Author Topic: Pensions & Tax  (Read 10951 times)

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Offline hamilton

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Pensions & Tax
« on: September 11, 2007, 20:27:31 PM »
We are both about to move to Turkey, both will receive state UK pensions, and both will also receive private pensions, earnt in the UK. Am I correct in saying that the State pension is subject to UK tax, and the private pension is subject to the Tax of the country you are living in. If so how does the system work? what % of Tax do you pay in Turkey. Or am I completely wrong and both the pension are subject to UK Tax?

Tony & Jean



Offline pookie

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Pensions & Tax
« Reply #1 on: September 12, 2007, 08:31:54 AM »
Hi Jean and Tony   - good luck with your move.  I can answer part of this for you, so perhaps someone else can pick up the rest of the question....

Good news is that there is a Double Tax Treaty between UK and Turkey.  Article 18 of this treaty exempts both state and other pensions arising in the UK to UK non-residents, taxing them only in Turkey.    I can send you a copy of the treaty if you need, but you should be able to pick this up of the web somewhere. How much tax would be applied in Turkey I'm afraid I can't answer, so over to someone else........??

Offline hamilton

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« Reply #2 on: September 12, 2007, 16:36:53 PM »
quote:
Originally posted by pookie

Hi Jean and Tony   - good luck with your move.  I can answer part of this for you, so perhaps someone else can pick up the rest of the question....

Good news is that there is a Double Tax Treaty between UK and Turkey.  Article 18 of this treaty exempts both state and other pensions arising in the UK to UK non-residents, taxing them only in Turkey.    I can send you a copy of the treaty if you need, but you should be able to pick this up of the web somewhere. How much tax would be applied in Turkey I'm afraid I can't answer, so over to someone else........??


Offline peter16

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« Reply #3 on: September 12, 2007, 17:54:07 PM »
You should find that the state pension part of your income is tax free in Turkey and the private pension part is taxed as earned income ( earned income is taxed at a slightly lesser rate than unearned income).Good luck with your retirement plans hope to be following you soon.
peter16

Offline hamilton

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« Reply #4 on: September 12, 2007, 21:12:42 PM »
Thanks for the info peter & pookie.

tony & Jean

Offline vexaar

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Pensions & Tax
« Reply #5 on: September 14, 2007, 21:36:26 PM »
If you have a local government pension in the UK it's taxed at source. Wherever you are. If you have a private pension you can choose between being taxed in Turkey or taxed in the UK. Double taxation prevents you being taxed more than you would at the highest rate in either country. If you have a retirement visa in Turkey then I think you won't be taxed at all. I stand to be corrected on this.

Offline stuart

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Pensions & Tax
« Reply #6 on: September 16, 2007, 04:32:30 AM »
i would like to hear from anyone who has actually opted for paying tax in turkey , how they did it and got on ,if anyone has!

Offline hamilton

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« Reply #7 on: September 16, 2007, 10:55:12 AM »
Thanks vexaar for your info. I did not realise that there was any such thing as a retirement Visa. What is the protocol/age/procedure/term/cost etc for obtaining one? Is there any advantage/disadvantage compared to a residents visa? Do you have to have a retirement visa once you reach a certain age, or is it a personnel choice.
Thanks again Tony

Offline vexaar

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Pensions & Tax
« Reply #8 on: September 16, 2007, 12:24:50 PM »
http://www.gib.gov.tr/index.php?id=466

This is the home page of the Turkish tax authorities (in English)

http://www.turkisheconomy.org.uk/index.html

This is the home page of the First Economic Counsellor at the Turkish Embassy in London.

If you apply for a residence permit and show your retirement papers you will then get residency showing you to be retired. The one advantage that I can see is that you can bring a car into Turkey and keep it here indefinitely. I'm not sure about the tax position. I'm certain I saw somewhere that foreign pensions aren't taxed but I'm not sure and it doesn't apply to me. When I did once try to work it out I calculated that I would be taxed slightly more under Turkish tax than English tax.

« Last Edit: September 16, 2007, 12:26:12 PM by vexaar »

Offline tylerbabe

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Pensions & Tax
« Reply #9 on: March 18, 2009, 11:30:02 AM »
Has any one ever found out about your state pension not being taxed in UK and being taxed in Turkey yet as I have had a letter from UK.
They are asking me to find out in Turkey to tax me then I would be exempt in UK.:D




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