In 2025, Turkey continues to enhance its legal and tax framework for rental contracts, aiming to balance the rights of landlords and tenants while ensuring transparency in real-estate transactions.

This guide serves as a valuable reference for investors, property owners, and tenants to understand the current laws and taxation procedures governing the Turkish rental market.

 

1. Legal Framework of Rental Contracts in Turkey

Rental contracts in Turkey are regulated by Articles 299 to 378 of the Turkish Civil Code, which are frequently updated to reflect the evolving property market and economic conditions.

 

Key Highlights of the 2025 Rental Law:

• Electronic Contracts via e-Devlet Platform:

Landlords and tenants can now register and renew rental contracts electronically, reducing disputes and enhancing government oversight.

 

• Annual Rent Increase:

The rent increase rate continues to follow the Consumer Price Index (CPI) published monthly by the Turkish Statistical Institute (TÜ?K).

 

• Mandatory Contract Notarization:

To ensure legal protection, rental agreements must be notarized by a Noter (public notary) or completed through official digital platforms.

 

• Legal Eviction Procedures:

The law clearly defines the cases in which a landlord can terminate a contract — such as non-payment, personal use of the property, or the expiration of the contract without renewal.

 

1. Taxes Applicable to Rental Contracts in Turkey

Turkey’s tax system imposes clear obligations on landlords, while tenants benefit from certain exemptions, especially for residential properties.

1. Rental Income Tax (Kira Gelir Vergisi)

Levied on annual income earned from renting real estate.

The tax-free threshold for 2025 is TRY 33,000 per year.

Progressive tax rates range between 15% and 40% depending on total income.

Tax declarations (Beyanname) must be submitted between March 1 and March 31 for the previous fiscal year.

 

2. Value Added Tax (KDV)

Generally, not applied to residential properties rented to individuals.

Applies to commercial properties (offices, shops, etc.) at a rate of 18%.

 

3. Stamp Duty (Damga Vergisi)

Charged at 0.189% of the total contract value at the time of signing.

 

4. Notarization and Agency Fees

Notarization costs typically range between TRY 500 – 1,500, depending on contract length and value.

Real-estate agency commissions usually equal 10% of the annual rent and are paid to the brokerage office (Emlak Ofisi).

Everything You Need to Know About Real Estate Taxes in Turkey for Foreign Investors

 

1. Rights and Obligations of Landlords and Tenants

Landlord’s Rights:

• Receive rent payments on time.
• Reclaim the property at contract termination or in case of breach.
• Increase rent within the legal limits upon renewal.

 

Tenant’s Rights:

• Enjoy full use of the property without disturbance.
• Benefit from automatic contract renewal unless proper notice of eviction is given.
• Dispute illegal rent increases or unauthorized maintenance costs.

 

1. Tips for Investors and Foreign Property Owners

• Always Use Official Contracts:

Avoid verbal agreements; use legally recognized and notarized contract templates.

 

• Make All Payments via Bank Transfer:

Bank transactions serve as official proof for tax reporting and protect both parties.

 

• Review Tax Obligations Annually:

Consult a certified accountant to ensure accurate tax filings and avoid penalties.

 

• Verify Property Ownership (Tapu):

Ensure your property is registered under your name in the official title deed system — a prerequisite for filing rental income tax.

 

1. Investment Impact of Legally Regulated Rental Contracts

Implementing well-structured rental agreements in compliance with Turkish law enhances:

• Transparency and trust between investors and tenants.
• Stable rental yields, especially in key cities like Istanbul, Ankara, and Izmir.
• Property value appreciation, as legally protected assets attract higher-quality tenants and investors.

 

Conclusion

The updated legal and tax regulations for 2025 reflect Turkey’s vision to create a transparent, investor-friendly real-estate environment.

Whether you are a property owner, tenant, or investor seeking steady income, understanding these laws and tax obligations is the first step toward a safe and profitable investment in Turkey’s property market.