Turkey: Worked Example of Tax on Rent
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Tax Example: Rent
| Non-resident couple's joint monthly rental income1 | €1,500 | €6,000 | €12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Exemption Amount3 | (2,094) | (2,094) | (2,094) | |
| Less Standard Costs (25%)2 | (3,976.50) | (17,476.50) | (35,476.50) | |
| = Taxable Income | 11,929.50 | 52,429.50 | 106,429.50 | |
| Income Tax Rates4 | ||||
| YTL6,600 – YTL15,000 | 20% | 691 | 691 | 691 |
| YTL15,000 - YTL30,000 | 25% | 627 | 1,099 | 1,099 |
| YTL30,000 – YTL78,000 | 30% | – | 2,356 | 2,356 |
| YTL30,000 – YTL78,000 | 35% | – | 3,678 | 8,796 |
| Over YTL78,000 | 40% | – | – | 4,951 |
| Annual Income Tax Due | €2,636 | €15,648 | €35,786 | |
| Tax Due as % of Gross Income | 14.6% | 21.7% | 24.8% | |
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on October 2, 2007.
Notes
1 The residential property is jointly owned by husband and wife, but taxed separately. The Turkish tax system is based on individuals, therefore, 50% upon each partner.
2 Under the Turkish Income Tax Law, expense deductions can be made by choosing either the “no questions asked” option by stating a 25% expense against rental income after exemption, or the “actually incurred expenses” option, by stating the documented and legitimate expenses incurred.
3 The Turkish Law exempts YTL2,000 of housing rental income from taxes. Exchange rate as of 02 October 2006 is: €1=YTL1.91.
4 Applicable marginal tax rates for year 2005.
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Your Comments
posted by patrick hartnett | 2008-02-18
HiIf you become a Turkish resident (i.e. live there for more than 6 months of the year) does the YTL2,000 exemption for rental income tax still apply - or is it just for non-residents? And what about the 25% deduction - does that apply to residents and non-residents alike?Thanks.