Introduction
Owning property in Turkey is a growing trend among foreigners, not just for living, but also as a long-term investment.
Whether you’ve purchased a vacation apartment in Antalya or a central flat in Istanbul, there’s real opportunity in renting out your place for income. But navigating the legal side of renting in Turkey as a non-citizen requires more than just handing over the keys.
This guide breaks down the process of renting out in Turkey legally, outlines the necessary documents, explains how taxes work, and highlights the important dos and don’ts every foreign landlord should know.
Can Foreigners Rent Out Property in Turkey?
Yes, foreigners are legally allowed to rent out property in Turkey, whether short-term (daily or weekly) or long-term (monthly or yearly). There’s no citizenship requirement to become a landlord, and once you own the property, your rights as a landlord are generally the same as those of Turkish nationals.
However, there are specific registration steps and obligations you need to follow to stay compliant with Turkish law, especially if you’re earning income from it.
If you skip those steps, even unknowingly, you could face fines, back taxes, or legal trouble, not to mention complications when renewing your residence permit or applying for Turkish citizenship through investment.
Short-Term versus Long-Term Rentals
Before diving into paperwork, you need to decide what type of rental strategy fits your situation best. Turkey recognizes two main rental types: short-term (typically under 100 days) and long-term (over 100 days). Each comes with its own requirements.
Short-Term Rentals: More Lucrative, More Regulated
If you plan to rent to tourists on a nightly or weekly basis, think Airbnb or Booking.com, you’ll need to meet several additional legal steps. Since 2017, short-term rentals in Turkey have been heavily regulated to prevent illegal hotel-like operations in residential zones.
You must apply for a Tourism Rental Certificate (Turizm Konutu İzin Belgesi) from the local municipality. This includes securing approval from your building’s management or owners’ association, as many apartment blocks have internal bans against daily rentals.
Additionally, you’re required to register every guest through the GIYKIMBIL system, which sends guest information to the police. This is mandatory for safety and national security, and failing to do so can lead to large fines. The system is online, but it must be activated at the nearest police station.
Long-Term Rentals: Simpler, But Still Requires a Contract
Long-term rentals are generally easier to manage legally. You won’t need a tourism certificate or police reporting system, but you must still register your lease contract and declare rental income with the tax office. It’s also wise to notarize the lease contract to avoid disputes, especially if your tenant is a foreigner.
If you’re not living in Turkey, consider working with a licensed property management company to handle contracts, tenant screening, and maintenance.
Step-by-Step: How to Rent Out in Turkey Legally
Here’s what you need to do to rent out your property without trouble:
Get a Turkish Tax Number
If you’ve already bought property, you likely have this, but if not, head to the nearest vergi dairesi (tax office) with your passport. You’ll need this number for all future tax declarations and banking matters related to your rental income.
Open a Turkish Bank Account
Rental payments should ideally go through a Turkish bank account in your name. This makes things easier when it comes to declaring income, receiving deposits, and paying tax. Tenants usually prefer local transfers and will ask for a Turkish IBAN.
Draft a Proper Rental Contract
Avoid informal, handshake deals. Your rental contract should include:
• Names and ID/passport numbers of both parties
• Full address of the property
• Rent amount and payment method
• Duration of the agreement
• Terms for renewal, deposit, and maintenance
Having the contract notarized is strongly advised, particularly if you plan to use it in court or report your income formally.
Declare Rental Income
Yes, rental income is taxable even for foreigners. If you earn rental income from a Turkish property, you are legally obligated to report it to the Turkish Tax Office annually.
The income tax rate varies between 15% to 40%, depending on how much you earn. However, Turkey offers a lump-sum deduction method for individuals, which allows a flat 15% expense deduction without needing to document each cost. This is commonly used by foreign landlords for simplicity.
You must file your annual income declaration between March 1st and March 31st for the previous year. A local accountant (muhasebeci) can help ensure everything is properly reported, and their fees are typically quite reasonable.
Additional Rules to Keep in Mind
Tenant Rights: Turkish tenancy laws strongly favor the tenant. If you enter a one-year contract, the tenant has automatic renewal rights unless you give advance notice or file for eviction based on justified grounds. Even raising the rent must follow specific legal limits currently capped annually at a government-set inflation rate.
Utilities and Taxes: It’s common for tenants to pay for water, gas, and electricity, but the property owner is responsible for real estate taxes, building dues, and property maintenance. If you’re renting short-term, utilities usually remain under your name, while for long-term, they’re often transferred to the tenant.
Property Managers: If you live abroad, consider hiring a local agent to manage the property. They can handle everything from key exchanges to cleaning and maintenance. Be sure to sign a formal agreement and check they’re licensed to operate legally.
Conclusion
Knowing how to rent out in Turkey as a foreigner isn’t just about making income; it’s about doing it right. With the right paperwork, legal steps, and tax declarations, renting can be a secure, profitable way to make the most of your property. But skipping steps or cutting corners, especially in short-term leasing, can quickly backfire.
Start with a clear plan: short-term or long-term? Will you manage the place yourself or use an agent? Are you ready to report your income yearly and keep your rental contract above board?
And if you need help navigating the process, Navyx offers guidance for foreign property owners, from contracts and tenant screening to rental tax support. We help you rent with confidence, not guesswork.