The cost of living in Turkey

Briefly about the main thing

Turkey is a country that always leaves positive impressions after visiting. The hospitality of the locals, magical beaches, clean air, mild climate and delicious fruits make foreigners come back here again and again.However, not only longing for the sun and vitamins is a reason to buy a ticket here. 

Recently, the country has taken serious steps to develop the economy and succeeded in this. As of 2018, Turkey is one of the fastest growing countries in the world. In addition, it's easy to get a residence permit here – you just need to buy a house or an apartment.

In a warm country, you can live wonderfully on absolutely insignificant means, while allowing yourself everything you need. Let's find out what the main items of expenditure in Turkey consist of.  

Current economic situation in Turkey

In the first quarter of 2018, economic indicators exceeded analysts' forecasts, due to an increase in demand from the domestic consumer, which was facilitated by an increase in household incomes and declining unemployment.

According to the forecast of the world rating agency Fitch Ratings, the annual growth of the Turkish economy will be 4.8% over the next five years.In addition to the measures taken by the Government, the following factors contribute to economic success:

• population of 80 million
• the largest young population in the EU (half of the population is younger than 30.4 years)
• the number of working youth is higher than in the European Union
• the labor force in Turkey is becoming more and more skilled and competitive

The Turkish government attracts foreign investors, partially or completely exempting them from taxes and customs duties at certain stages of business development and providing preferential loans, deferred VAT payments, as well as state subsidies in some industries. According to the Central Bank of Turkey, in the first half of 2018, foreign direct investment in Turkey increased by 50% compared to the same period last year, amounting to 4,108 billion dollars.

The government is also stimulating the real estate market by lowering VAT from 18 to 8% and the tax on home purchases from 4% to 3, as well as reducing mortgage rates by 25%. All this has led to an increase in demand for property from both locals and foreigners. 

Average cost of living

If we compare the cost of living in Turkey with Europe, the cost of living here is much lower. At the same time, the quality of life is not inferior in any way, and in some aspects even exceeds the European level. The average salary in Istanbul is about 700-850 euros and 500-700 euros in Ankara, Izmir and Antalya, however, these figures depend very much on the experience and field of activity of the employee. 

The cost of living in Turkey largely depends on which region will be chosen for living, and individual preferences and habits. In large cities of Turkey, such as Istanbul or Izmir, life is more expensive relative to resorts on the coast, and in the interior of the country, remote from the coast, where mainly the local population lives, the cost of living is much lower. 

Russian-speaking buyers for the purchase of real estate for the purpose of moving, recreation or investment most often choose either Istanbul, or the Mediterranean, Antalya or Alanya resorts. The latter have the most developed infrastructure –  here it is easiest for foreigners to adapt. 

Depending on the lifestyle, habits and frequency of leisure, on average, for a comfortable stay of a family with a child in the resorts of Antalya and Alanya, you need from 350 to 900 euros.This amount includes the cost of food and accommodation, taking into account the cost of electricity and water, excluding the cost of the child's education (kindergarten, school, lyceum, etc.) and doctors in case of serious illnesses. The more often a family spends money on shopping, entertainment and restaurants-cafes, the bigger the budget, of course.

Product prices

The agricultural sector is quite developed in Turkey, so food products are of high quality. They buy them mainly in small shops (prices are slightly higher there), but residents buy most of the products at more affordable prices in chain stores MIGROS, GIMA, TEKPA, MAKRO, BIM. And, of course, there are food markets – the price spread there is quite large, so in the beginning you should check the price. It is worth noting that food prices in major resort cities and in Istanbul are always much higher. 

Eggs (10 pcs) - 0.75 euro
Milk, 1 l – 0.45 euro
Rice, 1 kg – 0.9 euros
White bread – 0.2 euro
Chicken, 1 kg – 1.3 euros

Meat, 1 kg – from 6.5 to 15 euros
Cheese, 1 kg – from 1.5 to 2.8 euros
Apples, oranges 1 kg 0.2-0.4 euro
Potatoes - 0.3-0.4 euros
Tomatoes, cucumbers, peppers, 1 kg 0.4-0.6 euros
Turkish sweets (baklava, lukum), 1 kg – from 0.9 to 2.8 euros

Transport

Public transport in Turkey is very accessible. Bus service between and within cities is very well developed. If we talk about the popular Antalya region, a bus ticket costs 0.50 euros, and if you use fares for several trips, then even less.

As for taxis, the average cost of a trip starts from 0.70 euros and then the meter charges about 0.5 euros per kilometer.

Renting a car per day on average costs from 20 euros, depending on its class. You can buy a golf with a mileage of 20-25 thousand with a box machine for 2000-2300 euros.

A separate item of expenditure is gasoline, in Turkey it is quite expensive - about 2 euros per liter.

"Basic shopping": clothing, cosmetics, accessories

The textile industry is very developed in Turkey, and everything necessary for both adults and children can be bought for an acceptable price and of very good quality. However, the variation in cost is large – it all depends on which brands you prefer.

A child, for example, can be dressed in T-shirts, pants and blouses worth up to 2 euros, the cost of branded items starts from 15 euros. Average price of adult clothing: 

t-shirts  – 3-5 euros

jeans – 7-18 euros

outerwear – 21-45 euros

shoes – 9-35 euros

bags/scarves – 4-6 euros

Branded items for adults cost from 25 euros and above.

In Turkey, you can buy cosmetics from both European and local brands. There are very good quality and affordable German and popular Turkish brands. Prices for luxury cosmetics brands in Turkey are 15-20% higher.

