What Are the Rental Taxes?

Who and When Must Pay Rent Tax in Turkey

Income from renting out real estate (Gayrimenkul Sermaye İradı) is subject to income tax in Turkey regardless of whether you are a tax resident of the country or not. The law is the same for everyone: Turkish citizens, foreigners with a residence permit, and non-residents who own property and receive rental payments from it are required to declare the income if it exceeds the tax-free threshold set by the government.

The tax period in Turkey coincides with the calendar year. This means that for income earned in 2024, the tax return is filed in the spring of 2025; for income from 2025, in the spring of 2026. The standard filing window is from March 1 to March 31. If March 31 falls on a weekend or public holiday, the deadline moves to the next working day — for example, in 2025, returns for 2024 were accepted until April 2 inclusive.

Tax-free threshold: when does tax start?

The government sets an annual threshold below which income from renting out residential property is exempt from taxation. If your annual rental income from an apartment or flat is below this amount, you do not need to file a return and no tax is charged. If the income exceeds the threshold by even 1 lira, you must declare the entire excess amount.

• For 2024 (return filed in spring 2025): 33,000 TL.
• For 2025 (return filed in spring 2026): 47,000 TL.
• For 2026 (return filed in spring 2027): 58,000 TL (projected, taking into account annual indexation).

Important note: the exemption applies only to residential property. If you rent out a commercial space (office, shop, warehouse), the tax-free threshold does not apply — tax is payable from the very first lira of income. However, the obligation to file a declaration for commercial rental arises if the annual income exceeds 150,000 TL (the mandatory filing threshold set for 2024).

Income tax rates on rent in 2025

Turkey applies a progressive tax scale: the higher the annual income, the higher the percentage you pay to the state. For rental income (as non-employment income) in 2025, the following brackets apply:

1. Up to 158,000 TL — 15%.
2. 158,001 – 330,000 TL — 23,700 TL fixed + 20% on the amount exceeding 158,000 TL.
3. 330,001 – 800,000 TL — 58,100 TL + 27% on the amount exceeding 330,000 TL.
4. 800,001 – 4,300,000 TL — 185,000 TL + 35% on the amount exceeding 800,000 TL.
5. Over 4,300,000 TL — 1,410,000 TL + 40% on the amount exceeding 4,300,000 TL.

In practice, most private investors renting out one or two apartments in Alanya, Antalya, or Istanbul fall into the first or second bracket, so the effective rate rarely exceeds 15–20% of the taxable base.

How to calculate tax: two methods for accounting expenses

Turkish tax legislation gives the owner a choice between two approaches to reduce the tax base:

1. Lump-sum deduction (Götürü Gider)

The simplest and most popular method. You take the annual rental income, subtract the tax-free threshold (for residential property), and then automatically deduct 15% from the remaining amount as 'deemed expenses' for maintaining the property. The resulting amount is taxed at progressive rates. You do not need to collect any receipts or invoices.

Example: you rented out an apartment for 12,000 TL per month. Annual income: 144,000 TL. Subtract the tax-free threshold (47,000 TL for 2025 income): 97,000 TL remains. Apply the 15% lump-sum deduction: minus 14,550 TL. Taxable base: 82,450 TL. Tax: 82,450 × 15% = 12,368 TL.

2. Actual expenses (Gerçek Gider)

Instead of a fixed 15%, you can deduct real costs related to the property: mortgage interest, insurance, repairs, utility bills, building depreciation (2% per year of the property value), and property tax (Emlak Vergisi). This method is beneficial if your expenses exceed 15% of income, but it requires thorough documentation for each item.

Once you choose the actual expenses method, you must stick to it for at least two consecutive years, after which you can switch back to the lump-sum deduction.

Special considerations for foreigners and non-residents

Your tax residence status in Turkey directly affects which income you pay tax on. A resident is a person who stays in the country for more than 183 days in a calendar year. Residents pay tax on worldwide income, including foreign rental income. Non-residents pay tax only on income from sources in Turkey, i.e., directly from renting out Turkish real estate.

The rates and tax-free threshold for non-residents are the same as for Turkish citizens. There is no 'higher tax for foreigners'. However, there is a practical nuance: a non-resident cannot claim certain social deductions (for education, healthcare) that are available to residents. Additionally, a foreigner must obtain a Turkish tax identification number (Vergi Kimlik Numarası) — this can be done online through the Revenue Administration website (GİB) or in person at a tax office.

How and where to file the declaration

The declaration is filed through the electronic system Hazır Beyan Sistemi (Pre-filled Return System) on the official portal of the Turkish Revenue Administration — gib.gov.tr. The system automatically pulls your property data from the land registry, and all you need to do is verify the figures, enter the amount of rental income, and choose the deduction method.

You can pay the tax in two equal instalments: the first in March (when filing the return) and the second in July. Payment is accepted via internet banking, mobile apps of Turkish banks, or directly at tax offices.

Penalties for non-payment and late filing

The Turkish Revenue Administration actively monitors the rental market, especially in resort areas. The penalty for failing to file a declaration is 1% of the concealed income (but not less than a certain minimum amount). For late payment, a monthly penalty of 2.5% is charged on the amount owed. For systematic violations, bank accounts may be blocked and a travel ban may be imposed.

If you rent out accommodation on a daily basis through platforms like Airbnb, you are still fully obliged to declare the income. Moreover, since 2024, Turkey has tightened control over short-term rentals: properties must be registered with the Ministry of Tourism, and platforms are required to report income data to tax authorities.

In brief: what to remember

• Tax is paid on income exceeding 47,000 TL per year (for residential property, 2025 income).
• The scale is progressive: from 15% to 40% — but most owners pay 15–20%.
• By default, a 15% lump-sum deduction applies — fast and paperwork-free.
• The declaration is filed online from March 1 to March 31 via Hazır Beyan Sistemi.
• Foreigners and non-residents pay tax under the same rules and rates as Turkish citizens.
• For non-payment — penalty of 2.5% per month and risk of account blocking.

Turkey's tax system is transparent and predictable, and the annual costs of maintaining and taxing rental property remain among the most moderate in the Mediterranean region. Filing your return on time and choosing the right deduction method allows you to legally minimize payments and enjoy a steady passive income from Turkish real estate.