If you are earning nonresident rental income Turkey, it is crucial to follow the taxation procedures accurately to comply with local tax laws. In this blog post, you will find answers to all your questions regarding the taxation of nonresident rental income for the 2025 calendar year.
Who Qualifies as a Non-Resident in Turkey?
Nonresidents are individuals who do not have a residence in Turkey and do not stay in Turkey for more than six consecutive months within a calendar year. These individuals are only taxed on the income and earnings they generate within Turkey. Turkish citizens living abroad can also be considered non-residents under certain conditions.
What is Immovable Property Income (Rental Income) in Turkey?
Income derived from renting out certain assets and rights is referred to as “immovable property income” in Turkey. Assets and rights subject to rental income include:
- Real estate such as land, buildings, mineral water sources, and mines.
- Fixtures and equipment rented separately from the real estate.
- Rights such as trademarks, trade names, and copyrights.
- Motor vehicles, ships, and shares in ships.
Rental Income Exemption in Turkey
A tax exemption is applied to residential rental income in Turkey. For the 2025 calendar year, this exemption amount is TRY 47,000. If the total residential rental income you earn in a calendar year is below this threshold, you are not required to submit an annual tax return. However, this exemption applies only to properties rented out for residential purposes.
Imputed Rental Value in Turkey
If the rental amount is missing or is below the market value, the imputed rental value principle applies in Turkey. In such cases, 5% of the property’s real estate tax value is considered the imputed rental value and must be declared as taxable income.
Choosing Your Deduction Method for Rental Income in Turkey: Actual Expenses or Lump-Sum Deduction
When declaring your rental income in Turkey, you may choose between two expense deduction methods:
- Actual Expense Method: Under this method, you can deduct all expenses related to the rented property, such as lighting, heating, insurance, taxes, and repairs, provided they are documented. Taxpayers who choose the actual expense method must keep related documentation for five years. If you would like to learn more about deductions related to insurance, please refer to our article Insurance Tax Deduction – 2025.
- Lump-Sum Deduction Method: Taxpayers who opt for this method can deduct 15% of their gross rental income as a lump-sum expense instead of actual expenses. This method cannot be used for income derived from renting out rights.
The chosen method applies to all your properties — you cannot apply different methods to different properties. Once you choose the lump-sum deduction method, you cannot switch to the actual expense method for two years.
Declaration and Payment Process for NonResident Rental Income in Turkey
Nonresidents are not required to file an annual tax return for rental income that has been fully taxed in Turkey through withholding (stopaj). However, for the 2025 calendar year, those who earn residential rental income exceeding the TRY 47,000 exemption or who earn rental income that has not been subject to withholding must file an annual tax return.
Tax returns for the 2025 calendar year are expected to be filed between March 1 and April 2, 2026 via the Ready Declaration System (Hazır Beyan Sistemi). The calculated tax can be paid in two equal installments — in March and July. For more detailed information on rental income declaration and payment processes, you can visit the official website of the Revenue Administration of Turkey (GİB).
This guide has been prepared to help you navigate the rental income declaration process in Turkey. For more detailed information or assistance, please feel free to contact us.