Aiming for low-digit inflation rate by 2027, as stated by Şimşek
In a recent statement, Turkey's Treasury and Finance Minister Mehmet Şimşek confirmed that the country's disinflation process is progressing steadily, providing a positive outlook for the Turkish economy and potential retirees.
Şimşek affirmed that they maintain their year-end inflation forecast, aiming for single-digit inflation in 2027. This gradual decrease in inflation, or disinflation, is expected to improve economic stability and purchasing power, making Turkey potentially attractive for retirees due to lower living costs compared to Europe.
For those with €500,000 to invest, the most straightforward retirement path in Turkey is through the Citizenship by Investment (CBI) program. By investing in Turkish real estate, bank deposits, government bonds, or capital investment grants, individuals can obtain fast-track citizenship in 3-6 months, without a minimum residence requirement. This path offers visa-free access to over 110 countries, dual citizenship, and access to healthcare, education, and social benefits.
However, for foreigners who prefer to reside in Turkey without obtaining citizenship, retirement residence permits are available. While Turkey does not have a specific retirement visa like many European countries, foreigners can often reside on short-term residence permits, work permits, or long-term residence permits after sustained legal employment or financial means proof.
It's worth noting that unlike in European retirement visa programs, Turkey does not mandate income proof for retirement residence permits. However, practical proof of financial means and health insurance is required for permit approvals.
Şimşek also highlighted the importance of increased coordination with fiscal policy to reinforce the disinflation effort. The government is prepared to take necessary steps to counter potential shocks to ensure the progress of disinflation. External financing for development projects totaled $17.4 billion in 2023-2024, with $7 billion secured so far this year.
The central bank recently cut its policy rate by 300 basis points to 43 percent, and Turkey aims to secure over $40 billion in external financing from various institutions in the next three years. Despite a temporary slowdown in growth, with the GDP expected to grow below the 4% target after a 2% growth in the first quarter, Şimşek remains optimistic about the overall economic outlook.
In conclusion, the improving macroeconomic environment under disinflation enhances the sustainability of retirement savings in Turkey. Retirees planning their future in Turkey can consider the Citizenship by Investment program for a more straightforward path to permanent residency and benefits, or opt for retirement residence permits without formal retirement visa status.
The Treasury and Finance Minister Mehmet Şimşek emphasized the importance of coordinating fiscal policy with the disinflation effort, aiming to reinforce it and counter any potential shocks.
Financial investments in Turkey via the Citizenship by Investment program, such as real estate, bank deposits, government bonds, or capital investment grants, can offer retirees a straightforward path to permanent residency and numerous benefits.
