Many people are planning to make Turkey their new home: the sea, quality of life, international clients and location-independent work seem like an ideal combination at first glance.

The Turkish Digital Nomad scheme initially sounds very suitable. It is aimed at qualified individuals who work remotely. Self-employed individuals are also explicitly mentioned in the official requirements.

Nevertheless, in our consultations we repeatedly encounter the same critical situation: A person wants to live permanently in Turkey, works from their apartment for international clients, runs their own LLC or sole proprietorship, and bills for digital services or online courses from abroad.

A case study from our practice

A German woman and her partner wish to permanently relocate to Turkey. They both own a US LLC, which they plan to use for web design, online courses, and digital services.

The idea sounds logical at first.

Our initial assessment wasn't: "That's impossible." The correct answer is rather: While it may initially appear possible at the visa level, it is not automatically legally sound as a permanent, comprehensive structure for actively working self-employed individuals or managing directors.

What the Digital Nomad procedure officially requires

For the Digital Nomad certificate, the official Turkish platform requires, among other things, a university degree, a valid passport, proof of income of at least USD 3,000 per month or USD 36,000 per year, and proof of digital activity.

Employees are required to have a contract with a company outside of Türkiye. Self-employed individuals, on the other hand, are required to have a business contract between the applicant and a company outside of Türkiye.

The crucial point, however, is that these requirements do not automatically imply that every permanent business activity from Turkey is legally permissible under labor law or unproblematic from a tax perspective.

The core problem: Three areas of law collide

1. Stay: A digital nomad visa is not a general entrepreneurial license.

While the Digital Nomad procedure can provide a basis for entry and residence, according to publicly available information, it does not replace a general permit to conduct any kind of economic activity in Turkey.

The question then arises whether the actual purpose of the stay still aligns with the chosen model. Short-term stays can therefore be refused, not extended, or revoked if the requirements no longer apply or the permit is used for a purpose other than intended.

2. Work permit: Self-employment is not automatically covered by a residence permit.

Turkish labor law fundamentally distinguishes between dependent employment and self-employment. For genuine employment with an employer, there is an employer-specific work permit. This permit is valid for a specific job with a specific employer.

In addition, there is the independent work permit, which allows a foreign national to work on their own account. However, this is not an automatic freelancer visa. When reviewing applications, the ministry considers factors such as education, professional experience, economic contribution, investment, and potential employment effects.

Anyone establishing their own Turkish company or becoming an active shareholder will also encounter further practical hurdles. Newly founded companies are generally subject to capital and employment criteria. Current administrative practice stipulates, among other things, that foreign shareholders must employ at least five Turkish workers from the seventh month onward. While exceptions exist, they are not a typical solution for small solo businesses.

3. Tax law: A foreign LLC does not automatically mean "foreign income".„

A common misconception is: "My LLC is based in the USA and my customers are located abroad. Therefore, there are no tax consequences in Turkey." However, it's not that simple.

Anyone who becomes a tax resident in Turkey is generally subject to Turkish income tax on their worldwide income. Tax residency can arise in particular through a residence in Turkey or through habitual abode for more than six months within a calendar year.

Additionally, the following must be examined for a business owner: Where is the service actually provided? Where is the company operationally managed? Where are contracts negotiated or concluded? Where are strategic decisions made? Who actually controls the business? Is there a fixed place of work or a location of actual management?

The right question is therefore not just: "Where is the LLC located?" but: "Where does the actual value creation and corporate management take place?"„

Why the role of managing director is particularly critical

Not every investment in a foreign company is equally problematic. A passive shareholder who does not manage clients, conclude contracts, provide services, or make operational decisions from Turkey is to be assessed differently than a person who manages the entire company from their apartment in Kaş, Fethiye, or Alanya.

The situation becomes particularly critical when a person is simultaneously the sole shareholder, formally or de facto managing director, signs contracts, acquires customers, personally creates services, manages invoices and payments, makes strategic decisions, and permanently runs the company from Turkey.

A foreign LLC or limited liability company only significantly reduces the risk if the individual is not actually operationally active in Turkey. It offers no protection if the same person continues to manage the business entirely from Turkey.

Paying taxes does not solve the work permit issue.

Another common misconception is: "If I properly pay taxes on my income in Turkey, I am also allowed to work there." However, tax law and work permit law are separate areas.

The reverse clarification is just as important.

For whom is the digital nomad model most suitable?

Self-employed individuals can also meet the formal requirements. However, the long-term legal assessment is significantly more complex for them.