Published on and written by Cyril Jarnias
Nestled between Europe and Asia, Turkey is attracting an increasing number of expatriates seeking a sunny and peaceful retirement. Combining an affordable cost of living with a rich culture, this country offers a unique living environment where pensions can stretch further thanks to significant tax benefits.
These financial benefits, combined with a pleasant Mediterranean climate and renowned cuisine, make Turkey a top destination. By exploring the balance between a modern lifestyle and centuries-old traditions, retirees discover a mosaic of landscapes and historic cities, while enhancing their purchasing power at every step of their new adventure.
Tax Benefits for Retirees in Turkey
Tax Benefits for Retirees in Turkey
- Exemption from tax on foreign pensions: Pensions received from abroad by retirees residing in Turkey are not taxed locally, provided the country of origin has signed a double taxation avoidance agreement with Turkey. For example, French, German, or British pensions are not subject to Turkish tax if the retiree provides proof of their origin and their Turkish tax residence.
- Taxation only on Turkish income: Only income generated in Turkey (rentals, interest, etc.) is taxable for non-residents and foreign retirees. Foreign pensions remain exempt from Turkish tax.
- Progressive income tax scale: For retirees with income from Turkish sources, taxation follows the following scale (2025):
| Annual Income (TRY) | Tax Rate |
|---|---|
| Up to 110,000 | 15% |
| 110,001 to 230,000 | 20% |
| 230,001 to 870,000 | 27% |
| 870,001 to 3,000,000 | 35% |
| Over 3,000,000 | 40% |
- Tax treaty to avoid double taxation: Turkey has signed agreements with many European countries, including France, Germany, Belgium, and the United Kingdom, to prevent retirees from paying tax twice on their pension.
- No social security contributions on foreign pensions: Foreign retirees only need to contribute to the social security of one country and are not subject to Turkish social security deductions on their pension.
Concrete Examples and Savings Achieved
A French retiree receiving an annual pension of €20,000 and fiscally residing in Turkey will not pay Turkish tax on this amount. Only any locally generated income (real estate rentals, Turkish financial investments) will be taxed according to the progressive scale above.
An American retiree does not have to contribute to Turkish social security and retains their rights to the American pension, while being exempt from tax on their American retirement in Turkey.
Administrative Procedures to Benefit from the Advantages
- Obtain a residence permit (Ikamet) from the Turkish authorities, necessary to be considered a tax resident if the stay exceeds 183 days per year.
- Declare the change of residence to the tax administration of the country of origin.
- Present a certificate of Turkish tax residence to benefit from the double taxation avoidance agreement.
- Provide, if requested, proof of the pension’s origin and effective residence in Turkey (bills, lease, local bank statements).
- Consult a tax advisor to verify the compliance of the procedures.
Laws and Regulations Governing These Provisions
- Law No. 5510 on social security and pensions, specifying the access conditions and rights of retirees.
- Bilateral tax treaties signed between Turkey and many countries, governing the taxation of pensions and tax residence.
- Regulations on residence permits for foreigners wishing to settle permanently in Turkey.
Attractive Factor for Foreign Retirees
Tax exemptions on foreign pensions, administrative simplicity, absence of double taxation, and an attractive cost of living make Turkey a preferred destination for European and North American retirees.
These provisions often allow savings ranging from several hundred to several thousand euros per year, depending on the pension amount and country of origin.
Key Takeaways
In Turkey, foreign retirees benefit from a total tax exemption on their foreign pension thanks to double taxation avoidance agreements, a favorable tax regime on local income, and relatively simple administrative procedures, making it a particularly attractive country for a peaceful and tax-optimized retirement.
