As Turkey prepares to roll out new regulations on international e-commerce, both local consumers and the growing expat community in the country will feel the effects.
These changes, set to begin on August 21, 2024, come at a time when the government is also launching a Digital Nomad Visa, attracting remote workers from around the world. However, the new tax regulations, coupled with recent social media restrictions, are likely to complicate life for digital nomads and expats residing in Turkey.
New Tax Thresholds Impacting Online Shoppers
In recent years, Turkish consumers and expats alike have enjoyed relatively low tax rates on international online purchases. Previously, goods valued up to €150 were subject to an 18% tax if purchased from the European Union and 30% if purchased from non-EU countries. These thresholds have now been drastically reduced.
Starting from August 21, 2024, the tax-free threshold for international online shopping will drop to €30. This means that items purchased from the EU will now incur a 30% tax, while those from non-EU countries will face a 60% tax. For both Turkish nationals and expats, this represents a significant increase in the cost of everyday items ordered from popular international platforms like TEMU and Shein.
Muhammet Bayram, a Certified Public Accountant and Economist, explains, “The new regulations aim to protect the domestic market by reducing unfair competition from international sellers and encouraging consumers to buy locally. This shift is particularly impactful for products considered luxury items.”
Additional Costs for Luxury Goods
The new regulations also introduce additional taxes on luxury items, which include products like decorative items, small kitchen appliances, electronics, and even some fashion accessories. If you purchase a €30 item from an EU country, it will be subject to a 30% tax, and if classified as a luxury item, an additional 20% fixed tax will apply. For expats and digital nomads who rely on specific products from abroad, this can significantly increase the cost of living in Turkey.
For instance, a digital nomad purchasing a €100 piece of equipment from a non-EU country will now have to pay a 60% customs tax, along with other fees, potentially doubling the total cost. This could deter many from importing essential work tools or luxury goods from abroad.
Expats and Digital Nomads: What to Expect
The introduction of these new tax rules comes as Turkey launches its Digital Nomad Visa, designed to attract remote workers and entrepreneurs from around the globe. However, the new taxes might be an unwelcome surprise for those who plan to make Turkey their base, as the cost of importing goods essential for their work or lifestyle increases.
Moreover, the Turkish government has recently tightened access to social media platforms, with Instagram being the latest to be banned. This move could further disrupt the lives of digital nomads and expats who rely on these platforms for work, communication, and staying connected with the global community.
For travelers and expats who frequently shop abroad, there is some relief: the new regulations do not apply to personal items brought back from overseas trips, as long as they are within personal use limits. However, any items shipped to Turkey after August 21, 2024, will be subject to the new taxes.
As these new regulations and restrictions take hold, it is essential for those living or planning to move to Turkey to stay informed and adapt to the changing landscape.
