For the majority of us tax matters can be something of a headache. If you are settling into your new expat lifestyle, looking at buying property in Turkey and wondering how all of this is going to affect the next tax season as far as your own finances are concerned then do take a minute to run through these tax pointers:
Residency status & global income
Your residency status will determine whether you are liable to pay income tax in Turkey or not. If, for instance, you live permanently in Turkey but still have business matters and income outside the country, you will be required to pay Turkish tax on all income, regardless of whether you’ve generated this income in Turkey or not.
In fact anyone who has been living and working in Turkey for longer than six months will be liable for local income tax returns. On the other hand, if you are a Turkish non-resident, limited tax implications apply and you will only be required to pay tax on the income you have earned in Turkey itself.
Getting local banks to assist
Because Turkey as a country is growing in popularity amongst foreign expats looking to invest in Turkey property, several local banks now offer services in English, with specialised international divisions. Reach out to banks such as Garanti Bank, Isbank and even international banks with branches in Turkey such as Deutsche Bank or HSBC.
Important dates & tax rates
There are two important dates to remember when living or working in Turkey as an expat. Turkey’s tax return date is 25 March, while the end of the tax year is 31 December. Whether you are already working in Turkey or planning on moving to Turkey for career purposes, always keep these dates in mind. Tax rates in Turkey differ from those back home. They are set at between 15% and 35% of your annual income, depending on your particular tax bracket.
Tax for pensioners
An increasing number of pensioners are looking to invest in property in Turkey, seeking property for sale in Feithiye, Kalkan, Antalya and other coastal resorts in particular. It’s as well to get legal information on paying tax in Turkey, as the country has agreed to double-tax agreements with some countries, including the UK.
Tax will always rear its ugly head at some point or other – regardless of where you are in the world. But it needn’t be the nightmare you fear it could become when living in a foreign country. Local banks in Turkey are very well-versed in tax matters for expats and happy to help out when called upon. If you’re concerned about how tax will affect you when you invest in a Turkey property then do get in touch with us here at Oceanwide Properties. One of our multi-lingual team would be happy to explain the situation for you. Alternatively you can also contact our office in London’s Bayham Street.