Income tax on rent, worked example, in Turkey

Taxation Researcher | May 25, 2021

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 24,000 15% 1,200 1,200 1,200
TRY24,000 - TRY 53,000 20% 1,933 1,933 1,933
TRY53,000 - TRY 130,000 27% 90 6,930 6,930
TRY130,000 - TRY 650,000 35% - 10,033 35,233
Over TRY 650,000 40% - - -
Annual Income Tax Due 3,223 20,097 45,297
Tax Due as % of Gross Income 17.91% 27.91% 31.46%
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 2019 are as follows:

INCOME TAX 2019 - OTHER INCOME

TAXABLE INCOME, YTL (€) TAX RATE
Up to 24,000 (€ 8,000 ) 15%
24,000 53,000 (€ 17,667 ) 20% on band over €8,000
53,000 130,000 (€ 43,333 ) 27% on band over €8,000
130,000 650,000 (€ 216,667 ) 35% on all income over €17,667
Over 650,000 (€ 216,667 ) 40% on band over €216,667
Source: Global Property Guide

 

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