Property for rent

[SteveJ]

I've been told that once you have registered with the Polis your details are automatically sent to the tax people and not only will they tax you on any future stays but they can also charge you backdated tax for up to 5 years. If you can't provide proof of bookings they will base the value on their own estimate of what you may have earned in "rent" during those years.

I pass this on to you without any knowledge of its' veracity but before the accusations of rumormongering start let me just say that the person who told me this is Turkish, in a position to know what is going on and so far has proved to be both accurate and reliable.

[Scunner]

Sounds perfectly plausible, once people register it would make sense for them to assume that this isn't the first year they will be earning an income from renting - like shooting fish in a barrel for the Turkish taxmen.

I learned that the taxman is more feared than the police in Turkey and if they say you owe x amount you have two choices - pay it, or reject the number and pay the higher number they then pluck from nowhere.

[stoop]

I've been told that once you have registered with the Polis your details are automatically sent to the tax people and not only will they tax you on any future stays but they can also charge you backdated tax for up to 5 years. If you can't provide proof of bookings they will base the value on their own estimate of what you may have earned in "rent" during those years.

I pass this on to you without any knowledge of its' veracity but before the accusations of rumormongering start let me just say that the person who told me this is Turkish, in a position to know what is going on and so far has proved to be both accurate and reliable.

Reason #999 ;-)

[Phil]

Or maybe a better question - how many weeks do you expect to rent out your place?

This question had me diving for the spread sheets .......

Based on OUR situation and costs I reckon 8 weeks a year is enough to cover costs. ( which we normally easily achieve)

I could see how for other properties and costs that the number of weeks could be less ( or more).

The point I cannot emphasise enough is that the whole thing does not involve bother or hassle. Everything is very simple.
In fact, I am now more relaxed that we are totally legal than I was before the Registration Process was introduced.
At least now I don't have to worry that a disgruntled neighbour might report me to the Tax Office.

[Phil]

How would we go about registering with tax?

You submit the appropriate form to the Tax Office. A few days later they come to the property - principally to make sure that it exists. You are then issued with your Tax Registration Certificate with Tax number.

( Things have obviously changed because at one time you could not complete the Police Registration with out the Tax Number).

Once you have your Tax Number you can get your first book of Official Invoices Printed ( Fatura ). You will need to complete one of  these for every guest.

You then need a Notarised copy of your passport and signature and you open a Notarised Account Book.

We also gave our Accountant a Power of Attorney.

A VAT form is submitted every month ( even if there are no guests ) and there is a tax form to be completed every quarter and then at the end of the year.

It all sounds complicated - but it isn't - and our accountant did everything. He charges us 130TL every month to do everything for us.

[Phil]

I've been told that once you have registered with the Polis your details are automatically sent to the tax people and not only will they tax you on any future stays but they can also charge you backdated tax for up to 5 years. .

This is pretty much correct. The Tax Office is already checking that they have a matching Tax Return for every Police Registration.

If you have not registered for Tax they will issue an Assessment from the date of Police Registration. This process has already begun and assessments have been sent.
They are also sending Assessments to any owners that were issued with fines for non-registration during the course of last year.

Like any Tax Authority in the world they do have the power to investigate you for previous years (In England it's seven years).
However, if you have registered and paid all your taxes during the course of last year they have unofficially sort of declared an amnesty on previous years activities.

If you decide to argue with any assesments, fines, penalties etc they have the five year rule to invoke and it's a big stick to beat you with.

[Phil]

How would we go about registering with tax?

Another issue that can make a difference to the Tax Registration is the number of names on the Tapu

[SteveJ]

I assume that one name is easier (less expensive?) than two?

[Phil]

One name is certainly easier than two. We have two names on our Tapu, but this was not a massive / expensive issue to deal with.

There seem to be a few ways of dealing with multiple names on the Tapu, and at this point I feel my alleged "expertise" runs out.