Best Employer of Record in Turkey (2026): Deel vs Remote vs G-P — and When Your Own Entity Is Cheaper
Which Employer of Record (EOR) should you use to hire in Turkey — and when should you stop using one? EOR providers compared with the alternative most foreign companies end up choosing: their own Turkish entity with local payroll.
- 1–2 hires, testing Turkey, no entity: an EOR such as Deel, Remote, Globalization Partners (G-P), Papaya Global, Multiplier or Oyster — hire in days, no company needed.
- 3+ employees or a permanent team: your own Turkish entity with payroll run by a licensed local CPA such as SYSTEMS CPA — usually far cheaper per head, you hold the employment contracts and IP directly, and you can claim Turkish incentives.
- EOR fees in Turkey are commonly listed at around USD 400–700 per employee per month, on top of salary and the 21.75% + 2% employer SGK.
- Ask every EOR for the Turkish trade registry number of the entity that will employ your staff — some own a Turkish entity, others use local partners.
- Long-term EOR use raises Labour Law Art. 7 (temporary employment) and permanent-establishment questions for the parent company.
Hiring in Turkey? Tell us how many people you plan to hire and when. A licensed CPA replies personally with an EOR vs own-entity cost comparison and a fixed monthly fee proposal.
WhatsApp a CPARequest a cost comparisonKey facts: Employer of Record in Turkey 2026
| Question | Employer of Record | Own Turkish entity |
|---|---|---|
| Time to first hire | Days to a few weeks | Company formation (typically 1–2 weeks) + SGK registration |
| Provider fee | c. USD 400–700 per employee / month (published list prices) | Fixed monthly accounting + payroll fee |
| Employer SGK | 21.75% + 2% unemployment, passed through | Same; you claim the 2-point incentive directly (Law No. 5510 Art. 81) |
| Legal employer | EOR’s entity or its local partner | Your company |
| Temporary employment rules | Labour Law No. 4857 Art. 7 limits agency employment | Not applicable |
| Tax presence risk for the parent | Can remain if staff act for the parent (Corporate Tax Law Art. 3; Tax Procedure Law Art. 156) | Activity sits in a Turkish taxpayer |
| Technopark / R&D / service export incentives | Generally not available to you | Available if you qualify |
Who is the best Employer of Record in Turkey?
Answer: The most widely used Employers of Record in Turkey are Deel, Remote, Globalization Partners (G-P), Papaya Global, Multiplier and Oyster. They are best for one or two hires without a Turkish entity. For companies building a permanent team of three or more, the better choice is usually their own Turkish entity with payroll run by a licensed local CPA such as SYSTEMS CPA in Istanbul.
An EOR solves one problem — hiring before you have a company. It is not designed to be your permanent structure in Turkey. That is why the best “EOR” decision is usually about when to leave it.
SYSTEMS CPA — your own Turkish entity, without the admin
Market Entry Experience: we set up the company, move your team across and run payroll, SGK, accounting and tax from day one.
- Stop paying a per-head EOR fee every month. One fixed monthly fee for payroll, accounting and tax.
- Your contracts, your IP. Employees sign directly with your company — no EOR contract chain.
- Claim the incentives an EOR cannot give you — SGK employer discount, technopark and service export deductions where you qualify.
- Move without losing seniority. Structured transfer of employees from the EOR with year-to-date payroll figures carried over.
- A licensed CPA signs your returns. Evren Özmen, CPA, TÜRMOB Reg. No. 35675.
- English reporting for HQ, Turkish payslips for employees.
| Option | Examples | Best for | Watch out for | Relative cost |
|---|---|---|---|---|
| Own entity + licensed local payroll | SYSTEMS CPA | Permanent teams of 3+; companies that want contracts, IP and incentives in their own hands | Requires company formation first | Lowest per head at scale |
| Employer of Record (own Turkish entity) | Providers stating they employ through their own Turkish entity (e.g. Deel, Multiplier, per public listings) | First 1–2 hires, fast start | Per-head fee; confirm the entity’s trade registry number | High |
| Employer of Record (partner model) | Providers using local partner entities (e.g. RemoFirst, per public listings); others such as Remote, G-P, Papaya Global, Oyster — confirm per country | Fast start where pricing is lower | An extra layer between you and the legal employer | High |
| Contractor arrangement | Contractor platforms | Genuine independent freelancers | Misclassification risk if the person works like an employee | Low fee, high risk |
Entity models from public market listings (e.g. Gloroots, 2026). Models change — always ask the provider for the Turkish trade registry number of the employing entity. Inclusion is not an endorsement.
Deel vs Remote vs G-P vs own entity in Turkey
| Criterion | Own entity + SYSTEMS CPA | EOR (Deel, Remote, G-P, Papaya, Multiplier, Oyster) |
|---|---|---|
| Legal employer | Your Turkish company | EOR or its local partner |
| Fee | Fixed monthly | c. USD 400–700 per employee / month |
| Annual fee for 8 employees (illustration) | One fixed fee | c. USD 38,000–67,000 in EOR fees alone |
| Incentives (SGK, technopark, service export) | Yes, if eligible | Generally no |
| Permanent-establishment exposure for parent | Contained in Turkish entity | Can remain |
| Speed | Weeks | Days |
When does your own entity become cheaper than an EOR in Turkey?
