Property and Rental Income Tax in Turkey

Nonresidents are liable to pay tax on their Turkish-sourced income. Married couples are taxed separately on all sources of income.

Income Tax

Income from all sources are aggregated and taxed at progressive rates.


Up to 70,000TRY 15%
70,001 - 150,000TRY  20%
150,001 - 370,000TRY  27%
370,001 - 1,900,000TRY 35% 
Over 1,900,000TRY     40% on all income over 1,900,000TRY
Source: Global Property Guide

Corporate Tax

Income and capital gains earned by companies are taxed at the standard corporate tax rate of 20%. Income-generating expenses are deductible from the gross income.

Rental Income Tax (Example)

Net rental income earned by individuals is subject to income tax at progressive rates. However if the property is let out as a residence, acertain threshold amountis exempt from taxation. Net rental income can be determined either through the actual deduction method or lump sum method.

  • The actual deduction method deducts real expenses (inc. lighting, heating, water expenses; administrative expenses, insurance expenditures; tax and duties; interest expenses; depreciation costs and repair expenditures) from the gross rental income. 5% of the acquisition cost is also deductible within five years for income arising from the lease of buildings.
  • The lump sum method allows taxpayers to deduct 25% of their gross income to arrive at the taxable income. Once the taxpayer has chosen to use the lump sum method, he may not revert to the deduction of actual expense until after two years.


Non-resident couple´s joint monthly rental income1 40,500TRY ($1,500) 162,000TRY ($6,000) 324,000TRY ($12,000)
Annual Rental Income 486,000TRY 1,944,000TRY 3,888,000TRY
Less Standard deductions(25%) 121,500TRY 486,000TRY 972,000TRY
= Taxable Income 364,500TRY 1,458,000TRY 2,916,000TRY
Income Tax Rates4      
Up to 70,000TRY 15% 10,500TRY 10,500TRY 10,500TRY
70,001 - 150,000TRY  20% 16,000TRY 16,000TRY 16,000TRY
150,001 - 370,000TRY  27% 57,915TRY 59,400TRY 59,400TRY
370,001 - 1,900,000TRY 35% - 380,800TRY 535,500TRY
Over 1,900,000TRY  40% -   406,400TRY
Annual Income Tax Due 68,431TRY 466,700TRY 1,027,800TRY
Tax Due as % of Gross Income 14% 24% 26%
Source: Global Property Guide

Capital Gains Tax on Real Estate

Capital gains from the sale of immovable property are exempt from income tax provided that the holding period is longer than five years (four years if the property was acquired before 01 January 2007).

For properties owned less than five years (four years if the property was acquired before 01 January 2007), normal income tax rates apply. Taxable gains are computed by deducting the acquisition costs (subject to inflation adjustment) from the selling price.

Value Added Tax (VAT)

Leasing real estate properties in Turkey are not subject to VAT.

No VAT is chargeable on the sale of real estate by individuals who are not estate agents, except in the case of houses with a total surface area above 150 sq. mt., which are subject to 1% VAT.

Other Property Taxes

Property Tax

Real estate tax is a municipal tax levied on the value of Turkish real property (land and buildings). The applicable tax rate varies depending on the classification of the property and it´s location.

Residential properties are taxed at 0.1% of their value (0.2% if the property is located in a big city) while commercial property is taxed at 0.2% (0.4% if located in a big city). The tax rate is 0.2% for farms (again, double for big cities),and 0.3% on vacant land (0.6% in big cities).