Taxation and the failure to pay it, whether by avoidance or evasion,
is an international hot topic at the moment.
Turkey is no exception and this week, Mehmet Şimşek, Turkey’s Minister of Finance,
entered the debate when he held a press conference to draw attention to a problem
that will be of particular interest to foreign nationals that own and let property.
Cutting straight to the chase, the minister said that there would be a crack down
by the Turkish tax authorities on foreign nationals failing to declare the income
earned from holiday letting to tourists and renting properties they have purchased in Turkey.
This is being done off the books,” he said, adding,
Anyone engaging in commercial activities must pay their taxes.
We will crack down on that.”
Turkish authorities aware of the problem
Minister Şimşek said that the Turkish authorities are aware of foreign citizens buying homes
in the Mediterranean and Aegean regions; subsequently renting them.
He stressed that the authorities will clamp down on such operators.
Complaints from tourism businesses
The Finance Minister also said that he has frequent complaints from tourism business owners
about foreign citizens purchasing homes in resort areas and subsequently renting them.
We know there are those who advertise their properties
on the internet and in newspapers in their own countries,
and this is done off the books.
As a result of this they are creating unfair competition.
Whoever engages in any commercial activity, whether
they are local or foreign, we are not going to discriminate.
People must pay their taxes.
We will clamp down on those operating illegally.
It is that simple and clear.”
Thirty billion Turkish Lira for Turkish Treasury
Şimşek also told the Turkish media that, as a result of the recently announced
Government Action Plan for Combatting the Grey Economy,
it was expected that by 2018, the level of Turkey’s grey economy would be reduced.
By that time he estimates that 100 billion Turkish liras from undeclared income
will begin to be recorded, producing a significant 29 – 30 billion lira in currently unpaid taxes.
Not to be taken lightly
Whilst this is not the first time that the subject has been raised, it probably won’t be the last.
For towns like Fethiye in particular, it is not one that should be dismissed or treated lightly.
Link to original article in Turkish Hürriyet
For more information about foriegn nationals paying tax in Turkey: