Common Reasons for Sending Money to Turkey
There are many reasons indicated by those sending money to Turkey. The reasons are as varied as the number of transactions processed at any one given period.
Family Support
An increasing number of Turkish diaspora send money home to support their families. This could be in the form of an income supplement or basic support for household expenses.
Purchase of Services and Goods
Businesses that hire Turkish contractors, employees or freelancers usually send money for wages, salaries and contractor payments. Also, some of the money sent to Turkey is for vendor payments for goods supplied.
Income Repatriation
Turks working abroad may from time to time send part of their earnings back home.
Property Purchase
Turks have the desire and intention to invest in real assets back home. One of the most preferred investment niches is the real estate sector and specifically buying of residential and commercial properties.
Savings
Turks who plan on coming home someday usually send money to savings instruments and vehicles back home.
Why Send Money with a Money Transfer Service?
Money transfer service providers introduced innovative ways of transferring money from one point to another across and within country borders. Some of the benefits and knock-on effects of these investments include:
Faster Transfers
It takes a maximum of 3 days for money transfer service providers to deliver funds to the recipient. If the sender pays for the transfer through credit/debit cards and chooses cash pickup as the payout option, the transfer is processed within minutes.
Ease of Signup
Opening a money transfer service account and the subsequent verification process takes less than two hours. Going forward, none of the verifications would be required meaning faster transfers.
Low Exchange Rate Margins
How much you will get when you exchange your host currency with the Turkish Lira depends on the exchange rate margin the provider charges. Banks charge margins of up to 5%, way higher than the 0.5-3% money transfer providers charge.
Low Transfer Fees
Compared to banks that may charge up to $40 for transfers to Turkey, money transfer providers may charge only 10% of the bank charges for the same transfer. Some providers such as TransferWise combine all transfer charges including payment methods fees into one price for ease of transactions.
Multi-Currency Support
With transfers coming into Turkey from countries as far as Serbia, Puerto Rico and Panama, the need for a provider that can support a host of currencies can not be overemphasised. Money transfer operators support funds transfers from over 200 countries in 60+ currencies.
Security
Cybercrime has become one of the highest risks in money transfer operations. To safeguard their customers, money transfer providers have put in place industry-grade security measures such as Secure Sockets Layer (SSL) and two-factor authentication (2FA) systems.
Things to Consider When Sending Money to Turkey
When deciding on the best way to send money to Turkey, the last thing you would want is an interruption to your transfer or missed opportunities. This could be from the provider or from the recipient end of the transaction. When sending money to Turkey, you need to consider the following factors:
Taxes On Personal Income: Turkish residents are taxed on their global income but non-residents are only taxed on the income earned from Turkey. Therefore, remittance from abroad doesn’t constitute income for the recipient hence not taxed.
Tax Amnesty for Repatriation of Foreign Assets: There is a minimal tax burden for Turkish residents who want to bring their foreign assets whether they are physical or financial assets. The tax amnesty is set at 1% of the value of the repatriated assets. Within 3 months of the declaration date, the assets must have been repatriated to enjoy the amnesty.
Foreign Exchange Performance: The Turkish Lira has been subject to stabilising measures by the government. In terms of its performance against other currencies, its record has been a little shaky. With international sanctions not far off the radar, it is important to consider its near term and projected long-term performance to help you time your remittances.
Getting the right channel when sending money to Turkey is extremely important. By all means possible you should opt for providers who guarantee lower transfer fees, favourable exchange rates, timely deliveries and the other factors discussed in the guide.
Looking to Send Money Somewhere Else?
Sending money anywhere else in the world is as easy as sending money to Turkey. If you're looking to send money to another country, here is the list of the most popular destinations.