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Türkiye is a Best Place for Retirement

Retiring abroad is a dream many people share, as it invites new experiences and can usually be cheaper than retirement in the U.S. Turkey is filled to the brim with beautiful architecture, art and a group of cultures that reaches back thousands of years, so it’s no wonder it’s a destination for some retirees. However, you’ll need to plan well ahead to retire internationally, so you can be sure to account for taxes, cost of living changes, any necessary visas, healthcare considerations and even overall safety.

Cost of Living and Housing in Turkey

It’s much less expensive to live in Turkey than it is to live in the U.S. Without accounting for rent, Turkey’s cost of living is 63.2% lower than in the U.S. on average, according to Numbeo, a cost-of-living database.

Rent prices in Turkey are 81.9% lower when compared to those in the U.S., on average. To rent a one-bedroom apartment in a city center will run you around $344 in Turkey, where as a comparable setup in the U.S. would run about $1,835. If you wanted to pursue purchasing an apartment in Turkey, you would find that the price per square foot in a city center is averaged out to $124. In comparison, the same square footage in a similar city location in the U.S. would cost about $436.

To further illustrate the contrast, we can compare Istanbul, Turkey’s most populated city, to the U.S.’s New York City. To maintain the same standard of life that $9,700 a month buys you in New York, you’d need just $800 in Istanbul, assuming you rent in both. So, if you’re looking for a country to retire in with both affordable renting prices and lower property costs to make the most out of your savings, Turkey may be a solid option.

Visas and Residence Permits for Turkey

Turkey doesn’t have a visa specifically for retirement, so you have to apply for a residence permit instead. This requirement applies to anyone who intends to remain in the country more than three months. You’ll first have to apply for a short-term residence permit, and you must do so within a month of your arrival in Turkey. There is an online application you fill out at the Turkish Ministry of Interior’s website. Once you finish, it will prompt you to make an appointment with the nearest DGMM office to continue the process and pay the fee your visa requires.

A short-term residence permit is issued on a two-year basis. After you’ve lived in Turkey uninterrupted for eight years under your short-term visa, you can apply for a long-term residence permit. These extend indefinitely.

No matter what residence permit you are applying for, you will likely need to show proof that you possess adequate assets. This can shift whether or not you have dependents, but a single person is generally required to have the equivalent to a month’s worth of Turkish minimum wage. That would be around $400 USD.

Tax Considerations for Retiring in Turkey

Like many countries, residents and non-residents are subject to different taxes in Turkey. Residents pay taxes on their worldwide income, whereas non-residents only have to pay taxes on Turkish-sourced income. The country uses a progressive tax scale, ranging from 15% to 40%, depending on your income bracket.

Turkey does possess a tax treaty with the U.S., which can provide some relief. You will only have to pay into one country’s Social Security program as a result, which in Turkey is a 14% flat tax for employees. Otherwise, there are also tax exemptions that may allow you to pay less on your U.S. income taxes.

One example is the foreign earned income exclusion. This lets you exclude the first approximately $120,000 for foreign earned income if you can prove your Turkish residency.

Living in Turkey

Living in Turkey can be a unique and enriching experience, with a rich cultural heritage, stunning landscapes, and warm hospitality. Turkey offers a range of lifestyle options, from busy city living to relaxed beach communities. The country’s affordability and warm climate make it an attractive destination for retirees looking to live comfortably on a fixed income.

If you enjoy a laid-back retirement, you’ll find it a captivating place to live. From the always sunny Mediterranean coastline (Antalya,Alanya,Kemer) to the energetic cities of Ankara and Istanbul, Turkey offers retired a rich and balanced lifestyle.

Turkey’s healthcare system is also highly regarded, with modern hospitals and clinics located throughout the country. Many doctors and medical staff speak English, making it easy for expats to communicate their needs. The cost of healthcare in Turkey is significantly lower than in many Western countries, making it an attractive destination for retirees looking to stretch their retirement savings.