Rental income tax in Turkey 2026: the 58,000 lira exemption and how to file

Many of our clients buy apartments in Trabzon and Istanbul to rent out for part or all of the year. The natural question after the first rent comes in: “Do I owe tax?” In principle the answer is yes, but the annual exemption and the way it is calculated make the amount lower than many people expect.

The principle: rent is income

Under Turkish law, rent counts as “income from immovable capital” (GMSİ) and is subject to income tax like any other income. The owner is responsible for declaring it.

The annual exemption for residential rent

For income received in 2026, the first 58,000 lira of residential rent per year is exempt; the exemption was 47,000 lira for 2025 income. This amount is updated every year.

• If your total residential rent for the year is below the exemption threshold, you will usually owe no tax, subject to the exemption conditions.
• If it exceeds the threshold, the full amount is declared and the exemption is deducted from it.
• The exemption applies only to homes and does not cover shops or offices.

How is taxable income calculated?

After deducting the exemption, you choose one of two ways to deduct expenses:

1. Flat-rate deduction (Götürü Gider): a fixed percentage of the rent is deducted without receipts; this is the simpler option.
2. Actual expenses (Gerçek Gider): you deduct what you actually spent, with receipts, such as maintenance, insurance, property tax and financing interest if any.

The progressive income tax scale is then applied to the remainder, starting at 15% in the first bracket and rising with income.

When and how to file?

• Deadline: during March of the year after the income. 2026 income is declared in March 2027.
• Method: an annual tax return; the online “ready-made return” system makes it relatively easy to prepare.
• Payment: in two instalments, in March and July.

Commercial rent: withholding at source

If you rent a shop or office to a company or trader, the tenant withholds 20% of the rent and pays it to the tax office on your behalf. This withholding is credited against your final tax when you file. There is no exemption for commercial rent. See the guide to commercial property.

Short-term rentals

Renting an apartment to tourists by the day has been subject to a special law since 2024 that requires a licence, and it has its own tax treatment. We explain it in the guide to the short-term rental law.

Why do you need an accountant?

Your tax position depends on your residence, your other income in Turkey, the expense method and the number of properties. A certified accountant (Mali Müşavir) prepares the return and chooses the most advantageous method, and their annual fee is far lower than the cost of a mistake.

What to keep throughout the year

• Rental contracts and bank transfer receipts.
• Invoices for maintenance, repairs, insurance and property tax.
• Statements from your Turkish bank account.

Summary

For 2026 income: the first 58,000 lira of residential rent is exempt, and anything above it is declared in March 2027 after deducting expenses. Commercial rent has 20% withheld. Keep your documents and work with an accountant. To estimate your real return after taxes and expenses, read the guide to rental yields in Trabzon.

Our after-sales team arranges letting, rent collection and tax filing through a certified accountant. Contact us.