Foreign property owners earning rent from Turkish real estate may have to pay Turkish income tax, even if they live abroad and receive their rent in another currency. Rental income tax in Turkey for foreigners depends on the type and amount of rental income, eligible exemptions and deductions, and the owner’s tax-residency status. For the 2026 tax year, the residential rental-income exemption is TRY 58,000, while income tax rates range from 15% to 40%. The amount ultimately payable depends on taxable income after the applicable deductions, not simply the total rent collected.
Who Must Pay Rental Income Tax in Turkey as a Foreign Property Owner?
Rental income from property located in Turkey can be subject to Turkish income tax regardless of whether the owner is a Turkish citizen or a foreign national. Nationality alone does not determine the tax treatment; residency status and the source of income matter. Turkish tax law generally distinguishes between residents who may be taxable on worldwide income and non-residents who are taxable on income sourced in Turkey.
A foreign owner renting out an apartment in Istanbul, Dubai-style serviced accommodation in Turkey, or a commercial unit in another Turkish city should first establish how the income is classified and whether an annual return is required.
The main distinction is:
Turkish tax residents: Their tax position may include income from Turkey and abroad, subject to applicable rules and tax treaties.
Non-residents: They are generally taxed in Turkey on income sourced in Turkey, including qualifying rental income from Turkish property.
Owning a property does not automatically mean the owner must pay tax on every possible amount of rent. Exemptions, withholding rules, income thresholds and eligible expenses can affect the result. Commercial property and residential property may also follow different declaration rules.
For this reason, foreign landlords should establish their status before calculating the amount due rather than assuming that living abroad removes their Turkish tax obligations.
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What Are the Rental Income Tax Rates in Turkey for 2026?
Turkey applies progressive income tax rates to taxable income. For the 2026 tax year, the general tariff for income such as taxable rental income is:
15% on taxable income up to TRY 190,000.
20% on the portion between TRY 190,000 and TRY 400,000.
27% on the portion between TRY 400,000 and TRY 1 million.
35% on the portion between TRY 1 million and TRY 5.3 million.
40% on the portion above TRY 5.3 million.
These brackets are confirmed in the Turkish Revenue Administration’s published income-tax tariff for 2026. The brackets apply progressively, meaning each rate applies only to the relevant portion of taxable income, not the entire amount.
For example, a landlord with taxable rental income of TRY 500,000 does not pay 27% on the entire amount. The first TRY 190,000 is taxed at 15%, the next TRY 210,000 at 20%, and the remaining TRY 100,000 at 27%, before considering any other relevant income, credits or adjustments.
These are marginal tax rates, not a flat rental-income tax. The amount owed depends on the taxable base after eligible deductions and any applicable exemption. Commercial rental income may also be subject to withholding at source, which can affect whether a separate annual declaration is required.
How Much Rental Income Is Tax-Free in Turkey? Exemptions and Allowances
For residential rental income earned during 2026, Turkey provides an annual exemption of TRY 58,000, subject to eligibility conditions. This exemption applies to qualifying residential rent, not automatically to commercial property rent. If a landlord owns several residential properties, the exemption generally applies once to the combined qualifying residential rental income, rather than separately to each apartment.
The exemption is not available to everyone. Eligibility can be affected by whether the taxpayer has declared commercial, agricultural or professional income and whether the combined gross income from specified sources exceeds the applicable threshold. For 2026, the relevant aggregate-income threshold used in determining eligibility is TRY 1.5 million. Other conditions also apply.
Commercial property owners should not assume that the residential exemption reduces their taxable rental income. Their position depends on the type of lease, whether tax is withheld at source, and the applicable declaration threshold.
It is also important to distinguish the exemption from the expense deduction. The exemption reduces qualifying residential rental income before the applicable expense method is used. The deduction then reduces the remaining amount used to calculate taxable income.
