Taxation

[Aygen1]

Hello there,

I am a host based in the UK but my houses are in Turkey. I am a taxpayer and the citizen of both countries. 3 questions:

1. How is the fee paid out ( currencywise, how do I check the rate)- Is it  in local currency or converted to GBP (£) as my bank account is in the UK?

2. Where do I pay or claim for tax?
3. Is it more beneficial to be paid and taxed in Turkey/ the country where the houses are?

many thanks

[Helen3]

I would suggest you get an accountant with experience of dual taxation Uk/Turkey and ask them on the best way to set up finances for your STR business @Aygen1 

[Aygen1]

Thank you, was thinking about that, you confirmed it. Appreciate it a lot!

[Bhumika]

Hi @Aygen1 , have you reached out to an accountant as suggested by Helen? What did they advise?

[Aygen1 · Accepted solution]

I have asked Airbnb support team and they advised me to get paid in the country where the houses are. But also get taxed in the country where I live. So the income is paid in local currency but the tax will be paid in £. 

[Bhumika]

Thanks for the update @Aygen1 , this tip will also help other Hosts visiting this thread! Have you managed to check out the tax regulations for the UK?

[Aygen1]

I live in the UK; all income whatever the source needs to be declared during self-assessment and after a minimum threshold tax applies to it.. There is a bilateral agreement between Turkey and UK to avoid dual taxation but I will check once again when I am back with my accountant.