Do you own a self catering apartment in Turkey? New Tax regulations coming soon!

Property at Royal Heights Resort, near Bodrum, Turkey
Property at Royal Heights Resort, near Bodrum, Turkey

New regulations for renting out your Turkish property

A new regulation (set to be introduced) by the Minister of Tourism & Minister of Internal affairs will see tighter controls for homeowners wishing to rent out their Turkish properties to holidaymakers.

YellAli has received the following information from the Ministry of Tourism and although regulations are not yet fully finalized, we thought it necessary to highlight what the new planned regulations will be.



Paying income tax

This it not a new regulation. However, Turkish authorities will now start to clamp down on homeowners who rent out their Turkish property to holidaymakers without contributing any tax to the State. Stricter punishments will be enforced for homeowners who do not comply.
                                                         

Declaration

If you plan to rent out your Turkish property to holidaymakers, then you must make a declaration to the Turkish authorities stating you wish to rent out your property.
This will be a signed declaration (by the home owner/s ONLY) stating your intentions to rent out your property as a business.

Declarations will be made to either the Police or to the Jandarma. 




Passports
Homeowners will need to obtain photocopies of each individual passport (photo page) of each guest / holidaymaker and hand them to the local Police or Jandarma. It may be possible to fax these details to the relevant authorities. 
(Details to follow)



Please note: This procedure is common for all hotels, guest houses and pensions across Turkey



Setting up a Business

You will need to register as a business to the government department; Esnaf Odasi  (chamber of tradesmen) This is a government department for small business owners. Do not confuse this with the Turkish ‘chamber of commerce’ which is for limited companies.



Please note: You may be required to employ a Turkish accountant, ( Pending further information)



TAX
You will be required to pay rental income tax to the Turkish authorities and may not have the option to pay your rental income tax to the UK.


You can pay your rental income tax either monthly or yearly, (in Turkish lira) to the Turkish Tax office (Vergi Dairesi)


It will also be possible to pay via your Turkish bank. (Either online or direct)
 (Full details about Tax issues to follow)



Why are they doing this?

One of the biggest reasons is tax evasion. 
There are many thousands of homeowners who regularly rent out their Turkish property every year without paying any income tax.
The Turkish government is now clamping down on this and punishments for tax evasion could be up to 10,000 tl.

Can I choose not to register with the Esnaf Odasi if my taxes are paid in the UK?

At the moment this is highly unlikely.

Do I have to provide photocopied passports for ALL guests?

Yes, this will be required for all guests



Can I employ a local letting agent to handle this on my behalf?
Yes, this will be possible. However, setting up a business will need to be completed by the homeowner. (full details to follow)



Will I be affected if I wanted to rent out my property long-term?

Homeowners wishing to rent out their properties long-term, (i.e minimum 12 months, living in the property) will not be affected.
However, they are expected to declare their rental income to the tax office.



When will the new regulations be finailised?
It is difficult to say, it coul dbe within a week, it could be a month. We shall keep our eye to the ground for the latest information.

Article taken from http://www.yellali.com/news/article/34/new-regulations-for-renting-out-your-turkish-property

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