Rental income tax

[Trev]

Hi all,

Have purchased a lovely flat in Sunset Beach Club and am about to start renting it out. I am currently trying to gain clarity as to how much income tax I should pay and I am receiving all sorts of conflicting bits of information. Really hope you will be able to help!

As this is a general property owning issue I have posted this message in this section and not the SBC owners section.

I expect to be earning a gross income of around 3900GBP/year income from renting my flat. Can any Turkish tax guru out there tell me what they think I ought to be paying in income tax with supporting sources/calcs? [?]

Does anyone know of an official Turkish government website providing details of how income tax from rentals should be calculated? [?]

The best non-Turkish-goverment website I have seen so far is the following

http://www.turkisheconomy.org.uk/buyingproperty/property_taxes.htm

Also typically what effective income tax %s have you seen being knocked around? [?]

I say "effective" income tax as it appears that a certain amount of income is exempt and there seems to be various reductions for maintenance expenses etc. I have seen effective income tax figures for Turkey ranging from 8% to 25%!

Finally, I am thinking that it might be best if I (or my Turkish friend)contact the local tax office directly to get the info straight from the horse's mouth - does anyone know the contact details (address, email or phone) of the local tax office? [?]

Sorry for the long message - hope this thread will also eventually help others in similar situations!  

Thanks in advance for your help!!

Trev

[Stressed Eric]

Hi Trev,

The website you found is good. see section 7.3.10. We've referred to this website for the last 3 years and their figures do correlate to what the accountant uses.

You can opt to either submit expenditure receipts for tax deductions (although a lot of things you would think are tax deductable aren't), or choose to simply knock 25% off your gross income as expenditure which is by far the easiest.
A Tax return needs to filled out and submitted in March....any account should be able to do this for you and get your tax paid. We usually pay around 100tl for our tax returns to be done, they are very simple one sheet forms.

[stoop]

..and don't forget you should declare it in the UK also as our wonderful government will want their cut as well. You won't have to pay twice though - they will allow you for what you have paid in Turkey.

[jackstee]

Thats if you are taxable in UK Stoop.
LOL
Steve

[HappyMonday]

Hi Trev

There are some other good discussions on this topic on the forum.
Try:

{A Link to an old CBF topic was here - no longer available}24717&whichpage=4&SearchTerms=income+tax

{A Link to an old CBF topic was here - no longer available}20063&SearchTerms=income+tax

{A Link to an old CBF topic was here - no longer available}16868&SearchTerms=income+tax

[stoop]

quote:Originally posted by jackstee

Thats if you are taxable in UK Stoop.
LOL
Steve

Very true - but if you are just give old 'arry a call and he'll give you a few pointers

[Chinook]

Apart from actual rental income you have to include in your calculation of taxable income for the times when you let relatives/friends use your flat/villa for free or at a reduced rate. In these circumstances you have to declare what they refer to as an "Equivalent Rental Value".

Trev I presume that you have checked that on your complex you are allowed to rent out.

[Trev]

Thanks for all of your answers everyone - will need to spend some time looking through the threads indicated by HappyMonday. Had a quick glance but will read more thoroughly when I have more time over the weekend. Some pretty detailed stuffy Zzzzz info there so will probably also need some COFFEE!

In the meantime, if anyone has further answers relating to questions 1,3 and 4,- I would be very grateful to hear your views...

[Chinook]

You should find this useful

http://www.gib.gov.tr/fileadmin/beyannamerehberi/56_dar_mukellef_ing.pdf

Whilst Turkey and UK have reciprocity on taxation you still have to declare the rental income and Turkish tax paid to HMRC.

[Peterhousby]

There is no tax from rentals received via a local agent as they are responsible for the payment and will include the deduction in their charges. Private rentals are subject to tax as follows: Total rental income minus 25% allowed for expenditure minus 2600 lira tax free allowance, tax is 15% of the balance. Tax return and payment is due by the end of March.