Tax Valuations on Rental Income in Turkey Has Been Changed
Tax calculations on rental income in Turkey has been changed by new omnibus bill passed recently. Before that bag law proven by Turkish Government, if you do not provide any documents related the cost of renting house, 25% of the rental income was counted as cost and tax calculations were done on 75% of rental income left. It is not valid anymore that it is changed as 15% of rental income is seen cost from now on. For instance, A landlord renting his house for 1,500 TL per month would pay 1,586 TL as income tax, however it is now 1,798 TL due to decrease in the percentage.
That change on the law makes it now more preferred that providing real cost value is more reasonable now for property owners in Turkey. That’s because there is no limitation on the amount counting as cost. You can even pay no tax if document based real cost value equals to your rental income. There are 2 requirement to meet in order to be suitable for this which first one is that “you have to provide documents” and the second one is that “you have to keep those documents for five years.”