Investment Guide

   In accordance with the Law on Foreigners and International Protection in Türkiye, real estate acquired foreigners by applying for a short-term residence permit they can obtain a residence permit provided that each application can cover a maximum period of 2 years. When submitting the forms, a housing address must be declared.

    When property is bought for citizenship, a valuation report from a valuation company authorised by the Capital Markets Board, requested through WebTapu/TADEBİS, is required as the basis of the Amount Determination Certificate. For other purchases by foreigners, confirm the current requirement with the land registry office. The Amount Determination Certificate (TTB) is valid for 12 months.

Turkish Citizenship by Real Estate Investment

    Foreign real persons who acquired real estate in Türkiye can gain the right to apply to a short-term residence permit for up to 2 years.In addition to this, foreign real persons can obtain Turkish Citizenship if they have lived permanently in Türkiye for 5 years before the application date.

    With the amendment made to the Turkish Citizenship Law, now the possibility of becoming a Turkish citizen through investment has been made and the existing investment limits for transition to Turkish citizenship without any time limitation have been reduced and the right to become a Turkish citizen without waiting 5 years.

    Foreigners who buy real estate worth at least USD 400,000 (a condominium, or a plot with a building on it) and register a three-year no-sale annotation can apply for Turkish citizenship without the five-year residence requirement.

By putting an annotation of not being sold the real estate for 3 years in the title deed registry records, it will not be possible for foreign real persons, who apply for the acquisition of Turkish citizenship by buying real estate, to sell their real estate for 3 years.

Electricity and Water Services of Purchased Real Estate

    Real estate owners gain the right to start the subscription process in order to benefit from public services (electricity, water, and sewerage system, etc.) after they were given permission to occupancy permit. For those who have a building permit, the new real estate owner or tenant should apply to the relevant public institutions and sign a service contract with the public institutions after the real estate is acquired or leased. After signing of the service contract and payment of subscription or deposit fees, they are given the opportunity to benefit from the services.

Income Tax in Own Use of Real Estate Owner

In Türkiye, there is income tax implementation which by means of earn rental income by real estate rental or gaining capital gains by selling the property. Therefore, the retention of real estate in Türkiye for the purpose of personal use only and not rented to any natural or legal person for any other transaction does not make income tax payment is required.

Sale or Rent of Real Estate

    Turkish citizens and foreign real persons in Türkiye are completely free to transfer their property to third parties and they are fully liberal to sell, rent or collateralize their real estates. The only exception is the inability to sell the property for 3 years after the payment of USD 400,000 for the acquisition of Turkish citizenship through investment. Rent income can be obtained by renting the real estate or real estates that are bought in order to acquire Turkish citizenship.

Rent Amount of The Real Estate

    Freedom of Contract In accordance with the provisions of the Turkish Code of Obligations, the parties can determine all contract terms as they wish, including the rent amounts in Turkish Lira. It is not possible to determine the foreign currency or foreign currency indexed rent amount in real estate lease agreements. Under the currency protection legislation (Decree No. 32), exceptions apply to the real people who live outside Türkiye or established companies branches in Türkiye, representative offices, offices or liaison offices or those people directly or indirectly 50% or more shareholders which they are Turkish companies and / or joint control and / or they are kept under control; or, as long as the agreement relates to its activities in free zones, it is permitted to determine the prices in the lease agreements to which companies in the free zones are tenants, indexed in foreign currency or foreign currency.

Increase Rates in Real Estate Rent

    The parties agreeing on the rental price and who are within the freedom of the contract can regulate the rental rate increase rates among themselves. For Turkish lira rents, the increase agreed for a renewed rental year may not exceed the change in the 12-month average consumer price index. Where the rent is lawfully agreed in foreign currency, it cannot be changed for five years.

Renting of Real Estate by Currency

    People living in Türkiye, in agreements signed between them, the rent must be determined in Turkish Lira and recorded. In other words, rent amounts cannot be written in foreign currencies, determined or indexed. Under the currency protection legislation (Decree No. 32), exceptions apply to: the real people who live outside Türkiye or established companies branches in Türkiye, representative offices, offices or liaison offices or those people directly or indirectly 50% or more shareholders which they are Turkish companies and / or joint control and / or they are kept under control; or, as long as the agreement relates to its activities in free zones, it is permitted to determine the prices in the lease agreements to which companies in the free zones are tenants, indexed in foreign currency or foreign currency.

Real Estate Rental Times

    Although the parties do not have any restrictions for the termination of the lease agreement, they can determine the duration of the lease agreements by mutual agreement. In the absence of agreement between the parties on this matter, the Turkish Code of Obligations regulates the terms of the extension of the lease agreement and sets the conditions for termination.

