Renting property in Turkey may become lucrative income for you if done correctly. If you are considering becoming a landlord in Turkey, you should familiarize yourself with the local tenant law.
Legal Obligations for Long Term Rentals
It is important to visit a lawyer to draw up a contact and have it notarized so both parties are clear on their responsibilities. The income you will receive depends on the initial value of the property and its location. For example, while in small cities you can expect a rental income between 500-1000 liras, in big cities such as Istanbul you can expect an income of 3000 liras and more.
Usually the renter is expected to pay a month’s deposit upfront in case of damages and other expenses. If the rent exceeds 500 liras, according to law it must be paid via a bank transfer so there is a paper trail. If the rent is paid by a company the renter will require a receipt for tax purposes.
It is highly recommended to visit a lawyer to have up to date information on long term rental. Many people in Turkey don’t bother with contacts, but it is not recommended as you may have trouble removing the tenants from your property later.
Legal Obligations for Short Terms Rentals
In 2016, the Turkish government amended the “Identity Declaration Law.” According to the law anyone marketing their homes as holiday rentals must register to the GIYKIMBIL system to input the names of tenants who will stay on their property. It is a part of a large-scale campaign to prevent terrorism.
To do this, home owners need to visit the local gendarme station which will provide access to the software free of charge by issuing a password. The person signing up for the password is considered the person legally responsible for submitting the names. If you are working with a management company that handles your property and tenants, they should assume this responsibility. They will also need to provide documents showing they are managing the property on your behalf and submit proof of your identification as well as a copy of the written agreement they signed with you.
Whether the length of stay is one day or three weeks, the information of the tenants must be input into the system. Failure to do this will result in a fine of 700 liras a day for failure to declare the occupants. The gendarme will do a background check for all the names and reserve the right to monitor the property and speak to the tenants. If you are a foreigner with a Turkish identification or a working permit, you can sign up straight away, however, if you do not possess any of these identification documents, you will need to establish a company, which any reputable accountant can do for you for a small fee.
Paying the Taxes
Income received from both short and long-term rentals must be declared to the tax office. If you have established a company to sign up for the GIYKIMBIL system, you can claim utilities such as electric, water, and the Internet as a tax deduction. The Turkish tax office has a full-length guide in English to assist foreign landlords, but an accountant can also assist you in this matter.
You can utilize widely used property websites that offer advertising for a small fee or use local community groups on social media websites such as Facebook to let people know that your property is available for rent and even ask former tenants for testimonials on their stay.
Making a buy to let investment entails selecting a location carefully for the highest rental yield. It is a good idea to focus on resort areas as well as commercial hubs.
Last Updated: 7/5/2019 2:12:40 PM