Good to Know:
Retirees in Turkey benefit from various tax advantages that make the country attractive for this population category. Notably, pensions received from abroad are tax-exempt, allowing retirees to keep their entire income. Furthermore, retirees can enjoy income tax reductions on income from financial investments, and the tax exemption threshold is relatively favorable compared to other countries. For example, in 2023, pensions below 32,000 TRY (approximately $2,900 USD) are not taxed. To benefit from these advantages, retirees must provide proof of their tax resident status in Turkey, often validated by registration with local authorities. These provisions are governed by clear laws, such as the Income Tax Code, which regulates these benefits and ensures their fair application. The savings achieved through these attractive tax measures, while enjoying a relatively low cost of living, make Turkey an increasingly popular choice among international retirees wishing to maximize their financial resources.
The Cost of Living for Retirees in Turkey
Cost of Living for Retirees in Turkey: Main Expense Categories
- Housing
- Renting an apartment (city center, 1 bedroom): approximately 7,000 to 13,000 TRY/month depending on the city.
- Real estate purchase: variable, but much more affordable than in Western Europe; the Mediterranean coast (Antalya, Fethiye) is popular with slightly higher prices near the sea.
- Food
- Weekly groceries for two people: between 2,500 and 4,000 TRY depending on habits and local markets.
- Meal at a local restaurant: generally between 150 and 400 TRY per person.
- Healthcare
- Efficient public system but sometimes saturated in large cities. Private clinics offer a good level of service at moderate cost compared to European or North American countries.
- Private consultation with a general practitioner: approximately 500-900 TRY.
- International health insurance strongly recommended, monthly cost often lower than in the United States or United Kingdom.
- Transportation
- Monthly public transport pass (bus/subway/tram) in a large city: around 1,200-1,800 TRY.
- Gasoline and car maintenance less expensive than in Western Europe.
International Comparison of Average Monthly Cost (Housing + Food + Healthcare + Transportation)
| Country | Estimated Average Cost (EUR/month) | Housing | Food | Health | Transport |
|---|---|---|---|---|---|
| Turkey | ~950-1,300 | Low-medium | Low | Moderate-low | Low |
| Spain | ~1,600-2,100 | Medium | Medium | Moderate | Medium |
| Portugal | ~1,400-2,000 | Medium | Medium | Moderate | Medium |
| Thailand | ~900-1,400 | Low-medium | Very low | Moderate-low | Very low |
| United States | ~3,200+ | High | High | High | Medium-high |
Impact of Inflation on Purchasing Power
Inflation has increased significantly in Turkey in recent years. Prices for rent, food, and services have risen rapidly since late 2023. Although the country remains more affordable than Western Europe or North America, this inflation gradually reduces the purchasing power of foreign retirees whose pensions are not indexed to the local rate.
Newly expatriated retirees are advised to adopt flexible budget management to anticipate these fluctuations.
Turkish Cities Popular with Foreign Retirees
- Antalya
- Izmir
- Fethiye
- Muğla
- Mersin
- Trabzon
Costs vary depending on tourist attractiveness and proximity to the sea.
For example:
- Antalya — high rents near the coast but great diversity of offers;
- Fethiye — highly sought after for its tranquility; cheaper housing outside the center;
- Izmir — urban/coastal balance; variable prices by neighborhood;
- Mersin/Trabzon/Muğla — cheaper alternatives with appreciable quality of life.
Can You Live Comfortably on an Average Pension?
Yes, it is possible for a retiree with an average European pension (~1200-1800 EUR/month) to live comfortably in Turkey thanks to the relatively low cost of housing, affordable local food, and facilitated access to private healthcare. However:
Practical Tips to Optimize Your Budget:
- Prefer local markets over international supermarkets.
- Choose a location outside central tourist areas to reduce rent.
- Opt for suitable health insurance upon arrival to avoid any medical surprises/unexpected contributions.
- Regularly monitor price developments related to inflation, adjust habits if needed.
- Compare your banking/international contract annually, potential fees on transfers.
- Connect with local expatriate communities, share logistical/budget tips.
Living in Turkey still offers excellent value for money despite the recent rise in costs. Careful planning allows expatriate retirees to preserve their comfort while fully enjoying the Turkish setting.
