Owning real estate in Turkey is one of the most rewarding ways to generate steady passive income. However, as March arrives, every property owner faces an important task: The Rental Income Tax Declaration. The process for taxing rental income earned throughout 2025 has officially begun as of March 2026.

What are the exemptions? Which expenses can you deduct? Here is the most comprehensive guide prepared by Daisy Homes Alanya for international and local property owners.

1. Who is Required to Pay Rental Income Tax?

If you own a residential or commercial property within the borders of Turkey and earned income from this property during the 2025 calendar year, you are considered a “Real Estate Capital Income” (GMSİ) taxpayer.

The Critical Threshold (Exemption Amount): Every year, the Ministry of Finance determines an “exemption amount.” For 2025 income, residential rental earnings below this specific threshold do not need to be declared. However, if your income is even one cent above this limit, filing a tax return is a legal requirement.

2. Tax Calculation Methods: Lump-Sum vs. Actual Expense

When filing your tax return, you have two options. This choice directly affects the amount of tax you will pay.

A) Lump-Sum Expense Method (Götürü Gider)

This is the most practical method. After deducting the exemption amount from your total rental income, 15% of the remaining amount is automatically accepted as an “expense” and excluded from tax. You do not need to collect any invoices or documents.

• Pros: Fast and effortless.

• Cons: If your actual expenses are more than 15% of your income, you may end up paying more tax than necessary.

B) Actual Expense Method (Gerçek Gider)

This method allows you to deduct the actual expenses you incurred for your property from your gross income. What can you deduct?

• 5% of the purchase price if you bought the property in the last 5 years (Residential only).

• Interest payments on mortgage loans for the property.

• Property taxes, insurance (DASK, etc.) expenses.

• Maintenance, repairs, and administrative costs of the property.

• Important: If you are a tenant yourself, you may be able to deduct the rent you pay under certain conditions!

3. When and How to File the Declaration?

The declaration period is between March 1st and March 31st.

• Pre-Filled Declaration System (Hazır Beyan): You can log in to the Revenue Administration’s website with your e-government password (e-devlet) and approve your pre-prepared tax return.

• Payment: Calculated taxes are usually paid in two equal installments in March and July.

4. Special Note for Expats and Foreign Investors

For our friends investing in international regions like Alanya, this rule is vital: Rental income earned from a property located in Turkey is taxed in Turkey, regardless of where the owner lives in the world. Many countries have “Double Taxation Avoidance Agreements” with Turkey, which may allow you to offset the tax paid in Turkey against your taxes in your home country.

5. What are the Risks of Not Filing?

If a declaration is not filed or is filed incompletely:

1. Loss of Exemption Rights: You cannot benefit from the state-provided tax-free threshold.

2. Tax Loss Penalty: A penalty equal to the amount of unpaid tax is imposed.

3. Delay Interest: Legal interest is charged for every month of non-payment.

The Ministry of Finance now digitally tracks bank accounts, title deed records, and utility subscriptions. Therefore, “hidden” rental income is nearly impossible in today’s technological landscape.

6. Conclusion and Professional Advice

The rental income tax process, when managed correctly, is an area where you can achieve significant savings through legal deductions and expense items.

Recommendations from Daisy Homes Alanya:

• Keep Your Documents: Store all invoices for renovations, painting, elevator maintenance, or insurance policies for at least 5 years.

• Update Rental Agreements: Ensure the amount deposited into the bank matches the contract amount to protect you during audits.

• Seek Professional Support: Tax legislation is updated every year. Stay in touch with your financial advisor or professional property management consultants to avoid mistakes.

Remember; property management is not just about handing over keys; it’s about managing the financial processes of the investment correctly. At Daisy Homes Alanya, we don’t just sell real estate; we guide our investors through every stage of their journey.

💰 For Tax Consulting & Real Estate Guidance:

📞 Hasan Cicek: +90 530 350 83 66

📧 E-mail: info@daisyhomesalanya.com

🌐 Web: www.daisyhomesalanya.com

📍 Address: Alanya, Antalya / Turkiye

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When buying a residence, land or commercial property in Alanya, you will need to pay not only the property price but also various taxes and fees.
Whether for investment or residential purposes, knowing these costs in advance is critical for budget planning.

1. Title Deed Fee (Purchase-Sale Fee)
✅ Rate: 4% of the sales price (Buyer and seller usually pay 2% each, but if the parties agree, the entire amount can be collected from the buyer.)

Example:
Total title deed fee for a 500,000 TL apartment:
500,000 TL × 4% = 20,000 TL
In other words, the buyer pays 10,000 TL, the seller pays 10,000 TL (may vary depending on the agreement).

2. Revolving Fund Fee
✅ Revolving fund contribution is also taken in title deed transactions.

✅ Average for 2025: ~1,500-2,000 TL (updated every year).

This fee is fixed and paid by the buyer during title deed transactions.

3. Value Added Tax (VAT)
✅ The VAT rate in housing sales generally varies between 1% and 18%.

Second-hand housing: Exempt from VAT.

In first-hand (contractor) sales:

Housing under 150 m²: 1% or 8%

Housing over 150 m²: 18%

⚠️ Whether or not you will pay VAT depends on the type of property and the parties involved in the sale.

4. Real Estate Tax
✅ After purchasing real estate, you must pay real estate tax every year.

For residences: 1 per thousand (0.1%)

For land: 3 per thousand (0.3%)

For workplaces: 2 per thousand (0.2%)

The first payment starts the year following the year you purchase the property.
The tax can be paid in two installments: March-May and November.

5. Income Tax (For Seller)
✅ If you sell the real estate you purchased within 5 years, a capital gain may arise.

In this case, the seller is obliged to pay income tax on the gain.

However, income tax is not collected for sales made after 5 years (exception).

6. Extra Expenses for Foreign Buyers
Sworn translator fee

Title deed translation and notary approvals

Real Estate Valuation Report (SPK approved) → Average 5,000 – 7,000 TL
This report is mandatory for foreign buyers.

Total Expense Example (For a 500,000 TL House)

Expense Item Estimated Amount
Title Deed Fee (4%) 20,000 TL
Revolving Fund 1,500 TL
Real Estate Valuation (if any) 6,000 TL
VAT (when purchasing from a contractor) 0 – 90,000 TL
Notary/Translation (foreign) 2,000 – 5,000 TL
Savings Tips
✅ Share the title deed fee with the seller through bargaining.
✅ VAT and some extra expenses are eliminated in second-hand houses.
✅ Reliable real estate consultants and lawyers manage the process transparently.

Conclusion: Do not buy without knowing the real costs
When buying and selling real estate in Alanya, instead of focusing only on the housing price, knowing the total cost in advance is essential to avoid surprises.

We are here for you as the Daisy Homes team for more information or free consultancy.