Rental Income Tax in Turkey 2026: A Guide for Foreign Landlords

Foreigners who own a flat or villa in Türkiye and let it out are taxed on that rent in Türkiye, whether they live in the country or not. For most private landlords the system is simple: an annual return filed in March through the Revenue Administration’s pre-filled online system, with the tax paid in two instalments. The details that catch people out are the exemption limits, the choice of expense method, holiday-let rules and the obligation to collect rent through a bank. This guide sets out the rules and the 2026 figures as they stand in October 2026.

Key points:

• Rent from property in Türkiye is taxable in Türkiye for residents and non-residents alike; double tax treaties generally leave the right to tax property income with the country where the property sits.
• The residential rental exemption is 58,000 lira for rent earned in 2026 (47,000 lira for 2025 rent declared in March 2026).
• 2026 income tax rates run from 15% to 40% across five brackets, starting at 190,000 lira.
• Landlords can deduct either a flat 15% of rent or their actual, documented expenses.
• Returns are filed from March 1 to March 31 of the following year, with tax paid in two equal instalments in March and July.
• Tenants who are businesses withhold 20% from commercial rent; all rent, including short holiday lets, must be paid through a bank or PTT.

If you are still at the buying stage, our guide to buying property in Turkey as a foreigner and our overview of property costs and taxes explain the steps and charges that come before letting.

Who has to declare rental income

Turkish income tax law divides individuals into two groups.

Full taxpayers (tam mükellef) are people resident in Türkiye. In practice that means someone whose settled home is in Türkiye, or who stays in the country for more than six months in a calendar year. Residents are, in principle, taxed on their worldwide income, so a foreign retiree living in Antalya on a residence permit who also lets a flat in Fethiye declares that rent like any Turkish landlord.

Limited taxpayers (dar mükellef) are non-residents: people who do not have a settled home in Türkiye and spend no more than six months a year in the country. A British or German owner who visits for the summer and lets the property for the rest of the year usually falls into this group. Limited taxpayers are taxed only on income earned in Türkiye, and rent from Turkish property is exactly that.

The Revenue Administration (Gelir İdaresi Başkanlığı, GİB) publishes a separate rental income guide for non-residents. Its main points are that non-residents can use the residential exemption, that they file with the tax office where the property is located (or where their tax representative lives, if they appoint one), and that rent received in foreign currency is converted at the Central Bank’s buying rate on the day it is collected.

Each person declares their own share. If a couple own a flat 50/50, each declares half the rent and each can use their own exemption.

The residential rental exemption for 2026

Rent from homes (mesken) benefits from an annual exemption uprated each year. Under Income Tax General Communiqué No. 332, published in the Official Gazette on Dec. 31, 2025, the exemption is 58,000 lira for residential rent earned in 2026. That figure applies to the return filed in March 2027. For 2025 rent, declared in March 2026, the exemption was 47,000 lira.

If your total residential rent for the year stays below the exemption, and you have no other income that must be declared, you do not need to file. If it goes above, the whole amount is declared and the exemption is deducted from it.

The exemption is not available to everyone:

• Business owners: anyone who has to declare commercial, agricultural or professional income cannot use it.
• Higher earners: it is lost if the gross total of your wages, investment income, rent and certain other income exceeds the amount in the third income tax bracket for wages. That limit was 1.2 million lira for 2025 income and, under the 2026 tariff, is 1.5 million lira for 2026 income.
• Late filers: if the return is not filed on time, or the rent is under-declared, the exemption is lost for that year. An exception applies when you file late of your own accord before the tax office has identified you.
• Commercial property: the exemption covers homes only. Someone with both a flat and a shop applies it to the flat’s rent alone.

