Tax on rental income, property tax, DASK and building dues.

01

How rental income is taxed

Rental income is defined as income from immovable property in the Income Tax Law No. 193 (GVK Art. 70). Income belongs to the year in which rent is collected; uncollected rent is not declared (Art. 72). Income of a calendar year is declared in March of the following year on the annual income tax return; the tax is paid in two equal instalments in March and July (Arts. 92, 117).

The return can be filed online through the Revenue Administration’s Pre-filled Return System, which pre-populates rent data from bank and land-registry records.

02

Residential rent exemption (2026: 58,000 TL)

A set amount of the rent earned in a calendar year from buildings let as dwellings is exempt from income tax (GVK Art. 21). The amount is revalued every year: 47,000 TL for 2025 income, 58,000 TL for 2026 income. If residential rent does not exceed the amount, no return is filed.

Not eligible: those who fail to declare or under-declare the income; those obliged to file an annual return for commercial, agricultural or professional income; and those whose total wages, investment income and other earnings exceed the third bracket of the tariff in GVK Art. 103 (Art. 21/2). The exemption applies to residential rent only; there is no exemption for workplace rent.

03

Lump-sum or actual expenses

Expenses are deducted by one of two methods (GVK Art. 74). Under the lump-sum method, 15 percent of the revenue remaining after the exemption is deducted without documentation. Under the actual method, the items listed in the law and documented are deducted: building dues and management costs, insurance premiums, interest on a loan taken for the property, property tax, maintenance and repairs, depreciation, 5 percent of the acquisition cost for five years from acquisition of the let dwelling, and rent the landlord pays for their own home.

A taxpayer who chooses the lump-sum method cannot switch to actual expenses for two years (Art. 74/3). Under the actual method, the part of expenses attributable to the exempt portion is not deductible; the calculation is proportional.

04

Rent must be paid through a bank

Since 17 October 2024 every collection and payment relating to residential and workplace rent must be made through a bank or PTT and proven with their documents; the earlier 500 TL threshold was abolished (Income Tax General Communiqué No. 328; Tax Procedure Law, repeated Art. 257). Short-term lets are included. Cash collection can trigger a special irregularity fine for both landlord and tenant.

05

Withholding: none for homes, 20 percent for workplaces

In a residential lease with an individual tenant there is no withholding; the whole tax is paid through the annual return. If the tenant is a business or entity that is a taxpayer and uses the property as a workplace, the tenant withholds 20 percent income tax on the gross rent and pays it to the tax office (GVK Art. 94/5-a). The withholding is credited against the tax computed on the owner’s annual return.

06

Filing for residents abroad

Persons not resident in Turkey (limited taxpayers) declare only income earned in Turkey (GVK Art. 6). Rent from a home in Turkey falls within this; the residential exemption also applies to limited taxpayers. Turkish citizens and foreigners living abroad file on the same calendar (March return, March and July instalments); the return may be filed through an agent or a certified accountant.

If a double taxation treaty exists between Turkey and the country of residence, tax paid in Turkey is generally credited in the other country; the relevant treaty article (income from immovable property, usually Art. 6) and that country’s rules decide.

07

Property tax

Building tax is paid by the owner, not the tenant (Property Tax Law No. 1319, Art. 3). It is paid to the municipality where the property lies in two equal instalments: the first in March–May (deadline 31 May), the second in November (Art. 30). The rate for dwellings within metropolitan municipality boundaries is 0.2 percent (Art. 8). Sales and changes to the building require a declaration (Art. 23).

08

DASK and home insurance

Compulsory earthquake insurance (DASK) is required by the Disaster Insurance Law No. 6305 for residential buildings on privately owned, registered land, independent units under condominium ownership, and office and shop units inside such buildings; the duty to insure lies with the owner or usufructuary, not the tenant (Art. 10). The policy is required by law in land-registry transactions and when water and natural gas subscriptions are opened (Art. 11); for electricity the same requirement comes from the energy regulator’s consumer services regulation. It is annual; premium and cover are set by the Natural Disaster Insurance Institution; the cover is for the building itself, not the contents.

Home insurance is optional; it covers risks outside DASK such as fire, flooding, theft and damage to neighbours. The tenant’s belongings need the tenant’s own policy.

09

Building dues and condominium law

The obligation to contribute to common expenses lies with the unit owner (Condominium Law No. 634, Art. 20). The tenant is jointly and severally liable with the owner, but only up to the rent the tenant owes, and what the tenant pays is set off against the rent (Art. 22/1). Ordinary dues under the operating budget (concierge, cleaning, heating and similar usage costs) may be placed on the tenant; substantial repairs and capital works such as the roof, lift replacement or insulation belong to the owner and cannot be shifted to the tenant by contract, because the tenant cannot be made to pay anything beyond rent and ancillary costs (TBK Arts. 346, 305).

Utilities (heating, lighting, water, gas) are borne by the tenant unless the contract says otherwise (TBK Art. 341). Opening the subscriptions in the tenant’s name prevents bills accumulating in the owner’s name.