about the traffic in Madrid, I can't even tell you what it's like there.".
Taxation and Social Security: how to avoid double contributions and taxation
Ángeles LópezEMS's tax lawyer focused on the obligations to avoid unexpected costs. Regarding Social Security, she highlighted the existence of an agreement between Spain and Turkey that allows posted workers to maintain their contributions in Spain. To do so, it is necessary to apply for the CE-1 coverage certificate. "This avoids double contributions and ensures that workers do not lose any of their rights regarding benefits and contributions in Spain.", he clarified.
In the tax field, the rules vary depending on the length of stay:
- Less than 6 months: The employee remains a tax resident in Spain. They may be eligible for benefits such as the exemption under Article 7P of the Personal Income Tax Law, which allows for the exemption of income earned abroad up to a certain limit. 60.100 Euros.
- More than 6 months: The employee becomes a tax resident in Turkey. This means they will be taxed there on their worldwide income. In Spain, they will be taxed as a non-resident, only on income generated within Spanish territory.
López also mentioned the new tax incentives in Türkiye, such as a 20-year exemption on income earned abroad for new residents starting in 2026, and the benefits of Istanbul Financial Centerwhich offers significant advantages for companies that set up there.
Key Questions and Answers
What is the main obstacle for a Spanish company that wants to send a worker to Türkiye?
The biggest challenge is obtaining a work permit. This requires a local Turkish company to act as a sponsor and adhere to a strict quota of having at least five Turkish employees for every foreign worker hired. This can be a major obstacle for new companies or those with a limited presence in the country.
Can a Spanish employee maintain their Spanish Social Security contributions while working in Türkiye?
Yes. Thanks to a bilateral agreement between Spain and Turkey, it is possible to maintain Spanish Social Security coverage by requesting a certificate of coverage (form CE-1). This procedure avoids double contributions in both countries and ensures that the worker retains their entitlement to benefits and pension in Spain.
What are the tax implications of staying in Türkiye for more than six months?
If an employee stays in Turkey for more than 183 days in a calendar year, they become a Turkish tax resident. This means they are required to declare and pay taxes in Turkey on their worldwide income (income earned anywhere in the world). In Spain, they will be considered a non-tax resident and will only be taxed on income generated specifically within Spanish territory, such as rental income.
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