Rental income tax in Turkey applies to every owner who rents out a home or commercial unit in Turkey; being a foreigner gives no exemption. For 2026, the first TRY 58,000 of residential rental income is exempt; a landlord whose total residential rent exceeds this amount files an annual return between 1 and 31 March of the following year and pays the tax in two instalments in March and July. For commercial rents paid by companies, the tenant withholds 20% tax.
Author: Av. Egemen Yasin Şahalioğlu · Istanbul Bar Registration No. 66465 · Last updated: 06.11.2026
Short answer: 2026 figures
- Residential exemption: TRY 58,000 for 2026 income (TRY 47,000 for 2025 income); applied once to the total of all homes.
- Commercial: If the tenant is a company or business, it withholds 20%; filing is required if gross withheld commercial rent exceeds TRY 400,000 in 2026.
- Expenses: Choose the lump-sum (15%) or actual expense method.
- Rates: Progressive income tax rates from 15% to 40%.
- Short-term rentals: Rentals of up to 100 days for tourism require a permit from the Ministry of Culture and Tourism.
Table of contents
- Do foreign landlords pay rental income tax?
- Who can use the TRY 58,000 exemption?
- How does withholding work on commercial rent?
- How is the tax calculated?
- Filing and payment calendar
- Short-term (Airbnb) rental rules
- Lease agreements and rent increases
- What happens if rent is not declared?
- Frequently asked questions
- Official sources
Do foreign landlords pay rental income tax in Turkey?
Yes. Under Article 70 of the Income Tax Law, income from renting out property in Turkey is income from immovable capital and is taxed in Turkey:
- Foreigners resident in Turkey (full taxpayers) report rental income in the annual return.
- Foreigners living abroad (limited taxpayers) also report rental income not subject to withholding in an annual return; the Revenue Administration publishes a separate rental guide for limited taxpayers.
- A Turkish tax number for foreigners and preferably a Turkish bank account are needed.
Who can use the TRY 58,000 exemption?
The housing exemption in Article 21 applies only to residential rent. A person whose total residential rent in 2026 stays below TRY 58,000 does not file a return. The exemption is not available to:
- People who must already file because of business, agricultural or professional income,
- People whose other gross income in the same year exceeds the amount set by law,
- People who do not file on time or under-report their income.
Even with several homes, the exemption is applied only once to total income.
How does withholding work on commercial rent?
- If the tenant is a company, business or public body, it withholds 20% from the rent (Art. 94) and pays it to the tax office.
- If gross withheld commercial rent exceeds TRY 400,000 in 2026, a return is filed and the withheld tax is credited.
- The housing exemption does not apply to commercial rent.
How is rental income tax in Turkey calculated?
- Total residential rent collected during the year is determined.
- The TRY 58,000 exemption is deducted (if the conditions are met).
- Expenses are deducted: lump-sum 15%, or actual expenses such as documented maintenance, insurance, property tax and depreciation. A landlord choosing the lump-sum method cannot switch to actual expenses for 2 years.
- The 2026 tariff applies: up to TRY 190,000 at 15%, up to 400,000 at 20%, up to 1,000,000 at 27%, up to 5,300,000 at 35%, above 40%.
Example: TRY 25,000 per month = TRY 300,000 per year → 300,000 − 58,000 = 242,000 → after 15% lump-sum expense (36,300) the taxable base is TRY 205,700 → tax about TRY 31,640.
Filing and payment calendar
- 2026 rental income is declared between 1 and 31 March 2027.
- The tax is paid in two equal instalments: March and July.
- Filing can be done through the pre-filled return system; an owner living abroad can act through a lawyer or accountant under a power of attorney.
- Collecting rent through a bank makes proof easier for both tax and tenancy law purposes.
Short-term (Airbnb) rental rules
Under Law No. 7464, renting a home for tourism for up to 100 days at a time requires a permit from the Ministry of Culture and Tourism before any contract is made:
- If the flat is in an apartment building, a decision taken unanimously by all owners in that building must be submitted.
- A ministry plaque is placed at the entrance and guests’ identities are reported.
- Renting without a permit leads to a substantial administrative fine per home, increased every year by the revaluation rate.
- Rentals longer than 100 days fall outside this law and are governed by the Turkish Code of Obligations.
Lease agreements and rent increases
- A written lease is recommended, with the tenant’s identity details and the deposit, service charge and inventory list attached.
- For residential leases, the increase on renewal cannot exceed the 12-month average CPI (TÜFE) of the previous lease year (Code of Obligations Art. 344).
- A notarised lease may be requested for a foreign tenant’s residence permit in Turkey.
- Mediation is mandatory before filing a tenancy lawsuit; a legally reviewed lease simplifies later eviction and collection processes.
What happens if rental income is not declared?
The tax administration can detect undeclared rent using data from banks, land registry records and tenant reports. The tax is then assessed with a tax loss penalty and late interest, and the housing exemption may be lost. Voluntary disclosure under the repentance rules reduces the penalty risk.
Frequently asked questions
Do foreigners pay rental income tax in Turkey?
Yes. Rent from property in Turkey is taxed in Turkey regardless of the owner’s nationality.
How much residential rent is tax-free in 2026?
The first TRY 58,000 of residential rent earned in 2026 is exempt; below this amount no return is filed.
If I own several flats, does each get its own exemption?
No. The exemption is applied once to the total of all residential rental income.
When is the rental income return filed?
Between 1 and 31 March of the year after the income is earned; the tax is paid in March and July.
Can I rent my flat on Airbnb?
Rentals of up to 100 days require a permit from the Ministry of Culture and Tourism and the unanimous approval of all owners in the building.
Do I file a return for commercial rent?
The tenant withholds 20%; if gross withheld commercial rent exceeds TRY 400,000 in 2026, a return is filed.
Official sources
- Income Tax Law No. 193, Articles 21, 70, 74, 86, 94 and 103
- Law No. 7464 on Renting Homes for Tourism
- Turkish Code of Obligations No. 6098, Article 344
- Revenue Administration (GİB) – rental income guides
Related articles
- Capital gains tax in Turkey when selling property
- Property tax in Turkey
- Tax residency in Turkey
- Buying property in Turkey as a foreigner
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Av. Egemen Yasin Şahalioğlu — attorney registered with the Istanbul Bar (No. 66465), practising since 2019. Egemen Global Law Office, Skyland Istanbul, Sarıyer. Consultations in Turkish, English, Arabic and Persian. Phone/WhatsApp: +90 532 276 80 85 · lawyer@egemenyasinsahalioglu.av.tr
This article is for general information only and does not replace legal or tax advice on your specific case. Tax amounts are updated every year.