Income tax on rent, worked example, in Turkey

April 05, 2018

Non-resident couple's joint monthly rental income1 €1,500 €6,000 €12,000
Annual Rental Income 18,000 72,000 144,000
Less Standard deductor(25%) 4,500 18,000 36,000
= Taxable Income 13,500 54,000 108,000
Income Tax Rates4
Up to TRY 12,600 15% 630 630 630
TRY11,000 - TRY 30,000 20% 1,160 1,160 1,160
TRY27,000 - TRY 69,000 27% 2,160 3,510 3,510
Over TRY 69,000 35% - 17,150 42,350
Annual Income Tax Due 3,950 22,450 47,650
Tax Due as % of Gross Income 21.94% 31.18% 33.09%
Source:
Global Property Guide

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 EUR = 3.00 TRY

3 A lump-sum standard deduction of 25% of the gross income may be deducted to account for income-generating expenses.

4 ncome tax rates applied to rental income for 2014 are as follows:

INCOME TAX 2015 - OTHER INCOME

TAXABLE INCOME, YTL (€) TAX RATE
Up to 12,600 (€4,600) 15%
10,700 - 30,000 (€10,000) 20% on band over €4,600
30,000 - 69,000 (€23,000) 27% on band over €10,000
Over 69,000 (€23,000) 35% on all income over €23,000
Source: Global Property Guide

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