IMPACT – MEDIUM

What is the change? Turkey has announced minimum salary increases that impact salary thresholds for foreign workers. 

What does the change mean? Effective Jan. 1, the gross minimum monthly wage is 2,558.40 Turkish lira (about US$486). Aside from the minimum salary requirement, the salary to be paid to the foreign employee must be commensurate with the position considered. If foreign payroll is in place, it must meet the same criteria.

  • Implementation time frame: Jan. 1.
  • Visas/permits affected: Work/residence permits.
  • Who is affected: Employers and employees applying for new or renewing work permits.

Additional information: The monthly minimum salaries required for work permits are as follows:

  • High-level managers and pilots cannot be paid less than 6 ½ times the minimum gross wage (or 16,629.60 lira per month).
  • Department managers and engineers/architects cannot be paid less than four times the minimum gross wage (or 10,233.60 lira per month).
  • An employee who will work in a position requiring expertise (which is not defined) or a teacher cannot be paid less than three times the minimum gross wage (or 7,675.20 lira per month).
  • An employee who will work as an acrobat or similar positions for tourism and animation organizations and masseurs/SPA therapists cannot be paid less than two times the minimum gross wage (or 5,116.80 lira per month).
  • All others (i.e., sales officer or low-level marketing officer) cannot be paid less than 1 ½ times the minimum gross wage (or 3,837.60 lira per month).
  • Household workers cannot be paid less than the minimum wage.

Analysis & Comments: The new salary minimums mark a significant increase above 2018 levels. Employers should be sure to take the new minimums into account when planning their 2019 budgets. Applications that are not supported by the appropriate salary will be rejected. The new salary levels apply whether the person is being hired locally or sent to Turkey on assignment (with an assignment letter).

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom. 

IMPACT – MEDIUM

What is the change? Turkey has made it easier to obtain citizenship by investment.

What does the change mean? Eligible foreign nationals can now obtain Turkish citizenship by investing US$500,000 (or the equivalent in Turkish lira) in fixed capital, a Turkish bank account, through the purchase of government stocks or bonds or by participating in a venture capital or real estate investment fund. Citizenship is also available to foreign nationals that generate employment for at least 50 Turkish nationals or invest at least US$250,000 in Turkish real estate.

  • Implementation time frame: Immediate and ongoing.
  • Visas/permits affected: Turkish citizenship.
  • Who is affected: Foreign nationals interested in obtaining Turkish citizenship who are able to meet the investment thresholds outlined above.

Background: Turkey recently lowered the investment thresholds required for obtaining citizenship as follows:

Type of Investment Old Threshold New Threshold
Fixed Capital US $2 million US $500,000
Real Estate US $1 million US $250,000
Employment of Turkish nationals 100 people 50 people
Bank Deposit US $3 million US $500,000
Government Stocks/Bonds US $3 million US $500,000
Venture Capital/Real Estate Investment Fund N/A US $500,000

Investments can be made in U.S. dollars or the equivalent in Turkish lira. Potential applicants should note that they will be required to commit to making/holding investments for at least three years.

Analysis & Comments: Officials hope the lower thresholds will help increase interest in the citizenship program and spur foreign investment in Turkey.

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom

Medium Priority

What is the immigration news? The Ministry of Labor is now requesting that foreign employees who are applying to renew their work permits submit an updated employment contract signed by the employer and employee.

  • Effective date: Immediate and ongoing.
  • Visas/permits affected: Work permit renewals.
  • Impact on business: The requirement adds another step in the work permit renewal process.
  • What to watch:The ministry is considering whether to allow a signed statement evidencing the employment relationship in lieu of an updated contract, but this option is not yet available.

Additional information: Previously, no employment agreement was needed to submit in support of a renewal application.

BAL Analysis: To avoid delays in renewing employees’ work permits, employers should prepare to update their employment contracts before work permits are renewed and provide a signed copy in their documentation in support of the renewal application.

This alert has been provided by the BAL Global Practice group and our network provider Bener Law Firm in Turkey. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? New procedures that were intended to reduce the wait times for resident permit appointments have caused a new backlog for exit permits that are required for resident permit applicants and their family members.

What does the change mean? Family dependents should plan to delay their travel into Turkey until primary applicants secure their work visa, and expatriates in Turkey should plan to renew their resident permits as early as possible.

  • Implementation time frame: Immediate.
  • Visas/permits affected: Exit permits, resident permit applications and renewals.
  • Who is affected: Family dependents of foreign employees or others applying for residence permits.
  • Impact on processing times: Exit permits are taking two to three months to process.
  • Business impact: The backlog will affect entry dates and travel plans for residence permit applicants.
  • Next steps: Dependents should plan to file resident permit applications four months in advance of start dates or expiration dates (for renewals). Employees and their dependents should work with their BAL professional to determine the best method of filing (postal or in-person) and travel schedules in individual cases.  

