Kalkan Turkey Forum - EnjoyKalkan.com
The Owners Lounge => General Discussion => Topic started by: baclava on December 11, 2013, 10:38:36 AM
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Just seen this article about possible new rules for renting out your holiday home. Makes renting out quite complicated.
Check out the link:
http://www.yellali.com/news/article/34/new-regulations-for-renting-out-your-turkish-property
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Very interesting. The worst part is the need to register as a business. Registering as a commercial business costs about 300TL monthly. However, this seems to be a bit different. The other is the passport copy. Since we are not hotels, guests may balk at this requirement.
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I'm not sure how reliable the original source can be. There is a big mistake in the 'as is' ( You will be required to pay rental income tax to the Turkish authorities and may not have the option to pay your rental income tax to the UK.) as far as I am aware you have always had to pay rental income tax to the Turkish authorities and never had the option to pay the rental tax to the UK (at least since the double taxation agreement) also why single out the UK? other nationals own and rent out property.
I am sure the authorities will be looking on collecting the tax due, as currently they are missing out, but this proposal looks like a very early draft at best.
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I agree with Hobbo re the error outlined in the Yellali article and also with the rest of Hobbo's comment too. I would foresee that it would take a long time to come to fruition and the administration element on their part alone - whether jandarma or belediye wouldn't currently be able to support that level of 'paperwork' - imagine how many passport copies that would be in Kalkan alone...
Let's wait and see what develops. KM
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If it does happen, it's probably a good thing.
One of the reasons for the constant infrastructure problems is that the number of "official" tourists in Kalkan ( ie those recorded by hotels, pensions etc) bears no relation to the actual number. Once there is an official record things might improve. Along with the revenue of course :)
For those of us who already pay the correct level of tax it's hardly going to be a problem but for those that don't, and really just play at renting out, I suppose it could be a problem. But there is a business opportunity there...
I'm not sure about the authenticity of this article but it's something that has been talked about amongst the hoteliers in Kalkan for some time. They see it as unfair that people can make money out of tourists without having to go through the same hoops as they do. I can see their point. Basically they want a level playing field... and although I may sound like a Turkey voting for Christmas...actually I'm all for it if you look at the bigger picture.
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Our Turkish neighbors told me that these new proposals have been talked about recently in all Turkish newspapers, even on TV. It seems some version of them will become a reality.
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MartynE, I agree with most of what you say, However re "Once there is an official record things might improve. Along with the revenue of course " surely there is no guarantee any additional revenue would make it,s way to Kalakn as it is my understanding the letting taxes go to the national coffers not the local council where the property is registered. I stand to be corrected of course!.
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Brian, you are probably right about the taxes.
Part of me is just thinking that a bit more regulation in the self-catering market might actually be more an advantage than a disadvantage. Thats's the part of me that hasn't joined the larger, more cynical part (yet) ;)
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If it does happen, it's probably a good thing.
One of the reasons for the constant infrastructure problems is that the number of "official" tourists in Kalkan ( ie those recorded by hotels, pensions etc) bears no relation to the actual number. Once there is an official record things might improve. Along with the revenue of course :)
For those of us who already pay the correct level of tax it's hardly going to be a problem but for those that don't, and really just play at renting out, I suppose it could be a problem. But there is a business opportunity there...
I'm not sure about the authenticity of this article but it's something that has been talked about amongst the hoteliers in Kalkan for some time. They see it as unfair that people can make money out of tourists without having to go through the same hoops as they do. I can see their point. Basically they want a level playing field... and although I may sound like a Turkey voting for Christmas...actually I'm all for it if you look at the bigger picture.
I agree with your point. I rented two apartments for two weeks last Summer, in Bodrum and Kalkan and business transactions were all in British Pounds. I guess that perhaps they went Turkish tax free. The downside of this practice was experienced in some part of the world with intense second homes available for holiday rentals. In the western Italian Alps, near Sestriere and the French border, there is a big number of second homes available for holidaymakers. The local economy doesn't take any advantage of it. Once the winter season is over, shops close and the area looks abandoned. By contrast, the eastern Italian Alps, near Alta Badia, Brunico, Dolomites and South Tirolo heavily invested in tourism based upon local infrastructures, family hotels, bed & breakfast. This provided a flourished economy and almost full employment for the local community. I recall some parts of Spain look similar too.
Sal
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I wouldn't assume that they were Turkish tax free. Some of us already pay tax in Turkey & the UK on rental income and employ a Turkish accountant. The local economy in Kalkan benefits from the fact that many holidaymakers are selfcatering, buy food and drink in the supermarkets, eat in restaurants, spend in the shops and use taxis.
Those of us that own property also spend locally on furnishings, repairs, improvements, council tax, management companies, etc.
The local banks and ATM's have increased over 10 years from 1 to about 7 and they are full of locals doing baking whenever I go in to change money to pay the bills.
All Inclusive resorts are the death knell for local economy as they are usually owned by a big company who take the profit and have guests that don't go out and spend locally.
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Hi Kalkan regular,
You say the locals go in to the banks to do their "baking ".........Are they paying in their dough ??
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Yes and it is rising well!
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You must make sure it doesn't get a " soggy bottom "...........getting a little off subject now,me thinks!..................HAPPY CHRISTMAS EVERYONE
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Just seen this article about possible new rules for renting out your holiday home. Makes renting out quite complicated.
Check out the link:
http://www.yellali.com/news/article/34/new-regulations-for-renting-out-your-turkish-property
how interesting, just found this post from 2013, it seems the guy in the Fetiye Times was correct when he said the law had been introduced then and people had not followed it. Certainly the posts on here discuss its merits with some welcoming it, but none it seems mentioned it in their recent posts. The old Grey matter it seems is not what it used to be.