Freelancing in Turkey: serbest meslek registration, KDV from the first invoice, and BAĞ-KUR
A Turkish freelancer registers with the tax office as a serbest meslek erbabı (self-employed professional) or sole proprietor. There is no small-business VAT threshold — KDV at 20% applies from the first invoice. Net profit is taxed on the 15%–40% income-tax scale, self-employed social security runs through BAĞ-KUR (SGK 4/b), and e-Fatura becomes mandatory above TRY 5,000,000 turnover.
This article is general information, not tax advice. Regulations change — verify the current rules with the official sources below before acting.
Going freelance in Turkey means registering with the tax office and, in most cases, operating as a serbest meslek erbabı — a self-employed professional — or setting up a sole proprietorship (şahıs şirketi). The defining feature of the Turkish system is that it is VAT-first: there is no small-business threshold, so tax obligations begin with your very first invoice.
Registering and invoicing
You register with the tax office (vergi dairesi) and receive a tax number (VKN). A serbest meslek erbabı issues a serbest meslek makbuzu (a professional receipt) for each engagement; a sole proprietorship issues a fatura (invoice). You cannot legally bill a client without being registered first. From registration you are inside the KDV (VAT) system and file monthly VAT returns.
KDV applies from the first invoice
Unlike the UK or Ukraine, Turkey has no small-business VAT exemption: KDV applies from your first invoice. The standard rate is 20%, with reduced rates of 10% and 1% for specific goods and services. You charge KDV on your invoices, offset input KDV, and remit the difference to the tax office monthly. For professional-service receipts, clients often also apply stopaj (withholding tax) — commonly 20% on serbest meslek payments — which you credit against your annual income tax.
Income tax on a progressive scale
Net professional profit is taxed on the personal income tax (gelir vergisi) scale. For 2026 the brackets run 15% up to TRY 190,000, 20%, 27%, 35%, and 40% on income above TRY 5,300,000. Income tax is filed on an annual return in March, with the tax paid in two installments (March and July). Advance/provisional tax is paid quarterly through the year for self-employed taxpayers.
Social security and e-invoicing
Self-employed people and sole proprietors pay social security as BAĞ-KUR (the SGK 4/b scheme). Contributions are calculated on a declared monthly earnings base between a floor and ceiling — for 2026, roughly TRY 33,030 minimum and TRY 297,270 maximum. On the invoicing side, e-Fatura (structured e-invoicing) becomes mandatory once gross annual turnover exceeds TRY 5,000,000; below that, e-Arşiv covers electronic invoices to recipients outside the e-Fatura system, including foreign clients. Keeping monthly KDV and BAĞ-KUR obligations current is the core rhythm of Turkish self-employment.
General information about freelancing in Turkey, current as of the review date above, and not tax advice. Rates, brackets, and thresholds change — confirm current figures with the Revenue Administration (gib.gov.tr) or a qualified accountant (mali müşavir).
Frequently asked questions
Is there a VAT (KDV) threshold for freelancers in Turkey?
No. Turkey has no small-business VAT exemption, so KDV applies from your very first invoice once you register with the tax office. The standard KDV rate is 20%, with reduced rates of 10% and 1% for specific supplies. You file VAT returns monthly and remit the difference between output and input KDV.
How is a Turkish freelancer's income taxed, and what about social security?
Net professional profit is taxed on the progressive income-tax (gelir vergisi) scale — for 2026, from 15% up to TRY 190,000 rising to 40% above TRY 5,300,000 — via an annual return in March. Self-employed people pay social security as BAĞ-KUR (the SGK 4/b scheme) on a declared monthly earnings base, roughly TRY 33,030 to TRY 297,270 for 2026.