Question 1

Which country has the lowest taxes for expats?

Accepted Answer

The UAE levies no personal income tax — 0% on all income. For those prioritising low tax above all else it is unmatched. However, cost of living is very high and residency requires employer sponsorship or property investment. Turkey offers 0% on qualifying foreign income under the active 20-year exemption (Law No. 7582) — but this only applies to qualifying individuals who meet specific eligibility conditions. Cyprus (for dividend/interest income under non-dom status) also offers 0% on qualifying income. Portugal's IFICI offers 20% flat; Greece's pensioner regime 7% flat.

Question 2

Is Turkey the best option for retirees with foreign pensions?

Accepted Answer

Turkey ranks highly for retirees: very low cost of living, strong Mediterranean climate, affordable private healthcare, and the active 20-year foreign income exemption (Law No. 7582, gazetted June 4, 2026). This exemption may cover foreign pensions — but eligibility is not automatic. You must meet specific conditions including not having been a Turkish tax resident or domiciliary for the 3 preceding calendar years. Greece's 7% pensioner flat rate and Portugal's IFICI 10% pension rate are also excellent options. Always confirm eligibility with a tax specialist.

Question 3

How does Turkey's 20-year exemption compare to Portugal's NHR?

Accepted Answer

Portugal's NHR scheme (now IFICI) offers a 10-year benefit. Turkey's active 20-year exemption (Law No. 7582) offers twice the duration and potentially 0% on qualifying foreign income (vs 20% flat under IFICI or 10% on pensions). Turkey also has a significantly lower cost of living. Both regimes are fully operational. Key difference: Turkey's exemption requires meeting specific eligibility conditions — it is not automatic for all new residents.

Question 4

What taxes would I still pay in Turkey even under the exemption?

Accepted Answer

Turkish-source income would still be taxed at progressive rates (15–40%). Property tax (0.1–0.3% annually) still applies. Inheritance and gift tax (1–30%) still applies. VAT on purchases still applies. The exemption covers foreign-source income only — and only for qualifying individuals.

Question 5

Is Cyprus better than Malta for expats?

Accepted Answer

Both offer 15% flat rates on remitted foreign income, but Cyprus's non-dom status gives 0% on dividends and interest — making it more attractive for investors and entrepreneurs. Malta suits structured pension recipients well. Cyprus requires minimum 60 days presence; Malta minimum 90 days. Cost of living is broadly similar.

Question 6

Does this tool provide legal tax advice?

Accepted Answer

No. All figures are illustrative estimates for planning research only. Tax law is highly complex and personal circumstances vary significantly. Double taxation treaty interactions, exit taxes from your home country, source-of-income definitions, and implementing guidance all affect your real tax position. Always consult a qualified cross-border tax specialist before making relocation decisions.

Question 7

Does the 20-Year Exemption apply automatically to everyone moving to Turkey?

Accepted Answer

No. Eligibility depends on your personal circumstances. You must not have had Turkish domicile or Turkish tax liability during the 3 calendar years before becoming considered settled in Turkey, among other conditions. The source of your income also matters — work physically performed in Turkey may be classified as Turkish-source regardless of who pays you. Always confirm eligibility with a qualified tax advisor before relying on exemption calculations.

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