cowboymug

Member
Tourist residence permit and tax
If I get a tourist residence permit but stay in Turkey for less than 180 days in the calendar year - will I be considered a tax resident?
 

BEZ

Member
Tourist residence permit and tax
This is taken from the UK government website
You're automatically resident if either: you spent 183 or more days in the UK in the tax year. your only home was in the UK - you must have owned, rented or lived in it for at least 91 days in total - and you spent at least 30 days there in the tax year.
 
Tourist residence permit and tax
Are you talking about the Dual Tax Agreement between Turkey and the UK? If so, you have to apply to the UK tax office to be declared Non Resident. You have to prove yourself permanently resident in Turkey, by providing your stamped and verified Turkish Tax Card, last UK Tax Coding, Resident Permit, and several other documents that I can't remember. Once you are declared non resident in the U.K., you can only stay in the U.K. for so many days in a year - 90 I believe? The forms can be downloaded, and it takes several months for the process to be completed.

A Resident Permit on its own does NOT remove your U.K. tax liability.
 

Ken Grubb

Member
Tourist residence permit and tax
Be sure to Google and read your country's tax treaty with Turkey. Turkey has them with many different countries. By default, ALL worldwide income is taxable in Turkey if you become a tax resident, that is, unless the tax treaty between Turkey and your country says something is only taxable in your home country.

For example, I'm from the USA, and my income comes from a government pension and rental property in the USA. Because of the tax treaty between Turkey and the USA, both of those sources of income are only taxed in the USA, and are not taxed in Turkey.
 
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cowboymug

Member
Tourist residence permit and tax
My situation is that I am a perpetual traveller and not a tax resident of any country, so I would not have a double taxation treaty to benefit from.
No need to discuss this point as I already have been professionally advised on it.

Does this mean that, even if I stay less than 180 days in the country, applying for the tourist residence permit would "domicile" me in Turkey and make me a Turkish tax resident?
 

alva5763

Bodrum buddy
Tourist residence permit and tax
I think they mean visa. What earnings would you have in Turkey to pay tax there?
 

IbrahimAbi

Grey wisdom
Tourist residence permit and tax
Tourist residence means Short term residence permit. If we earn money in Turkey then we are due to pay tax in Turkey.
 

cowboymug

Member
Tourist residence permit and tax
I want to stay in Turkey longer than 90 days out of 180 this year - it seems the only way to do this is to apply for this tourist residence permit (edit - I can't link without 15 posts but it's the third result if you google "turkey tourist residence permit")

Does anybody know if (as somebody currently not a resident of any country and thus with no double taxation treaty) applying for this permit would "domicile" me in Turkey and make me a Turkish tax resident?
 
Tourist residence permit and tax
A Resident Permit, allows you to stay in Turkey as long as you like. Many people use it so they can have extended holidays, while living mainly elsewhere. People who live here full time are required by law to have one. As far as I am aware this does not mean they are domiciled here, although to be honest I'm unsure what you mean by this? A Resident Permit is merely permission to stay, it does not confer any rights - voting in elections for example.

You will be liable for tax if you work, and you will need a work permit from an employer for this, who will be responsible for tax deduction. If you open a bank account that attracts interest, you will be taxed on it, with the bank making the deductions. If you have a property that you rent out, you have to pay tax on the rental income, and would need an accountant to prepare the yearly tax papers. I can't think of any other reason why you would pay tax.
 

Ken Grubb

Member
Tourist residence permit and tax
Here are some excerpts from a book, recently written by a UK lawyer, a Turkish lawyer, and a Turkish tax accountant. The book is called "How Things Really Work in Turkey," published 22 May 2018. It says the following:

The biggest single factor in determining how you will be treated by the tax authorities in any country is whether you are resident in that country for tax purposes. This concept of tax residence causes a great deal of confusion and can have different meanings in different countries.

