Let’s be honest: you became a freelancer to pursue your passion, not to become an amateur tax accountant. You don’t want to spend valuable work hours staring at terms like “e-Fatura” and “Bağ-Kur” with the enthusiasm of a dental appointment.
Freelancing in Turkey feels like swinging through a tax-coded rainforest. You’re not just your own boss, you’re your own accountant, legal counsel, and occasionally, therapist. Getting paid should be simple, but it’s not. With progressive tax rates at 40%, VAT at 20%, and social security around 33.5%, it feels like a challenging obstacle course.
Let’s be honest: you became a freelancer to pursue your passion, not to become an amateur tax accountant. You don’t want to spend valuable work hours staring at terms like “e-Fatura” and “Bağ-Kur” with the enthusiasm of a dental appointment.
Freelancing in Turkey feels like swinging through a tax-coded rainforest. You’re not just your own boss, you’re your own accountant, legal counsel, and occasionally, therapist. Getting paid should be simple, but it’s not. With progressive tax rates at 40%, VAT at 20%, and social security around 33.5%, it feels like a challenging obstacle course.
Proper invoicing isn’t just paperwork (or about avoiding prison jumpsuits as your work attire). It directly impacts:
This guide unpacks invoicing basics, tech tools, and payment hacks—so you keep your income, your status, and your sanity.
Progressive Taxation: When Earning More Somehow Feels Like Earning Less
Turkey’s income tax rates range from 15% to 40%. The more you earn, the more it stings. But here’s the critical part: different portions of your income are taxed at different rates—not your entire income at the highest bracket.
Pro tip: That client who pays you ₺151,000 isn’t instantly costing you an extra ₺15,000 in taxes. Only the amount above the threshold gets the higher rate.
VAT: The Not-So-Optional 20%
If your annual revenue crosses the VAT threshold, you must charge 20% VAT. Think of yourself as an unpaid tax collector for the government:
Bağ-Kur Blues: Social Security Without the Tears
Freelancers must register with SGK under the Bağ-Kur scheme and keep an eye on freelancer tax compliance to avoid penalties. Fun? No. But it provides healthcare access and builds your pension. Think of it as forced savings for your future self.
Quick Reference: Where Your Money Goes
For a freelancer earning ₺200,000 annually:
| Expense | Percentage | Amount | What’s Left |
| Gross Income | 100% | ₺200,000 | ₺200,000 |
| Bağ-Kur (Social Security) | 33.5% | ₺67,000 | ₺133,000 |
| Income Tax (blended rate) | ~25% | ₺33,250 | ₺99,750 |
| What You Actually Keep | ~50% | ₺99,750 |
Depressing? Slightly. But knowing the reality helps you price your services appropriately. That project isn’t worth ₺10,000—it’s worth ₺5,000 to you after the government takes its share.
Who Must Use E-Invoicing in 2025 (Spoiler: Probably You)
Turkey has aggressively expanded its e-invoicing mandate. You’re required to use the e-Fatura system if:
Even if you fall below these thresholds, voluntary adoption makes sense. The Turkish Revenue Administration is gradually lowering these thresholds. Getting ahead of the curve saves you from a panicked transition later.
Step-by-Step Setup Guide for the Technologically Challenged
The initial setup takes about 3-5 business days, so don’t wait until deadline day when panic sets in.
What Happens If You Ghost the System (Hint: Nothing Good)
Ignoring e-invoicing requirements is like ignoring a toothache—it only gets worse:
Remember: The system knows. With Turkey’s integrated tax database, discrepancies become easy to flag.
Your qualified electronic certificate enables legally binding digital signatures. A common mistake is using a scanned signature image. This doesn’t meet the requirements and could invalidate your invoice. A proper digital signature costs about ₺500. It lasts for three years and works with many government systems.
Platform Showdown: Comparing Your Options
| Platform | Best For | Pricing | Standout Feature |
| Ruul | International freelancers | 3.9% per transaction | Acts as Merchant of Record, anonymized invoices |
| Paraşüt | Small-scale freelancers | From ₺250/month | User-friendly interface, bank syncing |
| MikroYazılım | Growing operations | From ₺500/month | Ideal for VAT reporting and expense tracking |
| Logo | Established businesses | Custom pricing | Enterprise-level features that scale with you |
| Remotify | End-to-end compliance | Varies | Employer-of-Record support, international payments |
AI Features Worth Paying For
Automation Tricks: Set-It-and-Forget-It
For retainer clients or subscription services:
How to Choose Without Requiring Therapy
Remember: The “best” platform is the one you’ll actually use. Sometimes simplicity trumps features, especially at 11:59 PM on tax day.
Cross-Border Invoicing: Legal Gymnastics
Working with international clients is simpler when you use multi-currency invoicing that supports GBP, USD, EUR, or Turkish Lira.
