Every now and again someone will ask me why we bothered getting residency - our ikamet.  They are not looking for the obvious reply, "Because Turkey is where we live".  What they really mean is why are you paying about £200 per year, when you can go to Meis for £10 a quarter.

Elsewhere on this website we debunk the myth that going for residency is a significantly more expensive option - well for most people anyway, if you sit down and work out the true cost of those quarterly trips.  But that aside, I will sometimes mention the fact that as a foreign resident of Turkey I can get my UK pension tax free.  So there is one good reason.

And that brings me on to the subject of this article - tax, or more precisely how not to pay it - within the law, of course.

If you are a foreign resident in Turkey, you may be exempt from a variety of taxes levied on citizens of this country.  One such example is in relation to purchasing a new car.  If you are registered as resident (with an ikamet) and retired you can buy a brand new car tax free.

There are other circumstances where this applies, but the above scenario is probably more relevant to the KTLN audience.  There are restrictions on use though, as you would imagine.  For example, only you, as the owner, or your immediate family may drive the car.  You can only sell it on to another foreigner with the same status as yourself (e.g. a retired foreign resident), or you must take the car out of the country.  On the plus side, if you leave Turkey temporarily, say on holiday, you do not need to park your car in a customs car park.

How much can you save?  This is a Today Zaman article on the subject:  Today Zaman article

According to Today Zaman, a new VW Beetle 1.6 102hp car is imported into Turkey at 25,373 TL (£10,149). With various taxes, the normal retail cost in Turkey is a staggering 41,615 TL (£16,646).  A qualifying foreigner can buy the car without paying tax, saving 16,242 TL (£6,496).  [Exchange rate of 2.5 used for this example].

And here are a few companies in Istanbul who would be happy to have you as a customer if you wish to buy a tax free new car.

Cars Company in Istanbul 

Carline Cars