Warning to landlords who do not declare rental income: Incomplete declarations are being detected in audits

The Ministry of Treasury and Finance has begun examining landlords who did not declare their rental income in 2024. The Ministry has launched a comprehensive investigation to reduce the informal economy through cross-referencing and on-site inspections. Tax offices continue to send notifications to landlords where incomplete declarations are detected, along with bank records.

NOTIFICATIONS AND THE CROSS-REFERENCING PROCESS

According to real estate experts, many data points such as General Directorate of Land Registry and Cadastre records, Compulsory Earthquake Insurance (DASK) policies, and electricity, natural gas, and water subscriptions are being examined through cross-referencing methods during audits. In examinations ranging from tenants' residential addresses to property owners' records, incomplete declarations are being identified and notifications are being sent.

DETECTION OF BANK ACCOUNT TRANSACTIONS

The Ministry of Treasury and Finance is also examining landlords' bank account transactions in detail. Even if a rental description is not specified, regular money transfers are being evaluated as rental income. During audits, it is checked whether this income has been declared.

PENALTIES FOR DEFICIENCIES IN TAX DECLARATION

Taxpayers who do not declare their rental income on time face the following sanctions:

A late payment penalty is applied.

They cannot benefit from the exemption amount on rental income.

They are forced to pay an additional tax burden and interest due to late declarations.

As of 2024, the exemption amount applied to rental income has been set at 33 thousand TL. Taxes must be paid on income above this amount.

VOLUNTARY DECLARATION PROVIDES ADVANTAGES

According to experts, taxpayers who make a voluntary declaration before detection can obtain significant advantages. If landlords declare their rental income before an official detection is made:

They are exempted from the tax loss penalty.

They can also benefit from the exemption amount in late declarations.

In declarations made after official detection, higher rates of taxes and penalties are applied.

WHEN DOES THE DECLARATION PERIOD BEGIN?

Declarations regarding rental income must be filed by March 31 of the year following the year in which the collection took place. For example:

Rental income earned in 2024 will be declared by March 2025.

Taxes can be paid in two installments in March and July.

GOAL OF REDUCING THE INFORMAL ECONOMY

The main goal of the audits conducted by the Ministry of Treasury and Finance is to reduce the informal economy and increase public revenue. Real Estate Expert Mustafa Hakan Özelmacıklı said, "In Turkey, where there are 7 million tenants, the number of taxpayers filing a rental declaration is only 3 million. This picture shows the importance of the steps that need to be taken in the fight against informality."