Banking Solutions That Make International Clients Love You (Hello, Grey!)
Traditional Turkish banks make cross-border freelancer payments feel like rare archaeological discoveries. Digital alternatives like Grey offer:
Double Taxation Treaties: Not as Boring as They Sound
Turkey has agreements with over 80 countries to prevent paying taxes twice on the same income:
When to Use a Merchant of Record Service to Save Your Sanity
Platforms such as Ruul or a global freelancer payments platform handle cross-border invoicing and payments for you.
While MoR services charge 3-5% of transaction value, it’s often worth every lira for the compliance nightmares they solve.
The “Too Loyal to One Client” Danger Zone
Karadeniz (2025) found an important risk: if over 70% of your income comes from one source, tax authorities may label you as an employee. The consequences are painful:
Solution: Maintain a diverse client portfolio with no single client exceeding 50-60% of your income.
Red Flags That Scream “Audit Me!”
Tax authorities aren’t randomly selecting files—they’re targeting patterns:
Invoice-Based Discrimination: Yes, That’s a Thing
Studies by Pulignano & Rani (2025) confirm female freelancers face more resistance when issuing formal VAT-inclusive invoices. Clients often negotiate lower rates or refuse proper billing.
Solution: Use MoR platforms to hide your identity. Also, treat proper invoicing as a legal must, not something to debate.
Eren & Çay’s 2025 research reveals that many freelancers miss deductions. Some even skip e-invoicing because they struggle with digital skills.
Solution: Go to free local workshops, check out GİB’s YouTube tutorials, or join freelancer groups to learn from others. You wouldn’t believe how expensive ignorance is—until it hits your wallet.
Creating Payment Terms That Actually Get You Paid
The Polite Art of Chasing Without Alienating
The perfect payment reminder escalation:
Pro tip: Use your invoicing platform’s automated reminders. A dedicated freelancer invoicing platform can send automated reminders at 9 PM without the awkwardness.
Subscription Billing = Your Financial Sanity
Transform unpredictable income into steady cash flow:
This flattens your income curve and minimizes the dreaded “when will I get paid?” anxiety.
Communication Hacks That Get Results
How to Avoid Getting Misclassified as an Employee
The line between freelancer and employee is increasingly scrutinized by Turkish authorities. Protect yourself by:
Structuring Client Relationships for Independence
Diversify Your Client Base (Legally Speaking)
Set a 30-40% income cap per client. Beyond avoiding misclassification, diversification offers:
Documentation Practices That Will Save You During an Audit
The golden rule: If it’s not documented, it didn’t happen—and the tax office agrees.
Keep for at least five years:
When in doubt, screenshot everything and back it up to the cloud.
The Essential Do’s and Don’ts
Do:
✅ Register for Bağ-Kur and make monthly contributions
✅ Set up e-Fatura if your annual revenue exceeds ₺150,000
✅ Charge 20% VAT on services (with rare exceptions)
✅ Diversify your client base (remember the 30-40% income cap per client)
✅ Maintain meticulous records of all income and expenses
✅ Use qualified digital signatures for all invoices
Don’t:
❌ Work exclusively for one client for extended periods
❌ Mix personal and business expenses
❌ Accept payment without issuing proper invoices
❌ Ignore tax filing deadlines (the fines aren’t worth it)
❌ Negotiate deals “off the books” to avoid VAT
❌ Use Excel templates for invoicing post-2023 (seriously)
Year-at-a-Glance Tax Calendar
| Month | What’s Due | Who Needs to File |
| January | Q4 VAT return | VAT-registered freelancers |
| February | Annual income tax return | All freelancers |
| March | Q1 Bağ-Kur payment | All freelancers |
| April | Q1 VAT return | VAT-registered freelancers |
| July | Q2 VAT return | VAT-registered freelancers |
| October | Q3 VAT return | VAT-registered freelancers |
Note: Bağ-Kur payments are due monthly, typically by the end of each month.
Emergency Resources When Things Go Sideways
Tax Assistance:
Legal Support:
How Remotify Simplifies Compliance:
Save these contacts before you need them. The worst time to research help is when you’re already in trouble.
You’ve graduated from invoicing novice to compliance pro. You now know more about Turkish freelance taxes than the average accountant. You’ve navigated the jargon jungle, dodged the audit landmines, and hopefully avoided a digital meltdown.
This knowledge changes you. You go from a reactive taxpayer, always catching up, to a strategic business owner. Now, you can use the system to your advantage. And yes, this means you’ll now be that friend everyone calls for tax advice. Consider it a badge of honor.
With your invoicing system streamlined, consider these power moves:
In the complex landscape of Turkish freelancing, having a global payment platform for freelancers like Remotify in your corner gives you an unfair advantage.
