Investing in real estate and earning rental income is a common way to generate passive income in Turkey. However, many property owners may not be fully aware of the tax obligations associated with rental income. The Turkish tax system allows for an exemption on rental income up to a certain threshold, helping landlords reduce their tax burden.
What Is the Rental Income Tax Exemption?
The rental income tax exemption is a legal provision that allows property owners to exclude a portion of their rental income from taxation. If the rental income remains below the exemption threshold, the landlord is not required to file a tax return for that income.
2025 Rental Income Tax Exemption Limit
For 2025, the Turkish government has set the rental income tax exemption at 47,000 TL. This means that if your annual rental income is below this amount, you are not required to pay tax on it or submit a declaration.
Who Can Benefit from the Exemption?
✅ The exemption applies only to residential rental income.
✅ Commercial rental income (rental of offices, shops, or other business premises) is NOT covered under this exemption.
✅ If your total annual rental income does not exceed 47,000 TL, you do not need to file a tax return.
✅ If your rental income exceeds the exemption threshold, you must declare the entire amount and pay tax on the portion exceeding 47,000 TL.
✅ Failure to declare rental income can result in legal penalties and fines.
Example Calculation (2025)
Suppose a landlord earns 60,000 TL annually from a residential rental property. The first 47,000 TL is tax-exempt, so tax will be calculated only on the remaining 13,000 TL.
Why Is It Important to Declare Rental Income?
Declaring rental income correctly helps property owners avoid tax penalties, maintain a good financial record, and comply with legal obligations. Those who fail to report their rental earnings may face financial penalties or legal consequences from the Turkish tax authorities.
By understanding the tax exemption rules, landlords can maximize their rental income while staying compliant with tax regulations.
