The Ministry of Finance has increased inspections for those receiving rent in cash. A penalty of up to 20 million lira is imposed on those who commit irregularities in rent to evade taxes.

The Treasury and Ministry of Finance have accelerated rental inspections as part of the fight against the informal economy. With the removal of the 25% cap on rent, some opportunistic landlords have sprung into action. Complaints against landlords attempting exorbitant rent increases have been on the rise. According to a news report in Türkiye Newspaper, complaints related to this issue have started to be addressed to the CİMER and Revenue Administration Presidency. It has been revealed that some landlords do not want to enter into contracts to avoid paying high taxes, show the property as vacant, or prefer to receive part of the rent in cash and the rest through the bank. In response, the Ministry of Finance has tightened rental inspections. Finance teams will penalize landlords who show their property as vacant, avoid making contracts, or receive partial rent payments through the bank. TENANTS WILL ALSO BE PENALIZED The Ministry officially implemented the regulation that increases rent penalties until October 2024. Also, with this regulation, penalties have been introduced for both tenants and landlords in residential rents. Accordingly, in commercial leases, all amounts and in residential rents, any amount over 500 lira must be paid through banks or PTT. A PENALTY OF UP TO 20 MILLION LIRA MAY BE IMPOSED In this context, a special irregularity penalty of 10% of the rental amount will be imposed for each identification for those who do not make rent payments through banks and PTT, but in cash. The penalty amount imposed cannot be less than 5,000 lira. Additionally, penalties of up to 20 million lira can be imposed within a calendar year.