Kibkom North Cyprus Forum

For anyone unaware (as I was) rental tax (stoppaj) has been increased from 10% to 13% with immediate effect.

I knew it was coming as I didn't fill August tax payments but rumour not confirmed its still 10% if the rent is in TL but so must the contract be in TL
Does anyone know the truth?

According to this article, the rate is now 13% for rental agreements based on Sterling prices, and 7% for those based on TL prices.

They did not say anything in the Tax Office this morning about it only being 7% for TL contracts but most people have them in £ anyway because of the instability of the lira.

Hi, the general feeling is that it is a move aimed at helping those locals whose wages are paid in TL, but whose rents are charged in Sterling, by inducing landlords to change to a TL basis for rents.

I don't think that it is a big enough inducement to persuade landlords to change, it would need to be more like 20 to 25% for Sterling, and 5% for TL in my opinion...

It is a real hardship for renters in this position, given the massive drop in the value of the TL against the pound.

Looks as if holiday lets need to be in lira as well

As far as I can see, the % tax payable is the same whether the rental is for a long, short or holiday let - the currency involved will determine the tax rate.