The British Consulate has confirmed that as of 1 April 2011 the residence permit fees for UK Nationals fees have been significantly reduced.

Following bilateral consular meetings with the Turkish authorities in December, the Turkish Ministry of the Interior and Ministry of Foreign Affairs have now confirmed that they have agreed to the British Ambassador’s request to reduce the residence permit fees for British nationals.
They will reduce to 60 Euros/$80/year from 1 April 2011.
Fees will be charged at $25 for one month and $5/month for each subsequent month.
Further information is available from the passport police in Fethiye.
What's the Saving?
The mix of currencies used above is confusing but expect the fees to be around GBP 55 per year. Fees will always be converted to Turkish Lira.
Prior to the announcement the fee for a Turkish residence fee for British Nationals were some of the highest.
The fees were as follows:
12 months GBP 370
24 months GBP 730
36 months GBP 1,090
48 months GBP 1,450
60 months GBP 1,810
So these new fees offer significant savings.
Please note that there is still a charge of 149 TL for the residence book - IKAMET.
Refunds?
It is unclear if refunds can be obtained by those who have already paid the higher fees for a Turkish residence visa prior to the 1 April 2011. If you are in that situation you should enquire with the local passport police. Don't rush though as the news has only just been released it will probably take a few weeks for the authorities to get their procedures in place.
The Future
So this is good news for British citizens who either plan to live all year of a significant part of the year in Turkey. The reduced costs should also generate renewed interest in the country as a place to retire to or settle.
The process of applying for the visa and the limits in place on income will still apply. So the amount of income that you need to have, as savings, pension income or other income remains the same, at the equivalent of US$500 per month or around £4,000 a year.
The announcement of the new reduced fees will probably cause a short term rise in the number of applications that the passport police will need to process as those people who did the visa hop now apply for a new residence. So if you plan to apply for a new visa expect delays.
And Finally
The British Consulate in Turkey said "It is clear that the Turkish authorities value the contribution that British residents and visitors make to the economy and Turkish national life and, as can be shown by the reduced residence permit fee, are willing to tackle problems if they can."
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