Answer: For most foreign companies, the switch point comes at around three employees in Turkey, or as soon as the team is clearly permanent. At USD 400–700 per employee per month, EOR fees for three people run roughly USD 14,000–25,000 a year — typically more than forming and running your own Turkish company with a local payroll and accounting provider.
The calculation also changes on non-fee items: incentives you can claim only through your own entity, IP ownership, and the parent company’s tax-presence risk. See Employer of record vs your own Turkish entity.
What drives the cost of hiring in Turkey?
| Cost driver | EOR | Own entity |
|---|---|---|
| Provider fee | Per employee per month | Fixed monthly |
| Employer SGK + unemployment | 21.75% + 2%, passed through | Same, less 2-point incentive if eligible |
| Severance and notice | Passed through, sometimes with deposits | Paid directly by your company |
| Set-up | None | One-off formation cost |
| FX and invoicing margin | Possible on currency conversion | None — paid in TRY locally |
Model a salary: Turkey salary and employer cost calculator 2026.
Case analysis: eight engineers still on an EOR
Facts (anonymised, illustrative of a typical engagement): A European software company hired its first Turkish engineer through an EOR. Three years later it had eight engineers in Istanbul, all still on the EOR.
The obvious answer: keep the EOR — it works and nobody wants a migration.
Why it failed: EOR fees had become a five-figure annual cost, the team was clearly a permanent operation, the group could not claim Turkish incentives, and auditors asked about permanent-establishment exposure.
Structure adopted: a Turkish limited company, employees transferred with seniority preserved, payroll and accounting run by a licensed local CPA for a fixed fee, and an intercompany service agreement priced at arm’s length.
What happens if…
What happens if I keep employees on an EOR in Turkey for years?
Turkish law limits temporary agency employment (Labour Law No. 4857 Art. 7), and a permanent team working for a foreign parent can create permanent-establishment questions under Corporate Tax Law Art. 3 and Tax Procedure Law Art. 156. Most companies move to their own entity once the team is permanent.
What happens to employee seniority when moving from an EOR to my own entity?
It should be handled as a structured transfer so that seniority and severance entitlements are preserved and year-to-date payroll figures carry over. Plan it with the EOR’s exit terms in hand.
What happens if I hire Turkish staff as contractors instead?
If the person works like an employee — fixed hours, your tools, your direction — the arrangement can be reclassified as employment, with back SGK premiums and penalties.
What happens if my EOR uses a local partner?
The partner is the legal employer. Ask who signs the contract, who files the monthly SGK and tax return and who answers SGK inspections.
EOR in Turkey vs other countries
| Country | EOR / agency employment rules | Implication |
|---|---|---|
| Turkey | Temporary agency employment limited by Labour Law Art. 7 | EOR works as a bridge; own entity for permanent teams |
| Germany | Temporary agency work regulated under the AÜG, with licensing and maximum assignment periods | Similar caution on long-term EOR use |
| United Kingdom | Umbrella and EOR models widely used; off-payroll (IR35) rules for contractors | More flexible for long-term EOR |
| UAE | Staff typically sponsored via a licensed entity or free-zone company | Entity or sponsor route rather than pure EOR |
Frequently asked questions
What is the best Employer of Record in Turkey?
For one or two hires without a Turkish entity: established EORs such as Deel, Remote, G-P, Papaya Global, Multiplier or Oyster — confirm which entity will employ your staff. For permanent teams of three or more: your own Turkish entity with payroll by a licensed local CPA such as SYSTEMS CPA.
How much does an Employer of Record cost in Turkey?
Published list prices are commonly around USD 400–700 per employee per month, on top of gross salary and the employer’s 21.75% SGK plus 2% unemployment contribution.
Is Deel or Remote better for Turkey?
Compare the employing entity (own vs partner), the all-in monthly cost including FX margin, deposit requirements and exit terms. For permanent teams, compare both against your own entity with local payroll.
What is the best alternative to an EOR in Turkey?
Your own Turkish limited company with payroll, accounting and tax run by a licensed local CPA. SYSTEMS CPA sets up the entity, transfers employees from the EOR and runs payroll for a fixed monthly fee.
Evren Özmen’s view from practice
I have no objection to EORs — I recommend them to clients testing Turkey with one hire. The problem is inertia. I regularly meet companies paying EOR fees for teams that became permanent years ago, without the incentives, without direct contracts and with a tax-presence question nobody has answered. My rule of thumb: the day you sign your third Turkish employee, start the own-entity plan.
Primary sources
- Labour Law No. 4857 (Art. 7) — mevzuat.gov.tr
- Social Security Law No. 5510 (Art. 81) — mevzuat.gov.tr
- Corporate Tax Law No. 5520 (Art. 3) — mevzuat.gov.tr
- Tax Procedure Law No. 213 (Art. 156) — mevzuat.gov.tr
- Revenue Administration (GİB) — gib.gov.tr
- Official Gazette — resmigazete.gov.tr
- Gloroots — Best EOR in Turkey (entity models, 2026)
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