Payment of tax on rental income

[stevelynn]

My query is about the payment of tax on rental income when you are resident outside Turkey. Does the tax on this rental income have to be paid in Turkey or can it be paid in country of residence and the turkish authorities informed .

If it has to be paid in turkey could you recommend  an accountant who does this and approximate cost

Thanks 

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[Kalkan regular]

You pay tax in Turkey and again in the UK although the uk allows you to deduct the tax you have already paid in Turkey.

In Turkey they knock of a percentage (I think it may be 25%) then you get the Turkish personal allowance knocked off and then you pay tax on the rest. In the uk you are allowed to knock 10% off for wear and tear then you can claim certain expenses related to the costs (100% for things that are purely related to rentals such as advertising, accountants fees, housekeeping, income tax paid in turkey, etc) and the proportion of other things that were related to renting (if you used it 6 weeks and rented it for 10 weeks then 10/16 of things such as utilities, maintainance. etc can be claimed). You pay tax on the rest.

If 2 of you own it then you each declare half of the income and half of the expenditure in the UK. In Turkey you each get the full personal tax allowance.

We use an accountant in Kas but he doesn't speak English. IIf you want his contact info and a spread sheet I use to give to our Uk accountant please PM me. When we first went to him we had to give him POA over our tax returns and there was a charge for that, as well as an interpreter. Now when we go we just give him the figures and he then gives us the bill for the tax and his services.

[LoveTurkey]

You don't need to have an accountant in Turkey if you are prepared to travel to London to pay your tax into one of the nominated Turkish banks there.  I fill in the tax return every year in the UK and simply post it to the tax office in Kas and pay the amount due into the bank here.  You have a tax free allowance in Turkey each year (depending on the exchange rate, roughly £800 per person named on tapu).  It is this amount which you are liable for tax in the UK.  You then deduct 25% for expenses on any amount earned over your tax free personal allowance in Turkey and pay 15% tax on the remainder.  All is explained in detail, with downloadable forms at the turkish tax office website.  The forms are in turkish, but easy to translate and fill in with google translate.  It is all quite straightforward and needs to be completed in early March each year.  Hope this helps.

[Kalkan regular]

Thanks for that. It would save us a fortune in accountants fees. I'll look into it. Do you have a translation of the form if so I'd appreciate a copy.

[Kalkan regular]

Do you have the link to the tax return form and the address for the Kas tax office? Thanks

[Anne]

You could contact Ms S Ramadan, secretary at the Turkish embassy Financial Counsellor Office <finance@turkisheconomy.org.uk>, they will provide you with a translation of the tax form and also the actual form.  The calculation is very simple as has been mentioned and you can pay at the Ziraat Bank in Moorgate, London.

The Financial Counsellor is very helpful if you have any queries.

[Kalkan regular]

Thank you Anne

[stevelynn]

Thanks all for the information which will be very useful