Tax In Turkey

Residence Rules
You will be treated as resident in Turkey if you have your permanent domicile in Turkey, or if you spend more than six months in Turkey in a calendar year. Businessmen, scientists, journalists, scholars, officials and other such persons who come to Turkey for a specific and temporary job are not considered to have settled in Turkey even if they spend longer than six months there.

Residence permits are usually valid for two years but are renewable for an unspecified number of times.

Income Tax
Residents of Turkey are liable to income tax on their worldwide income. Non-residents of Turkey are subject to income tax in Turkey on income deriving from Turkish sources alone.

Tax Rates for 2004

Deductions
Employed individuals are entitled to deduct their rental, health, clothing, food and education expenses, up to certain limits.

Tax Filing and Compliance Obligations

Tax Returns are generally only required where income has not been taxed at source. Even where a tax return is filed, there is no need to report the income that has suffered withholding tax.

Self-employed individuals must make 4 advance payments of tax, one every quarter, of 20% of the net profit. Their tax returns are due by 15 March following the tax year in question.

Social Security Payments
Turkish employees will pay around 16% of their salary in social security contributions, subject to a maximum limit. Overseas citizens working in Turkey are liable to pay contributions of 5%, up to a maximum limit.

Capital Gains Tax
From 1st January 2003 to 31 December 2008, gains made by individuals on the sale of residential property are exempt provided the property has been held for at least 4 years. This 4 year requirement does not apply if the property was inherited. Otherwise, gains are taxed as ordinary income according to the scale rates shown above.

Individuals (residents and non residents) are not required to file a tax return to report their capital gains, regardless of the amount of gains, if they arise from the disposal of the following assets:

Shares acquired for no consideration (by inheritance or gift).
Shares listed on a Turkish stock exchange that have been held for at least 3 months.
Shares issued by a Turkish AS company that have been held for at least 1 year.
There is an annual capital gains tax exemption of TRL 10,000 million.

Wealth Taxes
There are no wealth taxes in Turkey.

Inheritance and Gifts Taxes
Turkish citizens are subject to inheritance and gift tax on worldwide assets received. Foreigners resident in Turkey are liable to inheritance tax and gift tax on worldwide assets received from Turkish citizens and on assets located in Turkey. Non resident foreigners are subject to inheritance and gift tax only on assets located in Turkey.

The tax rates usually vary between 1% and 30% depending on the residence status of the recipient and the location of the property.

The tax is payable over 3 years, in May and November.

Inheritance and Gift Law
Children are reserved heirs in Turkey and have automatic inheritance rights. If you have no children, your parents become your reserved heirs. If your parents are no longer alive, your sisters or brothers are next in line to inherit. A spouse has limited entitlements and the amount to which they are entitled depends on whether there are children or not.

The reserved portion for children is 75%, for parents 50%, for each brother and sister 25%. The spouse is entitled to the remainder. If there are no reserved heirs, the spouse is entitled to the entire estate.

Turkish gifts laws provide that non Turkish residents can only gift Turkish real estate to relatives resident in Turkey.

FREE Air Conditioned Shuttle Bus

All our developments feature this very popular facility.

Our Fleet of Shuttle Buses are not more than 2 years old, our drivers are uniformed, always helpful and speak reasonable English.

The Shuttle buses will take you and your guests to all the local and popular places, beach, supermarket, local town, local market and much more.

A schedule of times and places will be provided to owners prior to taking delivery of their Villa or Apartment.

The cost of this facility is included in the maintenance charge.

Utility Bills

Some buyers have asked what likely utility bill costs will be incurred, we can confirm that the average cost of electricity for a 3 bed property with full air-conditioning/heating running all the time would cost approx. €35-40 per month. Gas bottles are used for cooking and a €15 gas bottle will normally last for 2 months if used everyday.

Rental Income

Rental Management Companies

Midas Client Services Ltd offers a full Rental Management service.

