Annual rental income tax filing in Turkey is required when income earned from a Turkish residential or commercial property meets the applicable declaration conditions. Foreign property owners and Turkish citizens living abroad may still have a Turkish tax obligation even if they do not live, work or hold tax residency in Turkey.
SMMM Özgür Karadaş provides English-speaking rental income tax return support for foreign landlords, non-resident property owners, overseas Turkish citizens and investors with residential or commercial property in Turkey.
Our service covers the review of rental income, ownership shares, foreign-currency collections, deductible expenses, residential exemptions, commercial-property withholding and annual filing requirements. Where filing is required, the return and payment process can be coordinated digitally without requiring the property owner to manage Turkish tax terminology alone.
Confirm Whether You Need to File a Turkish Rental Income Tax Return
Send us the property type, ownership percentage, rent collected, property location and country of residence. We will determine the applicable declaration, expense and payment process.
Who Is This Rental Income Tax Filing Service For?
This service is designed for individuals who own or hold rights over property located in Turkey and receive rent from that property.
- Foreign citizens owning an apartment, villa, office, shop or land in Turkey,
- Non-residents receiving Turkish rental income while living abroad,
- Turkish citizens residing overseas with a residence or work permit,
- Property investors with more than one rental unit,
- Joint owners and inherited-property owners,
- Owners receiving rent in euros, US dollars, pounds or another currency,
- Landlords whose commercial-property rent is subject to withholding tax,
- Owners who did not submit a previous rental income tax return,
- Property owners who need to compare actual and lump-sum expenses,
- Individuals requiring English-language tax calculations and explanations.
Current Rental Income Tax Reference
Rental income thresholds are determined according to the calendar year in which the income is earned. The filing itself normally takes place during March of the following year.
| Income period | Residential exemption | Filing position |
|---|---|---|
| Rental income earned in 2025 | TRY 47,000 | The normal filing period was 1–31 March 2026. The tax was payable in March and July 2026. |
| Rental income earned in 2026 | TRY 58,000 | The annual return will generally be filed in March 2027. The official 2027 filing calendar should be confirmed when published. |
Current thresholds and filing guides are published by the Turkish Revenue Administration.
Do Foreign Property Owners Pay Rental Income Tax in Turkey?
Rental income earned from property located in Turkey is considered Turkish-source income. A foreign owner may therefore have a Turkish filing or withholding-tax obligation even if the owner lives permanently in another country.
Non-resident taxpayers are generally taxed in Turkey only on income and gains arising in Turkey. Their income earned outside Turkey is not included in a Turkish rental income tax return solely because they own Turkish property.
The filing result depends mainly on:
- Whether the owner is resident or non-resident for Turkish tax purposes,
- Whether the property is residential or commercial,
- Whether tax has been withheld by the tenant,
- The gross rent collected during the calendar year,
- The owner's legal ownership percentage,
- Whether the residential exemption can be used,
- Whether actual or lump-sum expenses are selected,
- Whether the owner has other income that must be combined in the return.
Living Abroad Does Not Automatically Remove the Turkish Filing Obligation
We review your residence status, property type, rental collections and withholding documents to determine whether a return is required.
Residential Rental Income for Non-Residents
A non-resident individual who receives rent from a Turkish residence generally needs to file an annual return when the total residential rent exceeds the residential exemption applicable to that calendar year.
For rental income earned in 2026, the residential exemption is TRY 58,000. Where the gross residential rent remains below the applicable exemption and no other declaration condition arises, an annual return is generally not required for that residential income.
The exemption is applied once to the total residential rental income of the taxpayer. It is not multiplied by the number of apartments owned by the same person.
Where a residence has more than one legal owner, each owner reports the rental income corresponding to their ownership share. Subject to the applicable conditions, each owner may separately benefit from the residential exemption.
Commercial Property Rental Income for Non-Residents
Rent paid by a Turkish company, business or other withholding agent for an office, shop, workplace or other commercial property is generally subject to Turkish withholding tax.
For a non-resident individual, commercial-property rental income that has been fully taxed through Turkish withholding is generally not included in an annual Turkish income tax return, regardless of the gross amount.
The following points should still be checked:
- Whether the tenant was legally required to withhold tax,
- Whether the rent was stated as gross or net in the contract,
- Whether the correct withholding was declared and paid,
- Whether part of the property was also used as a residence,
- Whether any portion of the rent was paid by a person not required to withhold,
- Whether the property generated another type of rental income.
If a property is used partly or wholly as a workplace, the complete rent may become subject to withholding under the applicable rules.
