Income from renting out an apartment in Turkey is subject to income tax (gelir vergisi), and both tax residents and non-residents pay it. For residential rental income, an exemption of ₺58,000 applies for 2026, and the tax is calculated on a progressive scale from 15% to 40%. If you rent out an apartment for ₺25,000 per month and take the standard expense deduction of 15%, the annual tax will be approximately ₺31,640, or approximately 10.5% of the rental income.

Foreigners living outside Turkey must also declare income from Turkish real estate if it exceeds the threshold. They retain the right to the ₺58,000 exemption. The 2026 tax return is generally submitted in March 2027, and the tax can be paid in two installments, in March and July.

Who pays property rental taxes in Turkey?

The tax is paid by the owner receiving the rent: a Turkish citizen, a foreigner with a residence permit, or an owner living abroad. Citizenship is irrelevant; the tax authority is interested in the tax status.

A tax resident (tam mükellef) is someone who has a residence in Turkey or who has spent more than six consecutive months in the country during a calendar year. They declare all their income, including foreign income. A non-resident (dar mükellef) pays tax only on income from Turkish sources, and renting a Turkish apartment falls into this category.

If the annual rental income from real estate in Turkey for 2026 is no more than ₺58,000, no declaration is required. If the income is greater, a declaration is mandatory, and an exemption applies when the legal conditions are met.

The type of property is also important. The tax exemption in Turkey only applies to residential properties; commercial premises are taxed under different rules, and the ₺58,000 deduction cannot be made. The tax holiday for new residents (20 years tax-free on foreign income) does not apply to Turkish rentals. We wrote about this in detail in a separate article.

Rates and exemptions: How much to pay for 2026

A ₺58,000 exemption is first deducted from the annual rent. This exemption applies to all of the owner's apartments. Those who fail to declare their income or declare it incompletely, those with commercial, agricultural, or professional income that must be declared, and those whose salary, capital income, and rent combined exceed ₺1,500,000 are excluded from the exemption.

Income Tax Rates in Turkey for 2026

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The scale is progressive: each rate applies only to that portion of income that falls within its level.

After being released, expenses are deducted, and there are two ways to do this. The simplified method (götürü gider) is a fixed 15% of income, and no documentation is required. If you choose actual expenses (gerçek gider), you can deduct from your income expenses permitted by law and supported by documentation: a portion of the costs of maintenance and repairs, insurance, property taxes, property management, and others.

Those who choose the simplified method will only be able to switch to actual expenses after two years. They can switch back from actual expenses to the simplified method starting the following tax year.

An example of calculating the rental tax for an apartment in Alanya

Let's take an apartment rented for ₺25,000 per month. Over the course of a year, that's ₺300,000. Subtract the ₺58,000 exemption, leaving ₺242,000. The simplified 15% deduction is ₺36,300, meaning the taxable base is ₺205,700.

Let's calculate it step by step. The first ₺190,000 pays ₺28,500 in tax, and the remaining ₺15,700 pays another ₺3,140 at a 20% rate. That's a total of ₺31,640 per year. That's about 10.5% of the rent.

The actual expenses will result in a different total: more or less, depending on how much of the expenses are documented. Therefore, it's worth calculating both options before submitting.

How and when to file a tax return in 2027

The rental income tax return in Turkey for 2026 is due between March 1 and March 31, 2027, although the Tax Administration sometimes extends the deadline. Non-residents can file online through the Hazır Beyan Sistemi (Hazır Beyan System). This is a service provided by the GİB tax office that calculates the tax and accepts the return. There is no need to visit the office. You can log in via e-Devlet, using your foreign identification number, or using the code and password from the Tax Administration.

You can entrust the filing to a representative. Under the electronic filing agreement (e-beyanname aracılık sözleşmesi), the declaration is filed by a mali müşavir, a Turkish accountant. If the owner doesn't live in Turkey and doesn't want to navigate the interface, this is the most convenient option. Another option is to file a paper declaration: it is submitted to the tax office where the apartment is located if there is no tax representative in the country.

As a general rule, the tax for the year is paid in two equal parts:

• the first one – in March 2027, together with stamp duty;

• the second – in July 2027.

You can pay from abroad: the digital tax office accepts cards from foreign banks, you can also make a bank transfer or pay through a Turkish bank.

Sometimes the tax office sends a notice stating "Your rental income has been determined," meaning "Your rental income has been determined." This isn't a fine per se: it's the agency's way of notifying the owner that they've seen the income and that they should check to make sure they've declared everything. Ignoring the letter isn't a good idea. Responding and updating your tax return will be cheaper than waiting for additional charges.

What to prepare for filing a tax return:

• Turkish tax number (vergi kimlik numarası), obtained when purchasing an apartment;

• lease agreement and confirmation of bank receipts for 2026;

• documents on expenses, if you chose the actual deduction instead of 15%;

• access to Hazır Beyan Sistemi or an agreement with a representative.

Fines and double taxation

If the owner rented out an apartment in Turkey and failed to declare the income or declared it incompletely, additional taxes, a fine, and late fees may be assessed. If the Tax Service itself finds a violation, the owner may also lose the ₺58,000 exemption.

An error in a tax return can be corrected voluntarily, in which case some of the penalties are reduced. The extent of the reduction depends on the stage of the audit, how the corrected return was filed, and whether the owner met the deadline. Therefore, if you find an error, it's best to contact your accountant before the official notification arrives.

A separate rule concerns payments. Rent must be paid through a bank. Cash payments violate payment verification requirements, and for each such violation, an individual faces a fine of 10% of the amount, but no less than ₺8,700. Furthermore, without bank statements, it's difficult to verify both income and expenses.

International agreements protect against double taxation. For real estate income, the country where the property is located—Turkey—has the right to tax rental income. Tax paid here is generally credited in the country of residence. However, the credit mechanism depends on the agreement between Turkey and your country, so it's best to consult a tax advisor for more information.

New Level Group, a construction company, handles most of the after-sales leasing process: it helps clients rent out their apartments in Turkey, selects tenants, and records every influx of new tenants. Learn more about our property management service .