Gulf investors ‘host relatives’ in Türkiye to dodge rental regulations

Effective Jan. 1, 2024, new regulations were implemented to bring “daily rental homes” under official scrutiny. This move aimed to address long-standing issues of tax evasion and illegal rentals.

Despite the new regulations, high hotel prices and the summer season have fueled the demand for short-term rentals, continuing to attract property owners to this market.

Gulf investors host ‘their relatives’

Foreign investors, especially those from the Gulf countries, are circumventing the rules by renting out their properties on a weekly or monthly basis while claiming they are hosting relatives.

This practice is particularly prevalent in major tourist destinations like Istanbul, Antalya, Izmir, Mugla, and Trabzon. The sheer volume of these “guest” rentals across these cities makes enforcement a difficult task for authorities.

Challenges in enforcement

According to Saban Gunduz, a hotelier in Trabzon, foreign nationals prefer renting homes over hotels due to high costs, renting homes for ₺2,000 ($60.43) per day compared to hotels charging ₺3,500 for bed and breakfast.

Real estate agents and tourism professionals are involved in facilitating these rentals, making enforcement even more challenging.

Recommendations for effective enforcement

Emrah Ozbilen, a real estate company owner in Antalya, suggests reviewing security camera footage and obtaining resident testimonies to better track and penalize violators.

Ministry requirements

From January 1, 2024, homeowners renting their properties for 100 days or less must get approval from apartment residents and obtain a ‘Tourism Accommodation Certificate’ from the Ministry of Culture and Tourism via e-Government. Non-compliance will result in penalties.