Residential vs Commercial Rental Income
| Issue | Residential property | Commercial property |
|---|---|---|
| Residential exemption | May apply if the statutory conditions are satisfied | Does not apply |
| Withholding tax | Normally not withheld from an ordinary residential tenant | May be withheld by a business or other qualifying tenant |
| Non-resident annual return | Generally required when rent exceeds the residential exemption | Generally not required when the complete income has been taxed through Turkish withholding |
| Expense method | Actual or 15% lump-sum method may be considered | Actual or lump-sum method may apply where an annual declaration is required |
What Does Our Annual Rental Income Tax Filing Service Include?
| Service stage | Work performed | Result |
|---|---|---|
| Filing-obligation review | Review of residence, property type, rent, withholding and other income | Confirmation of whether an annual return is required |
| Rental-income reconciliation | Comparison of contracts, bank receipts, currencies and collection dates | A supportable annual gross-rental calculation |
| Ownership allocation | Review of title deed and ownership percentages | Income allocated to the correct taxpayer and ownership share |
| Expense-method comparison | Comparison of actual expenses with the 15% lump-sum deduction | Selection of the compliant method suitable for the available records |
| Return preparation | Calculation of exemption, deductions, taxable income and tax | A completed annual rental income tax return |
| Electronic filing | Submission through the appropriate electronic declaration system | Return submitted and tax accrual generated |
| Payment guidance | Explanation of instalments, references and electronic payment methods | Clear payment amounts and deadlines |
| Late-filing review | Assessment of unfiled years and voluntary-compliance options | A corrective filing plan based on the taxpayer's position |
Documents Required for Rental Income Tax Filing
The exact checklist depends on the property, owner and expense method. The following documents are commonly required:
- Passport or Turkish identification information,
- Turkish tax identification number or foreign identity number,
- Title deed or other document showing ownership rights,
- Ownership percentage where the property is jointly owned,
- Rental agreement and amendments,
- Bank statements showing rent collections,
- Details of cash or in-kind collections, if any,
- Tenant information and property use,
- Withholding documents for commercial-property rent,
- Property-management and maintenance invoices,
- Insurance documents,
- Municipal taxes, duties and property-related fees,
- Repair and maintenance invoices,
- Previous rental income tax returns,
- Information about other income declared in Turkey,
- Tax-residence certificate where treaty treatment is relevant,
- Authorization or power-of-attorney documents where applicable.
If you do not yet have a Turkish tax number, our Turkish Tax Identification Number acquisition service may be coordinated with the filing process.
How Is Rental Income Calculated?
Turkish rental income is generally taxed according to the collection principle. The calculation therefore begins with rent actually collected in cash or in kind during the calendar year.
- Rent for the current or previous years collected during the current year is generally treated as income of the year in which it is collected.
- Rent collected in advance for future years is generally allocated to the years to which it relates.
- Cheques and foreign-currency rent are included in the collection calculation.
- Rent collected in kind is valued under the applicable valuation rules.
Rent Collected in Foreign Currency
Rental income received in euros, US dollars, pounds or another currency must be converted into Turkish lira for the annual tax return.
The gross income is generally calculated using the foreign-exchange buying rate announced by the Central Bank of the Republic of Turkey on the date the rent is collected.
Using only the exchange rate at year-end or the total amount received into a foreign bank account may produce a different and potentially incorrect calculation. Each collection date should therefore be reviewed.
Actual Expenses or 15% Lump-Sum Expenses?
Taxable rental income may generally be determined by either the actual-expense method or the lump-sum expense method. Selecting the correct method can materially affect the tax calculation.
| Issue | Actual-expense method | Lump-sum method |
|---|---|---|
| Deduction | Eligible documented expenses are deducted | 15% of the eligible rental amount is deducted |
| Supporting invoices | Required and retained for the statutory period | Individual expense invoices are not used to calculate the 15% deduction |
| Best suited for | Owners with material eligible and properly documented expenses | Owners with limited expenses or incomplete expense documentation |
| Method restriction | May be selected where complete supporting documents exist | A taxpayer selecting this method cannot return to actual expenses until two years have passed |
The selected method must generally apply to all properties covered by the same return. It is not normally possible to use actual expenses for one property and the lump-sum method for another property in the same year.
How Is the 15% Lump-Sum Deduction Calculated?
Where the taxpayer qualifies for the residential rental exemption, the exemption is deducted first. The 15% lump-sum expense is then calculated on the remaining amount.
General calculation:
Gross residential rental income − residential exemption = remaining income
Remaining income × 15% = lump-sum expense deduction
Which Actual Expenses May Be Deductible?
