Expenses When Renting Out in Turkey

Introduction: What Makes Up the Landlord's Expenses in Turkey

Renting out property in Turkey is one of the most popular ways to earn passive income for foreign investors. The resort regions of Antalya, Alanya, Bodrum, and Fethiye provide steady demand, and the rapidly growing metropolis of Istanbul offers long-term rental yields of 5–8% per annum. However, before calculating net profit, it is important to understand that Turkish legislation imposes a number of mandatory expenses on the owner, ignoring which can lead to fines and reduce profitability to zero.

In this article, we will break down in detail all the main cost items that a property owner faces when renting it out: from taxes and aidat to utility bills and insurance.

1. Rental Income Tax (Gayrimenkul Sermaye İradı)

The main tax that every landlord in Turkey faces is the income tax on rental income. It is calculated on a progressive scale, and the rate depends on the amount of annual income.

Tax exemption threshold

The state annually sets a tax-free allowance for residential property. In 2025 (for 2024 income) the exemption threshold is 33,000 Turkish lira (TL). For 2026 (for 2025 income) the bar has been raised to 47,000 TL, and for 2026 income — to 58,000 TL. If your annual rental income does not exceed this amount, you do not need to file a declaration. However, as soon as the income exceeds the threshold, the entire amount is taxed, not just the excess.

For commercial property, the threshold is significantly higher: 330,000 TL for 2025, and filing is mandatory if exceeded.

Progressive tax scale

The income tax rates on rental income in Turkey apply to the entire taxable income (after deducting the exempt part and expenses):

• up to 70,000 TL — 15%;
• from 70,001 to 150,000 TL — 20%;
• from 150,001 to 370,000 TL — 27%;
• from 370,001 to 1,900,000 TL — 35%;
• over 1,900,000 TL — 40%.

Two methods of accounting for expenses

Turkish tax legislation offers the owner a choice between two ways to reduce the tax base:

1. Lump-sum deduction (götürü usul) — a fixed 15% of income after deducting the exempt amount. A simple and quick method that does not require collecting documents. Ideal if actual expenses are low.
2. Actual expenses (gerçek usul) — the owner accounts for all documented expenses: repairs, utility bills (if paid by the owner), aidat, insurance, mortgage interest, depreciation. This method is advantageous when maintenance costs are significant.

Tax return filing deadlines

The tax return is filed once a year. The filing period is from March 1 to March 31 (sometimes extended to early April). The tax can be paid in two equal installments: in March and July. Foreign owners can file online through the Hazır Beyan Sistemi on the website of the Turkish Revenue Administration (GİB).

2. Annual Property Tax (Emlak Vergisi)

Regardless of whether the property is rented out or vacant, every owner must pay the annual municipal tax. The rate depends on the type of property and location:

• Residential property (apartments, villas) — 0.1% in the province and 0.2% in metropolitan municipalities (büyükşehir belediyesi) of the cadastral value;
• Land plots — from 0.1% to 0.6% depending on the building permit status and location.

The tax is paid in two equal installments: in March and November. The cadastral value in Turkey is usually significantly lower than the market value, so the tax rarely exceeds €50–100 per year. A small waste collection fee (ÇTV) is levied along with the property tax.

3. Aidat — Monthly Complex Maintenance Fee

Aidat is a mandatory monthly payment that goes toward the maintenance of the common infrastructure of a residential complex. The legal basis of aidat is established in Condominium Law No. 634 (Kat Mülkiyeti Kanunu), and it is mandatory for all owners — even if the apartment is vacant or rented out.

What aidat covers

• Security of the territory and video surveillance;
• Cleaning of common areas and the surrounding grounds;
• Pool and garden maintenance;
• Operation and repair of elevators;
• Lighting and water supply for common areas;
• Salaries of the complex staff (concierge, gardener, cleaners);
• Minor routine infrastructure repairs.

Cost of aidat

The amount of aidat varies greatly depending on the level of the complex and the range of services:

• Economy class (minimal infrastructure): €20–40 per month;
• Middle class (pool, security, elevator): €40–80 per month;
• Premium complexes (indoor pool, spa, fitness, hammam, 24/7 security, parking): €100–150 and up per month.

It is important to check the aidat amount before buying property: annually the difference between economy and premium segments can exceed €1,000.

