Tomorrow marks the beginning of the declaration process for those earning rental income. Property owners with an annual rental income exceeding 33,000 liras for residential properties and 230,000 liras for commercial properties will be subject to taxes.

The rental declaration process, which is of great interest to property owners earning income from real estate, begins tomorrow. Property owners can fill out their declarations between March 1 and April 2 (due to the official holidays falling on March 31 and April 1). Property owners who earn an annual rental income exceeding 33,000 liras from residential properties and 230,000 liras from commercial properties will pay income tax. Those earning rental income below the exemption amount will not need to submit a declaration. Tenants can also fill out the “rental notification form” as they did last year. Transactions can be completed through the Digital Tax Office. This process aims to compare the rental incomes declared by property owners with those declared by tenants. The application helps identify those showing low rental amounts, making incorrect declarations, or not declaring at all, thus preventing tax evasion. Property owners can use the “ready declaration system” via the Revenue Administration’s website “gib.gov.tr” or access the ready declaration from the Digital Tax Office. Each family member will have to submit separate declarations for the rental income obtained from the assets and rights they own. If multiple individuals share a house, each person will declare the rental income corresponding to their share. Citizens residing abroad are subject to taxation under the non-resident taxpayer category for their earnings in Turkey. Turkish Republic citizens living abroad who wish to submit a declaration via the system, blue cardholders, and foreign nationals with foreign identity numbers can obtain an “e-Government” password from overseas representations. Moreover, declarations can be sent from a mobile phone via the “Ready Declaration” mobile application. The first installment must be paid in April. The due tax can be paid through the Digital Tax Office, bank card/credit card from affiliated banks, bank transfer, cards from banks operating in foreign countries, banks authorized for tax collection, and PTT branches.

The income tax accrued on annual income tax returns for rental income earned in the 2024 calendar year can be paid in two equal installments in April and July of 2025. The first installment is due by April 2 with the stamp duty, while the second installment can be paid by July 31.

Failure to submit the mandatory declarations electronically on time will result in a special non-compliance penalty. Additionally, failure to accrue the tax on time will lead to a penalty of double the missing tax.