12.10.2025 10:23
With the new bill to be presented to the Parliament, a withholding tax of 20% will be applied to property owners who rent out their homes. The withholding tax system, which currently only applies to commercial leases, will also cover residential rents. Accordingly, landlords will be required to pay tax at a rate of 20% on the portion of their annual rental income that exceeds 47,000 Turkish Lira.
With the new regulation planned in the tax law, a withholding tax of 20% will be imposed on residential rents. This step will end the "cash rent" period. According to the bill to be presented to the Parliament, landlords will only be able to collect their rents through banks or PTT, and a 20% tax will be deducted from these incomes. With this regulation, the government aims to record all rental income.
EXEMPTION FOR RETIREES WILL CONTINUE
It has been reported that the current exemption for retirees will continue. Retirees whose only income is from social security pensions will be exempt from withholding tax as long as the income they earn from their single rented property does not exceed 47,000 lira. However, in cases where rents are collected in cash, the missing taxes, along with penalties and interest, will be collected from the landlord.
RENT INCREASES MAY OCCUR
The new regulation may lead landlords to increase rental prices due to a significant portion of rental income going to taxes. According to experts, this situation could cause an increase in rents and may also reduce the attractiveness of the property as an investment vehicle.
While the Grand National Assembly of Turkey is expected to discuss the 11th Judicial Package next week, it is planned to bring the withholding tax regulation concerning landlords to the Parliament's agenda next month.