1. Ease of Obtaining a Visa

Even though there is no dedicated digital nomad visa program in Turkey, digital nomads can move to Turkey quickly. Citizens of countries with an e-visa agreement with Turkey may apply seamlessly and get the visa online. The e-visa is for touristic purposes only and is not valid for working or student visas. After your e-visa is issued, you can print or save the document sent to your e-mail and present it at the airport and border control.

There are 16 countries where citizens can enter Turkey with their national IDs and 8 countries with their expired passports. (Useful link:  https://www.mfa.gov.tr/general-information-about-turkish-visas.en.mfa )

A Turkish tourist visa allows you to visit and stay in Turkey for up to 90 days within any 180 days. To stay longer than this, you will need to apply for a one-year Turkish residency visa, which involves staying at one address, getting rental contracts, and providing you have the income to sustain your life. While on a tourist or residency visa, you cannot work, but many digital nomads already have their work stream, which comes from online sources worldwide, and their bank accounts in their home country.

2. Low Costs of Living

Turkey is a heaven for digital nomads who earn the valued currencies (dollars or euros etc. ) because the cost of living is relatively low compared to developed countries. The low value of the Turkish lira against other foreign currencies is a determining factor in this.

Most preferred by digital nomads, Istanbul is also one of the most expensive cities in Turkey. As you go to the Aegean and Mediterranean coasts, the cost of living decreases relatively. The accommodation expense takes up the most space in the monthly budget in Istanbul. With 1,000 USD per month, a digital nomad makes a living in Istanbul without difficulty. While living a pretty good life with an income of 2,000 USD, he enjoys a luxurious life with a revenue of 3,000 USD monthly. According to Numbeo data, the cost of living in Istanbul is 75 percent lower than in New York, 60 percent lower than in Berlin and Sydney, 66 percent lower than in London, and 50 percent lower than in Beijing. Read more to get detailed information about the cost of living in Turkey.

Alanya and Kuşadası, among Turkey’s most famous holiday resorts, are the most popular destinations for people from European countries to spend their retirement. The income-based on EUR, meager living costs, mild climate, fascinating natural beauties, and secular local culture significantly impact this preference.

II. Delivering Software Services to Foreign Companies as a Self-employed Person

According to Article 65 of the Income Tax Law of Turkey, earnings arising from all kinds of self-employment activities are self-employment earnings. Self-employment activity; It is the execution of non-commercial works based on personal work, scientific or professional knowledge or expertise rather than capital, under personal responsibility, on one’s own behalf and account, without being subject to the employer.

The income of a software developer residing in Turkey (ie, full taxpayer) from abroad is based on his time. In case of not being paid to the employer abroad, it will be considered as self-employment earnings. Taxation subject to self-employment income is in question if the person does not work as a paid employer.

If the software activity is given temporarily, it will be considered as the income obtained from the occasional self-employment activities per Article 82/4 of the GVK. Accordingly, if a net revenue of more than 58,000 TL is achieved in a calendar year (for the year 2022), the income above 58,000 TL will be declared with the annual income tax return and will be subject to tax. When calculating the net income, the costs and expenses incurred for this work will be deducted from the revenue obtained, provided that they are documented.

On the other hand, the income obtained as a result of performing the self-employment activity that we have described above on a continuous basis within a calendar year, not incidentally, will be considered as self-employment income in accordance with Article 65 of the Income Tax Law. In this case, all earnings in a calendar year will be declared and subject to tax.

Cons of working remotely from Turkey

You need a social security number to serve as a registered employee on a company’s payroll in the United States. You cannot obtain this by residing in Turkey. So, you can work remotely for an American company on a contract basis, not on a payroll basis.

In the contracted working model, the fees paid for the software service you deliver are considered within the scope of earnings, and you have to pay the tax for this in Turkey. Hence, you should establish a company, issue an invoice for your service to the company you serve abroad, and tax your earnings within Turkish financial legislation. Operational processes such as establishing a company, hiring financial advisors, keeping track of your company’s accounts, and closing the company when you no longer provide services abroad can be tedious and time-consuming for you.

On the other hand, you pay insurance premiums according to the 4/B insurance option when you establish a company. This may affect the amount of monthly income you will receive when you retire.

Another issue is the aspect of the job related to socialization and the physical working environment. In the continuous remote working model, you may be deprived of the satisfaction provided by the physical working environment and friendship relationships.

3. The Growing Talent Gap

 The wave of job turnover, known as “The Great Resignation,” results in a considerable skills scarcity in the job market. Boosted by the pandemic and the resulting workplace changes, this wave sets out, affecting some tech workers more than others. We advise you to look at this insight to learn further about the great resignation phenomenon for IT talents. 

The accelerated digitalization by the pandemic created upward pressure on the demand for tech professionals. There’s much competition for skilled talent. In a competitive market, hiring great people is the key to growing, which most companies want. The talent gap in question further increased the bargaining power of talents against employers in determining wages and working conditions. Employers have been keen to implement many talent-valued practices, including remote working models, to attract and retain top talent.

Remote work is one of the top perks a company could offer its employees. What happens if the employers provide this perk to some employees but not everyone? It’s only a matter of time before other employees demand it, employers can’t stand up to these demands, and remote work becomes widespread throughout the company.

4. The Rising Demand for Flexible Work

Today’s workers demand flexibility and work-life balance. Millennials want the flexibility to work and travel, while a parent with 3 kids may want to work from home twice a week. Fully flexible roles are desirable for the working parents, mainly working mothers, who are statistically more likely to bear primary caregiving responsibility. Remote work allows people to tailor their work hours per their lifestyle.

Remote work provides flexibility and allows people to work when they are most productive. Compared with having a desk job or a day job, people are inspired to work when they can balance their time between work, family, and recreational activities. As you can imagine, remote working sounds very attractive for someone who spends three hours/day in traffic.