Cost of living & Turkish taxes

Money goes a long way in Turkey and a modest pension or savings can support a good standard of living.

Cost of Living

The cost of living in Turkey is significantly lower than in Britain, and also below other Mediterranean countries like Spain and Greece. Fresh produce is often grown locally and costs a fraction of what it does in the UK. However, there are marked differences in the cost of living across the country. Istanbul is the most expensive place to live, but the cost of living is also high by Turkish standards in the coastal resorts. But even in these areas you can dine for £10-£15 per head in a good restaurant, or eat for a fraction of that in a local Turkish eatery.

A typical weekly shopping bill for two is £50-£60 - though more if you buy expensive imported goods. Even a modest UK pension or savings can support a good standard of living.

Taxes in Turkey

Property owners pay an annual property tax based on the declared value of their property or land. The rate is 0.2%-0.3% for land and 0.1% for residential buildings, with the payment collected in March-May and November.

You must also pay tax on any income earned in Turkey, whether from employment, investments or a rental property. A double taxation agreement between the UK and Turkey means that any income taxed in Turkey is exempt from British taxes.

The Turkish tax authorities have tightened up their inspection regime and are specifically targeting foreign property owners in some areas, so it is advisable to declare any significant rental income. Income tax rates are banded and vary from 15%-40%