The 2025 rental income tax in Turkey is one of the most important obligations for property owners. Under Law No. 193 on Income Tax, rental income is defined as “immovable property income” and must be declared according to specific rules.
As in every year, in 2025 the taxation of rental income remains a key issue for property owners. Proper declaration and payment processes play a critical role in avoiding potential penalties.
In this guide, you will find the most up-to-date information regarding the 2025 rental income exemptions, tax rates, expense methods, and declaration process; along with all the essential details you need to know about the rental income tax return in Turkey.
What Is Rental Income and Who Must File a Return in Turkey?
According to the Income Tax Law, income derived from renting out immovable properties is defined as “immovable property income” and is subject to tax under certain conditions. Assets and rights subject to rental income include land, buildings, mineral waters, trade names, copyrights, motor vehicles, and many more.
For 2025, the obligation to file a tax return varies depending on the type of income earned:
- Residential rental income: If your residential rental income in the 2025 calendar year exceeds the exemption threshold of TRY 47,000, you must file a tax return.
- Withholding-taxed workplace rental income: If the gross amount of workplace rental income subject to withholding tax exceeds TRY 330,000, a tax return must be filed.
- Non-withheld and non-exempt rental income: Such income (e.g., rental of a workplace to a tradesman under the simple method) must be fully declared if it exceeds TRY 18,000.
Rental Income Declaration for Non-Residents in Turkey
Individuals who own property in Turkey but are not Turkish citizens or do not reside in Turkey (non-residents) must also file a tax return for rental income derived in Turkey. In this case:
- Non-residents are taxed only on rental income earned in Turkey.
- The declaration and payment procedures are similar to those of residents, though some special provisions apply.
- For detailed information, please refer to our guide: Rental Income Declaration for Non-Residents in Turkey.
Rental Income Tax Exemption in Turkey 2025 and Conditions
The exemption amount for residential rental income is set at TRY 47,000 for the 2025 calendar year. If your annual rental income is below this threshold, you do not need to file a tax return. However, there are certain conditions to benefit from this exemption:
- If your gross total income (including salary, capital income, or other earnings) exceeds the third income bracket of TRY 1,200,000 for 2025, you cannot benefit from the residential rental income exemption.
- For those earning income from multiple residences, the exemption applies only once to the total rental income.
- If both residential and workplace rental incomes are declared together, the exemption applies only to residential rental income.
Deduction Methods for Rental Income Tax in Turkey 2025
When calculating taxable rental income, you may deduct expenses using one of two methods:
- Actual Expense Method: You can deduct actual documented expenses related to the rented property (utilities, heating, water, elevator, insurance, repair, rent paid, etc.). Taxpayers using this method must keep supporting documents for 5 years.
- Lump-Sum Expense Method: If you cannot document actual expenses, you may deduct 15% of your gross rental income as a flat expense.
⚠️ Note: Taxpayers who choose the lump-sum expense method cannot switch to the actual expense method until at least two years have passed.
Rental Income Tax Rates and Brackets in Turkey 2025
The net rental income will be taxed according to the following 2025 tax brackets:
- Up to TRY 158,000: 15%
- Over TRY 158,000 to TRY 330,000: TRY 23,700 + 20% of the excess
- Over TRY 330,000 to TRY 800,000: TRY 58,100 + 27% of the excess
- Over TRY 800,000 to TRY 4,300,000: TRY 185,000 + 35% of the excess
- Over TRY 4,300,000: TRY 1,410,000 + 40% of the excess
Imputed Rental Value (Emsal Kira Bedeli) in Turkey
If a property is used free of charge or rented at below market value, income is calculated based on the imputed rental value, which equals 5% of the property’s tax value.
However, in certain cases imputed rental value is not applied:
- Properties left free of charge to others for protection when vacant.
- Residences allocated for the use of the owner’s parents, grandparents, children, grandchildren, or siblings.
- ⚠️ If more than one residence is allocated, only one is exempt from imputed rent.
- Residences where the owner and relatives live together.
- Rentals by government institutions, municipalities, and other public organizations.
Deductible Expenses and Tax Advantages for Rental Income in Turkey
In your annual income tax return, several deductions can lower your tax base and reduce the tax payable, provided you meet the legal requirements:
- Insurance Premiums: Life/personal insurance premiums for yourself, your spouse, and children up to 15% of declared income. (Excludes pension contributions). For more details, please refer to our guide on Insurance Tax Deduction in Turkey.
- Education and Health Expenses: Verified education and health expenses in Turkey up to 10% of declared income. For more details, please refer to our guide on Education and Health Tax Deduction in Turkey (2025)
- Donations and Contributions:
- Limited to 5% of income: Donations to public institutions, tax-exempt associations, and foundations.
- Fully deductible: Donations to schools, health facilities, dormitories, places of worship, food banking associations, and recognized campaigns. Also fully deductible are cash donations to the Turkish Red Crescent and Green Crescent.
- Sponsorship Expenses: 100% deductible for amateur sports, 50% for professional sports.
- Angel Investor Deduction: Investors holding qualified shares in Turkish companies for at least 2 years may deduct 75% (or in some cases 100%) of their investment.
- Other Special Laws: Certain donations under education, science, social aid, or anti-terror laws are fully deductible.
Rental Income Tax Return and Payment in Turkey 2025
Rental income for the 2025 calendar year must be declared between March 1 – March 31, 2026 using the annual income tax return. Failure to file on time will result in penalties and interest.
The tax due is payable in two equal installments:
- 1st installment: March 31, 2026
- 2nd installment: July 31, 2026
Late payments will incur interest charges.
Rental Income Tax Payment Channels in Turkey
Taxpayers may pay via several methods:
- Digital Tax Office (dijital.gib.gov.tr)
- GİB Mobile application
- Internet banking, mobile banking, or ATMs of contracted banks
- Tax offices or PTT branches
Payments can also be made by credit card.
Professional Assistance with Rental Income Tax in Turkey
To avoid errors in declaration, loss of exemptions, and penalties, professional support is highly recommended.
At Metropol Consulting, we ensure the correct calculation of your rental income, complete management of your tax return, and minimization of your tax burden.