Yes. Foreign owners may rent out their Turkish property under the Turkish Code of Obligations, and they must follow specific rules for short‑term rentals, tax, and administrative compliance.
Legal basis for renting out property in Turkey
The primary legal framework for renting property in Turkey is the Turkish Code of Obligations (Türk Borçlar Kanunu, Law No. 6098), which defines lease agreements and sets the rights and obligations of landlords and tenants for both residential and commercial premises. Article 299 defines a lease as granting the use of a property in return for rent, while subsequent provisions regulate issues such as duration, rent payment, maintenance, and termination. The Code applies regardless of the landlord’s nationality; there is no separate “foreign landlord” category in the leasing rules. Lease agreements may be executed in writing and are subject to general contract law provisions under Law No. 6098, in addition to any applicable stamp tax obligations under the Stamp Tax Law (Damga Vergisi Kanunu, Law No. 488). [1][2]
Short‑term rentals and the 2023 permitting requirement
If you plan to rent for less than 100 days at a time, a specific statute governs the activity. Law No. 7464 on the Rental of Residential Properties for Tourism Purposes, published on 2 November 2023, requires a permit from the Ministry of Culture and Tourism for residential leases of “less than one hundred days.” The law introduces a permit system, requires a visible permit plate on the property, and imposes administrative fines for operating without a permit. It also places obligations on listing platforms and intermediaries to verify permit numbers before advertising. The law provides that detailed procedures are set by secondary legislation. [3]
The implementing Regulation on the Rental of Dwellings for Tourism Purposes, published on 28 December 2023, sets the application process, documentation, display of the permit plate, and building‑level conditions. Under the Regulation, the permit is applied for via the Ministry’s system, and certain buildings require owners’ approvals in accordance with condominium rules. The Regulation clarifies inspection, cancellation, and sanction procedures, and it confirms that leases below 100 days without a permit are unlawful. Hosts must ensure that advertisements, contracts, and guest check‑ins align with the permit details. [4]
Residential leases of 100 days or more
Leases with a term of 100 days or more are not covered by Law No. 7464 and continue under the general lease regime of the Turkish Code of Obligations. Residential rent to individuals in longer‑term arrangements does not require a tourism rental permit. Landlords must use a compliant written lease, respect tenant protections in Law No. 6098, and may agree on rent updates following the limits and procedures set in the Code and any applicable annual indexation caps adopted by law or temporary statutes. Where the tenant is an individual using the property as a residence, the relationship is treated as a residential lease; where the tenant is a company or uses the property for business, commercial lease provisions apply. [1]
Taxation of rental income for foreign owners
Non‑resident individuals are taxed in Turkey on Turkish‑source income, which includes rent from immovable property located in Turkey, under Article 3 of the Income Tax Law (Gelir Vergisi Kanunu, Law No. 193). Non‑residents must file an annual Turkish income tax return for rental income and pay the tax calculated under the progressive rates in force for the relevant year. Double tax treaties may allow a credit or exemption in the owner’s country of residence; treaty relief is applied according to the specific treaty’s provisions and domestic procedures. [5]
Where the tenant is an income tax withholding agent, such as a company, association, or foundation, Article 94 of Law No. 193 requires the tenant to withhold income tax on rent payments and remit it to the Turkish tax authority. This withholding is creditable against the landlord’s annual income tax liability when filing the return. When the tenant is an individual using the property as a residence, there is no withholding, and the landlord pays tax entirely via the annual return. The Turkish Revenue Administration publishes annual guidance on filing windows, deductible expenses or lump‑sum expense methods, currency translation rules, and documentation requirements for both residents and non‑residents. [5]
VAT, stamp tax, and other compliance points
Residential leases of immovable property are exempt from value added tax (VAT) under Article 17/4‑d of the VAT Law (Katma Değer Vergisi Kanunu, Law No. 3065). This exemption applies to standard long‑term residential leasing. By contrast, if a short‑term rental amounts to the provision of accommodation services within the scope of tourism activity, VAT may apply to those services at the rate set by applicable presidential decisions, and the operator must meet invoicing and registration obligations. The VAT status depends on the nature of the service and the operator’s registration; landlords should evaluate their specific arrangement against VAT Law and administrative guidance. [6]
Lease agreements executed in writing are subject to stamp tax under the Stamp Tax Law (Law No. 488). Stamp tax is typically calculated on the contractual value and is payable upon execution; the exact rates and amounts are determined by current schedules and presidential decrees. Parties should also be aware of obligations that can arise in short‑term stays under the Identity Reporting Law (Kimlik Bildirme Kanunu, Law No. 1774) for accommodation businesses; the scope and method of reporting depend on whether the activity falls within the definition of accommodation services and on the operator’s permit status under Law No. 7464 and its Regulation. Professional advice is recommended to determine the correct reporting framework for a particular property and operating model. [2][3][4]
Practical steps and risk management
Foreign owners planning compliant long‑term leasing should put a written lease in place referencing Law No. 6098, arrange rent payment through traceable banking channels, and keep records for annual income tax filing with the Turkish Revenue Administration. If renting to a company tenant, verify whether withholding applies under Article 94 of Law No. 193 and coordinate certificates and statements necessary to credit the withholding on the annual return. For short‑term rentals, apply for the Ministry of Culture and Tourism permit before advertising or hosting, display the permit plate, ensure the listing includes the permit number, and follow any guest identification and invoicing rules set by the applicable legislation and administrative guidance. Non‑compliance with Law No. 7464 can lead to administrative fines and closure of activity by the competent authorities. [3][4][5]
This overview is general information. Tax and regulatory treatment depends on your specific facts, including lease terms, tenant type, and whether services are provided. Engage a licensed Turkish lawyer or tax adviser to assess obligations, timelines, and filings for your situation.
Related Questions:
Q# Can foreigners buy a property in Turkey and register title in their own name?
Q# What taxes do non‑resident owners pay on rental income from Turkish property?
Q# What changed for Airbnb‑style rentals in Turkey after the 2023 law?
Q# Do I need a Turkish bank account to collect rent from my tenant?
References:
[1] Official Gazette of the Republic of Turkey. “Turkish Code of Obligations (Law No. 6098), 4 February 2011, No. 27836.” https://www.resmigazete.gov.tr/eskiler/2011/02/20110204-1.htm
[2] Official Gazette of the Republic of Turkey. “Stamp Tax Law (Law No. 488), consolidated text.” https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=488&MevzuatTur=1&MevzuatTertip=5
[3] Official Gazette of the Republic of Turkey. “Law No. 7464 on the Rental of Residential Properties for Tourism Purposes, 2 November 2023, No. 32359.” https://www.resmigazete.gov.tr/eskiler/2023/11/20231102-1.htm
[4] Official Gazette of the Republic of Turkey. “Regulation on the Rental of Dwellings for Tourism Purposes, 28 December 2023, No. 32413.” https://www.resmigazete.gov.tr/eskiler/2023/12/20231228-2.htm
[5] Turkish Revenue Administration (GİB). “Income Tax Law (Law No. 193) and guidance on rental income for non‑residents.” https://www.gib.gov.tr
[6] Official Gazette of the Republic of Turkey. “VAT Law (Law No. 3065), Article 17/4‑d, 2 November 1984, No. 18563.” https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=3065&MevzuatTur=1&MevzuatTertip=5
Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or investment advice. Property law and tax rules in Turkey change frequently. Consult a licensed Turkish lawyer, accountant, or real estate professional before making any purchasing decision.