Kibkom North Cyprus Forum

Does anyone know how this 5.20 exchange rate for property rental is going to be implemented? I understand the formula but are we now going to pay rent in TL instead of Sterling? I understand that there was an article in the Cyprus Today about it? Can someone point me in the right direction please or even share the article?.

This is what is says in CT:

Landlords to fix foreign currency based rentals at exchange rates of 5.20TL to £1, 4.60TL to €1 and 3.80TL to $1 in return for tax reduction. Stoppage tax on rents on foreign currency to be reduced from 13 to 1%, and to be 2% for rental contracts in TL from September 1. The freeze on rental contract exchange rates is obligatory, and in event of a landlord refusing to do so, the tenant is advised to open a bank account and put the rent amount into it, submitting the paying-in slip to the Finance Ministry.

Ah ok, thank you ever so much for taking the time to write that for me. So they are just getting a lesser amount in Sterling?

Looks like it, I don't know any more than the article I'm afraid.

A mfriend pays her rent in sterling normally into her landlords bank account but she has a cheque in lira that she want to pay her rent with but if she changes to sterling she will lose a lot of money so what to do? She is paid in lira.

According to the article in Cyprus Today, the Government have said that the landlord must accept payment in Lira at the fixed exchange rate of 5.2 TL to the pound.

It also gave instructions from the Government on what to do if the landlord was unwilling to accept the Lira, or did not make provision to accept Lira.

She will have to make him aware then. Problem is he lives in Australia and only has a sterling account here.

I feel sorry for the guys in the rental department of the Tax Office as they will not have been informed what is going on but will be bombarded with questions!
If you have an ongoing sterling contract but the tenant pays you in lira @ 5.2 do you convert that to sterling & pay tax in sterling or do you declare it as TL & pay the tax in that?
When the rental contracts are registered the stoppaj tax is set on their computers for the whole contract period & any short payments will be showing as tax owed by the Landlord - how are they going to compute that?
When/if the property is sold these short payments come to light & transfer cannot take place until it is either paid or adjusted.
Hopefully with everyone back at work this week the details will be clarified.

Holiday rentals paid in sterling what do you do then

Ive just been the tax office in girnethis morning. I asked about the abive as i have tenant with £ contract . The lady next to me also asked . The reply at the moment is that its just talk ! But they expect something to come into law soon .

Im going to ask if the deposit the tenants have paid in £ can be paid back in tl at 5.20 tl ! Works both ways surely.........

I ahd an email today from a well know estate agent in ut they included information. From the british expat company (? Whomare the ) i havent copied it all he upshot is that ther are saying that the fixed exchange rate is voluntary and requires a letter signed by both the landlord and tenant . I cant envisage too many landlords wanting to comply !

We'll probably hear a thousand different opinions until such time as the Legislation is finalized and formally published in the Official Gazette.

...and even after that, every official will each have their own interpretation!

This is TRNC, after all

Reyntj wrote:I ahd an email today from a well know estate agent in ut they included information. From the british expat company (? Whomare the ) i havent copied it all he upshot is that ther are saying that the fixed exchange rate is voluntary and requires a letter signed by both the landlord and tenant . I cant envisage too many landlords wanting to comply !

and more importantly will your landlord renew your contract????

will there be a procedure in place if this happens?????????

From what i can make out it has been published in the gazette on the 29 th of august thats whatbthe translation says anyway

https://www.gundemkibris.com/kibris/yen ... 59635.html

Very poor coomunication here from the media etc

As per NCBE *these new rules have been brought in for the next 6 months (Sept 1st to 28th Feb 2019) and may be subject to change thereafter**

NEW CONTRACTS REGISTERED BETWEEN THESE DATES.
-If the contract has been drawn up in Turkish Lira the landlord pays just 2% Rental Tax.
-If contracts have been registered in GBP the rental tax is 15%.

CONTRACTS REGISTERED BEFORE SEPTEMBER 2018.
-Landlords will pay 13% tax on contracts registered in GBP.
-Landlords will pay 1% tax on contracts registered in Turkish Lira.

AMENDMENT TO CONTRACTS REGISTERED PRE-SEPTEMBER 2018.
-A letter can be drawn up between the Landlord and Tenant if the Landlord agrees to convert their contracts from GBP to TL. Landlords will have to accept the exchange rate of 6.31 for their tenants rent and in return they can then pay just 1% rental tax for the life of the existing contract. This letter will need to be signed by both landlord and tenant and submitted to the tax office when paying your tax.

**Contrary to popular belief, Tenants cannot demand to have their existing contracts converted to TL this has to have Landlord agreement.**

What if you dont have a contract?

Then it doesn't apply I guess.

Deniz1 wrote:What if you dont have a contract?

Your landlord is required by law to register a contract with the tax office, and to pay the specified tax.

If (your) landlord has been illegally taking 'cash in hand' and avoiding paying tax by not registering the contract, then you've got him by the balls!

Tell him that you will be paying in TL at the fixed exchange rate, and if he refuses, then you will report him to the authorities for tax evasion !

Does this still apply or was it only for a specific period?

Its ezpired now finished end of feb

Thxs is there a Government publication I can quote?

Try google