Rental Tax increase

[ozankoys]

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

[snd1966]

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?

[Keithcaley]

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

[ozankoys]

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.

[Keithcaley]

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.

[wanderer]

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

[Keithcaley]

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.