Is rental income Taxable in Turkey?
The Answer is Yes
Non-resident taxpayers are real persons who are not settled in Türkiye in other words who do not have their residences in Türkiye and who do not reside in Türkiye for a continuous period of more than six months within one calendar year.
Non-resident taxpayers shall be taxed only on income and gains which they have obtained in Türkiye, they do not file a tax return in Türkiye for income and gains which they have obtained in foreign countries
Do foreigners pay taxes in Turkey?
How much rental income do you have to earn to be required to file an income tax return?
- The amount of 21.000 TL for rental income from the house for the year 2023 (the exception amount of 33.000 TL for the year 2024) is exempted from the income tax. If persons, who gain a rental income from a house, obtain an income less than the amount of exception that is determined annually, they are not required to file a tax return.
Rental expenses you can deduct
1. Lighting, heating, water and elevator expenses paid by lessor for rented property, 2. Management costs which are measured according to the importance of the property and related to the administration of the rented property,
3. Insurance expenses relating to the rented property and rights,
4. Interest on debts relating to the rented property and rights,
5. 5% of the acquisition value of one rented house for 5 years beginning from the date of acquisition (This deduction applies only to the rental income of the rented house; non- deductible part is not evaluated as expenditure surplus. This deduction is not valid for houses acquired before 2019),
6. Taxes, duties, and fees paid for the rented property and rights and rates paid to municipalities for expenses by the lessor,
7. Depreciation setting aside for rented property and rights, and heat insulation and energy saving expenditures which are made by the lessor and that increase the economic value of the real estate. (These expenditures can be considered as costs if it exceed 4.400 TL for the year 2023.)
8 Repair and maintenance expenses incurred by the lessor for the rented property,
9. Rents and other actual expenses paid by sub-lessors,
10. Rent of the house accommodated by the lessors who rent their property, (non-deductible part is not evaluated as expenditure surplus), It is not allowed for taxpayers not residing in Türkiye, (including Turkish nationals who reside abroad for a continuous period of more than six months with a residence or work permit) to deduct the amount of rents they pay in a foreign country from their rental income obtained in Türkiye.
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