Increasing numbers of people from every nation are moving to Turkey to start a new life, either to work or find an ideal retirement destination.
Over the last ten years, the country has developed considerably. The rate of progress in the infrastructure is continually surprising.
Moreover, the number of visitors coming to Turkey continues to reach record levels. In the next few years Turkish investment in tourism capacity and infrastructure is expected to keep pace.
More exciting leisure facilities are continually being planned, such as the development of further golf courses, mountain cable-car routes, health resorts, passenger cruise liner berths, and world-class sports stadiums that support such international events as Formula One racing.
With Turkey’s unique geographical position, combined with a rich and diverse history, right in the cradle of many different civilizations, Turkey is a privileged place to live for expatriates and their families.
International Companies moving to Turkey
Turkey is an emerging new market for many international companies.
In Turkey you can find a predominantly younger, talented labour force. The country’s median age is 31 based on 2015 statistics.
The country has had a Customs Union agreement with the EU since 1996 and has been a candidate member of the European Union for several years with aspirations to join the EU.
A very liberal investment culture in Turkey enables free international movement of capital, profits, dividends and salaries, free-trade zones and subsidies.
As well as this, Turkey is a well preserved European holiday destination which gives visitors over 300 days of sunshine, and offers its guests a rich cultural experience.
Banking and Finance
The financial capital of the country, Istanbul, with its rich and vibrant economy, is now billed to become a World Finance Centre. The country’s banking industry demonstrated remarkable resilience to the effects of the global financial crisis without any government backing, and Turkish banks are now regarded as the soundest in Europe.
Cost of Living In Turkey
Rolling all cities in Turkey into a national average, the cost of living is currently 33% lower than in the UAE, and property rates are as much as 70% lower than in the USA.
Turkey provides a sound investment for ownership of your own residential property, which you can either buy to let, or enjoy as a relaxing holiday retreat for your own family. Many business travellers with interests in Istanbul, for example, now own a compact, one or two bedroom apartment to reside in, close to the metropolis, which they can offer out to friends when vacant. If you wish to consider a buy to let property, a typical rental income yield can be around 6.5%. It can be a steady, not huge income in the long term, but you will never regret it – Why? Because the rental income will cover your property’s annual running costs and your trips out, and Turkey being Turkey, is such a beautiful vacation destination offering the visitor tremendous value for money.
Take, for example, a one bedroom apartment, 65m2 in Aynali Cesme district – a very up and coming district close to Beyoglu in Istanbul. Refurbished properties may be found starting from 130,000 USD, which you can rent at a conservative rate of 570 USD per month, giving a 6.5% rental yield.
Now let’s look at some average consumer costs based on living in the Fethiye resort in Mugla district, close to the beautiful lagoon of Oludeniz, on the south-western Mediterranean coast of Turkey. We continue to market many properties in this region because of its natural beauty. Compare costs of living here and you will soon realise this region offers you a less expensive lifestyle than in many other European countries.
Household Water, per m3 0.80 USD
Household Natural Gas, per m3 0.41 USD
Electric Energy, per Kwh 0.40 USD
Petrol fuel, per Litre 1.6 USD
Internet (Unlimited, ADSL, Monthly) 18 USD
Bottled Water, 20 litres 2 USD
Loaf Wholemeal Bread, 300 g 0.85 USD
Local White Cheese, 1 Kilo 6.3 USD
White Rice, 1 Kilo 1.9 USD
Dinner, High End Restaurant, each 24 USD
Cigarettes, 20, middle brand 2.90 USD
Light Beer, 0.5 litre 2.75 USD
A male’s average hair cut 6 USD
Gym Fee 1 adult, monthly 38 USD
Average minibus journey fare 1 USD
Town centre car parking, 1 hour 1 USD
Average Annual Municipality Tax, on say a 85 m2 property in this area – 60 USD
Purchase Tax (Stamp Duty) on the acquisition of a property is 4.4% of declared Title Deed value.
Capital Gains Tax – “Zero” tax is payable if you sell after five years of ownership, giving you substantial savings should you wish to sell your home in future! Otherwise, tax on the profit gained from sale is paid on a sliding scale ranging from 15-35%.
One important point is if you buy a property in Turkey through a business which you run in Turkey, you won’t be subjected to full Capital Gains Tax as property is considered part of normal business income and is taxed accordingly as a part of your business in Turkey.
One positive thing about Turkey is it has a good taxation policy with numerous countries, so you should be able to avoid the double taxation rule, meaning – if you pay 25% taxes on any of your profit in Turkey, you will not be subjected to tax payable when you take the money back into your home country.
Populations of Major Cities
Based on 2015 statistics here are the populations of major cities in Turkey – Istanbul (14.7 million), Ankara (5.3 million), Ankara (5.3 million), Izmir (4.2 million), Bursa (2.8 million), Antalya (2.3 million).