Because eligibility depends on more than rent alone, landlords with multiple income sources should confirm the conditions in the Turkish Revenue Administration’s current guidance before claiming the exemption.
How to Calculate Rental Income Tax in Turkey: A Worked Example
A practical rental income tax calculator should account for gross rent, the applicable exemption, eligible expenses and progressive tax brackets. Consider a non-resident foreign owner who receives TRY 600,000 in qualifying residential rent during 2026, is eligible for the residential exemption, and chooses the simplified expense method.
Simplified expense deduction: 15% of TRY 542,000, equal to TRY 81,300.
Illustrative taxable rental income: TRY 460,700.
Applying the 2026 progressive tariff to TRY 460,700 produces an estimated income tax of TRY 86,889, before any other applicable adjustments. This example assumes the landlord qualifies for the exemption and has no other income affecting the calculation.
The result is an illustration, not a universal tax estimate. If the owner uses the actual-expense method, has other taxable income, does not qualify for the exemption or receives commercial rent subject to different declaration rules, the result may change.
For foreign-currency rent, the Turkish Revenue Administration states that the gross income is calculated using the Central Bank of the Republic of Türkiye’s foreign-exchange buying rate on the collection date. Keep a record of both the payment and the exchange rate used.
Which Rental Property Expenses Can Foreign Owners Deduct?
Turkish tax rules allow eligible landlords to choose between the actual-expense method and the simplified expense method, subject to the applicable conditions. The choice can significantly affect the taxable amount.
Under the simplified method, eligible landlords can generally deduct 15% of the relevant rental income after subtracting the residential exemption, if they qualify for that exemption. This method does not require calculating each actual operating expense, but it does not allow the landlord to claim additional actual property expenses on top of the simplified deduction. Those who choose this method generally cannot switch to the actual-expense method for two years.
The actual-expense method may allow deductions for qualifying costs such as:
Repairs and maintenance paid by the landlord.
Eligible insurance premiums related to the rented property.
Certain management, utilities and building-related expenses paid by the landlord.
Applicable property taxes, duties and fees associated with the rented asset.
Qualifying depreciation and certain improvements, subject to the legal conditions.
Certain interest expenses, where permitted under the rules applicable to the property and tax period.
There are important limitations. For tax periods beginning in 2025, interest on debt used for residential properties rented out is no longer deductible under the amended rules; treatment differs for eligible non-residential property. The acquisition-cost deduction for one qualifying residential property may also be available for five years from acquisition, subject to specific conditions.
If a landlord claims the residential exemption while using actual expenses, only the portion of eligible expenses attributable to taxable rental income may be deducted. Expenses should be supported by invoices, receipts, contracts or other accepted records.
The best method depends on the owner’s real costs and eligibility. Compare both methods before filing rather than assuming that the largest possible expense figure will automatically be accepted.
How to Declare Rental Income in Turkey: Deadlines and Filing Steps
Foreign landlords who are required to declare rental income must follow the applicable annual filing rules. For rent received during the 2026 tax year, the annual declaration is generally expected in March 2027. The exact filing and payment dates should be checked against the Revenue Administration’s official calendar when it is published.
The standard process is to:
Calculate the annual rental income. Record rent collected during the year, including foreign-currency payments converted using the applicable exchange rate.
Check whether a declaration is required. Review the residential exemption, commercial-rent thresholds, withholding and other relevant income.
Choose the permitted expense method. Compare the simplified deduction with eligible actual expenses.
Submit the declaration. Eligible individuals can use the Turkish Revenue Administration’sHazır Beyan system or follow the filing procedure applicable to their circumstances.
Pay the assessed tax. Follow the payment dates and instalment arrangements applicable to the relevant tax year.
For context, declarations for income earned in 2025 were due from 1–31 March 2026, with the tax generally payable in two instalments. That calendar relates to the previous tax year and should not be used as confirmation of the final 2027 deadlines.