Subject to statutory conditions and supporting documents, deductible expenses may include:
- Property-management expenses,
- Insurance relating to the rented property,
- Utilities and common expenses paid by the owner,
- Municipal taxes, duties and property-related charges,
- Repair and maintenance expenses,
- Depreciation relating to the rented property,
- Certain acquisition-value deductions for one qualifying rented residence,
- Expenses and rent paid by a sub-lessor,
- Contractual compensation relating to the rented property.
For taxation periods beginning from 1 January 2025, interest on debts incurred for leased assets is deductible under the relevant conditions except for residential properties. A residential-property mortgage or loan interest payment should therefore not be assumed to be deductible.
The special deduction equal to 5% of the acquisition value of one rented residence may apply for five years beginning from the acquisition date, subject to the statutory conditions. It does not apply to residential property acquired before 2021.
A non-resident property owner cannot deduct rent paid for their own residence in another country from Turkish rental income.
Documents supporting actual expenses must generally be retained for five years beginning from the year following the relevant tax year.
Compare Both Expense Methods Before Filing
Send your annual rent and property expenses. We will calculate the actual-expense and lump-sum alternatives before preparing the return.
2026 Income Tax Rates for Rental Income
Rental income remaining after the applicable exemption and deductions is included in the taxable income base. For income earned during 2026, the progressive non-employment income tax tariff is:
| 2026 taxable income | Tax calculation |
|---|---|
| Up to TRY 190,000 | 15% |
| TRY 190,000–400,000 | TRY 28,500 plus 20% of the amount exceeding TRY 190,000 |
| TRY 400,000–1,000,000 | TRY 70,500 plus 27% of the amount exceeding TRY 400,000 |
| TRY 1,000,000–5,300,000 | TRY 232,500 plus 35% of the amount exceeding TRY 1,000,000 |
| Over TRY 5,300,000 | TRY 1,737,500 plus 40% of the amount exceeding TRY 5,300,000 |
The progressive rate applies to taxable income, not directly to the gross rent. The residential exemption, expense method, other declared income and prior withholding credits can change the final result.
Rental Payments Must Be Documented Through Banks or PTT
Residential and commercial rental collections and payments must generally be documented using records issued by banks or the Turkish Post and Telegraph Organization, known as PTT.
The documentation obligation also applies to weekly and daily residential rentals. Accepted evidence may include:
- Bank transfers,
- EFT transactions,
- Deposits made through a bank branch,
- Credit or debit card payments,
- Cheques processed through a bank,
- Internet and mobile-banking transactions,
- PTT payment records.
The transfer explanation should clearly identify the payment as rent and, where possible, include the relevant month and property.
Collecting rent outside the required banking or postal channels may create special irregularity penalties for the parties.
Multiple Properties and Joint Ownership
More Than One Residential Property
If one taxpayer receives rent from several residential properties, the residential exemption is applied once to the total residential rent. It is not applied separately to every apartment.
Jointly Owned Property
Each owner declares the rental income corresponding to their legal ownership share. Subject to the required conditions, each co-owner may separately benefit from the residential exemption.
Inherited Property
Where inherited property has not yet been divided, each heir generally reports the portion corresponding to their inheritance share. The ownership and inheritance records should be reviewed before the return is prepared.
Low Rent or Free Use of Property
Leaving property to another person free of charge or charging rent below the equivalent rental value can create a deemed rental-income calculation.
For buildings and land where no official rental value has been determined, the equivalent rental value is generally calculated as 5% of the property-tax value.
Specific exceptions may apply, including certain situations where a property is allocated to qualifying close family members or left to another person solely for protection. Each arrangement should be reviewed based on the actual use and relationship.
Does a Double Taxation Treaty Remove Turkish Rental Tax?
Double taxation treaties generally permit the country in which the immovable property is located to tax rental income from that property. Therefore, rent from a property located in Turkey remains subject to Turkish domestic tax rules even when the owner lives in a treaty country.
The owner's country of residence may grant an exemption or foreign tax credit for tax paid in Turkey, depending on the treaty and that country's domestic legislation.
The taxpayer may need:
- A Turkish rental income tax return,
- Tax accrual and payment receipts,
- A Turkish tax-residence or liability document where applicable,
- A residence certificate issued by the foreign country,
- Certified translations for treaty procedures,
- Advice from a tax professional in the country of residence.
Turkey's current agreements are published in the Revenue Administration's Double Taxation Agreements section.
How Is the Rental Income Tax Return Filed?
Rental income returns may be filed through the Turkish Revenue Administration's electronic systems or through an authorized tax professional.
The available method depends on whether the taxpayer has a Turkish identification number, foreign identity number, tax number, electronic login credentials or an existing taxpayer registration.
