EX-Pats and Owners Abroad

Discussions for EX-Pats and owners abroad or those who are considering this idea.
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My god Jo - you have been a busy lady!!!

Thanks for detailing the full process you have been through - very helpful. Looks we will have to set aside a couple of days in May to go through the same!!

So have i got it right that even though we pay tax in the UK - you still have to pay in Turkey??

LA
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leighanne

No you only pay tax in one of the two as UK and Turkey have reciprocal agreements. Thus if you pay the tax on Turkish income in Turkey you dont have to pay again in England. Where ever you pay the tax get Vat receipts for all of your expenditure on advertising/property management etc as these are all deductable here in Turkey a vat receipt is a FATURA.
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Hiya Bryn

Thanks for the clarification!! Most of my advertsing costs are incurred in the UK - Most of my overheads are in Turkey (cleaning, insurances etc) but i get rental income in Turkey and the UK - In your experience where would be the best place to declare??

LA

PS - My hubby is turkish so no probs with the language barriers and we have someone in Marmaris who deals with everything whilst we are over here
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Probably best to declare in Turkey, İf you have used up all your tax allowance in UK, because in the UK the income from renting will be treated as second income and attract higher tax rates whereas in turkey, whilst you dont get a personal tax allowance, the max rate has just dropped to 35% and you have to earn/declare a lot of income to get into that tax band.
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nicely put Bryn...declare is the oprative word.... most companies "declare" about 10% of their true income.....crazy but true. could explain why petrol is so expensive
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I was told that because its income tax, there are very few things you can claim for as expenses.

So I am just going to wait and see what happens after the accountant receives my accounts.

I will put in for expenses, but will see if they are allowed. Its all a bit confusing at the moment, as I just have to sit tight and wait to see what happens, and with Bayram on at the moment, no one is working until next week.

So watch this space.
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I have declared our villa on my tax return here in the UK and will pay tax at 40% of the income. I would prefer to pay tax in Turkey as any rental income remains there and is usually spent on the upkeep and running costs of the property.

When I asked my agent about paying tax there, I was told that you need a work permit to earn income and so pay tax, the other alternative is to set up a limited company. Both options are not worth the hassle set against the few weeks we actually recieve rental.

I would be really interested to hear from others on this matter and especially if you can set aside associated costs? Last month I paid £750 to have the place painted and this month I have to pay the agents anual management fee, anual site maintenance, anual house and earrthquake insurance, a years Digiturk, repalcement of an aircon unit that broke last year, new emergency lights and to have security gates fitted, is any of this deductable against tax?

Rimms
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Rimms in order to deduct it against tax in UK you will need to get proper receipts for it. Ask all the workmen for a fatura which is a VAT receipt. You then have to convince the UK taxman, which should be easier than trying to convince a Turkish taxman though!!!
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I was considering renting my turkish property and decided against it but my research into income tax showed that if you are a uk tax payer there is an agreement. I had a chat with a UK inspector and a Turkish bank manager and found several web sites on the matter. However if the income is generated in turkey you must pay the tax there, then you declare it in UK but you take off the tax already paid in turkey. So in effect the tax man in both countries must know about it. You can't just say well I'll pay it in UK and won't bother about it in turkey or the other way round.
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