Rental Income in Turkey: Full Legal & Tax Guide

Turkey has emerged as a leading destination for property investment—not only for its lifestyle advantages but also for its attractive rental income potential. Whether you're a local property owner or a foreign investor, renting out real estate in Turkey can be a lucrative opportunity. However, it's essential to understand the country’s legal framework, tax obligations, and compliance requirements before entering the rental market.

This guide offers a detailed overview of real estate rental income in Turkey. We’ll cover everything you need to know—from legal regulations and taxation policies to key considerations—helping you navigate the process with confidence and stay fully compliant with Turkish law.

What You Need to Know About Rental Income in Turkey

Renting out property in Turkey can be a profitable venture, but it also comes with specific legal and financial responsibilities. Whether you're a resident or a non-resident, local or foreign property owner, understanding the rules around earning rental income in Turkey is essential to staying compliant and maximizing your returns.

In this section, we’ll go over the key aspects of rental income in Turkey—including legal requirements, tax obligations for both locals and foreigners, applicable exemptions, and how to correctly file, report, and pay rental income tax. This foundational knowledge will help you make informed decisions and avoid costly mistakes.

Benefits of Rental Income in Turkey

Investing in Turkish real estate is one of the most attractive opportunities for both local and international investors. Beyond the potential for long-term capital appreciation driven by growing demand, many properties offer high-income potential for rent in Turkey—particularly in highly sought-after regions that appeal to both domestic tenants and foreign visitors.

Whether you’re targeting short-term holiday rentals or long-term residential leases, the Turkish real estate market offers competitive rental yields supported by robust demand and a dynamic economy. Cities with high average rent in Turkey include Istanbul, Antalya, and Bodrum. These popular destinations consistently deliver rental returns ranging between 5% and 10% annually, depending on factors like location, property type, and available amenities.

Turkey’s expanding urban population and rising number of foreign residents continue to fuel steady rental demand. Cities with major universities, thriving business centers, and year-round tourism attract a diverse tenant base—from students and professionals to retirees and international visitors looking for apartments for rent in Turkey.

Moreover, with over 50 million tourists visiting Turkey each year, short-term rentals have become a highly lucrative income stream. Digital platforms like Airbnb and local alternatives make it easy for property owners to list their houses and apartments in Turkey for rent and tap into this growing market, especially in coastal and historic cities.

Favorable exchange rates also enhance returns for foreign investors, especially those earning in stronger currencies such as the euro, pound, or US dollar. Additionally, inflation-indexed rent increases—commonly tied to the Consumer Price Index (CPI)—are a standard feature of Turkish rental contracts, helping landlords preserve the real value of their rental income over time.

Legal Requirements for Renting Property Out in Turkey

There are several legal requirements for renting out property in Turkey as a foreigner or local, all designed to balance the rights and obligations of both landlords and tenants. Turkish rental law, primarily governed by the Turkish Code of Obligations, ensures market stability by protecting tenant rights while preserving landlord interests. Foreign property owners enjoy the same legal rights and responsibilities as Turkish citizens when it comes to rental agreements, tenant protections, and property management.

In addition to the general legal framework, landlords must also comply with specific tax regulations, eviction procedures, and licensing requirements—especially for short-term rentals. As Turkey’s real estate market continues to attract international investors, understanding these legal fundamentals is essential for running compliant and conflict-free rental operations.

Registration and Permits for Rental Income in Turkey

To rent out property in Turkey legally, property owners must obtain a Turkish Tax Identification Number (TIN) and declare all rental income to the tax authorities. For short-term rentals—particularly those on platforms like Airbnb—a Tourism Rental Permit is required. This involves registering the property with the Ministry of Culture and Tourism and complying with safety regulations, including fire certification and occupancy limits. Failure to comply can result in significant fines and administrative penalties.

Rental Agreement Essentials in Turkey

Although not legally mandatory, a written rental agreement is strongly recommended to prevent misunderstandings and establish clear terms. Key clauses should include the rental amount, payment schedule, duration of the lease, and termination terms.

