Last Updated on 3 марта, 2025 by Ideal Editor
Turkey’s 2025 Rental Income Tax, Regulations and Deadlines
As of March 1, 2025, Turkey has commenced its annual tax return period for property owners earning rental income. This period extends until April 2, 2025, adjusted to accommodate public holidays on March 31 and April 1. Understanding the intricacies of Turkey’s 2025 Rental Income Tax is crucial for property owners to ensure compliance and avoid potential penalties.
Filing Deadlines and Submission Methods
The tax return period for rental income spans from March 1 to April 2, 2025. Property owners can file their returns through the Digital Tax Office (dijital.gib.gov.tr) or utilize the Ready Declaration System (hazirbeyan.gib.gov.tr). These platforms offer a streamlined and user-friendly experience, allowing taxpayers to submit their declarations efficiently. Additionally, mobile applications are available, enabling users to file returns via smartphones.
Turkey’s 2025 Rental Income Tax Thresholds and Tax Obligations
For the 2024 tax year, specific income thresholds determine the obligation to file a tax return:
- Rental Income Exemption: Property owners with rental income exceeding 33,000 Turkish Liras (TRY) in 2024 are required to file a tax return. Those earning below this threshold are exempt from filing.
- Employment Income Threshold: Individuals with total employment income exceeding 230,000 TRY in 2024, in addition to rental income, are obligated to file a tax return.
Tax Rates and Calculation
Turkey employs a progressive tax system for rental income, with rates for 2024 as follows:
- Up to 110,000 TRY: 15%
- 110,001 – 230,000 TRY: 20%
- 230,001 – 580,000 TRY: 27%
- 580,001 – 3,000,000 TRY: 35%
- Above 3,000,000 TRY: 40%
For example, if a taxpayer earns 150,000 TRY in rental income, the first 110,000 TRY is taxed at 15%, and the remaining 40,000 TRY is taxed at 20%.
Exemptions and Deductions
Property owners can benefit from certain exemptions and deductions to reduce their taxable income:
- Residential Property Exemption: For 2024, rental income from residential properties up to 33,000 TRY is exempt from taxation. However, if the income exceeds this threshold, tax is payable on the amount exceeding the exemption. This exemption applies only to residential rentals; commercial property rentals are not eligible.
- Deduction Methods: Taxpayers can choose between two methods to calculate deductions:
- Actual Expense Method: Allows deduction of actual expenses related to the rental property, including repairs, maintenance, insurance premiums, mortgage interest, depreciation, and operational expenses.
- Lump-Sum Expense Method: Permits a standard deduction of 15% of the rental income, simplifying the process without itemizing expenses.
It’s important to note that once a deduction method is chosen, it must be applied consistently for that tax year.
Non-Resident Taxpayers
Non-resident individuals earning rental income from properties in Turkey are subject to limited taxation on income generated within the country. These taxpayers must file their annual tax returns between March 1 and April 2, 2025. Turkish nationals residing abroad, blue card holders, and foreign nationals can obtain an «e-government» password from Turkish consulates to facilitate online filing.
Penalties for Non-Compliance
The Turkish Ministry of Finance has intensified efforts to identify and penalize unreported rental income. Recent audits revealed that around 700,000 landlords failed to submit required declarations, leading to tax and penalty notifications amounting to 153.4 million TRY. Failure to submit declarations on time can lead to fines and penalties, including a 5% fine on each transaction not conducted through banks or postal transfers, as stipulated in Article 355 of the Tax Procedure Law.
Payment Methods and Deadlines
Income tax on annual rental income declarations for 2024 can be paid in two equal installments:
- First Installment: Due by April 2, 2025.
- Second Installment: Due by July 31, 2025.
Payments can be made via the Digital Tax Office (dijital.gib.gov.tr) using bank cards or bank transfers, as well as at authorized bank branches and tax office cash desks. Timely payment is essential to avoid penalties and interest charges.
Recent Enforcement Measures
The Turkish government has implemented stringent measures to ensure compliance with rental income tax regulations:
- Inspections: In 2024, the Revenue Administration conducted inspections at 425,000 rental properties, leading to 376,000 new taxpayers filing declarations for previously unreported rental income.
