BernardMatthews

I'm thinking about buying a property and living in Turkey for most of the year. I won't be renting the property out ,nor will I will I be working ,there or indeed anywhere else. I'm still not going to be taking any pension for a number of years yet ,but I am concerned to know what the tax position is in Turkey for tax levied on interest earned on deposits/bonds. Inside Turkey is clear enough, but outside Turkey I am still unsure of the position.

I was thinking to simply take enough capital into Turkey that would generate sufficient interest to meet all living expenses and leave the majority of it outside Turkey mainly because I would be extremely uncomfortable having all capital in Turkish banks. Clearly funds in Turkey generating interest are tax deducted at source similar to the UK .I believe the deduction is 10% which seems very reasonable to me given the rates of interest are high.
However , does Turkish tax Law extend to the interest that is generated outside Turkey ? and if so is it again based upon the 10% figure ? Do any personal allowance come into the equation to offset any tax payable on interest earned ?

Perhaps anyone currently living there with a similar situation to mine might be able to help shed some light on these questions for me.
Thanks.

Harem

I don't know the answers to much of your post, but the tax is 15%, not 10%. I think things like personal allowances don't actually come into the equation, but am not 100% sure of that.

Anyway, welcome to the forum and I have to ask, will you be bringing any turkeys to Turkey??

BernardMatthews

I was just trying to be "when in Rome do as the etc".

15% now is it. If Newton had thought about taxes he would never have come up with a Theory for Gravity.

dede

Tax on normal YTL accounts is 15%, the better option is Turkish Government bonds that pay you 22% interest over a 432 period or 22.4% @ 530 day period (once money is deposited you cannot withdraw until matured) and you pay 10% tax on the interest gained.

BernardMatthews

Ok,thanks for the info on bonds and normal deposits inside Turkey. I'm clear on this now.

However ,do we have anyone living fulltime )or near to it) in Turkey who also has interest earning deposits outside Turkey? and if so does the Turkish tax also levy tax of any kind on these ?

Mushroom

Bernard Matthews - Turkey - So simple - Love it.

Welcome to the forum, hope you enjoy !

Darren

Turkey Boyo - all tax on Turkish deposit products and money market funds deducted at source- most all Turkish banks now owned by foreign banks and have recapitalised balance sheets BEFORE the sub-crime prices hit....you can reclaim tax deducted via a dual tax treaty in country of tax residency...otherwise interest earned on deposits offshore Turkey are not likely to attract the interest of the Turkiish Tax man unless you have Turkish citizenship and insist on paying....

If you're going in and out on a tourist visa as per man of leisure every three months or so...for example to Cyprus...then you are limiting your Turkish income tax liability...however your interest income will be taxable in Turkey conceivebly at the income tax band rate for your income...although there are foreign investor withholding exemptions...you could always put your money on deposit in a foreign owned Turkish Banks branch in Turkish Cyprus...or Iceland

Andywebb

Be aware that the Turkish banking system will only protect you for 50,000ytl per named person on the account. So a joint account will protect 100,000 ytl in th event of a bank collapse.

ROSEMARIE

how safe are the bonds and where do you get them from. any info very welcome.