Failing to declare taxable rent, or reporting less than the amount required, can lead to additional tax, late-payment interest and penalties. A residential landlord who misses the filing obligation may also lose the exemption, subject to the rules governing voluntary late declarations before the tax authority identifies the omission.
What Documents Do Foreign Landlords Need for a Turkish Tax Return?
Keeping complete records makes it easier to calculate taxable income correctly and support deductions if the tax authority requests evidence. Foreign owners should maintain a file for each tax year containing:
The property’s title deed details and ownership share.
The signed rental agreement and records of any changes to the rent.
Bank statements and payment receipts showing rent collected.
Records of foreign-currency payments and the exchange rates used.
Invoices and receipts for eligible repairs, maintenance, insurance and other expenses.
Documents supporting any depreciation or qualifying acquisition-cost deduction.
Relevant Turkish tax identification details and residency documentation.
Where applicable, a tax-residency certificate and documents needed to claim treaty relief.
Rental collections and payments generally must be evidenced through bank or postal-service records under Turkish rules. This requirement also covers short-term residential rentals. Bank transfer receipts and account statements can therefore serve as important evidence of the amount and timing of rent collected.
Owners using the actual-expense method must retain supporting records for the legally required period. The Revenue Administration’s guide specifies that these documents should generally be kept for five years beginning with the year following the relevant period.
Do Non-Resident Property Owners Pay Rental Income Tax Differently in Turkey?
Non-resident owners are generally subject to Turkish tax on income sourced in Turkey, including rent from Turkish real estate. They are not automatically exempt because they live abroad, hold a foreign passport or receive payments into an overseas bank account. The Turkish Revenue Administration’s guide for non-residents specifically addresses rental-income exemptions, deductions, declarations and tax treaties.
Tax-residency status can affect the scope of income that must be declared. A non-resident is generally taxed in Turkey on Turkish-source income, whereas a Turkish tax resident may have wider reporting obligations. Residency should be assessed under the applicable domestic rules and, where relevant, the tax treaty between Turkey and the owner’s country of residence.
A double-taxation agreement does not necessarily remove Turkish tax on rent from a property located in Turkey. The Revenue Administration explains that the country where the immovable property is located generally retains the right to tax rental income from that property. The treaty may then determine how the owner’s country of residence provides relief against double taxation.
If the owner receives rent from commercial property, withholding at source may affect whether an annual declaration is required. The answer depends on the type of income and the specific withholding and declaration rules; it should not be assumed that every non-resident landlord follows the same filing process.
Final takeaway:
Foreign property owners should calculate Turkish rental income tax by checking the applicable exemption, progressive tax rates, eligible expenses and declaration requirements before filing. The 2026 residential exemption is TRY 58,000, but eligibility conditions and other income can affect whether it applies. Non-resident landlords should also consider withholding rules and relevant tax treaties. For complex cross-border circumstances, obtain advice from a qualified tax professional and confirm the latest requirements with the Turkish Revenue Administration.
FAQ
Does rental income need to be declared if the tenant pays in euros or dollars?
Foreign-currency rent may still be taxable in Turkey. The amount generally needs to be converted into Turkish lira using the applicable exchange rate on the collection date, with records retained to support the calculation.
Can co-owners each claim the residential rental-income exemption?
Where a property is jointly owned, each owner generally reports the rental income attributable to their ownership share. The exemption may be applied separately to each eligible co-owner’s share, subject to the relevant conditions.
What happens if a property is rented below market value or provided rent-free?
Turkish tax rules can apply an assessed or comparable rental value in certain cases where rent is not charged or is set below the applicable comparable value. Specific exceptions exist, including certain family-use situations, so the circumstances should be checked before filing.
Can a foreign landlord claim expenses paid in their country of residence?
Not automatically. The Revenue Administration states that non-residents generally cannot deduct rent paid abroad for their own accommodation from rental income earned in Turkey. Other foreign expenses must also be assessed against the specific deduction rules rather than assumed to be eligible.