2026 income tax brackets

Net rental income is added to your other declarable income and taxed at progressive rates. The 2026 tariff, set by the same communiqué, is:

• Up to 190,000 lira: 15%
• 190,000 to 400,000 lira: 20%
• 400,000 to 1,000,000 lira: 27%
• 1,000,000 to 5,300,000 lira: 35%
• Above 5,300,000 lira: 40%

For salary income the 27% band runs to 1.5 million lira instead of 1 million, but for most landlords whose only Turkish income is rent, the general tariff above applies. These figures apply to income earned in 2026 and declared in March 2027; the brackets are revised every year.

Flat-rate or actual expenses

Landlords choose one of two methods to work out net income, and the choice applies to all their properties together.

The flat-rate method (götürü gider)

Under the flat-rate method you deduct 15% of the rent, without keeping receipts. If you are using the residential exemption, the 15% is calculated on the rent left after the exemption. Once you choose it, you cannot switch to actual expenses for two years. People who rent out rights rather than property cannot use it.

The actual-expense method (gerçek gider)

Under this method you deduct documented costs. The GİB list includes:

• lighting, heating, water and lift costs paid by the landlord
• management costs in proportion to the property
• insurance premiums
• property tax, fees and municipal contributions
• depreciation
• repair and maintenance costs
• compensation paid to tenants under a contract, law or court order
• for a home, 5% of the purchase price each year for five years from the year of purchase, deductible only against that home’s rent

Interest on loans used to buy a home cannot be deducted, although interest relating to other property can. Rent that a non-resident pays for their own home abroad cannot be set against Turkish rental income.

Actual expenses can pay off in the first years after a purchase or after a major renovation, but every item needs an invoice in your name.

A worked example

Take a non-resident owner who lets a flat in Fethiye for 30,000 lira a month throughout 2026, giving 360,000 lira for the year.

1. Deduct the exemption: 360,000 – 58,000 = 302,000 lira.
2. Deduct the flat 15%: 302,000 – 45,300 = 256,700 lira taxable.
3. Apply the 2026 tariff: 15% on the first 190,000 lira is 28,500 lira; 20% on the remaining 66,700 lira is 13,340 lira.
4. Total tax: about 41,840 lira, payable in two halves in March and July 2027, plus a small stamp duty on the return.

This is a simplified illustration.

Filing in March through Hazır Beyan

Annual returns for rental income are filed between March 1 and March 31 of the year after the rent was earned. The tax is paid in two equal instalments, the first by the end of March and the second by the end of July. Dates can shift when the deadline falls on a weekend or is extended; in 2025, for example, the period ran to April 2.

Most individuals file through the GİB Hazır Beyan (pre-filled return) system at hazirbeyan.gib.gov.tr. It pulls in data the administration already holds and calculates the tax once you enter the rent. You can log in with an e-Devlet password, a GİB user code and password, or, for foreigners, a foreign identity number. If you are not yet registered as a taxpayer, approving the return creates the registration automatically. Tax can be paid online by bank card or credit card.

If you own a property but do not need to file, for example because rent was below the exemption, the family lives in it or the property was sold, the system lets you submit a short petition explaining why.

Owners who cannot handle the Turkish-language system usually authorise an accountant (mali müşavir) to file electronically for them.

Tax number and e-Devlet

You need a Turkish tax number to buy property, so most foreign owners already have one; it is issued by any tax office against a passport. Residence permit holders also receive a foreigner identity number beginning with 99, which works as a tax number and gives access to e-Devlet, the government portal. Our guide to getting an e-Devlet password as a foreigner explains how. Non-residents without a permit can still file through Hazır Beyan with a GİB user code obtained from a tax office, or through an accountant.

Holiday lets and short-term rentals

Letting a home to tourists for short stays is governed by Law No. 7464 on renting residences for tourism purposes, which took effect in 2023. Rentals of up to 100 days require a permit from the Ministry of Culture and Tourism, a plaque at the entrance, unanimous consent from the other owners in the building and guest identity reporting, with heavy fines for letting without a permit. Our explainer on the short-term rental law, permits and fines covers the details, and our report on the Booking.com and Airbnb licensing law explains the platform rules.