Special assessment (Demirbaş)

In addition to the monthly aidat, the owners' meeting may approve a one-time special assessment — for example, for replacing elevator equipment, major facade repairs, or upgrading the CCTV system. According to established practice, the special assessment is paid by the owner, not the tenant, even if the lease agreement states otherwise.

4. Utility Bills

Utility services in Turkey are metered and, as a rule, fall on the tenant — especially for long-term leases. However, it is important for the owner to understand their size, since during short-term rentals or vacancy periods the owner bears these costs.

Main utility expenses

• Electricity — €30–70/month depending on the season and air conditioning use. Turkey uses a progressive tariff: the higher the consumption, the higher the price per kWh;
• Water — €10–25/month. The tariff is also progressive;
• Gas (doğalgaz) — €15–40/month. Relevant for apartments with gas heating and stove. In resort areas, many apartments use electric boilers and air conditioners for heating;
• Internet and TV — €10–20/month for a basic package.

In total, utility bills average €400–800 per year. For long-term rentals, the tenant traditionally pays them; for short-term rentals, the owner includes them in the rental price or bills them separately.

5. Mandatory DASK Insurance

DASK (Doğal Afet Sigortaları Kurumu) is the state mandatory earthquake insurance system for property against earthquakes and related natural disasters: fires, explosions, tsunamis, and landslides. The DASK policy is mandatory for connecting electricity and water, and for all real estate transactions.

What DASK covers

The policy covers the structural elements of the building: foundation, load-bearing walls, floors, roof, stairs, and common areas. DASK does not cover interior finishing, furniture, household appliances, and personal belongings — voluntary home insurance (konut sigortası) is required for those.

DASK cost

The policy cost depends on the floor area and seismic zone:

• In seismically quiet regions (Alanya, Antalya) — from €15 to €40 per year;
• In high-risk zones (Istanbul, Izmir) — from €50 to €150 per year.

On average nationwide, the insurance costs 1,000–2,000 TL (approximately €30–60) per year. The policy is issued for one year and must be renewed annually.

6. Agency Commission and Other Expenses

Real estate agent services

When renting out property through an agency, the commission is usually one month's rent (or 2% + 18% VAT of the annual contract amount). This commission is typically paid by the tenant, but in highly competitive locations the owner may split it with the tenant or cover it — this is a matter of negotiation.

Property management company

If the owner does not live in Turkey permanently, it is wise to hand the property over to a professional management company. Its services cost 10–20% of the monthly rent and include finding tenants, checking creditworthiness, collecting payments, monitoring utility bill payments, and handling everyday issues.

Repairs and depreciation

Any property requires periodic updates. Cosmetic repairs (painting walls, replacing plumbing) may be needed every 3–5 years, furniture and appliances every 5–7 years. When calculating net yield, experts recommend setting aside 5–10% of the annual rental income as a reserve for repairs and depreciation.

7. Sample Calculation: How Much Is Actually Left in Your Pocket

Let's consider an example for an apartment in Alanya rented for €800 per month (€9,600 per year, or approximately 340,000 TL):

1. Annual income: 340,000 TL
2. Minus exempt amount (2025): 47,000 TL
3. Base for deduction: 293,000 TL
4. Lump-sum deduction 15%: 43,950 TL
5. Taxable income: 249,050 TL
6. Tax (progressive scale): approximately 47,000 TL
7. Aidat: €50 × 12 = €600 (~21,000 TL)
8. Property tax + DASK: ~3,000 TL
9. Net income: 340,000 − 47,000 − 21,000 − 3,000 = 269,000 TL (~€7,600)

Thus, the net yield is about 79% of gross income — a very respectable figure. However, with lower rental rates or high aidat, the share of expenses can increase significantly.

Conclusion

Renting out property in Turkey remains an attractive investment tool but requires careful planning. The main expenses of a landlord are income tax, aidat, annual property tax, and DASK insurance. Together they "eat up" from 15% to 30% of gross income depending on the property class and region.

To avoid unpleasant surprises, before buying investment property be sure to check the aidat amount, the cadastral value of the property, and the average rental rates in the specific area. And if you do not plan to handle administration yourself, include property management company services in your budget. Only a comprehensive approach to calculating expenses will allow you to obtain real, not imaginary, returns from Turkish real estate.