These monthly income projections are shown for guidance only

1 Bed Apartment £200 - £340
2 Bed Apartment £350 - £500
2 Bed 75m/sq Villa £400 - £680
3 Bed 90m/sq Villa £550 - £750
3 Bed 110m/sq Villa £600 - £900
4 Bed 130m/sq Villa £700 - £1000
5 Bed 150m/sq Villa £800 - £1100
5 Bed 180m/sq Villa £1000 - £1300

Actual incomes depend on the season and the villa spec, and the above are net of management costs

Incomes are projected for the period from April to October inclusive.

Building and Contents Insurance

Insurance cover is from a very reputable company owned by one of the Top Turkish Banks are shown below, these are approximate costs and we would be pleased to secure a firm price for you on exchange of Preliminary Purchase Contracts regarding a Villa or Apartment.

To request a quotation Click Here.

To download a detailed leaflet Click Here
(This file is an Adobe Acrobat file 328kb, either click to display or right click to download).

Included in the below costs are the following:-

• Re-build costs
• Furniture to a value of £15,000
• Glass (Windows & Doors) to a value of £1,000
• Electronics to a value of £2,000

Also included is earthquake cover.

Note: Build Sum only needs to be cost to rebuild.

Moving To Turkey

Turkey is a very long drive from the UK, so it is likely that you will employ a removal company rather than hire your own van and move everything yourself. If you wish you can take your property out yourself, but you may be asked when you arrive for an inventory in Turkish and proof of ownership. Neither is easy to provide. If you do this it will be an advantage to be able to speak Turkish.

Removal Companies
Removal companies charge about £4,000 for taking the contents of a medium sized house from the UK to the south of Turkey. We list details of a few removal companies that deal with UK to Turkey house moves, but you will find many more if you search the internet. However, the best way of finding a reliable company is through personal recommendation, because it is almost impossible to asses the quality of these firms through the information they themselves provide, and it is very important to find a company that sticks to what you have agreed with them about the time, price and other details.

Most of the tasks in connection with moving will be familiar to anyone who has moved house, but a few extra factors come into consideration if you are moving to Turkey. Property removal is generally charged by volume - per cubic metre. Usually you pay the same price until the bulk to be moved reaches 30 cubic metres - ask for information about this. Make sure you are adequately insured for the move (most removal companies offer their own insurance for loss of breakages; check the excess limit).

Removal Companies
See generally: www.international-movers.com; www.oneentry.com. Check www.google.co.uk.

British Association of Removers 3 Churchill Court, 58 Station Road, North Harrow, HA2 7SA Tel: (020)8861 3331 Fax:(020)8861 3332 info@bar.co.uk www.removers.org.uk Reliable companies should be members of this association.

Anglo Pacific www.anglopacific.co.uk Units 1 & 2 Bush Industrial Estate, Standard Road, North Acton, London, NW10 6DF Tel: (020)8965 1234 Fax:(020)8965 4954 info@anglopacific.co.uk Unit 4 Townley Park, Hanson Street, Middleton, Manchester, M24 2UF Tel: (0161)653 4455 Fax:(0161)653 4466 north@anglopacific.co.uk 26 Eastmuir Street, Annick Industrial Estate, Shettleston, Glasgow, G32 0HS Tel: (0141)764 1010 Fax:(0141)764 1013 scotland@anglopacific.co.uk

Atlantis Overseas Removals enquiries@atlantisltd.co.uk www.atlantisltd.co.uk Atlantis House, Bennett Road, Leeds, West Yorkshire, LS6 3HN Tel: (0113)278 9191 Fax:(0113)274 4916 1607 Pershore Road, Stirchley, Birmingham, B30 2JF Tel: (0121)451 1588 Fax:(0121)433 4034

Bishop's Move Branches nationwide Tel: 0800 616425 www.bishopsmove.com

PSS 1-3 Pegasus Road, Croydon, Surrey, CR9 4PS Tel: (020)8686 7733 Fax:(020)8686 7799 www.pss.uk.com sales@p-s-s.co.uk

Transmaroc 10 School Lane, Old Leake, Boston, Lincolnshire, PE22 9NJ Tel: (01205)870422 Fax:(01205)870710 www.transmaroc.com

VISAS

If you hold a British Passport, then you can obtain a three month multiple enter sticker type visa at the point of entry in Turkey. The current charge is £10 payable in UK Sterling.

