Retiring in Turkey: Costs, Visas, Citizenship and More

Turkey is a melting pot of cultures dating back thousands of years, so the country is filled with stunning architecture and works of art. It houses artefacts from communities such as the Hittites, ancient Greeks, early Christians and Mongols, all of which lend a rich sense of history to a country of some 82 million people.

Due to its location at the crossroads of Europe and Asia, visitors can witness a unique blend of Western and Eastern influences. The Mediterranean and Black Seas are among the most beautiful coasts in the world.

It has long been a coveted destination for those looking to spend their free time in a country with endless history, unique culture, delicious cuisine, spectacular natural beauty and pleasant climate.

Turkey offers a variety of options for retirees, including the bustling streets of Istanbul, the stunning coastline of the Turkish Riviera, the mountains of Trabzon and the plains of Ankara.

Perhaps the most attractive aspect of the country, however, is the low cost of living, especially considering the quality of services and products available. Due to the volatility of the local currency, the Turkish lira, it is an attractive tourist destination for people whose income is in another currency.

Istanbul Airport has the widest range of direct flights in the world. It makes entering Turkey a hassle-free process. This also enables senior citizens to spend the rest of their lives in Turkey as citizens rather than residents.

This article aims to outline some of the basic information you will need when considering receiving a pension in Turkey. If you are considering retiring to another country, it may be helpful to consult a financial advisor.

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Living and Housing Costs in Turkey

The cost of living in Turkey is significantly lower than in the US. According to Numbeo, a database that tracks the cost of living, the cost of living in Turkey is on average 53.56% lower than in the US, not even including rent.

Compared to the average base, rental costs in the US are 556.13% higher than in Turkey. In Turkey, the average monthly rent for a one-bedroom apartment in a city center is about $215.26, while in the US, the average monthly rent for a similar apartment is about $1,340.16. If you are interested in buying an apartment in Turkey, you will find that the average price per square meter for a city center apartment is $83.07. By comparison, the same square foot costs about $328.96 in U.S. cities.

We can further verify the difference by comparing Istanbul, the most populous city in Turkey, with New York City, the most populous city in the United States. Assuming you rent in both cities, the amount you would need to maintain the same standard of living in New York would be approximately $8,203.10, which is quite different from the approximate cost in Istanbul ($1,960.45 to U.S. dollar).

So if you're looking for a country to retire to, Turkey can offer affordable rentals and low real estate costs as you make the most of your savings. Therefore, retiring in Turkey might be a good option for you.

You can read our blog titled What is the cost of living in Turkey? Details about the above chapters.

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Visas and Residence Permits for Turkey

As Turkey does not have a visa tailored for pensioners, you will have to apply for a residence permit. Anyone planning to stay in the country for longer than three months must comply with this requirement. First, you need to apply for a temporary residence permit, which must be done within one month of your arrival in Turkey.

There is a form on the Turkish Ministry of Interior website that can be filled out online. Once completed, you will be directed to make an appointment at the nearest DGMM office to continue the process and pay the required fee for the visa.

The country's residence permit is valid for two years. After eight years of continuous residence in the country, you are eligible to apply for a long-term residence permit in Turkey under the terms of the short-term visa.

No matter which type of residence permit you wish to apply for, you will generally have to prove that you have sufficient assets. This may vary depending on whether you are dependent or not, but in general, one should have the equivalent of one month's minimum wage in Turkey. By early 2021, that will be closer to $400.

 

Healthcare Considerations for Retiring in Turkey

Turkey's healthcare system ranks 60th out of 191 countries in the World Health Organization's ranking of national healthcare systems. The Ministry of Health is the central government department responsible for regulating healthcare and related policies (MoH). Medical services are provided by public hospitals, university clinics and private hospitals. However, the Ministry of Health is the main agency responsible for the healthcare system.

The quality of standard medical care provided in different parts of Turkey may vary. For example, access is more restricted in more rural areas. Medical costs are cheaper than some European countries. In a metropolitan area like Istanbul, you are more likely to receive better quality care. In addition, you will have the opportunity to communicate with medical professionals in English. Due to the marked improvement in quality, the vast majority of expats prefer to go to private rather than public healthcare facilities.

Every resident under the age of 65 is obliged to take out statutory or private health insurance. Expats who have lived in Turkey for more than one year and hold a valid residence permit can apply for public health insurance through the Turkish State Social Insurance Agency (SGK). In most cases, expats choose to supplement such coverage with private insurance (or opt for private insurance altogether) so that they can pay the extra cost in a private facility.
Turkey's healthcare system has changed a lot in recent years, a direct result of Turkey's development as a country and a political entity. Further changes are likely to occur in the coming years.

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Tax Considerations for Retirement in Turkey

In Turkey, as in many other countries, different tax rates apply to residents and non-residents. Residents are taxed on their entire income regardless of their source, while non-residents are only taxed on Turkish-sourced income. The country has a progressive tax system, with rates ranging from 15% to 35%, depending on your income bracket.

There is some room for relief due to the tax treaty between the US and Turkey. Because of this, you only have to contribute to one national social security scheme, which in Turkey has a flat 14% tax on workers.

In all other cases, there are tax exemptions that allow you to pay less tax on your U.S. income. An example of this is the foreign income exclusion, which allows you to exclude the first $100,000 or so of income earned outside Turkey, as long as you can prove that you are a Turkish resident.

See also the blog page titled How do I get a tax ID number in Turkey? More information on obtaining a tax ID number.

Why Retiring in Turkey Is a Smart Decision

Reduce daily expenses

Retiring in Turkey is a great idea due to the relatively low cost of living in the country. Since you're no longer working, you need a place that will cost you as little as possible and still experience a high level of comfort. Feed and water costs are reasonable. Also, you don't need a TV license at all.

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Calm and Relaxing Weather

Apart from Turkey's financial advantages, the country's climate is also one of the biggest advantages that can be accepted. When you wake up, you'll always find yourself in a fresh, relaxing environment. Temperatures are almost always warm year-round, with the exception of January and February, which usually receive heavy rainfall. Of course, the temperature will vary depending on where you are. So if you want something warm, you might consider going to Antalya.

Affordable Housing

Housing is one of the most important aspects to consider when planning for retirement. There are several regions in Turkey that offer affordable housing that offer a high level of comfort at not-too-excessive prices. You don't have to break the bank to own a home with the latest technology and stylish interiors.

Profitable Savings Rates

Since retirement means the end of working time, it's in your best interest to maximize your savings. Turkish savings plans offer the highest interest rates. About 10% on average (note that it will vary). After depositing money first in a high-interest savings account, profits can be withdrawn after taxes.

Excellent Healthcare

Given typical retirement ages, adequate healthcare is essential in order to be able to make the most of your post-retirement years. Either enroll in the SGK scheme administered by the Turkish government, or purchase an individual policy as a retired Turkish expatriate. Either way, you can take advantage of one of the most advanced healthcare systems in the world at an affordable price.

Retiring in Turkey

Simple Residency Procedure

If you plan to retire in Turkey in the future or wish to become a citizen of the country, you will find the process not that difficult. Apart from the simple online application for a residence permit, there are many other easy ways to obtain a residence permit.

Gorgeous Nutritious Food

Turkey is the source of a variety of delicacies with extraordinary nutritional value. You can enjoy delicious and healthy Turkish cuisine. Indulge in Turkey's local specialties that vary from region to region.

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