The best freelancers aren’t always the most skilled. They are the ones who create strong businesses with solid foundations. With the right tools and knowledge, you’re now equipped to join their ranks.
Let’s turn compliance from a stressor into your secret weapon.
Let’s be honest: you became a freelancer to pursue your passion, not to become an amateur tax accountant. You don’t want to spend valuable work hours staring at terms like “e-Fatura” and “Bağ-Kur” with the enthusiasm of a dental appointment.
Freelancing in Turkey feels like swinging through a tax-coded rainforest. You’re not just your own boss, you’re your own accountant, legal counsel, and occasionally, therapist. Getting paid should be simple, but it’s not. With progressive tax rates at 40%, VAT at 20%, and social security around 33.5%, it feels like a challenging obstacle course.
Proper invoicing isn’t just paperwork (or about avoiding prison jumpsuits as your work attire). It directly impacts:
This guide unpacks invoicing basics, tech tools, and payment hacks—so you keep your income, your status, and your sanity.
Progressive Taxation: When Earning More Somehow Feels Like Earning Less
Turkey’s income tax rates range from 15% to 40%. The more you earn, the more it stings. But here’s the critical part: different portions of your income are taxed at different rates—not your entire income at the highest bracket.
Pro tip: That client who pays you ₺151,000 isn’t instantly costing you an extra ₺15,000 in taxes. Only the amount above the threshold gets the higher rate.
VAT: The Not-So-Optional 20%
If your annual revenue crosses the VAT threshold, you must charge 20% VAT. Think of yourself as an unpaid tax collector for the government:
Bağ-Kur Blues: Social Security Without the Tears
Freelancers must register with SGK under the Bağ-Kur scheme and keep an eye on freelancer tax compliance to avoid penalties. Fun? No. But it provides healthcare access and builds your pension. Think of it as forced savings for your future self.
Quick Reference: Where Your Money Goes
For a freelancer earning ₺200,000 annually:
| Expense | Percentage | Amount | What’s Left |
| Gross Income | 100% | ₺200,000 | ₺200,000 |
| Bağ-Kur (Social Security) | 33.5% | ₺67,000 | ₺133,000 |
| Income Tax (blended rate) | ~25% | ₺33,250 | ₺99,750 |
| What You Actually Keep | ~50% | ₺99,750 |
Depressing? Slightly. But knowing the reality helps you price your services appropriately. That project isn’t worth ₺10,000—it’s worth ₺5,000 to you after the government takes its share.
Who Must Use E-Invoicing in 2025 (Spoiler: Probably You)
Turkey has aggressively expanded its e-invoicing mandate. You’re required to use the e-Fatura system if:
Even if you fall below these thresholds, voluntary adoption makes sense. The Turkish Revenue Administration is gradually lowering these thresholds. Getting ahead of the curve saves you from a panicked transition later.
Step-by-Step Setup Guide for the Technologically Challenged
The initial setup takes about 3-5 business days, so don’t wait until deadline day when panic sets in.
What Happens If You Ghost the System (Hint: Nothing Good)
Ignoring e-invoicing requirements is like ignoring a toothache—it only gets worse:
Remember: The system knows. With Turkey’s integrated tax database, discrepancies become easy to flag.
Your qualified electronic certificate enables legally binding digital signatures. A common mistake is using a scanned signature image. This doesn’t meet the requirements and could invalidate your invoice. A proper digital signature costs about ₺500. It lasts for three years and works with many government systems.
Platform Showdown: Comparing Your Options
| Platform | Best For | Pricing | Standout Feature |
| Ruul | International freelancers | 3.9% per transaction | Acts as Merchant of Record, anonymized invoices |
| Paraşüt | Small-scale freelancers | From ₺250/month | User-friendly interface, bank syncing |
| MikroYazılım | Growing operations | From ₺500/month | Ideal for VAT reporting and expense tracking |
| Logo | Established businesses | Custom pricing | Enterprise-level features that scale with you |
| Remotify | End-to-end compliance | Varies | Employer-of-Record support, international payments |
AI Features Worth Paying For
Automation Tricks: Set-It-and-Forget-It
For retainer clients or subscription services:
How to Choose Without Requiring Therapy
Remember: The “best” platform is the one you’ll actually use. Sometimes simplicity trumps features, especially at 11:59 PM on tax day.
Cross-Border Invoicing: Legal Gymnastics
Working with international clients is simpler when you use multi-currency invoicing that supports GBP, USD, EUR, or Turkish Lira.
Banking Solutions That Make International Clients Love You (Hello, Grey!)