How holiday-let income is taxed is less settled than many owners assume. An occasional summer let of a single home is, in principle, rental income declared in the same way as a long-term let. But tax specialists point out that letting furnished homes to tourists on a continuous, organised basis, often with cleaning and other services, has the hallmarks of a business, and in that case the income is commercial income (ticari kazanç). Commercial taxpayers must register with the tax office on the full bookkeeping basis, issue invoices, file VAT and provisional tax returns and keep books, and they lose access to the residential exemption. Commentators citing 2025 GİB correspondence report that the administration expects permit-holding tourist rentals to be registered in this way.

Because the line depends on the facts, anyone letting a holiday home regularly, or several units, should take advice from a Turkish accountant before the season.

Commercial lets and 20% withholding

If you let a shop, office or other workplace, or let a home to a company, the tenant is usually required to withhold 20% of the gross rent as income tax (stopaj) and pay it to the tax office on your behalf. If even part of a property is used as a workplace, withholding applies to the whole rent. Tenants taxed under the simplified regime do not withhold.

For residents, withheld commercial rent must be declared only if the gross amount, together with other declarable income, exceeds the declaration threshold, which is 400,000 lira for 2026 income (330,000 lira for 2025). Tax already withheld is credited against the tax on the return. For non-residents, GİB says no annual return is needed for workplace rent when the full 20% has been withheld, whatever the amount. Rent from a property that has not had tax withheld, such as rent from a tenant under the simplified regime, must be declared.

Rent must be paid through a bank

Turkish rules require rent on both homes and workplaces to be collected through a bank or the PTT postal service. The old 500-lira threshold for homes was removed by a communiqué published in 2024, so the requirement now applies regardless of amount, and it covers daily and weekly lets as well. Failing to comply carries a special irregularity penalty of 10% of each payment, subject to an annual minimum, and the penalty can now fall on tenants as well as landlords.

Bank records are also one of the main ways the tax office finds landlords who have not declared.

Rent increases and tenancy basics

Residential and workplace leases are governed by the Turkish Code of Obligations. A few points matter for landlords:

• Written contract: a written lease is not compulsory but is strongly advisable, setting out the rent, currency, increase clause, deposit and condition of the property.
• Increases: annual increases on renewal cannot exceed the 12-month average consumer price inflation. For leases renewing in October 2026 that cap was 31.49%, as we reported in the October rent increase cap.
• Deposit: the security deposit cannot exceed three months’ rent. A cash deposit should be placed in a blocked time-deposit account in the tenant’s name, releasable only with both parties’ consent or a court or enforcement decision. Interest belongs to the tenant.
• Ending a lease: tenants are strongly protected, and landlords can end residential leases only on specific legal grounds; take legal advice first.

Penalties for not declaring

The administration cross-checks bank, title deed, population and withholding records to find landlords who have not filed. In 2024 it announced it had identified 362,000 people with undeclared residential rent and 15,000 with undeclared commercial rent.

If the tax office finds undeclared rent, it assesses the tax with a tax-loss penalty generally equal to the unpaid tax, plus late-payment interest, and the residential exemption is lost for that year. A landlord who comes forward voluntarily before any notice or inspection can use the “pişmanlık” (repentance) procedure under the Tax Procedure Law, paying the tax and a surcharge without the tax-loss penalty, though the exemption still does not apply to a late return. The tax office can generally assess unpaid tax for up to five years, so past years remain open.

Double tax treaties

Türkiye has income tax treaties with many countries, including the United Kingdom, Germany, the Netherlands and most other European states. Under treaties built on the standard model, income from immovable property may be taxed in the country where the property is located. Türkiye therefore taxes the rent first, and your home country then either exempts it or gives a credit for Turkish tax, depending on its own rules and the specific treaty. To claim treaty benefits where they apply, Türkiye generally asks for a certificate of residence from your home tax authority.

