Rental Tax FAQ's
Please read the below.
If we have not answered your questions please contact us
Q. What is the Turkish tax year?
A. The Turkish tax year runs from January 1st. till 31st. December
Q. When do tax forms have to be submitted?
A.Tax forms have to be completed and submitted between 1st. and 25th. March
Q. Do we get a tax allowance in Turkey?
A. Yes every registered tax payer gets an allowance before tax is due, for the 2010 tax year it is 2600TL.
Q. Are their any other allowances l can claim if l rent my property as l pay maintenance and repairs etc?
A. The Turkish tax authorities allow 25% off after your allowance to compensate for your costs. If you take up this option they do not require any proof or receipts.
Q. How much tax will l pay lf l am the only owner?
A. Example 5000TL rental income minus 2600 = 2400TL minus 25% maintenance and costs allowance 600TL = 1800TL so Tax due is 15% = 270TL
Q. There are several owners what will we pay?
A. If there are several owners you can each claim your allowances against any tax due.
10,000TL rental income minus 2600TL x 2 (5200TL) less 25% maintenance and costs allowance 1200TL= 3600TL so tax due is 540TL
Maintenance allowance can only be claimed once. ALL owners must submit an individual tax form showing the income divided by the number of owners.
Q. My rental income on our property is under my allowance so there is no tax to pay. Do l have to submit a tax form showing a nil amount?
A. No there is no requirement to submit a tax form if your rental earnings are below your tax allowance for last year (2600TL per owner on your Tapu) However any rental activity at a property could be checked
Q. We own more than one property can we claim our personal allowance on each one?
A. NO, your personal allowance is given against your tax number so can only be claimed once. You will have to add up income from all properties, minus you tax allowance(s) then minus the 25% costs allowance. Tax is paid at 15% on that figure. Earnings over 8800TL are taxed at 20%
Q. We do all our own lettings from the UK and take all monies in the UK; do we still have to pay tax in Turkey?
A. The Turkish Tax authority’s state that any rental income earned in Turkey on a Turkish property is taxed in Turkey. The UK tax authorities will allow anything you pay in Turkey to be deducted from any obligation you have in the UK
Q. Do we take off all maintenance, electricity, water and repair costs etc off the rental amount earned then deduct our 2600TL(s) then the 25% allowance and then pay the 15% tax on the remainder?
A. NO, using the “simple” method above to pay tax the Turkish tax authorities allows the 25% figure ONLY for expenses. You cannot take expenses off and then use this 25% allowance as well. If you use this method you cannot change to a different way of paying tax for two years.
Q. What happens after they have been submitted?
A. Any tax due will then be calculated and the amount set against your tax number usually around the end of March. When the tax is paid there is a “stamp” to pay about 40TL.
Q. When do l have to pay?
A. You can pay at any time BUT interest will be charged every month until it is cleared @ 1.5% per month
Q. How will l pay this tax if l am in the UK so l do not incur interest charges?
A. It is possible to pay via transfer to certain Turkish banks. In practise anyone using our services pays in the UK and we physically pay in the Tax office and get an official tax receipt for each owner
Q. What service do you provide and what is the cost?
A. We will on receipt of the relevant information calculate your tax obligation and inform you of this. You will then confirm your acceptance of these figures and pay our fees. On receipt of these fees we will prepare and submit your tax forms at the due time. Once the official tax calculation are returned from the tax authorities we will inform you and if you wish you may either pay these yourself or we will pay them for you. All receipts are kept and will be available. The cost for this is 230TL +KDV 18% (Turkish vat)
If you are not already on our data base there is a 50TL charge which includes a “plaque” showing your tax receipt and our contact details
Q. I have been told that if l rent out my property that the least tax that l can pay is 5% of my Tapu value.
A. Basically this is correct, Turkish tax authorities are aware that rental income is difficult to prove so have decided that there will be an “Equivalent Rental Income” which is 5% of the Tapu value. Read official tax literature for more details. Most rental income is over this amount. Tax authorities assume that only children and parents of the owners or a “live in” caretaker will not pay rental.
Q. Is there any other method that l can pay tax that could be more advantageous for me?
A. Yes, if you have several properties or a high rental income then contact us and we can discuss your requirements, there is no obligation.
Required Details
We need the following to submit tax forms:
- An email giving us permission to submit your tax forms and stating your rental income
- Copy of passport(s)
- Copy of Tapu
- Property address(s)
- Your Tax Numbers (if you own a property at some stage you must have been allocated a tax no. If you do not know this number we can retrieve it or get one for you from the tax offices. We will need your mothers and fathers names. This will cost 25TL)
See below for Official Literature in English.
Information has been gained from official sources and is supplied in best faith but you must verify all details yourself. Oakwood takes no responsibility for information supplied.
