The cost of living in Turkey

In a recent poll conducted by MERCER, an international human resource consulting firm, the cost of living in Turkey dropped by 50 percent last year. This makes the cost of living in Istanbul better value than London, Moscow, New York, Athens, Rome and thirty-one other of the world’s major cities.

A comparison of some simple items shows just what benefits the Turks enjoy; A litre of petrol whilst quite expensive, is still around 20 pence cheaper, a pint of beer is a pound cheaper. Whilst a can of Coke is cheaper in the UK, a loaf of bread is less than half the United Kingdom price at around 20p. A packet of cigarettes is a third of the UK price and a three-course meal in a restaurant would be roughly a quarter cheaper than its UK equivalent.

The cost of living in Turkey is such that a couple can live very well on about fifty pounds sterling per week for food and domestic shopping, but by taking your business to local businesses or the local market you will save a great deal more. However, many consider the excellent prices for eating out to be a major consideration in their weekly shop and many people living in Turkey eat out as much as cooking at home.

The cost of living for domestic utilities are also low; the average electricity bill for two people for a month is approximately ten pounds, whilst water is around the same. Cooking and kettle water is generally provided in large plastic bottles is 4 lire (about £1.80), which should last about a week. A haircut for men in a traditional Turkish barber would set you back around two pounds, and a ladies salon would charge around ten pounds. However, on coastal resorts this can be quite a bit more expensive.

Private hospital care is popular amongst foreigners living in Turkey, with prices roughly fifty percent cheaper than the rest of Europe. The local state health care system, although reportedly very good, is difficult for foreigners to use unless they have someone with them who can speak the language. No wonder so many people are leaving the high prices of the UK behind and enjoying a better life in Turkey!

Turkey has an exceptionally high tax burden, which has been blamed for preventing general national economic growth. Most recent reports put the average tax burden for a single salaried married couple with children at 42.2% of their wages. However, successive Turkish governments have continued to improve the tax situation in their country.

Those seeking to work in Turkey should remember this when considering prospective employers, working for a large multinational may be a way of avoiding this considerable monthly dent in wages.

Tax on rental property income varies from fifteen to forty percent depending on the individual situation and circumstance. Those using an agent who will allow you to pay in pounds sterling might be better off. On the brighter side, an interest account at a local bank would enjoy a rate of between eleven and fifteen percent APR! What a great way to maximise all the savings you’ve made on your domestic costs of living!

The minimum monthly wage in Turkey is equal to 302.61 Euro, which is a rather poor £205.80. For this reason, it is relatively cheap to hire a driver, housemaid or nanny, but it is worth remembering that you get what you pay for and when you remember that they are being taxed at the above rate, they are likely to have a second or even a third job!

The cost of a long term rental in Turkey is exceptionally cheap compared to the UK. Not so much if you are living on a Turkish wage, but for pensioners, those who work for a foreign company, have their own business or can just afford to 'chill out' for a year or so, and a 2 bed apartment with communal pool can be found for as little as 500 Lire / £200 (approx) a month.

The cost of living in Turkey is therefore just one of the benefits to consider when deciding on a move abroad. Being out of the Euro zone will keep it a cheap place to live for years to come, but no doubt it will catch up once it joins the EU. Meanwhile, our advice is to make the most of this beautiful country. We wish those people moving to Turkey all the luck in the world with their new life, we are sure you will enjoy it.