Housing and rental prices

The cost of renting a house in Turkey depends on many factors: 

• lease term. For a season (several weeks, months) or longer (from a year);
• distance from the city center or the sea, if we are talking about a resort;
• the level of the residential complex and the apartments themselves;

• transport accessibility and availability of developed urban infrastructure.

A two-room apartment with a fairly good location can be found from 250 euros and up to 900 euros in one of the best areas of Istanbul. However, renting apartments in the resort area for a short period of time, you need to be prepared to pay from 700 euros to 1,500 euros per month, depending on the complex in high season (Mediterranean, April-September) or from 200 to 450 euros per month in low season (October-March).

 

Housing, taxes, internet and telephone

The cost of housing maintenance in Turkey consists of three main

points: 

• payment of utilities;

• residential maintenance fee

complex, the so-called "aidat"

• annual property tax.

On average, a family of 3-4 people spends 25-60 euros to pay for water and electricity. The cost of maintaining a house depends on the infrastructure. The more developed it is (there is a swimming pool, sauna, fitness room, etc.), the more expensive the service. On average, it takes 30-60 euros per month, in ordinaryin houses without infrastructure, maintenance costs less than 5-6 euros.   

If house-wide or house-side repairs are needed, the management company provides a budget for protection and expenses are distributed among the owners. 

The annual tax is calculated in the amount of 0.02% of the cadastral value of the apartment and is approximately 30-80 euros. There are no additional costs or hidden costs for the maintenance of real estate in Turkey .

If we take, conditionally, an apartment of 105 m2 with two bedrooms and a living room in a residential complex that has outdoor and indoor pools with a slide for children, a sauna, a steam room, a fitness room, a billiard room, table tennis, a playroom, a playground, a beautiful garden, then idat will be be about 35 euros /month, and the tax is about 33 euros / year.

High-speed Internet in Turkey is relatively not cheap, a monthly subscription at the conclusion of a contract for a year or two costs from 10 euros and above. But mobile communication is available enough. It is much more profitable to take "package" offers from operators, for 5-8 euros per month, the subscriber receives Internet traffic, SMS and minutes of conversation.

Medicine

Medical institutions in Turkey are divided into public and private. The state system is mainly represented by small polyclinics located in all urban areas, they are assigned to them when registering at the place of residence. Here you can apply with general health complaints, here they also put routine vaccinations for children. 

Treatment is paid for by a medical insurance contract. It is mandatory for all Turkish citizens, and since 2014, foreigners, after purchasing real estate in the country, are required to obtain medical insurance for obtaining a residence permit. On average, it costs about 50 euros.

In more serious cases, you can contact private and public hospitals. In such institutions there are hospitals, laboratories and specialists of different profiles. An interpreter can be provided for foreigners. In commercial hospitals, services are paid, in case of applying for insurance, about 30-40% of the cost of services is paid. 

The price of medical services here is much lower than in European countries, but the quality of medical care is not inferior, and sometimes exceeds the European level.

For example, the services of Turkish dentists are in great demand; patients come to them from European countries, such as Germany, Sweden, Norway.

It is worth noting that the direction of medical tourism is strategically important and the state allocates significant funds to support and develop this direction. Serious successes have been achieved in the field of neurosurgery, treatment of cardiovascular diseases, oncology, as well as diseases of the respiratory system.

 

Education

In general, education in Turkey is free and accessible to everyone, including foreigners. Kindergarten, school can be attended absolutely free of charge. In public universities there is a small fee, more like a fee (from about 500 liras). At the same time, there are private kindergartens, schools, universities where the cost of education varies from acceptable to substantial, but paid education is in any case more affordable than in Europe, at the same time the quality of teaching here is very high.

For small children and working mothers, there are commercial kindergartens where you can bring a baby at the age of about 2 years old. A month costs kindergartens from 125 to 270 euros, including meals. From the age of 3, you can use the service of state kindergartens that work only half a day. From the age of 5, a child gets into a group where he is being prepared for admission to primary school. They are available both at kindergartens and at primary schools.

Huge influence is given to higher education. Suffice it to say that it takes a third of all public money allocated for educational programs. Turkey is among the TOP 50 countries with the best universities in the world, the total number of universities is approaching 200.

It is important to note that Turkish diplomas are legitimate in Europe and do not require confirmation (unlike Russian ones). There are also many exchange programs with European countries in higher education institutions. Education at universities is conducted in both Turkish and English.

 

Entertainment

This area is very developed in Turkey. Beach holidays on the Mediterranean and Aegean coasts, visits to historical and architectural monuments, ski resorts, restaurants and clubs can be distinguished. 

Prices to museums vary from 1-2 euros per ticket, a day spent at a ski resort can be estimated at 25-35 euros. Sea holidays, if we talk about visiting beaches, are free.

Lunch for two in an inexpensive local restaurant costs 4-10 euros, in a middle-class restaurant dinner will cost about 15-20 euros for two without alcoholic beverages. A movie ticket costs about 3 euros.

Five tips from experts, how to keep a budget in Turkey

1. Buy vegetables and fruits at farmers' markets. The freshest and most delicious products are usually sold there, plus there is an opportunity to bargain. 

2. Keep an eye out for discounts and various promotions in clothing and equipment stores. Sometimes the benefits can really be significant. 

3. Visit restaurants,where locals mostly go. It is not only beneficial for the family budget, but also very tasty.

4. Buy or rent a car with a diesel engine. Diesel fuel is cheaper.

5. Keep track of expenses,but most importantly, but do not forget to rejoice and enjoy life in this incredibly beautiful and hospitable country.

Portal HomesOverseas.ru thanks Svetlana Kazakov for the help in preparing the article(BuyPropertiesinTurkey) and Alikhan Dibirov (SONMEZ REAL ESTATE).

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photocredits: dmitry kruglyak/flickr