SDLT (Stamp Duty Land Tax)
Tax on residential purchases, structured in bands: 0% up to £125k, scaling up to 12% at the top. Foreign buyers pay an extra 2% surcharge, with another 5% on additional properties. Our calculator shows the band-by-band breakdown in detail.
Rental Income Tax
20-45% of gross rental income is taxable — the marginal rate is applied based on total income. Foreign investors must register for the Non-Resident Landlord Scheme (NRLS); otherwise the tenant must withhold 20% at source. Mortgage interest (limited), maintenance and insurance are deductible.
Capital Gains Tax (CGT)
18-28% (depending on income level) on the gain at sale. Foreign investors pay CGT on gains accrued after 2015. There's an annual £6,000 tax-free allowance.
Ongoing Costs
Council Tax (£1,000-3,000/year depending on band and area), Service Charge (£1,500-4,000/year on leasehold flats), Ground Rent (£200-500), buildings insurance (£300-600). Some of these are recoverable from the tenant under the tenancy.
Frequently Asked Questions
+ How do I pay SDLT?
Within 14 days of completion, via your solicitor to HMRC. Can it be added to the mortgage? No — it's paid in cash, upfront.
+ Will I be double-taxed?
Turkey and the UK have a Double Taxation Agreement. UK tax paid is credited against your Turkish tax.
+ Are there tax advantages to using an SPV?
For higher-rate taxpayers, a Ltd-company structure can save up to 25% via corporation tax. Get personal advice.