Rental contracts in Turkey generally fall into two categories:

• Fixed-term contracts (typically 1 to 10 years), which end automatically unless renewed
• Indefinite contracts, which automatically renew annually unless terminated with at least three months' notice before the end of the lease year

Amendments or early termination of the agreement typically require mutual consent from both parties.

Rights and Responsibilities of Landlords

Landlords are obligated to provide tenants with a habitable living environment, including maintaining structural integrity and addressing major repairs. Additionally, upon lease termination, landlords must return the security deposit within 15 days—after deducting any legitimate costs for damages.

Eviction rights are subject to specific legal conditions. For example, if a tenant fails to pay rent and does not settle the outstanding amount within 30 days of a formal notice, the landlord may lawfully terminate the lease. Other grounds for eviction include unauthorized subletting, property misuse or damage, and the landlord’s documented need to use the property for personal reasons. Legal counsel is recommended in eviction cases to ensure full compliance with Turkish law.

Special Considerations for Short-Term Rentals

Property owners offering short-term rentals in Turkey must strictly adhere to Tourism Rental Permit requirements. This includes registering with the Ministry of Culture and Tourism, obtaining fire safety certification, and complying with neighborhood occupancy regulations—such as the 25% cap on short-term rentals in residential buildings.

Additionally, landlords should secure liability insurance that covers guest injuries and property damage. While platforms like Airbnb offer limited host protection, these do not replace mandatory legal coverage under Turkish law.

Turkey’s Rental Income Tax: What You Need to Know

Rental income earned in Turkey is subject to income tax under Turkish law. Tax liability depends on the tax residency status of the property owner—classified as either a resident or non-resident taxpayer.

Non-resident taxpayers are individuals who do not reside in Turkey, do not have a legal residence in the country, and have not stayed in Turkey for more than six consecutive months within a calendar year. Importantly, this category includes both foreigners and Turkish citizens living abroad. Non-residents are taxed only on their income earned within Turkey, such as rental income from Turkish properties.

Although non-residents and residents follow similar procedures for declaring and paying tax on rental income in Turkey, the key differences stem from their overall tax obligations and the applicability of double taxation treaties (DTTs) between Turkey and their home countries.

2025 Rental Income Tax Rates in Turkey

For the 2025 tax year, Turkey uses a progressive income tax system. While residents are taxed on their worldwide income, non-residents are taxed solely on their Turkey-sourced income.

The current 2025 income tax brackets are as follows:

Double Taxation Treaties (DTTs)

One of the tax incentives for rental income Turkey offers foreigners is the DTTs. Turkey has signed Double Taxation Treaties with more than 80 countries, allowing foreign investors to avoid being taxed twice on the same rental income. These treaties often allow property owners to either claim tax credits or exemptions in their home country for taxes paid in Turkey. This makes Turkey’s real estate market especially attractive to international investors seeking efficient tax planning strategies. Double Taxation Treaties help reduce the burden of non-resident rental tax in Turkey by allowing credit or exemption in the investor’s home country.

Turkey’s Rental Income Exemption

Property owners who rent out residential real estate in Turkey are eligible for an annual tax exemption. This threshold changes each year:

• 2024: Rental income up to 33,000 TRY is tax-exempt
• 2025: The exemption has increased to 47,000 TRY

If your total residential rental income in a given tax year is below the threshold, you are not required to pay income tax on that income. This exemption does not apply to commercial properties.

If the property is co-owned, each owner can apply the exemption individually, proportional to their share of the income. Owners of multiple residential properties must calculate their combined rental income to determine if they qualify for the exemption.

Deduction Methods for Rental Income in Turkey

Once the exemption is applied, property owners must choose one of two deduction methods to reduce their taxable rental income:

1. Actual Expense Method

This method allows landlords to deduct actual expenses related to the property, such as repairs and maintenance, property insurance, mortgage interest, depreciation and property management fees. This approach is ideal for landlords with high operating costs, but it requires accurate documentation and receipts for all deductible expenses.

Note: If you benefit from the residential rental exemption, you cannot deduct expenses related to the exempted portion of income.