Background: As BAL reported last month, the Migration Directorate is now requiring that all resident permit applications be sent to the main Istanbul office in Vatan for final adjudication. A backlog of files in that office has developed, and exit permits cannot be issued until the resident permit application is adjudicated. According to Maria Celebi of Bener Law Firm in Istanbul, many residence permit holders may choose to renew their resident permit by mail, instead of in-person, to take advantage of shorter processing times, but postal applicants cannot leave Turkey before an exit document or their new permit is issued (approximately one month or more).

BAL Analysis: Employees and their dependents should factor in the processing delays and anticipate that they are likely to worsen in coming weeks as government offices close for approximately one week for the Bayram (Eid al-Adha) holiday beginning around Aug. 22.

This alert has been provided by the BAL Global Practice group and our network provider located in Turkey. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

Several changes in how Turkish authorities are processing resident permit applications are causing backlogs and some inconsistencies in procedures.

Key points:

  • All initial resident permit applications filed in Istanbul are currently being transferred to the main office of the Migration Directorate in Vatan regardless of the branch where they are filed. This is causing a backlog and delays as supporting documents for all cases must be physically transferred, logged into the Vatan system and reviewed for final approval.
  • Applicants who need to travel outside Turkey while their resident permit is pending are generally unable to obtain an exit permit on the same day they file their resident permit application, as the case must be transferred and approved by the Vatan office before an exit permit can be issued. Because of the transfer of the files, issuance of exit documents is taking one week or longer.
  • Initial resident permit applicants must first log in their application and then wait for the Migration Directorate to respond with an appointment date. There does not appear to be a queue, and the wait time for appointments is highly inconsistent.
  • Applications to renew resident permits by mail may be denied if they are signed while the foreign national is not physically present in Turkey.
  • Short-term tourist resident permit applications are experiencing high denial rates due to applicants failing to prove sufficient financial resources and the concern that they will resort to working illegally in Turkey.

BAL Analysis: Resident permit applicants should factor in delays in the current unpredictable processing environment. Procedural changes may continue to be implemented or withdrawn with little notice and based on discretionary authority. Employers and foreign nationals should work with their BAL professional to adapt to these changes in individual cases.

This alert has been provided by the BAL Global Practice group and our network partner Bener located in Turkey. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Turkey has shut down its online work permit application system as it transitions to a new online “KEP” system that is not yet fully functional because of technical problems in integrating the new system.

What does the change mean? Applications cannot currently be lodged under the old system, though authorities have suggested they may reactivate accounts under the old system for a grace period until the technical issues with the new system are resolved.

  • Implementation time frame: Ongoing.
  • Visas/permits affected: Work permits.
  • Who is affected: Employers and individuals applying for work permits.
  • Impact on processing times: Applicants should anticipate delays as authorities introduce the new system.
  • Business impact: The delays may affect business schedules.
  • Next steps: Employers will need to purchase and set up an account with the new system through a notary or the Turkish postal service. Employers must designate a registered user that will receive instructions on activating the account and allowing their immigration provider to submit work permit applications on the company’s behalf.  

BAL Analysis: Employers should anticipate delays to the lodging of work permit applications while authorities switch to the new system. BAL is following this development and will report additional information as it becomes available.

This alert has been provided by the BAL Global Practice group and Bener in Turkey. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Turkish authorities have increased the minimum wage for foreign employees by 14 percent.

What does the change mean? The gross minimum monthly wage this year will be 2,029.50 Turkish lira (about US$535) and the net minimum monthly wage will be 1,603.12 lira. Employers should also note that the salaries they pay workers must be commensurate with their position and that higher wage minimums apply for some positions, as detailed below.

  • Implementation time frame: Immediate and ongoing.
  • Visas/permits affect: Work permits.
  • Who is affected: Companies employing foreign workers.
  • Business impact: Businesses may need to adjust their budgets to meet the new wage minimums.  

Additional information: Turkey’s minimum wages are adjusted annually, with some positions requiring higher wages. For example:

  • High-level managers, pilots, architects and some high-level engineers must be paid at least 6.5 times the minimum wage, or 13,191.75 lira gross per month.
  • Most engineers and mid-level managers (e.g., department managers or branch managers) must be paid a least four times the minimum wage, or 8,118.00 lira gross per month.
  • Teachers or workers in positions that are deemed to require “expertise” must be paid at least three times the minimum wage, or 6,088.50 lira gross per month.
  • Sales officers and low-level marketing officers and other general staff cannot be paid less than 1.5 times the minimum wage, or 3,044.25 lira per month.
  • Benefits, housing allowances and bonuses cannot be counted toward the minimum wage requirements.

BAL Analysis: The new wage minimums mark a significant increase above 2017 levels. Employers should be sure to take the new minimums into account when planning their 2018 budgets. Applications that are not supported by the appropriate wage will be rejected. Those with questions about what a certain type of worker should be paid should consult with BAL.

This alert has been provided by the BAL Global Practice group and our network provider located in Turkey. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Turkish diplomatic posts in the United States have resumed issuance of non-immigrant visas to U.S. nationals for business travel and tourism.

What does the change mean? While the Turkish Ministry of Foreign Affairs has confirmed that all diplomatic posts in the U.S. are issuing business and tourist visas, e-visa applications remain unavailable to U.S. nationals, and visas on arrival are only granted to those with residence status outside of the U.S.

