Helping You Build a Life Overseas

New rental rules shake up Turkish property

 
 
 
The Turkish government has introduced new rental rules that all overseas property owners will have to adhere to if they want to cash in on their pad. Here we answer your questions.
 
 
Here in Turkey, the landscape on short-term rental law has changed this summer, and its effects are far-reaching. As we move into August, the potential for renting your property in Turkey moves up a few notches, but the rental laws have been tripping people up and leaving them thousands of Turkish Lira out of pocket.
 
The government has incorporated a system that requires all those that are renting out properties to be logged onto their system.
 
Why was the law brought in?
 
The Turkish government has incorporated a system that requires all those that are renting out properties – from Istanbul to Konya to Bodrum to Antalya – to be logged onto their system, to help improve security in the country.
 
What does the law mean?
 
Those who rent their properties out need to register them with a police database, and every tenant must be declared on the system. You can't register from outside the borders of Turkey and the system needs to be updated regularly from within the country.
 
What are my options?
 
Those that use the property as a second home and live in a different country are being advised to contact a local property management company to undertake the rental process. Otherwise, you will have to live full-time in Turkey and be willing to update the police system.
 
I rent to family, am I affected?
 
This is becoming a sticky question to answer. From evidence on the ground, it appears that provinces are interpreting and adopting the rules differently. 
In one town, it appears that a whole family renting a property will need to be registered, although when the system began, it was suggested this wouldn’t be the case.
 
Those not registered on the police database could be handed a fine of over 10,000TL (£2,100)
 
If you use a property management company, then seek advice from them around this particular issue.
 
Can I ignore the law?
 
Do it at your peril. Those not registered on the police database could be handed a fine of over 10,000TL (£2,100), or over 5,000TL for those who do not send instant data or record untrue information. Fines have to be paid within one month and business licenses will be cancelled.
 
What are the tax implications?
 
From what is being suggested, you can earn up to 3,800TL before tax. But the family issue is highlighting the need to address the tax aspect.