- Penalties for Non-Compliance: The Turkish Revenue Administration (GIB) has significantly increased audits targeting unreported rental income. In 2024 alone, GIB cross-referenced rental listings on popular property websites with tax declarations to detect discrepancies. Landlords who failed to declare rental income received formal notifications and were subject to financial penalties. These initiatives are anticipated to escalate in 2025 as Turkey aims to improve tax compliance and expand its tax base.
- Special Focus on Digital Platforms: Authorities are now monitoring property listings on websites like Sahibinden and Emlakjet to cross-check declared rental income. Listings with high rents that do not match declared income trigger automatic audits. Landlords who receive rental payments in cash, outside the banking system, are particularly at risk of penalties.
Ready Declaration System: Streamlined Filing Process
The Ready Declaration System («Hazır Beyan Sistemi») remains a key tool for simplifying tax filing for property owners. Available through both the Digital Tax Office (dijital.gib.gov.tr) and a dedicated mobile app, the system pre-fills essential taxpayer information, making the process easier for users.
Key Features of the Ready Declaration System:
- Pre-loaded rental income data (if previously reported or obtained through banking records).
- Automatic calculation of exemptions and deductions.
- Clear display of tax amounts due, payment deadlines, and installment options.
- Direct submission from desktop or mobile devices.
- Support for Turkish citizens, blue card holders, and eligible foreign nationals with valid e-Government (e-Devlet) credentials.
Special Rules for Foreign Nationals and Turkish Citizens Abroad
Limited Taxpayers: Non-resident individuals (foreign nationals and Turkish citizens living abroad) are classified as limited taxpayers. Tax responsibilities in Turkey are clear-cut: individuals need to report and pay taxes only on the income they generate within the country’s territory. This includes any rental income generated from properties situated in Turkey. It’s a clear and simple system that helps residents and property owners navigate their financial responsibilities!
Filing Access: Turkish citizens abroad, blue card holders, and foreign nationals can obtain an e-Government password (e-Devlet şifresi) from Turkish consulates. This allows them to access the Digital Tax Office and file rental income tax returns online. Digital access ensures expatriates and non-residents can comply with Turkish tax obligations without being physically present in Turkey.
Consequences of Late Filing or Non-Compliance
Filing your rental income tax return after the April 2, 2025 deadline can result in severe financial penalties and legal repercussions:
- Late Filing Penalty: A fine for failing to submit your tax declaration on time.
- Tax Loss Penalty: If underreported income is discovered, a penalty equal to the unpaid tax may be applied.
- Interest Charges: Interest accrues on unpaid taxes from the due date until payment is made.
- Special Transactions Penalty: A 5% penalty applies to rental payments not made through banks or post offices, under Article 355 of the Tax Procedure Law.
Key Dates to Remember
| Event | Deadline |
|---|---|
| Start of Filing Period | March 1, 2025 |
| Filing Deadline | April 2, 2025 |
| Payment Deadline — 1st Installment | April 2, 2025 |
| Payment Deadline — 2nd Installment | July 31, 2025 |
Practical Tips for Property Owners
- Keep Accurate Records: Maintain clear documentation of rental agreements, rent payments, repair expenses, and other deductible costs.
- Select Your Deduction Approach Carefully: When you have considerable expenses related to property, utilizing the actual expense method could lower your taxable income more than the lump-sum method.
- Use the Digital Tax Office: Familiarize yourself with dijital.gib.gov.tr for filing, payments, and accessing official tax correspondence.
- Pay Through Official Channels: Always collect rent through bank transfers and avoid cash transactions to ensure compliance with documentation requirements.
- Seek Professional Advice: If you own multiple properties, have complex income sources, or are a non-resident taxpayer, consider hiring a tax consultant or certified public accountant (CPA) to assist with compliance.
Final Thoughts
Rental Income Tax declaration period in Turkey highlights the government’s continued emphasis on increasing tax transparency and compliance among property owners. With enhanced digital tools, cross-checking technology, and strict enforcement measures, the risk of non-compliance is higher than ever.
By leveraging the Ready Declaration System, understanding available exemptions and deductions, and keeping accurate financial records, landlords can simplify their compliance process while minimizing their tax liabilities. With penalties for non-compliance potentially reaching the full tax amount owed, adherence to tax rules is not only a legal requirement but also a financial imperative.
