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 Post subject: Retire in Turkey - Tax situation?
PostPosted: Sat Apr 13, 2013 5:29 am 
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Joined: Sat Apr 13, 2013 5:05 am
Posts: 7
Hi everyone,

Been searching on Internet to get clear directions on how people get taxed in Turkey if they live there (without a job), like somebody that gets retired. Some people say, as long as you have your ikamet, and there is no income that was created in Turkey, you do not need to file for tax at all. Other say, if you live more than 180 days per year in Turkey, you are Tax resident, and you get taxed on your world income...

So, what is the real situation. Let's assume I have offshore funds (for pension), so outside Turkey, but I live more than 180 days per year in Turkey, do I need to get taxed on these offshore funds in Turkey? Or perhaps, you rent out a house outside Turkey (and receive that money on a Bank outside Turkey), but you use that money to live in Turkey, are you getting taxed in Turkey on that?

thanks for a clear guideline on this, or perhaps refer me to a (official) web-site

Would also enjoy if people in similar situation as myself would share their story of living in Turkey

cheers
Bob


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 Post subject: Re: Retire in Turkey - Tax situation?
PostPosted: Sun Apr 14, 2013 11:33 am 
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Would really appreciate some advice from someone, thanks !!


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 Post subject: Re: Retire in Turkey - Tax situation?
PostPosted: Sun Apr 14, 2013 12:24 pm 
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Joined: Mon Apr 16, 2012 10:45 pm
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In short, there is a way that if the income is from a non Turkish foreign source (such as a non Turkish pension), it is paid as a salary or pension (so not investment income such as direct dividends), and it's paid in a foreign currency, it is not taxable in Turkey.

I am still grappling with this one and once I have got all the details I will share it, but I would strongly suggest you seek proper advice.


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 Post subject: Re: Retire in Turkey - Tax situation?
PostPosted: Sun Apr 14, 2013 12:48 pm 
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Joined: Sat Apr 13, 2013 5:05 am
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Hi, thanks !! really great to a reply, I have been searching on Internet, but not much info exist. I thought that more people have chosen Turkey for retirement, so there should be info available how people get taxed :-)


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 Post subject: Re: Retire in Turkey - Tax situation?
PostPosted: Sun Apr 14, 2013 5:46 pm 
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Joined: Sun Jul 15, 2007 1:14 am
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Having lived in Turkey for 8 years I do not pay Tax. I pay Tax at Source i.e Bank Interest but the rest no I do not.There is no tax on money from outside Turkey.Just get yourself a Tax Number ( free of course ) Residents permit and open a Bank Account.

Ian


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 Post subject: Re: Retire in Turkey - Tax situation?
PostPosted: Sun Apr 14, 2013 8:26 pm 
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Thanks Ian, that helps, I was hoping for this !! I was comparing to retire in Spain versus Turkey. Clearly in Spain you get taxed on worldwide income, even if you have only personal pension funds, and the Tax is on the increase as Spain is in search for Money. Turkey is in better condition, still close to Europe, so it seems perfect for Retirements without too much hassle on Tax.


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 Post subject: Re: Retire in Turkey - Tax situation?
PostPosted: Tue Apr 16, 2013 7:59 pm 
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It's not quite true, once your become tax resident (after 180 days in Turkey) you are liable for taxation on your world wide income. But there is an exemption if you meet 4 criteria

1. Income is from a foreign non Turkish source
2. Paid in a foreign currency
3. Is a salary or pension (sadly direct dividend income is still taxable, if you declare it)
4. One other but I don't have my notes with me

So ordinary pensioners should not be taxed, but if you have other income you may want to have it looked at. If you are from the UK you may also consider moving a UK pension into a QROPS, as that may also have some tax benefits.

Bare in mind also that tax residency and tax domicile are two different things and while you can be tax resident in Turkey you may also be tax domiciled elsewhere (I believe it's a bigger problem for US citizens, but if you are from the UK it means you will stiff have to pay IHT in the UK).

As I said you may be better off getting formal advice.


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 Post subject: Re: Retire in Turkey - Tax situation?
PostPosted: Tue Sep 17, 2013 4:02 am 
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hiya

There is no tax in Turkey for money paid to you as a pension or interest/dividend income. If you work in Turkey then you will have to pay tax on earnings

I am retired for 10 years living in Turkey and have my pension transferred to my Turkish bank account here.


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 Post subject: Re: Retire in Turkey - Tax situation?
PostPosted: Sun Oct 20, 2013 3:30 am 
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Great post. Sometimes these posts can be unclear cause answers depend on citizenship and most don't say..... I am a US citizen and retired Military. Will I have to pay anything from my Retirement/Disability?

Will make a separate post but..... How do I access my US money from Turkey?


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 Post subject: Re: Retire in Turkey - Tax situation?
PostPosted: Tue Oct 22, 2013 5:25 am 
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hi

Please refer to my answer on the other post that you made. Additionally, there is no limit to the amounts of money that you can transfer. It does take a couple of days to physically get the money into your Turkish account as It has to go through a central clearing system. You will need an individual tax number for all permanant ex-pats.

Right now the exhange rate is approximately 2 to 1. (2 Turkish liras for every dollar.)

You will have to open 2 seperate accounts. US dollar and Turkish lira so that you can freely move your funds. Isbank has the facilities to pay most every bill through their internet banking system.


Matt


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