Tax Implications for Foreign Property Investors in the UK and Turkey

Understanding tax obligations is crucial for foreign property investors:

• UK:
  • Income Tax: Rental income is subject to UK income tax.
  • Inheritance Tax: Applies to UK assets owned by non-residents.
  • Annual Tax on Enveloped Dwellings (ATED): Applies to properties owned by companies.
• Turkey:
  • Income Tax: Rental income is taxable, with progressive rates.
  • Property Tax: Annual tax based on property value.
  • Capital Gains Tax: Applies to property sold within five years of purchase.

Engaging tax professionals in both countries can help optimize tax liabilities and ensure compliance with local regulations.