Buying Property Abroad, What to Consider

  • Erstellt am 2019-06-22 21:37:10

M4rvin

2019-06-24 12:05:48
  • #1
As a layperson, I understand it like this:

When you buy, you pay taxes in the country where you buy. (Grunderwerbsteuer)

IF you rent out in both countries. If not, then not.
 

ypg

2019-06-24 12:19:40
  • #2


You are mixing up a total of 3 things

1. Purchase of a property: pay taxes in the country where the property is located
2. Taking a vacation: no one cares who owns the building you are staying or residing in
3. Rental, wherever the rental property is located: declare income from rental and leasing in the annual tax return

That's how I think it can be broken down
 

Musketier

2019-06-24 12:54:27
  • #3
Not entirely correct. If the holiday property is allocated to rental and leasing and partially used by yourself, the advertising expenses must be proportionally reduced for this period in the rental and leasing. Otherwise, much that has been said is already correct. Provided the original poster spends the majority of the year in Germany, he is subject to unlimited income tax liability in Germany. (§1 Income Tax Act) Provided the foreign law is similar to the German one, then he would be subject to limited income tax liability abroad with the holiday property. Thus, this would lead to double taxation. To avoid this double taxation, there are double taxation agreements with many countries. However, what is regulated therein differs from agreement to agreement. Whether such agreements exist with Turkey or Lebanon and how they are designed can be found out from a tax advisor.
 

cobra1982

2019-06-24 13:10:58
  • #4
The property I buy in Turkey, I pay the taxes for the purchase and the annual tax.

I have also obtained a tax number in Turkey, and in Turkey I pay the taxes.

The property is initially used as a vacation home and I will spend my holiday there once a year, at most 2-4 weeks.

I officially pay all the taxes in Turkey because in Turkey no real estate purchase is possible without a tax number.

For now, I am only concerned whether I have to register anything there or otherwise.

Because there are no income from rental etc. Rather, there are expenses. As well as the annual tax that is paid.
 

ypg

2019-06-24 15:00:35
  • #5
I understood it as that he will only make it available as a holiday apartment later. For now, he just wants to live in it himself. Exactly, no income for now, since there is no rental. And which expenses do you mean? The annual tax in Turkey? That is not an expense, you can’t deduct taxes. That would be the same as if we homeowners could deduct our property tax.
 

cobra1982

2019-06-24 16:07:45
  • #6
I want to use it myself first. Not rent it out or anything else.

I have to pay the one-time tax for the property so that the real estate is in my name.
And then there is the annual tax that I have to pay in Turkey. That's what I mean by expenses.
I don't want to deduct anything or anything else, I just want to know if I have to do anything in Germany. For example, report that I have a property or not.

At first, it is only for personal use, I want to vacation there and then I don't need a hotel or anything.
 

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