Rental rates in Turkey Continue to Rise

In the last 5 years, the rental prices in turkey have experienced an annual increase of nearly 22%.

Industry experts state that residential investors who purchased property before the Turkish elections in October 2007, experienced returns between 15 – 25%, as the market calms and buyer’s confidence continues to rise.

There is huge potential in the rental market in. Whether you are seeking holiday rentals or long term rentals, either way, there is good positive cash flow to be gained.

Also with the assistance of mortgages, buyers are more forward thinking in making investment decisions to purchase property in Turkey.

If you wish to invest in property from Turkey for the purpose of buying-to-let, CONTACT us for a complete Rental Income Guidebook or simply inquire for suggestions and consultation on where, which properties can meet your objective to buy and let.

NOUR is equipped to prepare your property for renting and management for both long term and short term letting for your residential or commercial property.

Rental Taxes and Costs in Turkey

Rental Income
Net rental income is taxed as ordinary taxable income. However, if the net rental income from property let out as a residence does not exceed YTL2,200 (€1,095), the said income is not subject to declaration. The net rental income is not liable to VAT.

Net rental income can be determined either through the actual deduction method or lump sum method. Actual deduction method deducts real expenses (inc. lighting, heating, water expenses; administrative expenses, insurance expenditures; tax and duties; interest expenses; depreciation costs and repair expenditures) from the gross rental income. 5% of the acquisition cost is also deductible within five years for income arising from the lease of buildings.

On the other hand, lump sum method allows taxpayers to deduct 25% of their gross income to arrive at the taxable income. Once the taxpayer has chosen to use the lump sum method, he may not revert to the deduction of actual expense until after two years.

Income tax rates for 2006 progress from 15% to 35%