Binding of Real Estate Lease Agreements to Third Parties

    Since there is the possibility of annotation in the real estate lease agreements before the title deed registration, the tenants may act as new owners of the property and claim rights against third parties. After the annotation process, if the real estate is transferred to a third party or when it is transferred, the eviction of the tenant from the real estate is prevented.

Taxation of Real Estate Rent Income

    The rental income obtained by natural persons in Türkiye, are taxed by the name of Income Tax and is declared annually by calculating all the rental income collected during a calendar year.If rent income is not taxed in the previous years, it is collected and taxed as income of the related year.

    In the abovementioned allowed situations, the income obtained after the determination of the rent amount in foreign currency, The Central Bank of the Republic of Türkiye calculates the foreign exchange rate applicable on the day the rent is received and converts it into Turkish Lira and the income tax is calculated and collected accordingly.

    Rental income is declared on the annual income tax return filed in March of the following year and taxed at the progressive rates of 15% to 40% (2026 tariff). The tax is paid in two equal instalments, in March and July.

    Residential rental income of up to TRY 58,000 (2026) is exempt from income tax; the exemption does not apply if the taxpayer's combined gross wage, investment, rental and other income exceeds the third-bracket amount for wages in the tariff. Workplace rent subject to withholding must be declared if the gross amount exceeds the declaration limit (TRY 330,000 for 2025 income).

    With the declaration of the rental income obtained, it is possible to deduct some expenses from the tax in the calendar year.

    Rent income to be taxed when calculating the rent income base, there are two methods to be used by taxpayers in terms of tax deductible expenses. These are stated in the legislation as “real” and “lump” expense methods.

Tax Deductible Expenses - Actual Expense Method

    By using actual expenses method following actual expenses can be deducted from the gross amount of rental income:

·      Lighting, heating, water and elevator expenses

·      Insurance expenses relating to the rented property and rights,

·      Management costs,

·      Interest on debts related to the let property (except residences) and, for one residence let out, 5% of its acquisition cost for five years from the year of acquisition,

·      Depreciations,

·      Taxes, fees, charges and special assessments paid for the rented property and rights, as well as charges paid by lessor to municipalities for participation to spending,

·      Repair and maintenance expenses,

·      Rent of the house accommodated by the lessors who rent their own property, (It is not allowed for taxpayers not residing in Türkiye),

·      Cost of damages and compensations

The portion of the above-mentioned expenses corresponding to the exempt income is not counted as tax deductible expenses.

Tax Deductible Expenses- Lump-sum Expense Method

    Taxpayers who have opted for the lump sum method can, after deducting the amount of exception from their rental income, set off the lump sum expenses at 15% of the remaining amount against actual expenses. It is not possible to opt for lump sum expenses method in the case of leasing rights.

    Taxpayers who have chosen the lump sum expenses method cannot choose actual expenses method before two years have elapsed.

The Tenant is a Commercial Earning Company or Merchant

    In Türkiye, by making a deduction (withholding tax) at the rate set by Presidential decision from rental payments that will be made to legal entity tenants and traders, is deposited in the tax office on behalf of the lessor. In the event that the real estate is leased to company or a real person with a commercial profit if the rent income exceeds the annual declaration limits, the owner of the real estate must make a declaration with an annual income tax return. While making the declaration, they must remove the deductible expenses and deduct the amount deducted by the lessee from the tax amount to be calculated over the remaining amount after the discounts and declare the remaining portion in two installments to the tax office in March and July.

VAT on Rental Income

    Value-added tax does not apply to rental income in Türkiye. The income arising from the renting of real estates that do not have any commercial activity or have no connection with the commercial enterprise is not subject to value-added tax.

Lease Agreement and Stamp Tax

    Since lease agreements signed in Türkiye is considered a monetary value, the rate of 0.189% on the total amount specified in the lease agreement Stamp Duty is paid.

Registration of The Lease Agreement to The Land Registry

    Lease agreements has no requirement to be registered on the title deed in Türkiye. However, since the registration of the agreement is considered to be a monetary value, a title deed fee calculated on the total rent must be paid during the registration process.

Real Estate Tax

    While in Türkiye, land, terrain and real estate owners pay property tax, tax rates vary depending on the type and location of the property. Real estate taxes at different rates are collected for settlements, businesses, arable land and other lands with the classification of ordinary regions and metropolitan municipality borders and surrounding areas.

    The property taxes calculated by the municipalities are calculated based on the value determined in the streets and avenues where the property is located. The property tax amount for real estate is obtained from the municipality where the property is located.

    The real estate tax obligation to be paid to the municipality after the purchase of a new real estate starts at the beginning of the year following the sale. The real estate tax paid in two equal installments is paid in first March, April or May and the second in November.

    Besides property tax in Türkiye, there is "contribution to the protection of cultural property" tax which is charged with property tax and claimed 10% of the property tax.

Last reviewed: September 2026