Possible filing channels include:
- The Pre-Filled Tax Return System,
- The Digital Tax Office,
- The Hazır Beyan mobile application,
- Electronic filing through an authorized SMMM under an intermediary agreement,
- The competent tax office where electronic access cannot be established.
Where a non-resident owner has a tax representative in Turkey, the competent tax office may be determined according to the representative's location. Where there is no representative, the tax office connected with the property's location may become relevant.
When an electronic rental income return is approved for a person without an existing rental-income taxpayer registration, the registration and accrual may be created automatically through the system.
How Is the Tax Paid?
Tax calculated on an annual rental income return is generally paid in two equal instalments during March and July of the filing year.
Payments may be available through:
- The Digital Tax Office,
- The GİB mobile application,
- Cards issued by participating Turkish banks,
- Cards and other supported payment methods issued by foreign banks,
- Online or mobile banking of contracted banks,
- PTT branches,
- Turkish tax offices.
Payment availability for a foreign-issued card can depend on the Revenue Administration's current payment infrastructure and the issuing bank.
What Happens If the Filing Deadline Was Missed?
A missed deadline should be reviewed before the taxpayer receives an official assessment or information request.
If rental income is not declared or is understated and the Revenue Administration identifies the omission, the taxpayer may lose the residential exemption and may be required to pay tax, penalties and late-payment interest.
Where the taxpayer voluntarily files before the omission is identified by the administration, it may still be possible to benefit from the residential exemption, subject to the applicable rules and the taxpayer's circumstances.
A late-filing review may include:
- Identification of all unfiled income years,
- Reconstruction of rent collected in each year,
- Foreign-currency conversion,
- Assessment of available exemptions and expenses,
- Calculation of tax, interest and potential penalties,
- Preparation of corrective or voluntary returns,
- Payment and taxpayer-registration guidance.
Have You Missed a Previous Rental Tax Return?
Do not wait for a tax-office notice. Send us the income year, rent collected and property details so the available voluntary-filing options can be reviewed.
Our Rental Income Filing Process
1. Initial Property and Taxpayer Review
We collect the owner's identity, residence country, property type, ownership share, tenant information and relevant tax year.
2. Filing Obligation Assessment
We determine whether the income is residential or commercial, whether withholding has been applied and whether an annual declaration is required.
3. Rental Collection Reconciliation
Rental agreements and bank collections are compared. Foreign-currency payments are converted using the relevant collection-date rates.
4. Expense Method Comparison
Where both methods are available, actual expenses and the 15% lump-sum method are calculated and compared.
5. Tax Calculation
The applicable exemption, deductible expenses, progressive tax tariff, withholding credits and other declaration items are taken into account.
6. Return Submission
The annual return is electronically filed through the appropriate declaration system.
7. Payment and Record Delivery
The tax accrual, payment amounts, deadlines and filing records are provided to the property owner with an English explanation.
Rental Income Earned Through a Company
This service page primarily addresses rental income earned directly by individual property owners.
Where the property is owned by a Turkish or foreign company, the rent is generally included within the company's commercial or corporate income and should be recorded through its regular accounting system rather than an individual's annual rental income return.
Company-owned property may require review of:
- Corporate income tax,
- VAT and invoicing,
- Depreciation and expenses,
- Related-party use,
- Withholding tax,
- Foreign-company permanent-establishment exposure,
- Monthly and annual accounting records.
Corporate property owners may use our tax, bookkeeping and accounting services in Turkey or request a review through our Turkish tax advisory service.
Rental Income Tax Filing Fees
The professional fee depends on the complexity of the taxpayer's rental portfolio and filing position.
Pricing may be affected by:
- Number of properties,
- Number of owners or heirs,
- Residential or commercial use,
- Foreign-currency collections,
- Actual-expense documentation,
- Commercial withholding records,
- Other Turkish income included in the return,
- Missing taxpayer registration or login credentials,
- Late or corrective filings,
- Requirement for treaty or tax-residence documentation.
For an accurate quotation, provide the tax year, property type, property count, annual rental amount and country of residence.
Why Work with SMMM Özgür Karadaş?
- Direct communication with an English-speaking Turkish CPA/SMMM,
- Experience with foreign and non-resident taxpayers,
- Residential and commercial rental income reviewed separately,
- Actual and lump-sum expense methods compared before filing,
- Foreign-currency rent calculated using collection-date information,
- Support with tax identification and electronic filing access,
- Clear tax accrual and payment instructions,
- Late-filing and correction support,
- Digital document review for owners living outside Turkey,
- Coordination with broader Turkish tax advisory where required.
File Your Turkish Rental Income Tax Return with English-Speaking Support
Send your property details, ownership percentage, annual rent and residence country. We will confirm the filing requirement, deductions, tax calculation and submission process.
