Short-term rental owners in Turkey, are required to pay two countrywide taxes, that is, VAT and rental income tax. There are two options for paying rental tax in Turkey. The rental tax can be a lumped sum, that is at an assumed rate, or progressive tax, that is, it is calculated based on earnings.

• Actual (real cost): This option of rental tax payment is used where accurate accounts are kept, income is recorded, expenses are properly documented, and receipts and invoices are saved and submitted when filing tax returns. The deductible costs from this tax option include water, electricity bills, insurance costs, renovation and maintenance costs, municipal charges, and taxes in kind relating to the business.
• Lump-sum (assumed):  The tax office applies 25% of the income declared as rental income tax and there is no room for deduction in this rental tax option.

NOTE

For short-term rental owners that make less than 3,900TL in a year, nothing needs to be declared.

Short-term rental owners who earn a rental income of 500 TL and above per month are obliged to make payments through bank and postal administrations regardless of the amount.

The rental income period is from the 1st of March to the 25th of March of the next year. You must file your income statement at the end of that period, and the first installment of the taxes due on the rental must be paid on the 31st of March, and the second in July.

Read more about rental income tax in Turkey.