This article will guide you through the process of paying taxes on your rental income in Turkey, ensuring you can rest easy knowing you are in compliance with the law.
When to file:
- The declaration is filed with the tax authorities in March of the current year for the previous year.
Tax-free threshold:
- You are exempt from paying tax if your total annual income is no more than 21,000 Lira (2023). This amount increases to 33,000 Lira in 2024, but in March of 2024, we will still be calculating income and expenses for 2023.
Calculating your taxable income:
- Deduct the abovementioned tax-free amount from your total annual income.
- Subtract 15% for expenses (repairs, insurance, lighting, depreciation).
- The remaining amount is your taxable base.
Paying your rent:
- Rental payments over 500 Lira per month must be paid into a bank account.
- For commercial premises, any rent amount must be paid through a bank.
Understanding the progressive tax rate:
- The Turkish income tax rate is progressive, and it can be complicated to understand without professional help.
Important considerations:
- The tax takes into account your total income in Turkey, excluding income already taxed (e.g., salary, bank deposit profits).
- If you rent out one property, calculate the tax based on your annual profit after deductions. If you rent out two properties, you must add the income from both to determine the tax rate.
- If you have other income in Turkey (including Eurobonds, cryptocurrencies), or if you are an entrepreneur, it is advisable to consult with an accountant to avoid confusion.
Note: This article provides general information and should not be considered a substitute for professional tax advice. It is important to consult with a qualified tax advisor to ensure that you are complying with all applicable tax laws and regulations.
