One of the most common questions from foreigners living in Turkey is this: how can an apartment be so affordable while a mobile phone costs more than in Europe? The answer lies in Turkeys tax system – but this system is so inconsistent that even people who have lived here for years cannot fully make sense of it.

44a. The tax system – hard to understand, even harder to justify

In Turkey, products are not simply divided into domestic or imported categories. The key distinction is whether a product is subject to the Special Consumption Tax (TV – Özel Tüketim Vergisi). But which products fall into that category often defies logic.

Mobile phones are subject to the luxury consumption tax – despite being a basic necessity of modern life. Cars are taxed as luxury items. Diamonds are not. The result is that a good car and an average apartment can cost roughly the same amount of money. This is not an exaggeration – it is the reality of the Turkish market.

In summary: expensive in Turkey – cars, mobile phones, laptops, computer components. Cheap in Turkey – property, gold, diamonds, food (outside tourist areas), and labour-intensive services.

44b. The tourism effect – foreign demand sets the price

In tourist cities like Alanya, the main reason prices are higher than in inland Turkey is foreign demand. Without that demand, prices here would be on a par with inland Anatolian cities. It is a straightforward supply-and-demand dynamic: foreigners spend in foreign currency, and the market prices itself accordingly.

44c. The exchange rate effect – A structural advantage for foreigners

The Turkish lira has historically lost value against foreign currencies on a continuous basis. As of June 2026, 1 Euro is approximately 50 TL – and that figure is widely considered to be suppressed, with the real market rate potentially higher.

A rising exchange rate always benefits the foreigner. Anyone earning in Euro or USD automatically gains on every TL-priced expense: rent, food, services, repairs, healthcare. This advantage disappears on goods priced in foreign currency or pegged to import costs – electronics, cars, and certain imported products.

44d. Prices that surprise foreigners most

This cheap? – Property prices (what costs a fortune in Europe is achievable here), gold and diamonds (tax advantages make them noticeably cheaper than in Europe), and labour-intensive services such as hairdressers, restaurants, cleaning, and repairs.

This expensive? – Cars (a good car can cost as much as an average apartment), mobile phones and laptops (30-50% more expensive than in Europe), and computer components such as graphics cards.

44e. Practical rule – what to buy here, what to bring

For anyone planning to live in Turkey long-term, the strategy is straightforward:

EXPERT ADVICE: Learn what is cheap and what is expensive in Turkey before you arrive – and plan accordingly. Buy your home here, bring your car and your electronics. That single strategy can save you thousands of euros.

Sources: TUIK – https://www.tuik.gov.tr | T.C. Hazine ve Maliye Bakanligi – https://www.hmb.gov.tr

P.S. Banking and money transfer rules in Turkey have tightened significantly over the years. What may have been possible informally in the past is no longer realistic today. The banking regulations and financial monitoring systems in Turkey are now broadly aligned with European standards. Large transfers are tracked, documented, and reported. If you are considering any kind of irregular or undeclared transfer dont. Not because it is difficult, but because the consequences when discovered are serious and permanent. Do it properly, through official banking channels, with full documentation. It protects you legally, it satisfies the DAB requirement for property purchases, and it costs nothing extra to do it right.