Turkish consulates in the U.S. are currently accepting applications by appointment only and most are requiring that applicants appear in person to submit them. However, those who qualify due to “limited circumstances” (i.e. for medical reasons, family emergencies, participation in international conference, athletic activities, diplomatic needs and non-tourist trips for children under the age of 18) are still allowed to walk in without an appointment to submit applications.

  • Implementation time frame: Ongoing.
  • Visas/permits affected: Business and tourist visas issued at Turkish diplomatic posts in the U.S.
  • Who is affected: U.S. nationals applying for business and tourist Turkish visas in the U.S.
  • Impact on processing times: Due to a high volume of applications and increasing backlogs of available appointment times, applicants should anticipate longer processing times.

Background: In early October, the U.S. and Turkey mutually suspended the issuance of non-immigrant visas following the arrest of a U.S. consulate worker in Turkey. Last month, both countries began processing non-immigrant visas again, but only on a limited basis.

BAL Analysis: While the situation between the U.S. and Turkey remains fluid, the resumption of non-immigrant visa issuances at all Turkish consular missions in the U.S. is welcome news and signals easing tensions between the two countries. Those planning to travel either from the U.S. to Turkey or from Turkey to the U.S. should work with BAL to discuss current requirements by the consulates well in advance of travel. Travelers should take into account likely delays due to the backlogs of appointment times.

This alert has been provided by the BAL U.S. and Global Practice groups and the Bener Law Office in Istanbul. For additional information, please contact your BAL attorney.

Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – HIGH

What is the change? Russia’s ban on visa-free travel and new work permits for Turkish nationals will soon be lifted, according to a May 31 presidential order.

What does the change mean? Turkish nationals will be allowed to travel to Russia for business, tourism or work.

  • Implementation time frame: Ongoing. The order was issued May 31, and the most recent information suggests that authorities will begin processing applications for invitation letters July 14.
  • Visas/permits affected: Visitor visas and work permits.
  • Who is affected: Turkish nationals traveling to Russia or applying for work permits.
  • Impact on processing times: Once the visa-free regime is restored, Turkish travelers will not need to apply for a visa to visit Russia.
  • Business impact: Companies will be able to resume sending Turkish nationals to Russia for business or work.
  • Next steps: The order has not yet taken effect and Turkish nationals should confirm that the restrictions have been removed before traveling to Russia.

Background: Russia has imposed travel restrictions since November 2015, when Turkey shot down a Russian fighter jet over its border with Syria. Additional economic sanctions on Turkish companies doing business in Russia were imposed January 2016.

BAL Analysis: The lifting of the ban will ease business travel and allow Russian companies to apply for work permits for Turkish employees. BAL is following implementation of the order and will update clients on new developments.

This alert has been provided by the BAL Global Practice group and our network provider located in the Russian Federation. For additional information, please contact your BAL attorney.

Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.

IMPACT – MEDIUM

What is the change? Turkey has published regulations on its “Turquoise Card” program for foreign nationals who meet certain education, wage, investment or other select criteria.

What does the change mean? Turquoise Cards will be available for foreign nationals in one of five categories: (1) highly qualified workers, (2) investors, (3) scientists or researchers, (4) athletes or artists, or (5) specialists in Turkey or Turkish culture. Turquoise Card holders will be afforded work authorization for an indefinite term following a three-year conditional period.

  • Implementation time frame: Ongoing. The regulations were published Monday; however, applications are not yet being accepted online. Hard copy applications may be submitted in person.
  • Visas/permits affected: Turquoise Cards.
  • Who is affected: Non-Turkish highly qualified workers, investors, scientists, researchers, athletes, artists, specialists in Turkey or Turkish culture and their family members.
  • Next steps: The regulations published this week are meant to put the program in motion, but some processes must still be finalized.

Background: The Turquoise Card was introduced in an immigration law published Aug. 13, 2016 and regulations were published this week.

Authorities will score Turquoise Card applications based on different criteria, depending on the category under which a foreign national is applying. The scoring system for highly qualified workers, for instance, will take into account level of education, the prestige of universities the applicant attended, salary level, foreign language abilities and professional experience. Those applying in the investor category will be judged based on the amount of their investment, the number of people they employ and Turkey’s strategic need for their particular type of investment, among other criteria.

Those who qualify for Turquoise Cards will be granted indefinite work authorization following a three-year conditional period. Card holders must file a status report annually and apply for a permanent card within 180 days before expiration of their conditional card. Dependents of Turquoise Card holders will be granted residence permits. Applicants should note that Turquoise Cards will be canceled for card holders who remain outside of Turkey for six months or more, except in certain cases due to unforeseen circumstances.

BAL Analysis: The program will provide a new route for Turkish residence and work authorization for highly qualified workers, investors and others covered by the program. Contact BAL about whether you may qualify for a Turquoise Card in one of the above-listed categories.

This alert has been provided by the BAL Global Practice group and our network providers located in Turkey. For additional information, please contact your BAL attorney.

Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.