Paying income tax on TRNC rented properties
By Chris Elliott……
How many expats realise that if they own a property in Northern Cyprus and rent it to another person that they have to register a contract with the local taxation office and pay the appropriate tax against rental income received by making a monthly payment or if they wish, pay in advance.
They will be required to present a copy of the rental contract and tax will be charged as a percentage of the agreed rental fee whether it be Pounds Sterling or Turkish Lira. Tax must be paid in the currency shown on the contract. Once agreed tax will be charged at that rate unless a new contract is registered.
When the contract has expired and a new contract has been made this has to be registered each time. Failure to register on the due date could result in a fine based upon the length of time that the contract has lapsed.
For those people who wish to rent they should note that the contract they agree to is also required to be presented as proof of place of residence when applying for residency in the Turkish Republic of Northern Cyprus.
For those local readers or those off-shore readers who wish to register to pay taxes to the TRNC authorities on rented properties click here to view and download the appropriate English language registration form.
For more information we suggest our readers email email@example.com as this contact information is shown on the attached form.