If you wish to reside in Turkey longer than the normal period allowed to tourists or set up a business with or without a Turkish Partner, you will need a residence Visa.

For full information Click Here to be connected to the website for The Consulate General for Turkey in London.

Restaurant Review

Sorry this section is currently being updated.

Recommended Solicitors

John Howell & Co. have spoken to and are happy to recommend solicitors who are ready to act for you, they are:-

The International Property Law Centre

Suffolk House
21 Silver Street
Hull
HU1 1JG

Tel: +44 (0)870 800 4500
Fax: +44 (0)870 800 4567

Contacts:
Tarra Hickson Tel: +44 (0)870 800 4523 Email: tarrah@maxgold.com
Funda Unlu, Turkish Lawyer Tel: +44 (0)870 800 4551 Email: fundau@maxgold.com

They are a major Solicitor of the highest standard Click Here to download an overview, experienced in overseas property transactions with the full protection of the Law Society rules and regulations, costs we understand will be £1,250 (VAT not applicable) for properties up to £100K and £1,400 for purchases above £100K.

Recommended Travel Agents

We are pleased to recommend a very good Travel Agent if it helps you, we have found that they go that extra mile to find the best deal.

Their contact details are AIR-TEXT, ask for Jeff, Emma or Claire on 01438 840081 or 01438 841042 or email on jeffp@air-text.com, please tell them you were recommended by MIDAS PLC.

Foreign Exchange Services and the Best Rate

If you are buying a property in Turkey, whether as an investment, holiday or retirement home, or to live permanently, it is likely that you will have to pay for your property in Euros or possibly Turkish Lira.

Exchange rate volatility will inevitably play a key role in your property purchase. It is not uncommon for currencies to fluctuate by as much as 10% over relatively short periods of time.

For example, a couple wishing to purchase a property in Turkey for 80,000 Euros could have paid the Sterling equivalent of £53,011.60 in June of 2004. Six months later they would have paid £55,729.60 for the same property. By securing an exchange rate in advance, they would have made a saving of almost £2,718.

Moneycorp offer the following benefits for your purchase transactions:

• More competitive exchange rates available, saving you money.
• Fixed exchange rates for settlement in the future, protecting you from adverse currency movements and allowing you to lock in to favourable exchange rates.
• Fast and seamless international money transfers.
• Friendly, expert staff to guide you.
• No commission charges.

Currency Exchange FAQ's

Q. Where should I buy currency?
You can obviously walk into any high street bank or bureau de change and exchange your currency for Euros. This may be convenient for your holidays but for larger amounts of currency it pays to get in touch with a specialist foreign exchange dealer such as Moneycorp. Specialist brokers will almost always offer much more competitive rates than high street banks or tourist outlets, as they deal exclusively in high-volume transactions and their overheads are much lower.

Q. What will it cost me?
Currency brokers do not charge a commission fee as they make a margin on your money from the high-volume rates they obtain in the money markets. Don't be afraid to email or pick up the phone and call a currency dealer like Moneycorp to see what rates are on offer and compare with your bank. In general the more money you wish to convert the better the rate. Depending on your bank or broker, there will be a cost to transfer funds of between £15 and £40 per transaction. It's a good idea to compare the total cost of a currency trade as some currency dealers do not charge a transfer fee but more than make up for this difference in the exchange rate that they quote.

