Property investors may well be enjoying excellent returns on their investment in Turkey but the deadline for filing a tax return on the income made from property investments is looming warns Istanbul property management company TAM Property Management.
The deadline for filing income tax in Turkey is the 25th March, which means investors will have little time to prepare their income and expenses from renting out property in Turkey. The rules also apply to income made from letting out holiday homes according to advice from TAM Property Management.
Non Turkish nationals are subject to a number of property related taxes depending on individual circumstances, just the same as in the UK and other countries and these will need to be taken into account when calculating returns on investment according to tampm.org.
Unlike in the UK where the tax year ends in April, the tax year in Turkey ends in March which can cause some confusion. This is complicated further when an individual is considered resident in Turkey if they have spent 183 or more days in the country within the tax year.
There are also double taxation treaties in place with some countries, but not others. For example, The UK and Northern Ireland have a DTA agreement in place to prevent tax avoidance. Investors from the Republic of Ireland however do not have one, though the expectation is that this will be changed soon.
The income tax period is from January until December and a tax return in Turkey must be filed between 1st March and 25th March to meet strict deadlines, or investors will face penalties according to tampm.org. Taxes in Turkey are paid in 2 equal instalments – one in March and the second following in July.
TAM Property Managemt specialise in providing tax advice and solutions for investors in property in Turkey including advice on double taxation relief and filing a Resident Tax Return. The firm can also organise the completion and filing of all Turkish tax returns and advise on property tax obligations depending on country of origin.