Rental Income Declaration

Foreign nationals earning rental income from a property in Turkey must declare that income every March. Our partner accountants handle the process from choosing the expense method through to filing the return.

Scope: Annual declaration of income from immovable property (rental income)
How the Service Works: Through our partner accountants, who are licensed professionals
Relevant Authority: Tax office

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Foreign nationals who own a residential or commercial property in Turkey and rent it out declare this income — legally termed income from immovable capital — in March of the year following the year it was earned. An exemption amount, redetermined each year, applies to residential rental income; income below that amount may not require a return, but once it is exceeded, the full amount must be declared, not just the portion above the exemption. There is no such exemption for commercial rental income, and the tenant generally withholds part of the tax at the time of payment, taking on part of the declaration burden.

An apartment building with an ornate facade in Istanbul — How rental income is declared depends on whether the property is residential or commercial.

The most practical decision when preparing the return is choosing the expense method: under the lump-sum method, a fixed percentage of income is treated as expense and no receipts are required; under the actual-expense method, real costs — property tax, building dues, renovations, loan interest — are deducted against documentation. A taxpayer who chooses the lump-sum method cannot switch away from it for a set number of following years, so it's worth calculating which method is more advantageous before deciding. Our partner accountant reviews your lease and income items to run that calculation for you and files the return on time.

Who It’s For

Foreign nationals who own property in Turkey and rent it out

We clarify together what documents are needed before the first return.

Those filing a rental income return for the first time

We apply the exemption amount and filing threshold to your specific situation.

Foreign nationals with more than one property

We assess residential and commercial income separately.

Those who suspect they under-declared rental income in a past period

We assess the options for correcting the situation together.

Required Documents

Title deed

Lease agreement

Bank receipts for rent payments

Forms the basis for the income to be declared.

Expense documents (property tax, dues, renovation), if choosing the actual-expense method

Tax number or YKN details

Power of attorney, if the return is filed by proxy

The document list can vary by application reason and personal circumstances; the current requirements of the Provincial Directorate of Migration Management apply.

Process Steps

01

Initial Assessment
Within 1 day

The number and type of properties and total rental income are determined.
02

Gathering the Income Items
Within a few days

Lease agreements and payment receipts are collected.
03

Choosing the Expense Method
Once documents are complete

It is calculated which method — lump-sum or actual expense — is more advantageous.
04

Preparing the Return
Within a few days

Income and expense items are transferred into the return format.
05

E-Filing and Following the Assessment
Within March

The return is filed in March, and payment of the assessed tax is tracked.

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Legal Basis

Income Tax Law No. 193

The basis for income from immovable property and the residential rental income exemption.

Tax Procedure Law No. 213

Contains the general provisions on filing deadlines and procedure.

Common Mistakes

Assuming income is below the exemption and filing no return at all

Since there is no exemption for commercial rental income, this assumption can lead to an error.

Declaring only the amount above the exemption rather than the full income

Once the exemption is exceeded, the entire income must be declared.

Choosing the lump-sum method and then trying to switch to actual expenses the next year

This change cannot be made for a set period.

Leaving cash rent payments undocumented

Undocumented income can lead to additional sanctions if discovered later.

Frequently Asked Questions

For residential rental income below the exemption, a return is generally not required; we confirm your specific situation together.

No, the exemption applies only to residential rental income; the full amount of commercial rental income is declarable.

This depends on the amount of your real expenses; we calculate which is more advantageous for you.

Undocumented income can carry risk; we assess your specific situation together during a consultation.

Yes, residential rental income for the same year is combined into a single return.

We assess the options for correcting the situation together during a consultation, including explaining any potential sanctions.

Related Services

Turkish Tax Number and Taxpayer Status From opening a bank account to buying a title deed, from incorporating a company to signing a lease — most official transactions in Turkey require a tax number. Post-Incorporation Bookkeeping and Tax Filing Incorporating a company is a one-time step; the bookkeeping, VAT and withholding filings, e-invoice/e-ledger duties, and annual corporate tax return that follow require ongoing attention. VAT Exemption on Property Sold to Foreign Buyers Foreign nationals resident abroad can be exempt from VAT on the first purchase of a residence or workplace from a construction company in Turkey, provided certain conditions are met. Double Taxation Treaties The double taxation treaties Turkey has signed with more than eighty countries prevent the same income from being taxed in two countries at once.

Last updated: 24.08.2026

This content is for informational purposes only and does not constitute legal advice.