*Special Foreign Direct Investments
The “Regulation on the Employment of Foreign Nationals Within the Framework of Foreign Direct Investments” introduced special provisions regarding work permits in order to facilitate work permits. Work permit applications required for personnel to be employed within the framework of foreign direct investments to which these provisions are not applicable are subject to the abovementioned general provisions.
The scope of the Regulation on the Employment of Foreign Nationals Within the Framework of Foreign Direct Investments is defined on the basis of two fundamental criteria:
- Special Foreign Direct Investments (including liaison offices)
- Foreign national key personnel
The term “Special Foreign Direct Investment” refers to a company or branch subject to Foreign Direct Investments Law no. 4875, and meeting at least one of the following criteria (figures applicable for year 2019):
- Provided that the foreign shareholders hold at least TRY 1.888.190 of the capital, the company or branch registered a turnover of at least TRY 141.9 million in the most recent year.
- Provided that the foreign shareholders hold at least TRY 1.888.190 of the capital, the company or branch posted an export figure of at least USD 1 million in the most recent year.
- Provided that the foreign shareholders hold at least TRY 1.888.190 of the capital, the company or branch employs in the most recent year, at least 250 personnel registered before the Social Security Institution.
- Provided that, in cases where the company or the branch is to make investments, the planned minimum investment figure is at least TRY 47.1 million.
- Provided that the company has a foreign direct investment in at least one more country other than the country where its headquarters is located.
“Key personnel” refers to personnel who meet at least one of the following criteria, at the legal entity located in Turkey:
a) Persons serving as a company shareholder, chairman of the board of directors, member of the board of directors, chief executive, vice president, executive, assistant executive or similar positions, with authority or a role in at least one of the following:
- A senior management or executive position in the company
- Managing the whole or a part of the company
- Auditing or controlling the work of the company auditors, or administrative or technical personnel
- Hiring new personnel or terminating the employment of existing personnel, or making proposals concerning these issues
b) Holding key knowledge regarding the services, research devices, techniques, or management of the company
c) At liaison offices, a maximum of one person in whose name the authorization certificate is issued by the overseas parent company
Charges Applicable to Work Permits for Foreigners: According to the Act of Fees no. 492, work permits to be issued to foreigners are subject to charges. In cases where the work permit application is approved by the Ministry of Family, Labor and Social Services, the applicable charge must be deposited with reference to the term of the permit.
Valuable papers fee is collected for work permits issued for foreigners further to the provisions of Valuable Papers Law No. 210. The applicable charge figures and valuable papers fee are set each year on the basis of the revaluation rate, and announced in the Official Gazette.