Bad news for landlords and tenants: Details of the rental income regulation have become clear!

With the new tax regulation submitted to Parliament by AKP deputies, the tax exemption on rental income is being abolished.

According to a report by Erdoğan Süzer from Sözcü, an impact analysis conducted by the Ministry of Treasury and Finance shows that with the removal of the exemption on the portion of annual rental income up to 47 thousand TL, the tax paid by landlords will double compared to today. This situation is expected to lead to exorbitant rent increases.

NEW TAX BURDEN

Currently, landlords pay approximately one month's rent as tax on their annual rental income. However, starting from 2027, this amount will rise to at least two months' rent. Landlords receiving retirement, widow, or orphan pensions will continue to benefit from this exemption. It has been determined that in 2024, 1 million 986 thousand landlords earned rental income, and approximately 500 thousand of them were receiving retirement, widow, or orphan pensions. With the removal of the exemption, 1.5 million landlords will be negatively affected and will have to pay a total of 22 billion lira in additional taxes in 2027. This means that each landlord will pay an average of 15 thousand lira in additional tax.

NO SUPPORT FOR UNEMPLOYED LANDLORDS

The unemployed, those receiving unemployment benefits, and those who rely entirely on rental income for their livelihood will not be able to benefit from this tax exemption. Conversely, the wealthy segment who possess large assets and receive retirement pensions will be able to take advantage of this benefit. It is expected that these injustices will be corrected during the committee discussions of the proposal.