Quick Answer
Can I receive my UK state pension in Turkey?
Yes. Turkey is on the UK uprating list, so your state pension increases each year with the triple lock. Notify DWP of your Turkish address to continue receiving it. Under the UK-Turkey double taxation agreement, pension income is generally taxed only in Turkey (your country of residence). Apply to HMRC for an NT (nil tax) code to avoid double taxation.
UK State Pension in Turkey — Key Facts
Is Turkey on the uprating list?
Yes — Turkey IS included in the list of countries where the UK state pension is uprated annually. Your pension will increase each year with the triple lock.
Does uprating apply automatically?
Yes, once you have notified the DWP (Department for Work and Pensions) of your Turkish address and pension is being paid abroad, uprating is automatic.
How is the pension paid?
The DWP pays into a UK bank account or directly to a Turkish bank account. A UK account is generally simpler — then transfer to Turkey via Wise or your bank.
Can I claim from Turkey?
Yes. Notify DWP of your move overseas and provide your Turkish address. Use the DWP International Pension Centre (Tyneview Park, UK) for all correspondence.
What about National Insurance gaps?
You can still make voluntary Class 2 or Class 3 NI contributions from Turkey to fill gaps and increase your state pension entitlement.
Is my pension taxable in Turkey?
Turkey has a double taxation agreement with the UK. UK-sourced pensions are generally taxed only in Turkey for Turkish residents — but HMRC must be notified of your non-residency.
Private Pension Types and Turkish Tax Treatment
Workplace / defined contribution pension
If you defer, it continues to grow. On drawdown, the payment can go to a Turkish bank account. Turkish tax applies on receipt for Turkish residents (check the DTA).
Defined benefit / final salary pension
Paid as a fixed income; can be paid overseas. Pension providers may deduct UK income tax at source — you must apply for NT (nil tax) coding via HMRC if Turkey is your tax residence.
SIPP (Self-Invested Personal Pension)
Flexible drawdown; payments can be made to any bank account. UK income tax withheld at source unless you hold an NT tax code from HMRC.
QROPS (Qualifying Recognised Overseas Pension Scheme)
You may be able to transfer UK pensions to a QROPS in a suitable jurisdiction. This can provide tax advantages but involves complex rules and professional advice is essential. Not all QROPS work well with Turkey residency.
Annuity
Fixed payment; paid to any bank account. Same tax rules apply — UK tax withheld unless NT code obtained.
HMRC Non-Residency Process
Apply for HMRC non-resident status
Complete form P85 (leaving the UK) to notify HMRC of your departure and Turkish residency. This triggers a tax residency review.
Apply for NT (nil tax) code if appropriate
Under the UK-Turkey double taxation agreement, UK pension income is typically taxable only in Turkey (the country of residence) for Turkish tax residents. Apply for an NT code via HMRC or form DT-Individual.
Notify DWP International Pension Centre
Inform DWP of your Turkish address. Provide your IBAN for direct payment if you wish — or keep a UK account for receipt and transfer.
File your Turkish income tax return
As a Turkish tax resident, declare all pension income (UK and other) in Turkey. Turkey taxes pension income under the income tax bands. A Turkish accountant (mali müşavir) can assist.
Review annually
Exchange rates change, pension amounts change (uprating), and Turkish tax bands change. Review your tax position every tax year.
NHS Implications of Moving to Turkey
- !Once you leave the UK and establish Turkish residency, you lose automatic entitlement to free NHS treatment — you are treated as an overseas visitor
- !Emergency treatment in the UK will still be provided, but planned elective treatment is not free for non-residents
- !If you return to the UK temporarily, you can access the NHS during that visit (there is no hard rule for short visits, though the NHS does audit long-term non-residents)
- !Arrange private international health insurance that covers you in both Turkey and the UK — this protects you in both countries
- !If you have private UK health insurance (e.g., BUPA), check whether it continues when you move abroad and what the terms are
QROPS — Is It Worth It?
- A QROPS allows you to transfer UK pension funds to an overseas pension scheme and potentially benefit from local tax rules
- HMRC maintains an approved QROPS list — only transfer to a scheme on this list or face a 25% overseas transfer charge
- Turkey does not have a well-developed QROPS market — most expats in Turkey retain their UK pensions in UK schemes and draw down from abroad
- QROPS transfers from the UK to schemes in EU countries often work better — Malta and Gibraltar QROPS are popular for Mediterranean residents
- Professional independent financial advice is essential before any pension transfer — costs and implications are significant
- The overseas transfer charge (25%) applies if you transfer to a jurisdiction where you are not a resident — timing matters
Frequently Asked Questions
Is my UK state pension frozen in Turkey?
No. Turkey is on the UK government's uprating list, which means your state pension increases each year with the triple lock (highest of CPI inflation, wage growth, or 2.5%). This is unlike some countries (e.g., Australia, Canada) where UK pensions are frozen.
Do I pay UK tax or Turkish tax on my pension?
The UK-Turkey double taxation agreement (DTA) generally means that pensions are taxable only in the country of residence. As a Turkish resident, you pay Turkish income tax on pension income. However, you must apply to HMRC for an NT code to stop UK withholding tax, otherwise you will be taxed twice and need to reclaim the UK element.
What is the UK-Turkey double taxation agreement?
The UK and Turkey signed a DTA in 1986 (with protocols). Article 18 covers pensions — private and state pensions paid to a resident of Turkey are generally taxable only in Turkey. Government service pensions (civil service, military) are taxable only in the UK. Seek professional advice for your specific situation.
Can I still make UK NI contributions from Turkey?
Yes. You can make voluntary Class 3 NI contributions (approximately £800–900/year in 2024) to fill gaps in your NI record and increase your state pension. This is often excellent value if you have missing years.
Legal & Tax Disclaimer
This guide provides general information only and does not constitute financial, tax, or legal advice. Pension tax rules and double taxation agreements can be complex and change over time. Always consult a qualified independent financial adviser (IFA) familiar with UK-Turkey cross-border taxation before making pension decisions.