Rental Income Declaration and Tax Payment Process in Bodrum, Turkiye
Bodrum is not only one of Turkey’s most popular holiday and living destinations but also an attractive opportunity for real estate investors. However, homeowners who rent out their properties in Bodrum have certain financial obligations to fulfill. One of the most important is the rental income declaration and tax payment process. So, what is a rental income declaration, who needs to file it, and how does the payment process work? Here’s a guide specifically for Bodrum property owners.
What Is a Rental Income Declaration, and Who Is Required to File It?
According to the Income Tax Law, all property owners who rent out their real estate in Turkey must declare their rental income if it exceeds a certain annual threshold. For 2024, this threshold is set at 33,000 TL. If you rent out a property in Bodrum and your annual rental income exceeds this amount, you must file a declaration.
When and How to File a Rental Income Declaration?
The rental income declaration must be submitted between March 1 and March 31. You can file your declaration through:
- The Revenue Administration (GİB) website
- The e-Government portal (e-Devlet)
- Your local tax office
If you rent out your property for short-term stays (daily or weekly rentals), be aware that these types of rentals might be classified as commercial income, which is subject to different tax regulations than long-term residential rentals.
How Is Rental Income Tax Calculated and Paid?
Rental income tax is calculated using one of two methods:
- Lump-Sum Expense Method: 15% of the rental income is deducted as expenses before tax calculation.
- Actual Expense Method: Deductible expenses such as property tax, insurance costs, and maintenance expenses are subtracted before tax is calculated.
Payment Methods:
- Online payment via the Interactive Tax Office (ivd.gib.gov.tr)
- Payments through designated banks
- Direct payment at tax offices
The rental income tax can be paid in two installments in March and July.
What Happens If You Don’t Declare Your Rental Income?
One of the most critical aspects for property owners in Bodrum is ensuring compliance with tax regulations. If you fail to declare your rental income, you may face penalties under the Tax Procedure Law, including late payment interest and administrative fines.
When investing in real estate in Bodrum, it’s crucial to consider your tax obligations. By submitting your rental income declaration correctly and on time, you can avoid penalties and ensure compliance with tax regulations. If you are involved in short-term rentals, be aware that they might be subject to different taxation rules.
Written on March 1, 2025