Common pitfalls

• Assuming non-residents are out of scope. Rent from Turkish property is taxable in Türkiye wherever you live.
• Missing the March deadline. A late return costs you the exemption, which on a modest let can be most of the tax due.
• Taking rent in cash or to a foreign account informally. Rent must go through a bank or PTT, and undeclared foreign-currency receipts still have to be converted and declared.
• Treating a busy holiday let as simple rental income. Regular tourist lets may count as a business with registration, VAT and bookkeeping obligations, on top of the tourism permit.
• Ignoring corporate tenants’ withholding. Check that the 20% withheld appears in the pre-filled data, so you get credit for it.

Owners deciding where to buy with rental income in mind can compare regions in our guide to where to buy property in Turkey and in city guides such as living in Fethiye and living in Kaş and Kalkan. Those planning to exit should read our companion guides on selling property and capital gains tax and on inheriting property in Turkey. You can browse current property for sale in Turkey on Vartur.

This guide is general information, not tax advice. Rules and amounts are as of October 2026 and change every year; check your own position with a Turkish accountant, your tax office or GİB before filing.

Bottom line

Letting a Turkish property brings a Turkish tax obligation, but for a single long-term let it is a once-a-year task: collect the rent through a bank, file through Hazır Beyan between March 1 and 31, and pay in March and July. For 2026 rent, the first 58,000 lira from a home is exempt, a flat 15% covers expenses for most owners, and rates start at 15%. The complications lie in holiday lets, which need a permit and may count as a business, and in commercial lets with 20% withholding. Filing on time is the single most valuable step, because it is what keeps the exemption.

Frequently asked questions

Do non-residents pay tax on rent from property in Turkey?

Yes. Rent from property in Türkiye is Turkish-source income, so non-residents (limited taxpayers) declare and pay tax on it in Türkiye, and can use the residential exemption.

How much rental income is tax-free in Turkey in 2026?

For residential rent earned in 2026 the exemption is 58,000 lira, declared in March 2027. It is not available to people with business income, those whose gross total of certain incomes exceeds 1.5 million lira, or those who file late.

When is rental income declared and paid?

Returns are filed from March 1 to March 31 of the following year, usually through GİB’s Hazır Beyan system, and the tax is paid in two equal instalments in March and July.

What is the 15% flat-rate expense method?

Instead of documenting costs, landlords can deduct 15% of their rent (after the exemption). Once chosen, it applies to all properties and cannot be switched to actual expenses for two years.

Is holiday-let income taxed differently?

An occasional let of one home is generally treated as rental income, but regular, organised tourist lets may count as commercial income requiring tax registration, invoicing and VAT. A tourism rental permit under Law 7464 is also required.

Can I collect rent in cash?

No. Rent on homes and workplaces, including short-term lets, must be paid through a bank or PTT regardless of amount, with a penalty of 10% of each payment for non-compliance.

Last updated: 20 October 2026. Rules, fees and thresholds in Türkiye change often; check the latest official guidance or ask a licensed lawyer before you act.

Sources

• Income Tax General Communiqué No. 332: 2026 brackets and thresholds (KPMG Türkiye)
• Rental income guide for non-resident taxpayers 2025 (Revenue Administration, GİB)
• 2026 income tax figures, tax bulletin 2026/02 (PwC Türkiye)
• 2025 rental income declaration: exemption, thresholds, expenses and payment dates (Alomaliye)
• Consequences of not declaring rental income 2026 (Hukukçular Evi)
• Cash rent payments end, penalties increased (Ekonomist)
• GİB identifies undeclared rental income, voluntary disclosure option (Capital / Anadolu Agency)
• Tax registration for short-term home rentals (Hukuki Haber)
• Security deposit rules under Code of Obligations Article 342 (Hukukçular Evi)
• New rules on short-term leases, Law No. 7464 (Güleryüz Partners)

Photo: Central Bank of the Republic of Turkey / Public domain, via Wikimedia Commons