Banking, Money and Taxes in Turkey

Managing your banking, money and taxes in Turkey can be a mixed bag. The country has a sound, modern banking system, but the sleek infrastructure often runs headfirst into local bureaucracy. Expats from the US and UK are frequently surprised by these administrative hurdles and the challenges of managing assets amid high inflation.

If you’re moving to Turkey on an employment package, you may also find that you don’t get to select your preferred bank. Employers often have a payroll agreement with a single bank, and you will be responsible for opening an account with that specific bank to receive your salary.

Money in Turkey

The official currency for money in Turkey is the Turkish Lira (TRY). In theory, the Lira is divided into 100 kuruş. However, due to significant inflation, kuruş coins have very little value and are rarely used in daily transactions, with prices typically rounded to the nearest Lira.

• Notes: TRY 5, TRY 10, TRY 20, TRY 50, TRY 100 and TRY 200
• Coins: TRY 1 (plus 25 and 50 kuruş coins, which are less common)

While major cities and tourist areas are very card friendly, with widespread contactless payment, it’s a good idea to keep cash on hand. Smaller shops, local markets (pazars), and taxis will often require Lira cash.

Banking in Turkey

When it comes to banking in Turkey, you will find several large local banks that are well equipped to serve foreigners. Garanti BBVA is frequently recommended, as it has invested in English-language mobile apps and aims to have English-speaking staff in key branches. İşbank (or İş Bankası) and Akbank are other large, full-service local options. All three offer private banking (Özel Bankacılık) services for wealth management.

Major international banks like HSBC also have a significant retail presence. Other foreign banks, such as Deutsche Bank or Citibank, operate in Turkey but focus on corporate and investment banking rather than individual retail accounts for the general public.

Bank operating hours are typically 9am to 5pm on weekdays. Be aware that many branches close for a lunch break (often 12.30pm to 1.30pm), which can lead to long queues just before closing and after reopening.

Opening a bank account

Opening a bank account can be one of the first bureaucratic hurdles you face. While the process is straightforward on paper, many expats find it frustrating. The main challenge is that requirements can vary from bank to bank, and even from branch to branch.

You will definitely need two things to start:

• Your original passport.
• A Turkish Tax Identification Number (TIN), or Vergi Numarası. You can get this from any local tax office (Vergi Dairesi) relatively easily, often in under an hour, just by showing your passport.

The third requirement is proof of address. This is where it gets tricky. Some branches will insist on a Turkish Residence Permit, while others will accept a notarised rental contract or a recent utility bill (even one from your home country). It is best to check with the specific branch in advance and be prepared to try more than one.

ATMs and credit cards

ATMs (bankamatik) are widely available across all Turkish cities, not just in malls. You will also find ‘bureau de change’ offices (döviz) in commercial and tourist areas. Visa and MasterCard are the most commonly accepted credit cards. While some top-tier hotels may accept American Express, it is not widely used, and you should not rely on it.

The ‘home delivery’ with a portable card machine is a standard feature. Personal cheques are practically obsolete in Turkey, and banks do not issue chequebooks as a standard service.

Getting a Turkish credit card can be difficult when you first arrive. Banks typically want to see several months of salary deposits into your new account before they will approve a credit line.

Useful links

• The Banks Association of Turkey (TBB)
• Invest in Turkey: Investment Guide

Taxes in Turkey

Understanding your obligations for taxes in Turkey is a critical step in your move. Turkey has a progressive income tax system, with rates for employment income currently ranging from 15 percent to 40 percent. This is levied against all income.

On top of income tax, you must also pay mandatory social security contributions (known as SGK), which cover pensions, health insurance, and unemployment. These contributions are significant and are deducted from your salary alongside income tax.

If you have lived in Turkey for longer than six months in a single calendar year, you are generally considered a tax resident. This means you must pay tax on your worldwide income. Non-residents are only subject to tax on income earned within Turkey.

That said, some exceptions exist for foreigners in Turkey for a specific job or purpose. Turkey has double taxation treaties (DTTs) with many countries, including the US and the UK, to prevent you from being taxed twice, but this does not necessarily simplify your filing obligations.

As expat tax issues can be complex, it is highly recommended to consult a specialist tax practitioner.

Useful links

• Turkish Revenue Administration (GİB)
• Invest in Turkey: Tax Guide
• Social Security Institution (SGK)