Retiring abroad is a dream for many, offering the chance for new experiences and often a lower cost of living than in the U.S. Turkey, with its stunning architecture, rich artistic heritage and deep cultural history, has become an appealing destination for some retirees. However, retiring abroad requires careful planning. To make a smooth transition, you’ll need to consider factors like taxes, cost of living differences, visa requirements, healthcare options and overall safety. Preparing in advance can help ensure your retirement in Turkey, or anywhere abroad, is both enjoyable and financially secure.

Do you have questions about retiring in Turkey or somewhere else abroad? Speak with a financial advisor today.

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 48.5% lower than in the U.S. on average, according to Numbeo.com, a cost-of-living database.

Rent prices in Turkey are 70% 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 $545 in Turkey, whereas a comparable setup in the U.S. would run about $1,740. 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 $160. In comparison, the same square footage in a similar city location in the U.S. would cost about $300.

To further illustrate the contrast, we can compare Istanbul, Turkey’s most populated city, to the United States’ New York City. To maintain the same standard of life that $12,000 a month buys you in New York, you’d need just $3,800 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 for more than three months.

To retire in Turkey, your first step is applying for a short-term residence permit. You must complete this process within one month of arriving in the country. The application is available online through the Turkish Ministry of Interior’s website. After submitting the form, you’ll be prompted to schedule an appointment with your local Directorate General of Migration Management (DGMM) office to complete the process and pay the required visa fee.

Short-term residence permits are typically valid for two years. If you live in Turkey continuously under this permit for eight years, you become eligible to apply for a long-term residence permit, which offers indefinite residency.

Regardless of the type of permit you’re applying for, you’ll need to demonstrate financial stability. The minimum requirement for a single person is generally the equivalent of one month of Turkey’s minimum wage, about $400 USD. This amount may increase if you’re applying with dependents.

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Healthcare Considerations When Retiring in Turkey

The World Health Organization ranking of national healthcare systems puts Turkey’s at 70th out of 191. The central government body responsible for healthcare and related policies is the Ministry of Health (MoH). There is also a private sector and university-based care. However, the MoH is the main body responsible for providing healthcare.

You can expect the quality of healthcare in Turkey to vary between regions. Although it’s cheaper than some of its European neighbors, access is limited in more rural areas. You’re more likely to have high-quality care in major urban locations like Istanbul – as well as the ability to communicate with your healthcare providers in English. This increase in quality is why most expats choose to go to private medical facilities over public ones.

All residents under 65 must have either public or private health insurance. Expats who have resided in Turkey for over a year under their residence permit can apply to have public health insurance through the state-run Sosyal Güvenlik Kurumu (SGK). Expats usually choose to supplement this with private insurance (or just choose private) to cover additional fees at private facilities.

As Turkey has grown as a country and political entity, it has experienced a great deal of reform around its healthcare system. It likely will continue to experience further changes in the future.

Tax Considerations for Retiring in Turkey

Like many countries, Turkey taxes residents and non-residents differently. Residents are taxed on their worldwide income, while non-residents are only taxed on income earned within Turkey. The country follows a progressive income tax system, with rates ranging from 15% to 40%, depending on your income level.

Turkey also has a tax treaty with the United States, which can help reduce your overall tax burden. Thanks to the agreement, you only need to contribute to one country’s Social Security system — Turkey’s rate for employees is a flat 14%. In addition, several U.S. tax exemptions may apply if you live abroad.

One key example is the Foreign Earned Income Exclusion, which allows qualifying U.S. citizens to exclude roughly the first $120,000 of foreign-earned income from U.S. taxes, provided you can establish residency in Turkey.

How Safe Is It to Retire in Turkey?

Each expat’s experience is unique. Some may travel through Turkey and find they encounter little to no issues on a security level. That’s not to say you shouldn’t be cautious. The U.S. Department of State’s travel advisory has the country at a “Level 2.” It also warns travelers either visiting or moving through Turkey to be wary of both terrorism and arbitrary detentions.

The advisory heavily suggests that you avoid the Sirnak and Hakkari provinces, which are in the southeastern part of the country, as well as any area within six miles of the Syrian border to avoid terrorist activity. You may find a 2019 State Department report on human rights practices in Turkey worth reading, especially sections one and six.

Although you should speak with locals and enjoy the culture, you should also be wary of your surroundings and keep an eye on political developments. It is also advised that you don’t engage with political topics online either, as it can still be a red flag.

Bottom Line

An image of Hagia Sophia in Istanbul, Turkey.

Turkey is undergoing ongoing political changes, which can make it a challenging place for some retirees to settle. Concerns about regional security and occasional unrest may also prompt you to consider alternative destinations. However, Turkey offers a rich cultural identity, a welcoming and hospitable population, and a deep sense of community. Combined with its stunning landscapes and affordable cost of living, these qualities may outweigh the challenges for those seeking a unique and rewarding retirement experience.

Retirement Planning Tips

Making sure you’re prepared for retirement is key before jumping into your ideal location. A financial advisor can help you build out a retirement plan for the future. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Planning your retirement comes with its challenges, especially if you intend to move abroad. While Turkey may have low living costs, there still may be other financial burdens you have to address. To get an idea of what to expect, try SmartAsset’s retirement calculator.