Good to Know:
In Turkey, the cost of living for retirees is generally more affordable than in many European countries, with housing expenses often lower, especially in cities like Antalya or Fethiye that are popular with expatriates. The rent for a city-center apartment can be significantly lower than in Lisbon or Barcelona, while groceries and restaurants remain accessible. Healthcare is of good quality, with costs well below those in the United States, although it is recommended to take out health insurance covering international expenses. Public transport is economical and well-developed in large cities. However, inflation fluctuates, impacting purchasing power, but by adjusting the monthly budget, it is possible to live comfortably on a modest pension. Retirees should target less touristy cities to maximize their budget, while enjoying the cultural and climatic benefits the country offers.
Why Choose Turkey for Your Retirement
Turkey attracts many foreign retirees thanks to its low cost of living, its tax and administrative benefits, and its exceptional quality of life. Daily expenses, housing, food, and transportation are significantly cheaper than in Western Europe or North America, allowing retirees to live comfortably on a fixed pension.
Advantages for Foreign Retirees:
- Low cost of living
- High purchasing power for foreign currencies
- Simplified access to long-term residence permit after 8 years in the country
- Possibility to obtain a permit through real estate investment (minimum required value: $200,000)
- No taxation on certain foreign income depending on tax status
The Turkish climate is particularly appreciated: it offers pleasant temperatures throughout the year, especially on the Mediterranean and Aegean coasts where the sun dominates more than 300 days a year.
Major Climate Characteristics:
- Mild winters in the South and West
- Warm summers tempered by the sea
- Low risk of extreme weather
Turkish hospitality is recognized worldwide; locals are renowned for their kindness towards expatriates, thus facilitating social integration. A growing expatriate community exists in several coastal cities like Antalya or Bodrum, offering a strong network for newcomers.
Social Strengths:
- Warm hospitality of locals
- Organized expatriate communities
- Ease of language integration (English often spoken in urban centers)
Turkey offers remarkable cultural richness: historical museums, traditional festivals, varied cuisine, and access to leisure activities such as golf or sailing. The country also offers easy access to Central and Eastern Europe as well as the Middle East thanks to its strategic location.
| Advantage | Description |
|---|---|
| Cost of living | Affordable housing, cheap food |
| Taxation | Favorable taxation depending on tax status |
| Climate | Mild temperatures year-round |
| Hospitality | Welcoming population |
| Cultural activities | Festivals, museums, gastronomy |
| Geographic location | Quick access to Europe/Middle East |
| Medical services | Modern hospital system; affordable care |
Medical infrastructure is modern: each region has public and private hospitals renowned for their quality. After more than one year of legal continuous residence in Turkey, it is possible for a foreigner under certain conditions to access a very competitive national universal or private health insurance.
Available Medical Services:
- Modern public & private hospitals
- Pharmacies accessible everywhere
- English-speaking medical staff in many establishments
- Possible local health insurance after one year
The combined assets therefore make Turkey an ideal destination to fully enjoy retirement in a pleasant setting while optimizing your budget.
Good to Know:
Choosing Turkey for retirement offers several advantages, including favorable tax conditions for foreign residents, significantly lightening their tax burden. The cost of living is also attractively low, allowing for a comfortable life without exceeding one’s budget. The country’s Mediterranean climate, especially on the western and southern coast, promises mild winters and sunny summers, attracting many expatriates seeking year-round sunshine. Moreover, the warm hospitality of Turks and their rich culture foster a friendly welcome and enriching integration. Turkey abounds with cultural and recreational activities, from lively local markets to fascinating historical sites, ensuring that retirement never lacks diversity and adventures. Its strategic geographic location facilitates access to other regions of Europe and the Middle East, making international travel simple and practical. Furthermore, medical infrastructure has greatly improved, with modern hospitals and quality health services, thus reassuring retirees about their long-term care needs. For those visiting or settling, a growing expatriate community is ready to welcome newcomers, thereby facilitating the transition to a new life in this fascinating country.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
