Renting out property ?

[kiplet]

Can any one give me the low down on rental tax on renting out property.
Do I pay one month after a rental or after one weeks rental ?
any other advice would be very welcome ?

[snd1966]

I was lead to believe you must submit by the 15th of each month for the previous month for example all money collected in September should of been submitted to the office last Monday due to Bayram.
This makes monthly rent very easy after the first month unless the new tenants moved in on the first. Holiday lets often have to be divided over 2 months as it would be very unusual to have one party stay from 1st - 14th and 15th - 30th. Hope this helps. If you have received a years payment up front they advise you can pay the tax but goodness knows what happens if the tenant terminates contract.

[ozankoys]

The information is correct but first you have to have the rental contract stamped at the tax office & pay the duty which is 0.05% of the total rent i.e. 12 month contract @ £300 per month = 3600 x .05% = £18 a file is then opened for the tax payer that all the paperwork goes into.
You would not get a refund if you paid in advance & the tenant defaulted or left early.
If the tenant does leave early you need to notify the Tax Office in writing & attach 7.5 tl stamps, otherwise the tax will keep accruing on your account.

[ozankoys]

Sorry I realise we have not said that the tax is 10% of the gross rent.

[kiplet]

Thanks for reply. It would be a holiday let so I understand it would be paid monthly after the holiday let. is this correct ?

[snd1966]

example -
people book holiday 2 weeks 20th October to 3rd November paid £850
on or b4 15th November you must fill in their form in the office, copy of passport, kocan or your contract depending on whether you are lucky if you have not already registered the property for paying tax.
dates 20th - 31st amount £667.80 Tax 66.78
on and b4 the 15th December
dates 1st - 3rd amount £182.15 tax £18.22
total declared £850 tax £85.00

I deal mainly in holiday let properties therefore have never been asked for sight of a contract with the tenant / visitor.
Hope this helps

[silverfox1]

Where is the Rental Tax office please?

Can you only pay monthly?

Thanks in anticipation.

[snd1966]

As I stated in my first reply yes you can pay the tax up front but I was unsure how to get it back if the tenant left, ozankoys kindly answered that question. If you declare late you may have a fine, the 15th of the following month is the cut off point for submission.
Once a property has been registered you do have to unregistered it or submit a form with stamps stating no income has been received. With holiday lets I have to do this monthly especially over the winter when the trade slows down on holidays.
Tax office is in Girne near the hospital behind the new land registry office. Do not park in the street as it blocks it and quite rightly the police fine those who leave their cars while the drivers pop in for 2 mins and cause absolute chaos by their actions. Rental tax is through the left door then straight ahead once in the office but in the last few months it has been labelled in English too.

[kiplet]

Thanks snd1066 your reply is much appreciated.

[the butlers wife]

Don't forget that if you are still living in the UK, this money has to be declared on your tax return. You can offset the tax you pay in the TRNC against this and also wear & tear etc.


The butlers wife

[muppet]

Having read the post re UK tax I recently spoke with a friend who lives in UK and rents his property here in TRNC, he told the tax office about the income from the property and said to them.

" I am not paying tax on it here UK, as you cannot charge me for income from a property in a country you do not recognise"

Reply was " OK your right"

[the butlers wife]

Muppet,

I wish we had thought of that when we rented our bungalow out, whilst still living in the UK.

It would have saved us a few bob. We live here now, so no worries about that anymore.


The butlers wife

[Col]

"Reply was " OK your right""

I would want a second opinion on that!

[muppet]

Ask the question of the UK tax man yourself, I can only tell you what the chap told us!

But it does make sense, if they don't even recognise the country, how can you be taxed on something they don't consider exists?

[wanderer]

I asked and they told me they treat it as Turkey

[woodspeckie]

Travel insurance treat it as Turkey also.