Traditional Turkish banks make cross-border freelancer payments feel like rare archaeological discoveries. Digital alternatives like Grey offer:
Double Taxation Treaties: Not as Boring as They Sound
Turkey has agreements with over 80 countries to prevent paying taxes twice on the same income:
When to Use a Merchant of Record Service to Save Your Sanity
Platforms such as Ruul or a global freelancer payments platform handle cross-border invoicing and payments for you.
While MoR services charge 3-5% of transaction value, it’s often worth every lira for the compliance nightmares they solve.
The “Too Loyal to One Client” Danger Zone
Karadeniz (2025) found an important risk: if over 70% of your income comes from one source, tax authorities may label you as an employee. The consequences are painful:
Solution: Maintain a diverse client portfolio with no single client exceeding 50-60% of your income.
Red Flags That Scream “Audit Me!”
Tax authorities aren’t randomly selecting files—they’re targeting patterns:
Invoice-Based Discrimination: Yes, That’s a Thing
Studies by Pulignano & Rani (2025) confirm female freelancers face more resistance when issuing formal VAT-inclusive invoices. Clients often negotiate lower rates or refuse proper billing.
Solution: Use MoR platforms to hide your identity. Also, treat proper invoicing as a legal must, not something to debate.
Eren & Çay’s 2025 research reveals that many freelancers miss deductions. Some even skip e-invoicing because they struggle with digital skills.
Solution: Go to free local workshops, check out GİB’s YouTube tutorials, or join freelancer groups to learn from others. You wouldn’t believe how expensive ignorance is—until it hits your wallet.
Creating Payment Terms That Actually Get You Paid
The Polite Art of Chasing Without Alienating
The perfect payment reminder escalation:
Pro tip: Use your invoicing platform’s automated reminders. A dedicated freelancer invoicing platform can send automated reminders at 9 PM without the awkwardness.
Subscription Billing = Your Financial Sanity
Transform unpredictable income into steady cash flow:
This flattens your income curve and minimizes the dreaded “when will I get paid?” anxiety.
Communication Hacks That Get Results
How to Avoid Getting Misclassified as an Employee
The line between freelancer and employee is increasingly scrutinized by Turkish authorities. Protect yourself by:
Structuring Client Relationships for Independence
Diversify Your Client Base (Legally Speaking)
Set a 30-40% income cap per client. Beyond avoiding misclassification, diversification offers:
Documentation Practices That Will Save You During an Audit
The golden rule: If it’s not documented, it didn’t happen—and the tax office agrees.
Keep for at least five years:
When in doubt, screenshot everything and back it up to the cloud.
The Essential Do’s and Don’ts
Do:
✅ Register for Bağ-Kur and make monthly contributions
✅ Set up e-Fatura if your annual revenue exceeds ₺150,000
✅ Charge 20% VAT on services (with rare exceptions)
✅ Diversify your client base (remember the 30-40% income cap per client)
✅ Maintain meticulous records of all income and expenses
✅ Use qualified digital signatures for all invoices
Don’t:
❌ Work exclusively for one client for extended periods
❌ Mix personal and business expenses
❌ Accept payment without issuing proper invoices
❌ Ignore tax filing deadlines (the fines aren’t worth it)
❌ Negotiate deals “off the books” to avoid VAT
❌ Use Excel templates for invoicing post-2023 (seriously)
Year-at-a-Glance Tax Calendar
| Month | What’s Due | Who Needs to File |
| January | Q4 VAT return | VAT-registered freelancers |
| February | Annual income tax return | All freelancers |
| March | Q1 Bağ-Kur payment | All freelancers |
| April | Q1 VAT return | VAT-registered freelancers |
| July | Q2 VAT return | VAT-registered freelancers |
| October | Q3 VAT return | VAT-registered freelancers |
Note: Bağ-Kur payments are due monthly, typically by the end of each month.
Emergency Resources When Things Go Sideways
Tax Assistance:
Legal Support:
How Remotify Simplifies Compliance:
Save these contacts before you need them. The worst time to research help is when you’re already in trouble.
You’ve graduated from invoicing novice to compliance pro. You now know more about Turkish freelance taxes than the average accountant. You’ve navigated the jargon jungle, dodged the audit landmines, and hopefully avoided a digital meltdown.
This knowledge changes you. You go from a reactive taxpayer, always catching up, to a strategic business owner. Now, you can use the system to your advantage. And yes, this means you’ll now be that friend everyone calls for tax advice. Consider it a badge of honor.
With your invoicing system streamlined, consider these power moves:
In the complex landscape of Turkish freelancing, having a global payment platform for freelancers like Remotify in your corner gives you an unfair advantage.
The best freelancers aren’t always the most skilled. They are the ones who create strong businesses with solid foundations. With the right tools and knowledge, you’re now equipped to join their ranks.
Let’s turn compliance from a stressor into your secret weapon.