Let us first look at what it does not mean. It is nothing to do with whether you have registered as a resident in a country or whether you have obtained a residence permit or residence card (though a person who has a card will often be tax resident). Nor does it have anything to do with whether you have a home (residence) in that country - although a person who is tax resident will normally have a home there. Nor is it much to do with your intentions.


It goes on to say:

Tax Residence in Turkey

Tax residence in Turkey is determined largely by one rule - if you spend more than six months a year in Turkey, you are regarded as being resident there for tax purposes.


The following is my opinion (I am neither a lawyer nor an accountant):

Absent a tax treaty, if you stay more than six months (I assume that means 180 days) in Turkey during any year, then according to Turkish law, you have to pay taxes on your worldwide income, in Turkey, for that year.

If you also have to pay taxes in another country, they may or may not offer an exemption for taxes paid in Turkey. But that would depend on the tax laws of that other country.
 
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cowboymug

Member
Tourist residence permit and tax
That excerpt is encouraging Ken, thanks.

I would like to get official confirmation that I would not be considered resident in my case so there would be no ambiguity, can anybody recommend how I would go about obtaining this?

I emailed infovimer@gelirler.gov.tr from the official revenue commission website without response thus far, does anybody have experience in dealing directly with Turkish revenue?

Thanks again for the responses :)
 
Tourist residence permit and tax
Are you talking about the Dual Tax Agreement between Turkey and the UK? If so, you have to apply to the UK tax office to be declared Non Resident. You have to prove yourself permanently resident in Turkey, by providing your stamped and verified Turkish Tax Card, last UK Tax Coding, Resident Permit, and several other documents that I can't remember. Once you are declared non resident in the U.K., you can only stay in the U.K. for so many days in a year - 90 I believe? The forms can be downloaded, and it takes several months for the process to be completed.

A Resident Permit on its own does NOT remove your U.K. tax liability.

I was just asked (and sorry I can't remember if by HMRC but more likely by my bank here) so complete an online declaration that I was living here for tax purposes. All I had to give was my tax number (Turkish).

I can't remember staying more than 30 days in UK since 2000, if that helps. (Not always here; was running a company in Nepal and was paying my taxes there for a decade.)
 

Ken Grubb

Member
Tourist residence permit and tax
Other than from the government tax office itself, you could not get a clearer answer. You have already done that, but if your request was in English, and not in Turkish, you may not get any reply, unfortunately.
 

cowboymug

Member
Tourist residence permit and tax
Other than from the government tax office itself, you could not get a clearer answer. You have already done that, but if your request was in English, and not in Turkish, you may not get any reply, unfortunately.


They quote on the contact page that;
"Enquiries should be asked only in English. Any questions in different languages other than English will not be answered via e-mail."

I was given a reference number 5 days ago so hopefully they get back to me soon, or is their correspondence service not so good?
 

Bramidan

Member
Tourist residence permit and tax
Sounds like to me you need to employ the services of a professionally qualified accountant and pay a professional fee rather than rely on a forum.
By the way I am not an accountant!
 

kevkj

Member
Tourist residence permit and tax
No it wouldn't until you class yourself domicile and inform the UK tax office.
 

Kanga

Member
Tourist residence permit and tax
The UK has different descriptions of domicile for tax purposes. You can be a) resident, b) ordinarily resident, and c) domiciled, in the UK.
If you were born in UK it is quite difficult to remove yourself from the UK tax system, particularly when it comes to inheritance, as you will have to have been outside the UK for 17 of the last 20 years to avoid it.
Income tax is a whole different ball game.
The UK has a double taxation treaty with Turkey which means that tax pid in one jurisdiction is offset against any tax due in the other. BUT neither will refund overpaid tax.
Unless you have a large investment portfolio or income I wouldn't worry too much.
If your income is somewhere north of £150k and will stay that way living in turkey you need financial planning advice.
An offshore trust comes to mind. . . .
 

Ken Grubb

Member
Tourist residence permit and tax
Just wondering if there is any update on this. Cowboymug, did you ever get a definitive answer?
 
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