2. Lump-Sum Deduction Method

Alternatively, landlords can deduct a flat 15% of their gross rental income, without needing to submit any expense documentation. However, once this method is chosen, it must be used for two consecutive years.

The lump-sum deduction method is available only for residential rental income such as apartment and house rent in Turkey. The deduction is applied after subtracting the rental income exemption for that year.

Advantages of the lump-sum method include; simplicity and ease of filing, no need to track or report individual expenses, low audit risk, and greater predictability in tax planning.

This method works best for landlords with minimal expenses. However, if your expenses exceed 15% of your rental income, the actual expense method may offer a greater deduction and reduce your overall tax liability.

Tax Differences Between Turkey’s Rentals: Residential, Commercial, and Short-Term

Understanding how rental income is classified under Turkish tax law is essential for investors interested in real estate in Turkey. Tax obligations vary significantly depending on whether the rental is residential, commercial, or short-term, each governed by different regulations and tax treatments.

Residential vs. Commercial Rental Income in Turkey

Residential Rental Income:

Income earned from renting out residential properties—such as apartments or houses—is eligible for an annual tax exemption, provided it does not exceed the government-set threshold. Additionally, residential rental income is not subject to VAT (Value Added Tax) unless it qualifies as a commercial activity. This makes long-term residential leasing a relatively straightforward option for many property investors in Turkey.

Commercial Rental Income:

Renting out commercial properties such as shops, offices, or business premises comes with a more complex tax structure. Notably, it is considered commercial income so no exemption applies to commercial rental income. It is also subject to VAT, and landlords must issue invoices for the rent received. Additionally, a 20% withholding tax must be applied. Tenants are legally required to withhold 20% of the gross rent and remit it directly to the Turkish tax authorities on behalf of the landlord.

This withholding system offers a compliance benefit, as it reduces the landlord’s direct administrative burden while ensuring proper tax collection.

Short-Term vs. Long-Term Rentals in Turkey

Long-Term Rentals:

Contracts that exceed six months are considered long-term rentals. These are treated similarly to standard residential rental income, falling under personal income tax regulations. Long-term rentals are easier to manage legally and fiscally, with fewer licensing and registration requirements compared to short-term alternatives.

Short-Term Rentals:

Short-term rentals—such as listing Turkey apartments for rent on platforms like Airbnb for 100 days or fewer—are treated as commercial activities under Turkish law. As such, they fall under the Tourism-Purpose Short-Term Rental Regulation.

To operate legally in this space, property owners must:

• Obtain a Tourism Business License
• Secure municipal approval
• Register with local authorities
• Issue VAT-compliant invoices
• Comply with potential tourism taxes or levies

Because short-term rentals are categorized as commercial activity, the income generated is subject to VAT and additional regulatory oversight.

Reporting Rental Income in Turkey

When you’re earning income from renting out property in Turkey—whether as a foreigner or local, resident or non-resident—you are legally required to declare that income to the Turkish tax authorities each year.

The annual rental income declaration must be submitted between March 1st and March 31st for income earned in the previous calendar year. Filings can be completed online or in person. For online submissions, rental income must be declared through the Interactive Tax Office (İnteraktif Vergi Dairesi) portal. Alternatively, declarations can be filed at the local Tax Office (Vergi Dairesi).

The rental income tax is typically paid in two equal installments: the first by the end of March, and the second by the end of July.

Failure to declare rental income in Turkey—or underreporting it—can result in significant penalties, interest charges, and audits, making compliance essential for both resident and non-resident property owners.

Whether you’re planning to rent your property or invest in Turkey’s thriving real estate market, staying informed about your legal and financial responsibilities is crucial. For international investors in particular, understanding how rental income tax for foreigners in Turkey works can make a significant difference in both compliance and profitability. By leveraging tax exemptions, choosing the right deduction method, and taking advantage of double taxation treaties, foreign property owners can optimize their earnings while avoiding penalties. With the right knowledge and guidance, Turkey’s rental market offers a compelling blend of income potential and long-term growth.

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