It was written on 28 June 2017. The law and practice in Turkey change all the time. Our guides are updated as frequently as possible - typically every three years - but may be out of date.
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This guide looks at what you want to consider when choosing a financial or tax adviser in Turkey.
The first question is whether you need a financial adviser. Some people rely on members of their family, their own reading and research, and discussions at the golf club when deciding how to arrange their affairs. This is usually foolish. It is bad enough if you do this ‘back home’ when all these people may have some considerable knowledge of investment opportunities as a result of years living in the country and dealing with these issues but, once you’ve moved to Turkey, the odds are that neither you nor any of your friends or family will have any grasp of the issues and complexities involved in choosing an appropriate investment or even of the range of investments available to you.
So, our advice is that you should use a good financial adviser. His fee will be repaid many times over.
In Turkey, it is usual for your tax adviser to be the same person (or, at least, to work for the same company as) your financial adviser.
However, not everybody follows this route. There can be a case for having a separate tax adviser, especially if your tax affairs are complicated. In these cases, your tax adviser is likely to have to liaise closely with your other professional advisors in Turkey and your professional advisers in your own country as most people in this category will have a fiscal (tax) presence in both places and - in many cases - in other countries around the world as well.
There are several multinational tax advisory firms based in Turkey.
Having said this, for most of our foreign residents, the services of our local tax and financial advice companies prove more than adequate and it is usually much cheaper to use their services than it is to use the services of one of the big multinationals.
As with every choice of professional adviser, you need to be sure that the company you are appointing has the necessary professional qualifications and insurance, and that you are personally comfortable with the person who will be your adviser. Qualified advisers are listed by the Chamber of Accountants. Ask your accountant for his licence number.
When choosing a financial adviser, the most important criterion is whether you feel comfortable with and in tune with the advice you are receiving. Is the advice clear? Do you understand it? Does it seem to reflect your approach to risk and reward?
Having said that, you should only appoint a financial adviser who meets certain criteria. If they don’t meet these criteria then it doesn’t matter how comfortable you are with them, it would be a foolish mistake to use their services.
The things you should be looking out for are:
Are they licenced by the appropriate regulatory authority? If you’re thinking of using a financial adviser based in another country, usually your home country, you will need to make sure that they’re property regulated there.
Whether you should use a financial adviser based in Turkey or based ‘back home’ will depend upon your personal circumstances and, in particular, upon where the majority of your wealth is located. If most of it is still ‘back home’, it may be advisable to use somebody in your home country and for them to link up with a financial adviser in Turkey for the input they need about local tax and other considerations. Conversely, if your main focus is now in Turkey, you’re probably better using an adviser here and having your Turkish adviser link up with your home adviser as and when necessary.
We have a number of good financial advisers in Turkey who’ve been giving advice to foreign clients for many years.
Does the adviser speak your language and do they speak it well enough to discuss with you the, sometimes complicated, issues associated with investment planning in a way that you will understand?
Insurance is often mentioned as a key requirement for a financial adviser. In Turkey, this is usually irrelevant as the adviser will have to show that he holds insurance up to €5million for any single claim in order to obtain his annual licence to practice. It is, therefore, only if you’re investing very large sums that the adequacy of insurance will prove an issue.
So, in summary: when picking someone to advise you on your financial affairs, make sure you're comfortable with dealing with them, and that they are well-qualified and easy to communicate with.
|Turkey Country Guide
Essential facts and figures about Turkey
|The Tax System in Turkey
|Taxes on individuals in Turkey
Taxes on people
|Taxes on companies in Turkey
Taxes on businesses
|Taxes on property in Turkey
Taxes on real estate
I hope you have found this guide useful. If you need any further help, please contact me.Burak Orkun 28 June 2017
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