Did You Submit Your Rental Income Statement?
Don’t risk fines, blocked property sales, or tax penalties — here’s what every foreign landlord in Turkey needs to know.
Rental Income Is Not Just Money — It’s a Taxable Asset
As a foreigner owning real estate in Turkey, renting out your apartment or house seems like a simple way to generate income. But there’s one thing many foreign landlords forget — declaring that income to the Turkish tax office.
Whether you rent your property short-term via Airbnb or long-term to a local tenant, the Turkish Revenue Administration (Gelir İdaresi Başkanlığı / GİB) requires you to submit an annual rental income statement.
Failing to do so can lead to:
Hefty tax penalties
Interest and late fees
Legal action
Even a block on selling your property until the issue is resolved
This 2025 guide will walk you through:
Who needs to submit a rental income statement
Deadlines and thresholds
How to file it via the GİB system
Tax rates and exemptions
What happens if you don’t declare
Special notes for foreign landlords
II. Who Is Legally Required to Submit a Rental Income Statement in Turkey?
According to Turkish Income Tax Law, any individual — Turkish or foreign — who earns rental income from property located in Turkey must declare that income to the government if it exceeds the annual tax-free threshold.
✅ You must declare if:
You rent any property in Turkey (home, office, land)
You earned more than the annual exemption amount
You are not using the property yourself
The income came from long-term, short-term, or corporate leasing
📌 Even if you’re non-resident, you’re still responsible for declaring Turkish-sourced rental income.
III. 2025 Rental Income Tax Exemption Threshold
For the 2025 tax year (declared in March 2026), the rental income exemption amount is:
₺33,000 TRY
If you earned ₺33,000 or less, you may not owe tax, but you still must declare the income.
If you earned more than ₺33,000, you will be taxed on the portion exceeding the exemption.
IV. When and How to File Your Rental Income Declaration
🗓️ Filing Period:
Between March 1 and March 31, 2026 (for income earned in 2025)
🖥️ How to File:
You must submit your return electronically via:
Use Hazır Beyan Sistemi (Pre-filled Tax Return Portal)
Log in with:
Turkish ID number or Tax ID
E-Devlet or GİB password
The system will guide you through your declaration
📌 If you don’t speak Turkish, a tax consultant or lawyer can assist you.
V. Rental Income Tax Brackets in Turkey (2025)
After applying the exemption, the taxable portion of your income is subject to progressive income tax rates:
| Income Range (TRY) | Tax Rate |
|---|---|
| 0 – 110,000 | 15% |
| 110,001 – 230,000 | 20% |
| 230,001 – 580,000 | 27% |
| 580,001 – 3,000,000 | 35% |
| Over 3,000,000 | 40% |
These apply only to the portion exceeding the exemption, and only after deductions (see below).
VI. Deduction Options: Which One Should You Use?
There are two main methods for calculating your rental income tax:
1. Lump Sum Deduction (Götürü Gider Yöntemi)
You can deduct 15% of your total rental income automatically
No documents required
Cannot be changed for 2 years once selected
📌 Recommended for: Landlords with few or no actual expenses.
2. Actual Expense Deduction (Gerçek Gider Yöntemi)
You can deduct actual, documented expenses such as:
Property maintenance and repair
Mortgage interest
DASK and insurance premiums
Property taxes
Depreciation (amortization)
Agent fees and commissions
📌 Recommended for: Those with high property-related expenses.
VII. What If Your Tenant Is a Company? Stopaj Withholding Explained
If your property is rented to a business, the tenant is legally responsible for withholding tax (stopaj) on your behalf.
🔹 How It Works:
Tenant pays you net rent
They pay 20% of gross rent directly to the tax office
You must still file a tax return, but the stopaj is credited against your liability
📌 Many foreign landlords mistakenly assume that stopaj eliminates their tax obligation — it doesn’t.
VIII. How Foreign Currency Rent Is Treated
If your rent is paid in USD, EUR, or GBP, it must be:
Converted to Turkish Lira
At the official exchange rate on the date the income is received
This affects:
Whether you exceed the exemption
Your total tax calculation
Currency fluctuations may increase tax burden
IX. What If You Don’t File or You File Late?
Failing to declare rental income results in:
❌ Penalties:
Up to 50% additional tax
Late interest (faiz) of ~2.5% per month
Administrative fines
If GİB audits you and finds undeclared income, you may face:
Blocked property sales
Freezing of bank accounts
Ineligibility for tax amnesties
X. Can Unpaid Rental Tax Block a Property Sale?
Yes.
Before completing a property sale, the notary and title deed office will often check for:
Outstanding property taxes
Rental income tax debts
If a debt is discovered, you will be required to pay all back taxes and penalties before the transfer is allowed.
XI. FAQs – Frequently Asked Questions
❓ I earned less than ₺33,000 — do I still have to declare?
Yes. You must still file a return to claim your exemption.
❓ Can I file without a Turkish ID number?
You need at least a tax ID (Vergi Numarası). Foreigners can apply at the local tax office or online.
❓ Can I assign this to a tax consultant?
Yes. Many foreign landlords work with Turkish tax advisors or lawyers to handle filing.
❓ Can I pay in foreign currency?
No. Taxes must be paid in Turkish Lira.
XII. Final Thoughts: Declare to Protect Your Investment
Submitting your rental income statement is more than just a legal duty — it’s a crucial part of:
Protecting your investment
Ensuring future property sales go smoothly
Avoiding fines and interest
Maintaining your legal credibility in Turkey
Don’t delay. If you haven’t submitted your statement for 2025, take action now — before March 31, 2026.
📌 Need Help With Rental Tax Filing in Turkey?
At Ensari Yiğitcan Çakmak Law Office, we support foreign property owners with:
Rental income tax declaration
Choosing the best deduction method
Legal compliance and audit defense
Sale preparation and debt clearance
📞 Let us help you protect your property and peace of mind.
🌐 www.ensariyigitcancakmak.av.tr
📧 info@ensariyigitcancakmak.av.tr
📱 +90 533 194 52 14
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