Financial services

Important issues you should consider when looking to buy or move abroad include:

• Tax Planning
• Inheritance Tax
• Pension Planning 
• Insurance
• Turkish Bank Account

Tax Planning 

If your plans include a permanent emigration to Turkey, or you will be spending more than half a year there, you will need to let the Inland Revenue know. 

The tax authorities in your home country will be able to make sure that you are being taxed correctly. They will also be able to give some top-level guidance as to how your relocation will affect your worldwide estate. There may be implications for your pension as well as other assets. 

Obviously tax liability is very individual. It is highly recommended that you take advice from an experienced cross-border tax expert before making any decisions. 

Your tax expert will be able to help you: 

• Determine your overall tax liability 
• Confirm when and how you should inform the tax authorities of your move
• Advise on how to get the best from your pension pot
• Advise on residency tests, UK tax return and related matters

Inheritance Tax 

Owning a property is a significant asset. Understanding how any property you own in Turkey will be affected by UK and Turkish inheritance laws is critical. Don’t leave it too late and not make the right preparations. 

We recommend that you speak with an independent English-speaking law firm with experience of Turkish property and probate law. They will ensure you draft a will to protect you and your family for the future. 

Retirement Planning

Already drawing a pension? If you’re over retirement age and currently (already) in receipt of pension payments, you will need to work out the easiest and most cost-efficient way to receive them.

The answer to this will depend, in part, on how long you plan to spend in Turkey. 

If you are buying a holiday home, and only plan on staying in Turkey for a few weeks, it may make sense not to rock the boat and continue to receive the pension in the UK. 

On the other hand, if you will be relocating permanently, there are pension schemes available which could help to reduce your tax liability and give you greater control over your assets. We would recommend talking over your options with an independent financial adviser. 

Insurance 

Whilst it is lovely to realise the dream of buying a property in Turkey, don’t go into it with rose-tinted spectacles! Things can and do go wrong. Make sure that you have the right level of insurance cover from the moment you take ownership. In addition to buildings insurance (which would be a condition of any mortgage) you will also need contents, healthcare and car insurance. There is also a requirement to take out compulsory earthquake insurance. 

Healthcare is a whole separate subject in its own right. The Turkish system combines an element of compulsory health insurance and private medical. Expatriates can, in some circumstances, obtain low-cost healthcare – even free in some circumstances – but standards of healthcare can very significantly between regions. For peace of mind it is worth making sure you have the right level of cover for your situation. 

Bank Accounts 

Being super-practical (and a bit dull) it is worth opening up a Turkish bank account, even if you will be non-resident. This will make your life much smoother when it comes to the property outgoings – utility bills, taxes, insurances etc. Luckily, the Turkish banking system is pretty advanced and used to opening accounts for non-residents. 

Turkish banks want to make it as easy as possible for non-residents to open an account. As a result, many banks will allow you to sign up from the UK (or other countries). Some even have English customer service helplines! 

You’ll need to provide evidence that you are purchasing a property in the country. You will also need to obtain a Turkish tax number, which is easy enough to get from your local tax office. 

You will also need: 

• Proof of address – i.e. a utility or telecoms bill
• Proof of identity – passport
• Proof of signature form for the banking authority