How to review rental-income tax in Türkiye
Rental income is not governed by one universal exemption. The result depends on whether the property is a residence or workplace, whether tax is withheld by the tenant, when rent was collected, the owner’s tax status and the expense method used. Thresholds are updated annually, and some numbers are true exemptions while others are merely filing thresholds. A reliable encyclopedia record must therefore attach every amount to an income year and legal function.
1. Separate the income year from the filing year
Income earned in 2025 is tested under 2025 thresholds even though its annual return is filed in 2026. GİB announced that returns for 2025 income are filed from 1 through 31 March 2026 and that resulting tax is paid under the 2026 instalment schedule. Income earned during 2026 uses the 2026 thresholds and is reported in the following filing cycle. Mixing a 2026 threshold into a return for 2025 income is a basic but material error.
2. Residential rental exemption
The current GİB page states a residential-rent exemption of TRY 47,000 for 2025 income and TRY 58,000 for 2026 income. A taxpayer with several rented residences does not multiply the exemption by the number of units; it is applied once to the person’s combined residential rent, subject to the conditions for using the exemption. For co-owned property, each owner reports the rent attributable to that owner’s share and the exemption is tested for each taxpayer under his or her own conditions.
3. Workplace thresholds serve a different function
For workplace rent subject to withholding, GİB states a gross filing threshold of TRY 330,000 for 2025 and TRY 400,000 for 2026, with aggregation rules when other declarable income exists. For rental income that is neither subject to withholding nor covered by an exemption, the relevant filing threshold is TRY 18,000 for 2025 and TRY 22,000 for 2026. The latter is not an allowance deducted from taxable income. Once the filing rule is triggered, the relevant income is handled under the statutory calculation rather than simply subtracting the threshold.
4. Verify whether the tenant withholds tax
Some business tenants are withholding agents. In those cases the owner may receive a net transfer while the tax file contains a higher gross rent and withholding amount. Testing a filing threshold using only the net bank receipt can therefore be wrong. Retain the lease, bank payments and withholding evidence and reconcile gross rent, tax withheld and net cash. GİB also notes that where a property is used both as a residence and a workplace, workplace use can cause the entire rent to fall within withholding rules depending on the case.
5. Actual versus lump-sum expenses
Eligible landlords may use the actual-expense method or the lump-sum expense method. The lump-sum method generally allows a 15% expense deduction under the statutory rule, after the residential exemption where applicable, and is not available for the letting of rights. A taxpayer choosing the lump-sum method cannot return to the actual-expense method until two years have passed. The actual method requires support for legally deductible expenditure and disciplined retention of invoices and other evidence.
6. Collection timing changes the tax year
GİB explains that rent for the current year or past years that is collected in a particular year is generally treated as income of the collection year. Advance rent received for future years, however, is attributed to the years to which it relates. A bank statement alone is therefore insufficient. The lease, transfer description and month-by-month allocation should show whether a payment is arrears, current rent or prepaid future rent.
7. Non-resident owners
Limited taxpayers are taxed in Türkiye on Turkish-source income under special rules. GİB explains that a non-resident with workplace rent that is wholly subject to Turkish withholding does not file an annual return for that rent merely because of its amount, while residential rent is tested against the applicable residential exemption and income that is neither withheld nor exempt follows a different rule. Tax residence is a legal and factual determination; nationality alone is not enough.
8. Conditions for the residential exemption
The residential exemption is not unconditional. GİB describes restrictions involving other business/professional activity, aggregate gross income limits and timely declaration. For 2025, the page refers to TRY 1,200,000 as the relevant aggregate ceiling in the specified exemption test, and TRY 1,500,000 for 2026. A file near those limits should review the taxpayer’s wider income rather than examining rental receipts in isolation.
9. Red flags
- Applying the 2026 exemption to rent earned in 2025.
- Treating the non-withheld workplace filing threshold as a deductible allowance.
- Using net workplace cash rather than gross rent when a gross threshold applies.
- Taking a separate residential exemption for every flat owned by one taxpayer.
- Switching from lump-sum to actual expenses before the two-year restriction ends.
- Bank deposits that cannot be reconciled with lease periods.
- Assuming a foreign national is automatically a non-resident taxpayer.
10. Records
Keep leases, start/end dates, bank collections, gross-rent schedules, withholding certificates, expense documents, the expense method selected, annual returns and tax receipts. In co-ownership, record each owner’s percentage and rent allocation. A good file reconstructs taxable rent year by year instead of trying to infer it later from a bank balance.
Frequently asked questions
What is the residential exemption for 2026 income? GİB states TRY 58,000.
Is the lump-sum expense rate 15%? Yes for eligible rental income, with a two-year restriction before returning to the actual method.
Do all non-residents avoid filing? No. Filing depends on the type of rent, withholding, exemption and limited-taxpayer rules.