Turkey Residence / Taxation

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arh

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Hi,

I have been offered a 4 year contract based in Ankara Turkey working 8 weeks on / 2 weeks off with flights and accommodation provided. However, i will be paid in Turkey and have to pay income tax in Turkey. Does anyone know the current income tax rates, the Turkish tax office website while it is in English does not appear to provide the applicable rates. In addition, are there any other 'taxes' on employment i need to consider when agreeing my rate ?

If the contract goes ahead i would be looking at buying a boat to base in Turkey to use during my 2 weeks off, this should be my last project and retirement beckons afterwards so I would be looking refitting the boat to become a live-aboard afterwards. Any recommendations where to base it in Turkey and should i be looking at buying locally or importing ?

Thanks,

Tony
 
arh said:
If the contract goes ahead i would be looking at buying a boat to base in Turkey to use during my 2 weeks off, this should be my last project and retirement beckons afterwards so I would be looking refitting the boat to become a live-aboard afterwards. Any recommendations where to base it in Turkey and should i be looking at buying locally or importing ?
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An important consideration will be whether you anticipate using the boat in the EU after retirement and whether you are an EU citizen, which is by no means clear from your signature:ambivalence:. If you are, you may be best advised to buy a VAT-paid vessel in the EU, register it in the EU if possible, then move it temporarily to Turkey. There's more to it than this, but some of it will depend on your nationality and later plans. If you're happy to post this information, you'll get more pertinent advice.
 
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Hi all,

A few more details as requested. I am a UK passport holder but have been non-resident in the UK for tax since 1998. Presently i have residence / work visas for Australia, Papua New Guinea and the UAE but with the project finishing here in Papua New Guinea I will lose the PNG and Australian visas at the end of the year. I have a consulting company and an apartment in Abu Dhabi so i will maintain my visa there. I have maintained my Class 3 NI contributions during the time i have been out of the UK.

I have a property in Conwy North Wales which is rented out at the moment so ultimately I believe I will return there with the boat at some point in the distant future, the house only being a short walk to the marina. In addition, I intend to spend a few years (or more) living on the boat in the med prior to venturing further therefore buying a VAT paid boat in the EU seems to be the best option.

I have contacted a couple of relocation firms in Turkey so i am awaiting feedback from them on the tax and social security issues. Normally the companies I work for take care of such matters on my behalf but here the consulting company just wants to pay an all inclusive day rate and leave me responsible for paying my own taxes, etc.

I have booked a flight to the UK in 3 weeks and have drawn up a short list of boats to look at so will be seeking the forums advice on the selection very shortly ...

Thanks

Tony
 
We are retired now and led a very similar life as you are at present. As you do intend to live aboard as we did. Think of the COMFORT and Safety. We looked at so many yachts and ended up with a CATAMARAN. The smartest move we made.

Good luck on the forthcoming move. We have been there and got the T-shirts.
 
arh said:
I intend to spend a few years (or more) living on the boat in the med prior to venturing further therefore buying a VAT paid boat in the EU seems to be the best option.
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Yes, probably the best course. You seem to have a handle on matters and may know this, but there are plenty of EU VAT-paid boats for sale in Turkey itself. If they are sold in Turkey, they lose that VAT status and VAT becomes due on entry to the EU; however, if the sale takes place a few miles away on a Greek island, they retain it. This is fairly routine.

Hope it all works out for you, although I don't envy winters in Ankara.
 
As I am sure you are aware many jobs are closed to foreigners and even with those that are not you will need a work permit which should be arranged by your employer and you should also ensure that they are paying your social insurance including SGK health insurance. At least you will not have to go through the Residency permit hoops as it comes with the Work Permit.
 
arh said:
In addition, I intend to spend a few years (or more) living on the boat in the med prior to venturing further therefore buying a VAT paid boat in the EU seems to be the best option.
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That may not be necessarily the best option. As already suggested "VAT paid" is not a permanent position if a boat leaves the EU. Generally speaking to avoid paying VAT on return to the EU it needs to come back in within a 3 year period and then has to be in the ownership of the person who took it out. So, if it was sold outside the EU the new owner must pay VAT if it is permanently imported, although there are exemptions, and non EU residents can, for example apply for temporary importation. So many boats in Turkey that have had VAT paid in the past may be liable again if used in the EU. on the other hand, if you intend keeping the boat outside the EU then later importing it, you might consider buying a non VAT paid boat then paying VAT based on the market value at the time you import it. Make sure that the boat was built in the EEA to avoid any potential RCD problems. An ex charter boat bought in Turkey, used there for a few years then imported would be a good strategy financially. Alternatively buy a boat in the EU with good evidence of VAT payment, use it in Turkey but make regular trips to Greece, keeping evidence of entry and then you will maintain the VAT status.

These observations are based on the EU wide rules, but they seem to be poorly, or variably applied and for some there is a temptation to ignore them. However illegally importing a boat into the EU is a criminal offence and the penalties if caught can be severe, so its best to ensure that you are in a position to comply.
 
I once bought a boat in croatia of a marina who had little paperwork on it as the previous owner was deceased.
I put an SSR registration on it and sailed around the med based in Italy for 15 years.
I have now sold it to an Italian. Never got stopped by anybodies CG !
Used to do about 4k miles a year.
Checking in required only producing the SSR certificate.
I still don't know if VAT should have been paid or not but its all water under the bridge now !
I do think that the needy "I said needy not greedy" politicians have probably sewn up this possibility...
 
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