Salary, taxes, and documents in Turkey: July update

Salary, taxes, and documents in Turkey: July update

Prices in 2023 are not only rising fast, but they are skyrocketing; as a result, prices for a number of essential items – goods, services, and tax payments – had been adjusted by July.

We offer a selection of updated figures on characteristics important for daily life in Turkey: this will undoubtedly be useful for current relocators. It will also be beneficial to those who plan to buy a house and move here with the "aim" of assessing the dynamics.

Content:

Cell phones

Although there are no import limitations, the registration charge for a mobile phone imported from overseas (for personal use) has dramatically increased. It was already expensive – 6,091 Turkish liras (TL) – but it unexpectedly went up in price by 3.5 times: up to TL 20,000.

Of course, the growth over several years is massive: if the phone was registered for TL 100 in 2012, and TL 500 in 2018, the price will rise to TL 2,732 in 2022, and to the mentioned over TL 6,000 in early 2023.

Without registration, you can only use the phone for a certain time before it is blocked; this period is enough for tourists but not for living.

Some local handymen provide "hacking services:" they extend the phone's operation without requiring official registration. However, it is illegal; there are failures, and no one provides guarantee.

Those who do not want to pay such high fees for phone registration have two options: buy a smartphone on the spot (meaning, any brand and model you want, but in a store in Turkey) or buy a simple "push-button dialer:" it is a mere penny. Another option for the device imported from foreign country is to switch it to airplane mode and use it via Wi-Fi – the Internet, instant messengers, and audio/video calls through these instant messengers.

Salary, taxes, and documents in Turkey: July update

Taxes

Those operating businesses with Turkish partners should be aware that the VAT rate has risen from 18% to 20%, and the 8% rate for some products has been adjusted to 10%.

However, this does not apply to all categories of goods: the tax on detergents, hygiene, and disinfectants (napkins, toilet paper, soap, shampoos, and so on) has been increased by 2.5 times, from 8% to 20%.

Tax on insurance and banking transactions – additional 15% of the previous price (we explain that this includes credit card and consumer loan transactions).

Transport. obligatory payments

Drivers were shocked to learn about a one-time extra tax – MTV – on vehicles beginning in 2023. Or, more accurately, it was nearly doubled; it applies to both newly purchased cars that must be registered by the end of 2023 and vehicles that are currently in exploitation mode. And those who used to pay an average of TL 2,000 for this will now have to spend around TL 4,000 out of their pockets.

The amount changes based on the age of the vehicle (here, the gradation is as follows: "new cars," "4–6 years old", "7–11 years old", "12–15 years old", "16+ years old"). The engine's size is taken into account as well. However, according to recent statistics, the majority of vehicles registered in Turkey have 1.4 liter engines (although there are 1.6 liter, 1.8 liter, 2.0 liter, 2.4 liter, and 3.0 liter engines). But either way, the lowest amount of tax will be TL 438, while the highest amount has grown to TL 202,304.

Driver license

The cost of driving instruction and the cost of providing the documentation for driving vehicles (driver's license), has increased since July 2023. Unfortunately, the reason for this is solely economic: a 30% increase in gasoline, spare parts, and car expenses, as well as a rise in the minimum wage.

A driving school course now costs TL 10,500 in Izmir, TL 11,000 in Istanbul, and TL 12,000 in the republic's capital, Ankara (sadly, the source does not mention information for other major cities). Furthermore, this sum is made up of numerous components: for example, the driving course itself on a motorbike (category A) costs approximately TL 1,560, on a car (category B) – TL 3,260, and on a truck – TL 4,95 . We include the fees for the written exam (TL 240), the practical driving test (TL 295), and so on.

For those who are interested, we will clarify that driving lessons in Turkish and English are available in Turkey.

To avoid these expenses, you can replace your driver's license with a Turkish one, which will cost a minor fee, a minimum package of documents, and many weeks of time. However, keep in mind that your license is taken away from you; technically, they should be mailed to the issuing authority's address, where you can pick them up latter. However, experience reveals that this document does not usually reach its destination point and "wanders" for years in the depths of international mail.

"Paid-for" army

The alternative civil service fee has been increased to TL 122,350. It has been TL 104,084 since January 2023 (a rise of 17.55%).

Remember that in Turkey, if there are no health-related complaints or other restrictions, all men are required to enlist in the military for 6 months. However, you can choose paid-for (simply "alternative") military service, where the term is currently 1 month and can even be somewhat decreased depending on the conditions of service.

Why this is important to know: if children are born in Turkey, boys will be required to serve in the military when they reach the age of 18. Thus, if you have prepared a specific amount, you can eliminate this problem once and for all by sending them to the "service" for only a month.

Salary, taxes, and documents in Turkey: July update

Minimum salaries and pensions

Since July, the minimum wage for civil servants (including teachers, doctors, and others) has been updated as have pensions for retirees.

There is now a minimum wage for officials, and so on, for "non-army" professionals, which will be TL 22,000. And here are the numbers for different types of employment (in ascending order):

  • Technical specialist – TL 23,525;
  • Nurse – TL 26,427;
  • Teacher – TL 26,641;
  • Policeman – TL 29,512;
  • Researcher – TL 31,750;
  • Engineer – TL 33,109;
  • Specialist in civil service – TL 37,162;
  • Lawyer – TL 31,549;
  • District Governor – TL 50,213.

In terms of monthly pension payments, the average raise for retirees was 25%. That is, if a person previously received TL 6,000, they will now receive TL 7,500.

In addition, beginning in July 2023, the pension for public sector employees – teachers, police officers, nurses, lawyers, and others – who retire after 25 years of service will be increased to a minimum of TL 13,910.

For example, teachers, police officers, and lawyers will get exactly TL 13,910; engineers will receive TL 13,927; professors TL 24,147; and so on.

Let us explain how this applies to foreigners who have relocated to Turkey: directly. If relocating citizens find it extremely difficult, if not impossible, to enter the civil service, they might seek for a Turkish pension. It will be enough to meet a variety of requirements, including living in the country for a specified number of years.

Visas, passports, and documents

Fees for notaries, passports, visas, and other services have increased by 50%.

Documents related to court cases, notary work, tax legislation, land cadastre, TAPU registration; documents issued by the consulate; passports, residence permits, work permits; visas, Ministry of Foreign Affairs certificates, licenses, and so on are among the documents that have increased in price (in the sense of registration).

We'll give you another life hack: while it's impossible to avoid issuing a number of documents in Turkey, it's better to postpone reissuing an international passport until you visit your home country (unless, of course, the validity period of the passport allows): it can be reissued in Turkey at the consulate, but it will be much more expensive. And it will undoubtedly take longer.

Share buying and gambling

In Turkey, they are "tainted with the same brush": the gambling tax rate has been hiked to 14% for horse racing, up to 10% for joint bets on sports, and up to 20% for other gaming.

In terms of stocks, everything is extremely different here; you must examine each specific case and consult with specialists: from 0% to 15%.

These tariffs and the majority of the other taxes stated above went into force on July 10, 2023.

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