Calis Beach and Fethiye Turkey Discussion Forum
Turkey Related Subjects => Turkey Discussion Forum (Not Calis specifically) => Topic started by: KKOB on October 25, 2016, 03:54:49 AM
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New regulations for property rental are being introduced due to the State of Emergency.
http://www.fethiyetimes.com/news/19398-short-term-rentals-turkey-new-legislation.html
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The report starts with "If you rent out your Turkish holiday home" and continues "even to family or friends".
So if my daughter stays at my place but I don't charge her any rent (which I don't) the new regulations don't apply? Yes or No?
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Probably.
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The report starts with "If you rent out your Turkish holiday home" and continues "even to family or friends".
So if my daughter stays at my place but I don't charge her any rent (which I don't) the new regulations don't apply? Yes or No?
Yes they do as it's more to do with them wanting to know who is renting property due to terrorism - hence the state of emergency.
Of course they will also eventually look at the tax implications for those who rent out and don't pay any.
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I understood from a few years ago that even if a relative was staying in an apartment with no fee being paid the authorities accepted it was a rental if tapu holder was not present. This was to clamp down on tax evasion.
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Wait till they wind of the Spanish approach where you have to pay tax even if you do not rent it out.
How much is the tax?
The tax is calculated as 24.75% of the “income” the Spanish authorities deem you could make renting out the property.
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The tax is calculated as 24.75% of the “income” the Spanish authorities deem you could make renting out the property.
Its actually not as bad as it sounds. They calculate the "income" by taking 2% of the rateable value so if you had an apartment with a rateable value of €75,000, then you'd pay around €370 per annum - obviously if you were receiving an income rental then that would also be subject to tax. This ruling applies only to non-resident owners. The taxation system for resident owners is far different.
JF
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Not as bad as it seems but unlikely to put a smile on the faces of property owners who are resident in e.g. UK.
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I don't think it bother folks too much, especially those that have bought properties built after 1994 (or whose rateable value was reassessed after then) as the figure used for those is only 1%. So using my example they'd only pay round about €185 a year. You also need to remember that the rateable value, like in Turkey, is rarely anywhere near the market value.
JF
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The report starts with "If you rent out your Turkish holiday home" and continues "even to family or friends".
So if my daughter stays at my place but I don't charge her any rent (which I don't) the new regulations don't apply? Yes or No?
Yes they do as it's more to do with them wanting to know who is renting property due to terrorism - hence the state of emergency.
Of course they will also eventually look at the tax implications for those who rent out and don't pay any.
Does anyone know what the procedure is ; do guest report to local police ???
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There may be local legislation created by the council (as they did in Fatih), but as far as national legislation goes I haven't seen anything published yet that affects rentals in the way described. The HDN article which Fethiye Times used as its source did say that it was "proposed", not passed, gazetted and being implemented.
If something does come around, then I suspect it'll be an update to existing legislation which, if memory serves me correctly, says that you should pretty much be doing all this anyway. I think its the local muhtar you're meant to report "visitors" to but I honestly don't know anyone who followed the procedure. Inspector may be able to explain the current law, which no-one bothers with!
JF
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Thanks John for the info
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Just been told that the proposed tightening up of the law for landlords has now been implemented. Other than the fact large fines are involved if you don't follow them, I haven't got any further details as yet.
More to follow...
JF
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Ok, this is how its been described to me by a lawyer.
If you rent out your villa or apartment on a long term lease or tenancy agreement you're unaffected at this time.
If you rent out a room or rooms then you are affected.
If you rent out your villa or apartment on short term holiday lets, i.e. for a week or two, then you are affected.
It would appear that you need to obtain ID from each renter and submit this to the Polis. You also must inform the taxman but I don't know if this is meant to be every time you rent, or in your tax return - which of course you all do anyway :)
The actual logistics of how this is done I suspect will vary from region to region. This has been passed under the state of emergency laws and the fines (I have been told) are hefty if you don't comply.
Before anyone gets all up tight about it, this type of regulation is common in other countries. In practice, all you do is get your management company to do the checks required and this being Turkey, I'm sure it wont take them long to get geared up and offer this service.
One of the guys I work with is writing a legal article about it and when he's done I'll stick any other significant info in here.
JF
EDIT: I should have added that this information is simply what I've been told (although I have no reason to doubt its accuracy) and its up to members themselves to verify how they stand in respect of these new regulations.
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We'll have to wait 'til it's posted on Facebook before we give it any credence. :)
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Thanks for the update John much appreciated
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Bit of an update:
I've had it confirmed to me that this new regulation covers ALL rentals made out with a regular tenancy agreement, i.e. those made through holiday letting web sites, AirBNB etc. It also covers rentals where no fee is paid.
Landlords MUST establish a system where they can connect to the authorities computer system to allow the authorities to check, in real time, who is living at a property.
For not connecting to the authorities system, the fine is 10,000tl and for failing to provide real time data, the fine is 5,000tl.
The landlords system must be in place by mid January 2017.
JF
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Thanks once again John for information- interesting to see how many property owners will continue to let.
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Please if any member manages to find any additional information of how to contact their local authority systems to register I would appreciate the link... so far I have drawn a blank .
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so far I have drawn a blank .
Which you will. Its the usual situation, government says do this and do it this way. Local government then say no, we'll do it this way. Net result is bugger all gets done.
I'll post any further details of the registration and notification procedure as and when I get it.
JF
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so far I have drawn a blank .
Which you will. Its the usual situation, government says do this and do it this way. Local government then say no, we'll do it this way. Net result is bugger all gets done.
I'll post any further details of the registration and notification procedure as and when I get it.
JF
Thank you John