Real estate
Rental income: who files and how much tax arises
Whether you must file depends on the type of rent, its amount and whether tax was withheld at source. Below is when a return is required and how the tax is worked out.
Residential
The exemption on housing rent
TRY 58,000 of residential rental income earned in the 2026 calendar year is exempt from income tax. Below that, and with no other filing requirement, no return is filed.
- The exemption applies only to property let as a dwelling, not to commercial premises.
- Those who do not declare the income on time cannot use the exemption.
- Taxpayers already filing for commercial, agricultural or professional income cannot use it.
- Where several dwellings are let, the exemption applies once to the total.
Expenses
Lump-sum or actual expenses?
| Lump-sum | Actual expenses | |
|---|---|---|
| What is deducted | 15% of gross rent | Documented actual costs |
| Documents | Not required | Invoices, receipts and loan statements required |
| Examples | — | Property tax, insurance, interest, maintenance, depreciation, management fees |
| Switching | Cannot switch back for two years | Free choice each year |
Those letting rights cannot use the lump-sum method. Mortgage interest is deductible under the actual method; principal is not.
Commercial premises
Withholding and filing on commercial rent
On commercial rent the tenant withholds income tax from the payment and reports it on a withholding return. Whether the landlord also files an annual return depends on whether total withheld income exceeds the filing threshold.
| Situation | What applies |
|---|---|
| Commercial rent with tenant withholding | An annual return is filed if the total exceeds the threshold; tax withheld is offset against the tax calculated |
| Rental income with no withholding | Declared if it exceeds TRY 22,000 for 2026 |
| Residential rent | The part above the TRY 58,000 exemption is declared |
Common errors
What puts the return at risk
- Taking rent in cash: where bank or postal collection is required, undocumented collection triggers a penalty.
- Letting below the deemed rental value: where property is used free or below value, the deemed rent applies.
- Multiple owners: each co-owner declares their own share and uses the exemption separately.
- Claiming the exemption on a late return: the right to it is lost.
Frequently asked
If my rent is below the exemption, must I still file?
If your residential rental income is below TRY 58,000 for 2026 and you have no other income requiring a return, you do not file. However, if you already file for commercial, agricultural or professional income, the exemption is not available.
Lump-sum or actual expenses?
If documented costs exceed 15% of gross rent, the actual method is usually better, especially with mortgage interest. Choosing the lump-sum method locks you in for two years, so calculate before deciding.
Can I take the rent in cash?
Above a certain amount for dwellings, and regardless of amount for commercial premises, collections and payments must go through a bank or the postal service. Otherwise a penalty may be imposed on both landlord and tenant.
I let my flat on short-stay platforms — is it the same?
No. Short-term, continuous accommodation can be commercial income rather than rental income, and licensing obligations arise under accommodation legislation. It needs separate assessment.
This page is general information based on the legislation in force at the time of writing. Amounts change annually. Talk to us before applying it to your own situation.
Other guides
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The service-export earnings deduction, foreign currency collection, VAT exemption and the young entrepreneur relief.
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Which year the income is declared, offsetting the 5% withholding on progress payments, and allocating shared costs.
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Two VAT rates on one bill, cash registers, wastage and portion costing, and payroll with high staff turnover.
Let us talk about your own position
The guides give the general framework. Let us work out which rule applies to your specific facts.