The employment of foreign labor in Türkiye has been structured into a modern and selective framework under the International Labor Law No. 6735. While aiming to protect the domestic labor market, the State also seeks to integrate qualified foreigners who contribute to economic development through models like the “Turquoise Card.”

1.1. Types of Work Permits and Material Law Requirements

In Turkish law, work permits are categorized into three main types: definite, indefinite, and independent:

• Definite Work Permit: Granted for a maximum of one year upon initial application for a specific business and profession. It can be extended provided the employee remains with the same employer. The requirement to employ “5 Turkish citizens” is the primary financial obligation of the employer.
• Indefinite Work Permit: Granted to foreigners who hold a long-term residence permit or at least eight years of legal work permit in Türkiye. This permit grants almost all citizenship rights (including social security), excluding the right to vote, stand for election, and enter public service.
• Independent Work Permit: Issued for commercial activities carried out by the foreigner on their own behalf. It is evaluated via a scoring system based on the added value the activity will contribute to Türkiye’s economic development.

1.2. The Turquoise Card: An “Indefinite” Exception for Qualified Labor

The Turquoise Card Regulation, which entered into force in 2017, is Türkiye’s strategic tool in the global war for talent.

• Scope: Granted to foreigners with high education levels, professional experience, scientific and technological contributions, or high investment potential.
• Advantages: A Turquoise Card holder gains the right to work indefinitely in Türkiye. Additionally, their spouse and dependent children are granted residence rights through the “Turquoise Card Holder Relative Card.”
• Transition Period: The card is initially issued for a three-year “transition period.” During this time, the foreigner’s activities are monitored; if the committed qualifications are maintained, the indefinite status becomes permanent.

1.3. Social Security Rights of Foreign Personnel and International Agreements

Under Article 60 of the Constitution, social security is a right for everyone. For foreign employees, this right is governed by a special regime via bilateral social security agreements.

• Mandatory Insurance: Every foreigner working under a service contract in Türkiye must be covered by social insurance. Failure to insure foreign personnel results in administrative fines and severe recourse actions in the event of an occupational accident.
• Exemptions and Bilateral Agreements: Under social security agreements signed with many countries, foreigners who are insured in their home country and are in Türkiye on temporary assignment may be exempt from the Turkish insurance system for a certain period (usually 24 months).
• Pension Rights: Foreigners can receive a retirement pension from Türkiye upon completing the required premium days. If they return to their home country, they may (subject to an agreement) combine their Turkish premiums with their service in their own country.

PROCEDURAL LAW IN CASES WITH FOREIGN ELEMENTS, INTERNATIONAL NOTIFICATION, AND ROGATORY LETTERS

In the resolution of legal disputes involving foreign elements, procedural law rules are as vital as substantive law rules. The duration of a lawsuit and the enforceability of the judgment often depend on the correct management of notification and rogatory processes. In this section, we analyze the trial procedure within the framework of PIL (MÖHUK) Law No. 5718 and international conventions.

2.1. International Jurisdiction and Security for Costs (Cautio Judicatum Solvi)

For Turkish courts to hear a case involving a foreign element, they must have international jurisdiction. Jurisdictional objections are among the most critical procedural moves to be resolved at the beginning of the case.

• Jurisdiction Rules: Under the PIL (MÖHUK), the local jurisdiction rules of Turkish courts also determine international jurisdiction. However, the parties may authorize a foreign state court in cases where the dispute does not fall under exclusive jurisdiction (e.g., if it is not related to the in rem rights of real estate).
• Security Obligation: Foreigners who file a lawsuit or intervene in Türkiye must deposit a security to cover the costs of the proceedings. However, if there is a bilateral agreement or membership in the Hague Conventionproviding for “exemption from security” between Türkiye and the foreigner’s country of nationality, the court shall rule on the exemption from this security.

2.2. International Notification: Processes and Practical Obstacles

Serving a notification to a defendant located in a foreign country directly affects the “formation of the parties” stage of the lawsuit. This process usually involves bureaucratic traffic that lasts for months.

• Notification Methods: Notification is generally carried out within the framework of the 1965 Hague Conventionor bilateral judicial assistance agreements. In this process, which is carried out through diplomatic channels via the Ministry of Justice, the translation of the notification text into the foreign language and its transmission to the central authority of the relevant state are mandatory.
• Practical Difficulties: The inability to conduct address searches, the slow operation of foreign state authorities, or technical deficiencies in the notification documents cause the case to remain pending. In such cases, if the conditions are met, resorting to “notification by publication” can be considered a strategic option.

2.3. International Rogatory Letters (Taking of Evidence)

When it is necessary to hear a witness or conduct an exploration within the borders of a foreign state, the rogatory mechanism is activated.

• Legal Basis: Rogatory proceedings are conducted under the 1970 Hague Evidence Convention. The Turkish court requests the foreign court to perform a specific legal action on its behalf.
• Public Policy Supervision: Rogatory requests must not be contrary to the public policy or sovereign rights of the requested state. In practice, it is observed that foreign states show resistance to rogatory requests, especially regarding the protection of commercial secrets or banking data.

RECOGNITION AND ENFORCEMENT: EXECUTION OF FOREIGN COURT JUDGMENTS IN TURKISH LAW AND THE PUBLIC POLICY OBSTACLE

As a rule, a judgment rendered by a foreign court is enforceable only within the borders of the country where it was issued. For such a judgment to produce legal consequences in Turkish law, it is subject to a “recognition” or “enforcement” lawsuit to be filed under PIL (MÖHUK) Law No. 5718. While recognition allows for the utilization of the judgment’s power as definitive evidence or res judicata, enforcement enables the judgment to be forcibly executed (e.g., collection of a debt) through Turkish enforcement authorities.

