Renting Out Your Istanbul Apartment as a Foreign Owner: Contracts, Rent Rules and Tax (2026)
- Posted in 2026-11-09
- Real Estate Blog
- By Majesty Turkey
Table of Contents
Renting Out Your Istanbul Apartment as a Foreign Owner: Contracts, Rent Rules and Tax (2026)
Last updated: October 2026
Short answer: A foreign owner can rent out an Istanbul apartment on the same terms as a Turkish owner. Long-term leases follow the Turkish Code of Obligations No. 6098: the deposit is capped at 3 months' rent, annual increases on renewal may not exceed the 12-month average of the consumer price index (TÜFE), and eviction is possible only on grounds set by law. Rentals of up to 100 days need a permit under Law No. 7464. Rental income is taxable in Turkey and is declared each March for the previous year.
Most of the disputes we see between owners and tenants come from weak contracts or from rules the owner did not know. This guide covers the legal side. For returns by district, see our article on rental yields in Istanbul.
The lease contract
Residential leases are governed by Articles 299–356 of the Turkish Code of Obligations (Türk Borçlar Kanunu, TBK). A written contract is not legally required, but you should always have one, signed in Turkish or bilingual.
Include:
- Names, ID or passport numbers and tax numbers of both parties
- Address and description of the apartment and its furniture (with an inventory and photos)
- Rent, payment day and the bank account it is paid into
- Start date and term (one year is common)
- Deposit amount
- Who pays utilities, building fees (aidat) and repairs
Currency. Between parties resident in Turkey, a residential lease must normally be set in Turkish lira under Decree No. 32 on the Protection of the Value of the Turkish Currency. Foreign currency is allowed in some cases, for example when the tenant is not a Turkish citizen or one party lives abroad. Have a lawyer confirm your case.
Payment. Ask for rent to be paid by bank transfer. It gives you proof of payment and a clear record for tax.
Deposit rules
Under TBK Article 342, the deposit (güvence) for a residential lease may not exceed 3 months' rent. If it is paid in cash, the law provides for it to be placed in a savings account that cannot be withdrawn without the owner's consent. At the end of the lease, the owner can keep the deposit only for documented unpaid rent or damage beyond normal wear.
Rent increase rules
- The cap. Under TBK Article 344, the increase at each annual renewal may not exceed the change in the 12-month average of TÜFE published by the Turkish Statistical Institute (TÜİK). For leases renewing in October 2026, the cap was 31.49%.
- The 25% limit has ended. The temporary 25% cap on residential rent increases ran from June 2022 to 1 July 2024. It no longer applies.
- Lower is allowed. The parties can agree on a smaller increase, not a larger one.
- After 5 years. Once a lease has run for 5 years, either party can ask a court to set a new rent based on market rents for similar properties.
Ending a lease and eviction
Turkish law protects residential tenants. When a fixed-term lease ends, it renews automatically for one year unless the tenant gives notice at least 15 days before the end. The owner cannot end it just because the term has expired.
The owner can end the lease or seek eviction in cases set by law:
| Ground | Legal basis |
|---|---|
| Unpaid rent, after a written warning giving at least 30 days to pay | TBK Art. 315 |
| The owner or a close family member needs the home to live in | TBK Art. 350 |
| A new owner needs the home (claim brought within set time limits after purchase) | TBK Art. 351 |
| The tenant signed a written eviction undertaking (tahliye taahhüdü) | TBK Art. 352/1 |
| Two justified written warnings for late rent in one lease year | TBK Art. 352/2 |
| Renewal period of 10 years has ended (notice at least 3 months before the end of the year) | TBK Art. 347 |
Before most rental cases can go to court, the parties must try mediation (arabuluculuk). It has been a mandatory first step since 1 September 2023. Do not change the locks or cut utilities yourself: eviction must go through the courts or enforcement offices.
Short-term and daily rentals need a permit
Under Law No. 7464 on the Rental of Residences for Tourism Purposes, in force since 1 January 2024, renting a home for up to 100 days at a time requires a permit from the Ministry of Culture and Tourism. The application is made through e-Devlet. In general it needs the consent of all the other owners in the building. Renting without a permit leads to fines that start at TRY 100,000 per property (the 2024 figure), rise if the activity continues, and are revalued every year. Leases of more than 100 days fall under the ordinary TBK rules.
Tax on rental income
Rental income from a property in Turkey is taxable in Turkey whether you live there or not.
- Residents (in Turkey more than 6 months in a calendar year) declare their worldwide income.
- Non-residents declare their Turkish rental income. They file through the online Hazır Beyan system or at the tax office where the property is located, or through a tax representative.
- Annual exemption. Residential rent up to TRY 58,000 for 2026 income (TRY 47,000 for 2025) is exempt. Above that, only the excess is taxed. The exemption is lost if you file late or under-declare, and it does not apply above a total income threshold set each year.
- Expenses. You can deduct a flat 15% of the taxable rent, or actual expenses such as repairs, insurance and depreciation with documents.
- Rates. Progressive, from 15% to 40%. For 2026, the 15% rate applies to the first TRY 190,000 of taxable income.
- Deadline. The return is filed from 1 to 31 March of the following year. The tax is paid in two equal installments, in March and July.
You need a Turkish tax number; our guide to the tax number and bank account explains the steps. If you live in a country with a double tax treaty with Turkey, check with a tax adviser how the tax paid in Turkey is credited at home.
Using a property manager
If you live abroad, a property manager can find and check tenants, prepare the contract, collect rent, handle repairs and keep records for your tax return. Give a specific power of attorney if the manager will sign contracts for you. See our property management service for what is included.
Frequently asked questions
Can a foreigner rent out property in Turkey?
Yes. A foreign owner with a title deed can rent out the property on the same legal terms as a Turkish owner. The income must be declared in Turkey.
What is the maximum deposit in Istanbul?
Under TBK Article 342, the deposit for a residential lease may not exceed 3 months' rent.
How much can I raise the rent in 2026?
At renewal, up to the 12-month average change in TÜFE for the month of renewal. The temporary 25% cap ended on 1 July 2024.
Do I need a permit for Airbnb in Istanbul?
Yes. Since 1 January 2024, rentals of up to 100 days require a permit from the Ministry of Culture and Tourism under Law No. 7464, usually with the consent of the other owners in the building.
Do non-residents pay tax on rent in Turkey?
Yes. Non-residents declare Turkish rental income by the end of March of the following year. Residential rent up to TRY 58,000 for 2026 income is exempt.
Sources: Turkish Code of Obligations No. 6098, Articles 299–356 (incl. Art. 342, 344, 347, 350–352); Law No. 7464 on the Rental of Residences for Tourism Purposes; Decree No. 32 on the Protection of the Value of the Turkish Currency; Income Tax Law No. 193, Article 21; Revenue Administration (GİB) rental income guides; TÜİK. This is general information and rules change; confirm with a licensed lawyer or tax adviser before you sign a lease or file a return.
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