EUR
enInnovations in taxation of rental income in Turkey
The annual declaration of rental income goes down in history. Rent income will now be taxed automatically. The rental tax (Real Estate Capital Income - GMSI), which is paid by those who rent out their dwellings, filing a declaration once a year, plan to be converted into an automatic tax. The tenants will pay the rent through the bank. The bank will make a 20% deduction from the rent, withholding it as a tax and transferring the money to the state, and the rest of the money will be deposited into the account of the lessor.
It is expected that this will increase the amount of rent tax levied by the State and generate an additional income of 40 billion lire. Under this method, the rent tax, which is usually 15%, will increase to 20%. After the automatic cancellation of the tax, lessors will be able to declare their expenses and claim the refund of the overpaid tax. It is stated that the rules will be valid for rental income earned from 2025.
We remind that according to the current legislation, the tax on rental income received during the year is paid by filing a declaration in the following year. When filing a declaration, the tax exemption is deducted from the total income, which increases annually at the revaluation rate, and the remainder is subject to progressive tax, starting at 15%.
