Turkey — Property: Rental Market

Why this matters

Understanding the Turkish rental market is crucial for expats and international businesses looking to establish themselves in the country.

Key facts

• Central Bank (CBRT) median rent for a 100 m² home in Q4 2025: about TRY 22,000 nationwide, TRY 37,000 in Istanbul, TRY 21,000 in Ankara and TRY 25,000 in İzmir.
• The CBRT New Tenant Rent Index began publication on 17 February 2026; it measures rents new tenants face, while TURKSTAT's index tracks the same dwelling over time and lags the market.
• As of January 2026, annual new-tenant rent growth was 34.2% against 56.6% for TURKSTAT's Actual Rent Index.
• Tenants who are withholding agents must withhold 20% income tax from gross rent payments (Income Tax Law Art. 94), including rent paid in advance; tenants on the simple earnings basis do not withhold.
• Landlords may deduct either actual expenses or a 15% lump-sum expense from rental revenue.
• Residential rental income below TRY 47,000 (2025 exemption) is exempt, unless total income exceeds TRY 1,200,000 for 2025; the exemption applies to each co-owner separately.
• Non-resident taxpayers do not file for rental income fully taxed by withholding; otherwise returns for 2025 income were due 1-31 March 2026, through the Pre-filled Tax Return System, a tax representative, or the tax office where the property is located.

Steps

1. Finding a Rental Property — Expats can search for rental properties through real estate agents, online listings, or by contacting local property managers. It is essential to inspect the property thoroughly before signing a lease.
2. Signing a Lease — Lease agreements are usually written in Turkish, so it's recommended to have a translator or attorney review the document before signing. Ensure all terms and conditions are clearly understood.