Income tax on rent, worked example, in Turkey

Taxation Researcher | November 25, 2019

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% 900 900 900
TRY11,000 - TRY 30,000 20% 1,467 1,467 1,467
TRY27,000 - TRY 69,000 27% 1,260 5,220 5,220
Over TRY 69,000 35% - 13,767 38,967
Annual Income Tax Due 3,627 21,353 46,553
Tax Due as % of Gross Income 20.15% 29.66% 32.33%
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 18,000 (€ 6,000 ) 15%
18,000 40,000 (€ 13,333 ) 20% on band over €6,000
40,000 98,000 (€ 32,667 ) 27% on band over €13,333
Over 98,000 (€ 32,667 ) 35% on all income over €32,667
Source: Global Property Guide

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