Q. What information do I need to provide in order to make an exchange?
You can set up a trading facility free of charge and without obligation. Simply fax or post your completed application form to your currency dealer along with copies of two forms of identification e.g. a copy of your passport plus a recent utility bill or bank statement. Your account is normally opened the same working day. Moneycorp can open your account within an hour if your payment is urgent.

Q. How do I purchase currency?
Provided you have set up your trading facility with the broker or bank you will be able to buy currency over the telephone. This usually takes the form of a binding verbal agreement to buy currency at the quoted rate.

Q. Can I hold out for a particular rate?
Yes, you can instruct the broker to contact you the moment the rates change to your desired level. Some brokers, such as Moneycorp, can place an order to purchase currency outside London trading hours, which will automatically trigger as soon as your desired rate is achieved. Just make sure you are being realistic about the rate you are looking for and be prepared to wait!

Q. What if the rate is good now, but I don't need to make payment for 3 months?
You can fix an exchange rate for up to two years to make it easier to plan the cost of your currency payments. This is particularly useful if you are buying a new property "off plan". Through a reputable currency dealer, forward buying your currency is very straightforward. Simply book an exchange rate and send your dealer a deposit, usually 10% of the contract value. The 90% balance of your currency contract is payable when you wish to have funds transferred overseas. Many dealers recommend spreading your currency risk by splitting your currency requirement in two, buying half on a forward contract, as above, and the rest nearer your completion date.

Q. Will foreign exchange dealers offer advice about market conditions and rates?
Currency dealers are not regulated to give advice but many will provide you with information about prevailing market trends and currency movements. However, remember that no-one can predict the markets with any real certainty. You will have to make your own decision about when to buy currency, but market knowledge and experience imparted by your currency dealer will hopefully make that decision easier! Further information can be found at websites such as www.moneycorp.com where you can peruse the latest currency charts as well as sign up to receive daily or weekly market updates.

Q. How do I pay for my currency?
After fixing the exchange rate with your dealer, you will need to transfer funds to their client account. The easiest and quickest way is by bank transfer but some currency dealers will accept a cheque. Bear in mind that your cheque will have to clear before funds can be sent. Once the dealer has received your cleared funds, they will transfer your currency to the account of your choice.

Q. How can I find out current exchange rates?
The Interbank rate can readily be found on the internet and on Ceefax. Moneycorp's website has live currency charts and you can also view historical exchange rates. Although a useful guide to current market levels, do bear in mind that unless you are trading millions of pounds on a regular basis, you will not receive the Interbank rate for your own transaction! For a live quote on the amount you are looking to exchange, it is best to call your currency dealer.

Q. How long will my funds take to transfer to an overseas bank account?
Foreign exchange dealers use Electronic Funds Transfer and can generally get the funds into the destination account a good deal quicker than a high street bank. Moneycorp has a same-day transfer service to most European countries and North America, and next day for all other destinations. Bear in mind that there is sometimes a short delay in the receiving bank before your account is credited, this can usually be overcome with a "proof of payment" document that your currency dealer can provide on request.

Car Hire

We are pleased to provide you with an unbeatable car hire facility,
all cars are not more than 1 year old and all are of the highest standards.

Rates are daily and include unlimited mileage, CDW and 18% tax and are quoted in EURO.
Optional Personal Accident Insurance, Daily Rate: € 4 and € 6 for E,F,H
Optional L.C.F.: € 5 for E,H
Additional Driver: € 4
a/c = Air Conditioning

Drop Off Fee: Izimir or Dalaman = € 120 - Antalya = € 250

Contact Ian Simpson to make a reservation
Tel: 01323 43 20 43
Fax: 01323 43 20 44

Airport Pickups

Sorry this section is currently being updated.

Maid Service

For your complete enjoyment we are pleased to provide you with a professional maid service, who will clean the villa, change and launder all the bed linen on a weekly basis, an average villa will cost € 25 per week inc VAT.