Turkey Property Investment

Tax Issues

As a prime rental location, Turkey is a highly desirable holiday resort for some time and is a country where British people are increasingly starting to own a Turkey property investment. Turkey has a proven track record as a place people want to visit, with established travel routes and a strong economy. A Turkey property investment on a luxury complex with so many location features is always in demand.

Buy to Let Finance – Investing money in a Turkey property investment has become more popular over the last decade, as the volatility of the stock market has meant that people have looked for different ways to make money.

Buy to Let mortgage products are more expensive than traditional mortgage products because of the higher risks involved, for instance periods when you can not get a tenant for the property. However there are several specialist mortgages on the market, so they are competitive for their field.

There are many products on the market and we suggest seeking proper professional advice is worthwhile. If you are seeking a mortgage then we can advise you through our mortgage partners.

How do I deal with tax?

It’s hard to find tax advice in plain English, and the laws vary from country to country. Do your own research into tax laws, consult one of many books about buying abroad and if in doubt get in touch with the tax office or hire an accountant.

• Investigate the laws on income tax in Turkey. Usually you will have to declare the income from your Turkey property investment every year and pay tax on it.
• In most countries where Britons buy second homes, a treaty is in place to stop you paying tax in both countries, so do check this.
• If you spend most of the year living outside the UK, being registered as a resident in another country could save you money.
• Keep a spreadsheet for your bookings and the payments you receive. Also record all your mortgage interest payments. This will keep you organised and it will make things easier when you have to declare your net income at the end of the tax year.
• Keep your receipts. Keep all receipts related to costs for your Turkey property investment. Add up your expenses and deduct it from your overall income. What’s left is the amount you’ll pay tax on.

For more details on how to manage your taxes, check out http://www.direct.gov.uk and follow the link for tax.

If all this is all too much, you can employ an accountant to help! Try searching our Property Services Directory to find an expert.

Content courtesy of holidaylettings.co.uk