Costs of Living in Turkey
Undoubtedly, the cost of living in Turkey is a driving factor that helps expats decide whether they should move here permanently. The age-old saying that money makes the world go around is definitely true when it comes to our lifestyle choices, but Turkey can be a surprisingly cheap place to live.
What is The Minimum Wage in Turkey? The minimum wage is 2370 lira a month with the employer paying all healthcare and retirement stamps known as SGK. A single person with rent to pay would have an extremely basic lifestyle for this amount. Regional Differences in the Cost of Living As with anywhere else in the world, living in a city incurs higher costs. In Turkey, the most expensive place to live in Istanbul, a busy hub of business, finance, tourism and economics. As well as higher rents, general day to day costs like transport, food shopping and nightlife are more costly. A family that does not have to pay rent or a mortgage can have a good lifestyle for roughly 5.000 lira a month. However, on the Aegean and Mediterranean coasts, the cost of living drops dramatically. Compared with popular expat destinations like Fethiye, it is roughly 20% more expensive to live in Istanbul. An expat couple who own property in Fethiye can enjoy a middle-class lifestyle for an average of 3.000 lira a month. • Summary of cost of living in Turkey • Family of four estimated monthly costs: 11,387TL • Single person estimated monthly costs: 4,744TL • Turkey is the 3rd cheapest country in Middle East (11 out of 13) • Cost of living in Turkey is cheaper than in 84% of countries in the World (81 out of 96)
Exchange Rates and High-Interest Savings Accounts At present, many expats who receive a pension from their home country are enjoying a luxurious lifestyle thanks to an excellent exchange rate between the Turkish lira and other currencies like the pound, euro and American dollar. If you receive a pension or monthly income in a foreign currency and are deciding whether you can afford to live in Turkey, remember to factor in fluctuating exchange rates. Many expats also put their capital into high-interest savings accounts and live off the interest that they withdraw monthly. Starting between 8 to 10%, for anyone with sizeable assets, this is an advantageous way to fund living costs. So, let’s crunch some numbers to find out what’s expensive and what’s cheap in Turkey.
Breakdown of the Cost of Living in Turkey Smoking and Drinking Over the last five years, Turkey has placed higher taxes on alcohol and tobacco which can put a sizeable dent in your budget. Anyone smoking one packet of cigarettes a day and drinking one glass of alcohol will pay an average of 600 to 900 lira a month depending on the brand. Driving and Vehicle Maintenance Although the cost of petrol is not as high as European countries like Greece or Portugal, it is still double that of the USA and Russia. For this reason, many Turks drive diesel cars which incur lower costs. Car owners should also set aside roughly 4000 lira year for expenses like MOT, insurance and repairs. Healthcare and Residency You need a residency permit to stay in Turkey longer than 90 days and if you are under 65, will also need compulsory health care. A couple buying a year-long residency permit and opting into the state-run SGK scheme for foreigners should factor in roughly 7000 lira a year. Rents and Household Bills This is where the cost of living in Turkey looks bright because running a household is exceptionally cheap. You don’t have to buy a television license, and in specific areas away from Istanbul and big cities, rent can be as low as 1.000 lira a month. • Property Tax: Annual 0.2% of the legal tax value. • DASK Insurance: Annual 150 TL between 300 TL according the age and size of the house. • Management Fee: App. 3 TL per squaremeter / per mounth. (Only if you live or keep empty) • Gas + Electricity + Water: Apporaximately 300 TL/Month (For regular usage of 4 person Family)