Homeowner in Türkiye? What you must know from new tax regulations
The income tax declaration period for individuals earning rental income from residential or commercial properties is set to begin in the coming days. The declaration must be submitted within the month of March, with the final deadline being March 31.
The Turkish Finance Ministry recently sent out rental income tax warning messages to millions of citizens.
The ministry categorized all bank transfers under the “other” (diger) option as rental income, prompting confusion among recipients. If you are homeowner in Türkiye, you must know the new tax regulations.
Who needs to declare rental income?
For 2024, individuals who earned over 33,000 TL in rental income are required to submit their annual income tax declarations between March 1 and April 2, 2025. The resulting income tax can either be paid in full or in two equal installments—one in March and the other in July.
In 2024, as part of its fight against the unregistered economy, the Finance Ministry conducted 1.1 million “unregistered inspections” nationwide. These checks resulted in 7.4 billion TL in fines, with explanations requested from taxpayers for an unregistered turnover of 132.5 billion TL.
The Revenue Administration carried out inspections at 425,000 rental properties in 2024. This led to 376,000 new taxpayers filing declarations for rental income that had previously gone unreported.
The Finance Ministry plans to continue its inspections of rental properties in 2025. Property owners who earn rental income but fail to file tax declarations will face fines and be compelled to submit the necessary documents.
Pre-March notifications rolled out
As March approaches, the ministry has begun sending warning messages to citizens who earned rental income in 2024, reminding them to declare their income within the designated period.
“Dear Taxpayer, according to our records, you have earned taxable rental income in 2024. Income tax declarations for 2024 must be submitted between March 1 and April 2, 2025. You can file your annual income tax return related to rental income quickly, easily, and securely through the Digital Tax Office (dijital.gib.gov.tr) or the Ready Declaration System (hazirbeyan.gib.gov.tr), and pay your tax via bank or credit card.”
The SMS warnings sparked panic, particularly among those who claim not to have received any rental income. Many recipients, concerned about inaccuracies, have been reaching out to the Finance Ministry, financial professionals, and the media to understand the situation and learn how to challenge the claims.
Based on 2024’s inspection data, the ministry flagged bank transactions labeled as “rent payment,” “other rent payment,” or with no specific description, exceeding the exemption limit of 33,000 TL, as potential rental income.
What should recipients do?
First, verify the information in the SMS by accessing the Digital Tax Office using a user code and password, or via e-Government login. Follow these steps:
- Navigate to the Ready Declaration System > My Income and Withholding Information > Rental Payments and Withholding under My Name.
- Select 2024 to see the transactions flagged by the Finance Ministry.
- If there is an error (e.g., the income is not rental income), go to My Transactions > I Want to Make a Statement > Statement Input and Display.
- Choose 2024 under “Which Year Do You Want to Make a Statement For?”
- Select “The Amount Sent to My Account Is Not a Rent Payment,” and provide an accurate explanation.
- Save and submit directly to the tax office through the system.
If the above process is too complex, taxpayers can also: Either submit a detailed explanation via the General Purpose Petition section in the Digital Tax Office, or wait for a formal letter from the tax office after March and provide explanations with the necessary documents within the given timeframe.
Potential causes of miscommunication
Errors leading to these SMS warnings may partially stem from citizens themselves. To avoid bank fees, some people mark non-rent transactions as “rent payment” or “other rent payment” in bank systems. Additionally, vague terms like “day money,” “debt,” “transfer,” or “other” may have been interpreted as rental income by the Finance Ministry’s system.
Thousands of citizens are expected to file objection petitions. If the transaction indeed represents rental income or another commercial activity, they must declare it via the Revenue Administration’s online system or visit tax offices if online processing is not possible. These declarations and objections must be completed between March 1 and April 2, 2025.
If rental income from residential properties is not declared on time or is underreported, the 33,000 TL exemption for 2024 will not apply. However, if taxpayers voluntarily declare unreported rental income before an official audit, they can still benefit from the exemption.
The Finance Ministry’s SMS warnings may have caused widespread confusion, but following the correct procedures can help avoid unnecessary penalties and ensure compliance with tax regulations.
