Real Estate Rentals in Turkey: A 2026 Guide for Foreign Landlords

February 11, 2019Updated September 30, 20268 min read

Foreigners who own a home in Turkey can rent it out on the same terms as Turkish owners. The Turkish Code of Obligations sets the rules, and most landlords have to declare the income for tax. Rents for new tenants are still rising fast in lira terms: the Central Bank's New Tenant Rent Index was up 28.4% year on year in July 2026 (32.4% in Istanbul). Once a tenant is in place, though, the landlord can raise the rent only once a year and only by the legal cap, so the rules matter as much as the market.

This guide covers where rents are heading, the rules that protect tenants, how contracts and payments work, the tax side, and what changes when you manage a rental from abroad.

Rent trends in 2026

The Central Bank of the Republic of Turkey (TCMB) publishes a monthly New Tenant Rent Index. It tracks the rent agreed in new contracts, not rents paid by sitting tenants. The July 2026 figures:

New Tenant Rent Index, July 2026	Annual change
Turkey	+28.4% (nominal)
Turkey, adjusted for inflation	−2.6% (real)
Istanbul	+32.4%
Ankara	+28.6%
Izmir	+26.3%

Two things stand out. Rents are still rising quickly in lira, and Istanbul is ahead of the national average. After inflation, though, new rents fell slightly over the year. House prices show the same pattern: TCMB's house price index rose 25.0% nominally in July 2026 but fell 5.1% in real terms. Neither rents nor prices are a one-way bet, and returns differ widely by district, building and how well the home is let and managed.

How we got here

Istanbul rents have risen for a long time. When we first wrote about rental costs in Istanbul in 2016, an average apartment rented for about 1,100 TL a month, roughly double the rent ten years earlier. District rents were then around 900 TL in Avcılar, 1,050 TL in Beylikdüzü and 1,350 TL in Bahçelievler. Those lira figures now look very small, which is a reminder of how much the currency has changed.

Rents climbed steeply again in 2021. Construction slowed during the pandemic, building costs rose, and demand from students, workers and new residents kept growing, so the supply of homes to rent fell behind. Earthquake risk also pushes tenants towards newer buildings built to current codes, which is one reason modern new-build homes let more easily than older stock.

The rules every landlord in Turkey should know

Rent increases are capped

For residential leases, the rent can be raised once a year, at renewal, and by no more than the 12-month average change in the consumer price index (TÜFE) published by TÜİK. For renewals in September 2026 that cap is 31.79%. A temporary 25% ceiling that applied from June 2022 to July 2024 has ended, so the CPI rule is the only limit again.

This rule is not new. Our original 2019 article on this page covered the switch to CPI-based increases: the cap for 2019 renewals was 16.33%, the 12-month average CPI for 2018. The mechanism is the same today; only the numbers are much larger.

The five-year reset

After a tenancy has run for five years, the rent can be brought back to market level. If the landlord and tenant cannot agree, a court sets the new rent, taking into account the CPI change, the condition of the property and comparable rents nearby. Landlords who own the home for many years should plan for this. With high inflation, a rent that has only risen by the CPI cap can fall well below the market.

Deposits

The security deposit for a home is at most three months' rent. It is common to hold it in a bank account, and it should be clearly recorded in the contract.

Ending a tenancy

Residential tenants in Turkey have strong protection. A fixed-term lease renews automatically if the tenant does not leave, and the landlord cannot simply end it at the end of the term. The main exceptions are genuine need (for example, the owner or close family needing to live in the home), major renovation, and the end of a ten-year extension period. Disputes go through mediation and the courts, so choose tenants carefully rather than relying on eviction.

Short-term and holiday rentals

Renting a home for less than 100 days at a time (Airbnb-style letting) falls under the 2023 law on the tourist rental of homes. You need a permit from the Ministry of Culture and Tourism and the consent of the other owners in the building. Letting without a permit carries administrative fines. Many residential complexes in Istanbul do not allow short-term letting, so check the building's management plan before you buy with this in mind.

Rent in foreign currency

As a rule, rent contracts in Turkey must be in Turkish lira. There is an exception: when the tenant is not a Turkish citizen, the parties may agree the rent in foreign currency or indexed to it. When the tenant is Turkish, the rent must be in lira.

Contracts and payments

Use a written contract. Since 4 November 2024, landlords can prepare a rental agreement on e-Devlet and send it to the tenant and guarantor for approval. Since 9 May 2025, authorised estate agents can also prepare it. The contract is time-stamped and can be verified. Using it is voluntary for now. Read our guide to the e-Devlet rental agreement.
Rent must be paid through a bank or PTT. Landlords and tenants must document rent payments with bank or postal records; cash is not compliant. Each non-compliant payment can be fined 10% of the amount, subject to a minimum.
Write down who pays what. Building fees (aidat) for everyday running costs are normally paid by the tenant. Property tax, major repairs and fixtures are normally the owner's responsibility.

Tax on rental income

Rental income is taxed at the progressive income tax rates of 15% to 40%. Residential rent has a yearly exempt amount (58,000 TL for 2026 income). Landlords can deduct either their actual expenses or a flat 15%. The return is filed in March of the following year. Non-residents are also taxable on rent from Turkey. See our Turkey rental income tax guide for the figures, deadlines and examples.

Managing a rental from abroad

Most of our clients do not live in Turkey all year. To let a property from abroad, you will usually need:

a Turkish tax number and a Turkish bank account to receive rent;
someone local to show the home, check tenants, hand over keys, record the condition of the property with photos, and handle repairs;
a system to register the contract, collect rent through the bank, apply the annual increase correctly and file the yearly tax return.

CCT Investments offers property management for owners who want this handled locally. Rental management is quoted separately from the free after-sales support included when you buy new-build through us.

What this means for buyers

Look at the whole period of ownership, not the first year's rent. New-tenant rents track the market; sitting tenants' rents track the CPI cap. The gap between them can grow year by year.
Choose property that lets easily. Transport links, newer earthquake-code buildings, and sizes that match local demand (often one- and two-bedroom flats near business districts and universities) usually matter more than extras.
Check the building's rules before relying on short-term income. Without the neighbours' consent and a ministry permit, holiday letting is not an option.
Budget for tax and management. Net income is what counts, and returns vary by district, building and tenant.

If you are looking for a home to rent out, browse properties in Istanbul or read our buyer's guide.