3.1. Essential Conditions for Granting an Enforcement Order

Articles 50 et seq. of the PIL (MÖHUK) prescribe a “formal review” regime where the court cannot examine the merits of the case:

• Finalized Judgment: The judgment must be finalized according to the laws of the country where it was rendered. Judgments that are not yet final or are in the nature of interim injunctions cannot be enforced.
• Reciprocity: There must either be a treaty between Türkiye and the state where the judgment was rendered, or a de facto practice in that state that allows for the enforcement of Turkish court judgments. (Reciprocity is not required for recognition lawsuits).
• Respect for the Right of Defense: The court ex officio examines whether the defendant was duly represented in the foreign court and whether the right to defense was restricted.

3.2. The Public Policy Obstacle and the Narrow Interpretation of the Court of Cassation

The most common ground for the rejection of an enforcement request is the claim of “Contradiction to Turkish Public Policy.” However, in its recent precedents, the Court of Cassation interprets this concept quite narrowly.

• Prohibition of Merits Review (Révision au Fond): The court cannot debate whether the foreign judge made a correct decision or whether they misapplied the law. A contradiction to public policy occurs only if the judgment, by its result, severely impairs the fundamental values of Turkish society, general morality, or fundamental rights and freedoms.
• Examples: For instance, the mere lack of reasoning in a foreign judgment does not constitute a violation of public policy on its own. However, the total denial of the right to defense or a judgment rendered on a matter within the exclusive jurisdiction of Turkish courts (e.g., regarding in rem rights of real estate) will be blocked by the public policy obstacle.

3.3. Practical Result: Res Judicata and Enforceability

Once the decision rendered as a result of the recognition and enforcement lawsuit becomes final, the foreign court judgment produces the same legal effects and consequences as a Turkish court judgment. From this stage onwards, an enforcement proceeding can be initiated directly through the enforcement office using the foreign judgment.

INTERNATIONAL ARBITRATION AND THE NEW YORK CONVENTION

In commercial disputes, parties often opt for arbitration to avoid the perceived inefficiency of state courts and local judicial risks. Türkiye maintains a highly “arbitration-friendly” stance in this regard.

4.1. International Arbitration Law (IAL) and Scope of Application

The International Arbitration Law No. 4686 applies if there is a foreign element in the dispute and the seat of arbitration is determined as Türkiye.

• Principle of Separability: The invalidity of the main contract does not automatically render the arbitration clause invalid. The arbitration agreement has an independent legal existence.
• Kompetenz-Kompetenz: The arbitral tribunal has the authority to decide on its own jurisdiction.

4.2. Enforcement of Foreign Arbitral Awards

Türkiye is a party to the 1958 New York Convention. Under this convention, foreign arbitral awards can be enforced in Türkiye much more swiftly than court judgments. The court’s review is strictly limited to procedural requirements, such as the validity of the arbitration agreement and public policy.

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REAL ESTATE ACQUISITION AND INHERITANCE LAW FOR FOREIGNERS

The ownership of property by foreigners in Türkiye brings about complex property and inheritance disputes.

5.1. Removal of the Reciprocity Requirement and Restrictions

With the 2012 amendment, the “reciprocity” requirement for foreigners to acquire real estate was largely abolished. However, certain limitations remain:

• Acreage Limit: A foreigner can acquire a maximum of 30 hectares of real estate throughout Türkiye.
• Military Forbidden Zones: Permission is required for acquisitions in strategic areas.

5.2. Inheritance Law with Foreign Elements (PIL Art. 20)

When a foreigner passes away leaving real estate in Türkiye, the distribution of the estate is governed by specific rules:

• Immovable Property: Regardless of the deceased’s national law, Turkish Inheritance Law applies to real estate in Türkiye. Inheritance shares and reserved portions are determined according to the Turkish Civil Code.
• Movable Property: The national law of the deceased at the time of death applies to movables (bank accounts, vehicles, etc.).

INTERNATIONAL PROTECTION OF INVESTMENT DISPUTES (ICSID AND BITs)

For investor clients, the greatest assurance is the possibility of going beyond local courts in disputes with the state.

6.1. Bilateral Investment Treaties (BITs)

These treaties, signed by Türkiye with over 80 countries, provide foreign investors with standards such as “most-favored-nation” and “fair and equitable treatment.” If the state indirectly expropriates the investor’s property or disrupts legal stability, the investor may seek international compensation.

6.2. ICSID Arbitration

This center, within the World Bank, resolves disputes between states and foreign investors. ICSID awards are final and enforceable in member states, including Türkiye, directly as a local court judgment. Recommending ICSID as an arbitration clause when preparing contracts for investors increases the “bankability” of the project.

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LEGAL DUE DILIGENCE IN REAL ESTATE ACQUISITION

For investors, merely checking title deed records is insufficient. In transactions with foreign elements, these three layers of risk are critical:

7.1. Zoning and Project Compliance Audit

It is essential to confirm whether the property remains in a prohibited zone for foreigners via Ministry of National Defense data. Otherwise, even if the price is paid, registration of ownership may not be possible.

7.2. Status of the Property in the Citizenship Process

For an investment of 400,000 USD to qualify for citizenship, the property must not have been previously used for this purpose by another foreigner, and the appraisal value must reflect real market conditions. Incorrect valuation leads to both the rejection of the citizenship application and tax penalties.