Author Topic: Having a private pension paid into an account in Turkey  (Read 2099 times)

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Offline Karennina

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Having a private pension paid into an account in Turkey
« on: March 12, 2017, 15:40:16 PM »
Can anyone tell me please if we are proposing spending several months out of a year in Turkey can we have our private pensions paid into either our Turkish current account or a GBP account in Turkey and not have to pay tax? I have been reading a thread on here which says pensions are not taxable in Turkey but the thread was from 2011 and I know how frequently the rules change in Turkey...would we also need residency to be able to do this? Many thanks in advance for any info   ;)



Offline KKOB

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Re: Having a private pension paid into an account in Turkey
« Reply #1 on: March 12, 2017, 15:57:36 PM »
If you're thinking of spending "several months out of a year in Turkey" then I assume that you could be in the UK or other European country for the remainder and would still need to access this money. You may find it easier to have your pension(s) paid into a your UK account and then draw it down to a Turkish account as required because you might struggle with accessing a Turkish account when out of Turkey.

As far as I'm aware the UK / TURKEY DOUBLE TAXATION AGREEMENT 1988 is still in force. That means that you WILL pay tax on your pension, but only in one country. Therefore, if you pay tax at source on your pension in the UK and have proof of that, a recent P60 was sufficient when we opened our Turkish bank accounts, you won't be paying tax on it in Turkey.

Offline lissa

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Re: Having a private pension paid into an account in Turkey
« Reply #2 on: March 12, 2017, 18:10:44 PM »
Maybe better to have it paid into a UK account and draw in sterling in Turkey and change into lira.  An account that does not charge for withdrawals while out of the UK would be good also.

Offline Karennina

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Re: Having a private pension paid into an account in Turkey
« Reply #3 on: March 13, 2017, 08:38:47 AM »
Many thanks for replies I will have a read up on the double taxation agreement   :)

Offline Ovacikpeedoff

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Re: Having a private pension paid into an account in Turkey
« Reply #4 on: March 13, 2017, 14:29:13 PM »
Reading the DTA will not really answer your question. Even if you spend several months in Turkey this may not change your residency and you may still be liable for UK tax. Residency and where you are domiciled are not straight forward and come with a number of complicated tax rules. I would speak to a tax accountant or the Inland Revenue.

Also many private pension funds stipulate in the trust deed that they will only pay intro a UK bank.




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