If you have worked abroad and earned the right to a pension, or if your relatives hold this right, you might be wondering how to utilize this privilege and receive your retirement pension. Especially those who wish to transfer their pension to Turkey need to pay attention to certain details. International social security agreements, opportunities for combining insurance service periods, and the application process constitute the critical stages of this journey. We have gathered all the details that individuals who want to utilize their retirement rights earned abroad in Turkey or who wish to receive their pension regularly need to know in this guide.
Foreign Retirement Rights: Who Can Benefit?
Foreign retirement rights become valid if you are included in the social security system of the country where you worked, pay premiums, and complete the required conditions. Those who have worked as insured employees and completed their premium days earn the right to a pension. If you have premium days in both countries, you can earn retirement rights more easily by combining your working periods through the service unification system.
Those who have lived abroad as housewives or individuals who have been present in that country for a certain period without being registered in the social security system can retire by utilizing the foreign debt borrowing right in Turkey. In this case, it is sufficient for them to apply to the Social Security Institution (SGK) for borrowing transactions and present the necessary documents.
Foreign Retirement Pension Query
Those who have earned retirement rights abroad only need to follow a few steps to query the status of their pension and access the details. The online services offered by the social security institution of the country where they worked can be utilized. In most countries, it is possible to query the retirement pension and track the application status via e-government-like systems.
To make a query, first, you need to log into the official website of the relevant institution. In some countries, creating a user account or logging in with an insurance number may be required. Those planning a pension transfer to Turkey can also access the procedures they need to carry out with the Social Security Institution (SSI / SGK) through the official pages of the Social Security Institution.
In order to receive regular information regarding the pension, it is important for the retiree to keep their contact information up to date. Additionally, for problems that may be encountered during the query, the call centers of the relevant institution should be contacted.
How Much Is the Foreign Retirement Pension?
The monthly amount of a foreign retirement pension varies depending on the social security system of the country from which you retired and your individual premium payment history. Factors such as the working duration, the amount of premiums paid, and your retirement age directly affect the pension amount.
In some countries, the retirement pension is calculated through a system determined according to the living standards of that country. For instance, your pension is proportioned according to the total income earned during the working period. Since the social security system in Turkey and the systems abroad may differ, it will be beneficial to obtain information from the social security institution of the country where you worked to clarify the details.
Another issue that affects the amount of your pension is the foreign exchange rate. If your pension is to be transferred to Turkey, changes in the exchange rate may affect the TRY equivalent of the pension. Therefore, it can be useful to regularly follow the economic conditions of both the country where you worked and Turkey.
How Does Both Domestic and Foreign Retirement Work?
For those who have worked and been insured both in Turkey and abroad, the right to a pension may arise from both countries. However, for this, it is necessary to fulfill certain conditions and to be well-versed in the social security agreements of both countries. The right to a dual pension becomes possible thanks to the social security systems of the countries worked in and Turkey's international social security agreements.
The first step is to learn whether the periods worked abroad can be counted toward your retirement in Turkey. Those working in one of the 23 countries with which Turkey has signed a social security agreement can have these periods added to their premium days in Turkey through service unification. In this way, they can complete the premium days required for retirement from Turkey more easily.
Likewise, to retire abroad, an application must be made to the social security institution of that country. Those who want to receive a pension from both countries must fulfill the application conditions and requirements of each. Especially in processes such as service unification or premium transfer, the scopes of agreements between countries are important.
According to international social security rules, a person cannot be insured in two different countries at the same time on the exact same day, month, or year. This principle is applied to prevent overlapping insurance periods and unnecessary premium payments. For those who work in two countries simultaneously or have experienced this situation in the past, it is determined under which country's insurance system they will be evaluated, and the premiums in the other country are canceled.
Conditions Required to Receive a Pension from Abroad
Certain conditions are expected to be fulfilled in order to receive a retirement pension by making foreign debt borrowing. These conditions have been determined by the Social Security Institution (SGK) and are as follows:
Before applying for a retirement pension, you must terminate your work abroad and must not be receiving a residence-based social insurance or social assistance allowance. This status is referred to as a "definitive return" (kesin dönüş).
It is mandatory to pay the premium amount determined within the scope of foreign debt borrowing. The portion of the borrowed periods sufficient to qualify for a monthly retirement pension must be paid.
According to the social security legislation in Turkey, it is mandatory to meet the conditions required for retirement, such as age, premium days, and insurance duration. These conditions may vary according to the branch of insurance worked in and the date of birth.
The process can be initiated by making a written application to SGK to receive a retirement pension. During the application, documents such as the "Income/Aylık/Allowance Request Document" and the "Declaration and Commitment Document Exclusive to Those Requesting a Monthly Pension According to Law No. 3201" must be filled out and submitted.
When these conditions are met, the right to receive a retirement pension from Turkey via foreign debt borrowing is earned. Following each step carefully and presenting the required documents fully is important for the process to progress smoothly.
Tax Status of Receiving a Retirement Pension from Abroad
The retirement pension you receive from abroad requires paying attention to certain points regarding the tax status in Turkey. This situation may vary depending on the tax legislation of Turkey and the country from which you receive the pension, as well as international agreements between the two countries. If there is a double taxation avoidance agreement between Turkey and the country where you receive your pension, you will not pay tax twice for the same pension thanks to this agreement. However, if such an agreement is not available, you may have to pay taxes in both countries.
In some cases, your retirement pension may be evaluated as income in Turkey and taxed accordingly. Under these conditions, an income declaration is requested according to the tax laws in Turkey. If the pension can be transferred to Turkey as foreign currency, fluctuations in the exchange rate may affect the net pension amount. Such factors should also be taken into consideration in tax calculations.
How to Transfer a Foreign Retirement Pension to Turkey?
For those who receive a retirement pension from abroad, transferring this pension to Turkey is quite easy. To transfer a retirement pension received abroad to Turkey, one should first contact the bank where the pension is deposited. If the bank worked with offers international money transfer services, the transfer process can be initiated by sharing the bank and IBAN information in Turkey.
With Morpara's foreign IBAN feature, you can receive fast money transfers into your Morpara account without paying transaction fees. Moreover, since the IBAN features a EURO IBAN characteristic, you make the transfer from the sender bank via EFT, not via SWIFT. This way, you do not pay high SWIFT fees either.
When transferring your pension, you must also take the exchange rate and transaction costs into consideration. In the event that you transfer your pension to your Morpara foreign account, you benefit from an advantageous exchange rate. Additionally, you should examine the tax status of the pension transfer in Turkey. If there is a tax agreement between the country where you receive the pension and Turkey, you can avoid the double taxation issue.
After initiating the transfer transaction, it is also important to check the accounts to ensure that the process progresses regularly. Seeing whether the transaction was carried out correctly after the first transfer ensures that future transfers are also made without any problems. Staying in regular communication with the bank and taking precautions against problems that may arise is also an important step.
If you are looking for speed and ease while transferring your pension to Turkey, Morpara is just for you! You can make transfers within seconds via IBAN and say goodbye to long waiting periods, transaction fees, high SWIFT fees, and high currency conversion costs. Try Morpara right now to move your retirement pension quickly and securely, and step into a new era in money transfers!
Source
For the official information acquired in this article, the following official source has been utilized: