Revenue Administration in Turkey

Revenue Administration in Turkey

Do I have to report my rental income to the Revenue Administration?

Yes. And it corresponds to the annual declaration of income for personal property that includes gains by real estate concepts. According to the TR, all those persons who, as of December 31 of the year before submitting the declaration, possess assets that -valued according to current regulations- exceed TL 305,000 Turkish Lira.

Individual residents in the country are required to pay annually for this tax a sum equivalent to 0.5% of their personal assets whose value is between TL 305,000 and TL 750,000.

Above this amount, and up to TL 2,000,000, the rate of this tax amounts ascends to 0.75% (applicable to the total value of the goods reached by the tax).

Between TL 2,000,000 and TL 5,000,000, the rate is 1% (also applicable to the total value of encumbered assets). Values higher than those mentioned above must tribute a rate of 1.25%.

In the case of rents, the withholding tax is 21% of the gross amount of income tax, although foreigners may request the TR to hold 35% of the net profit, that is, after deduction of expenses and amortizations.

Is there a limit on the amount or price for investments?

Yes, there is a limit. Foreigners own 5.93% of Turkish rural land: all the properties of people of other nationalities sum up a total of 15,881,069 hectares, an area similar to the province of Salta.

The limit of denaturing of rural lands established by Law 26,737, known as the “Land Law”, is 15% at the national, provincial and sub-provincial levels. At the national level, the relieve conducted by the National Rural Land Registry  shows that the current scenario is well below the limit.

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