If you have recently bought a property in Istanbul and you’re not planning to live in it, you have the perfect chance to turn this property into an amazing investment tool since the Turkish real estate market has turned into a gold mine over the years. Let’s cover the basics of real estate for foreigners in Turkey and how to rent home in Istanbul.
Rentals longer than a month are considered long-term renting and require a legal contract. Always make sure to finalize rental agreements on paper rather than verbally in order to avoid any problems. The rent should be paid to you via bank transfer for a paper trail in terms of financials. Once the rental contract is complete, don’t forget to get it notarized to ensure that both you and your tenants are aware of and understand their obligations.
When it comes to short-term rentals, the process is a bit more complicated though the outcome can be far more profitable than renting your property long-term. Your earnings in this instance are taxable as commercial income. You should definitely find an accountant to keep your financial records for you in the most accurate way possible. Then you must apply for a trading license and register your rental property with local authorities. The most crucial part of this process is registering your guests with the police via the GIYKIMBIL system (Geçici İkamet Yerleri Kimlik Bildirme Sistemi – Identification System for Temporary Residences). If you fail to declare your guests staying on your property, a fine will be assessed.
Rent Home in Istanbul: Location
You should check out our recent blog post Property Management Istanbul: Here’s How if you are wondering which districts would be more ideal for a buy-to-let investment. Currently, the top choices to rent home in Istanbul are Beyoglu, Sisli, Besiktas, Kadikoy and Uskudar. Less popular districts like Atasehir, Sariyer, Bakirkoy and Fatih would also be good options for rentals.
Please note that you are required by law to report your rental income to the tax office if it exceeds 21,000 Turkish Liras annually. If you own a business utilities like electricity, water and Wi-Fi can be tax deductible. You must pay your taxes for each year in two parts in the following year. You also need a tax ID. We advise you to refer to the English handbook for foreign landlords published by the Turkish tax office for detailed information about taxes.
Working with Property Managers
If you have a tight schedule or own multiple properties, working with professional property managers is highly recommended in terms of managing your income, guest or tenant relations and marketing.
You can safely trust Missafir with managing your property thanks to our wide-ranged portfolio and dynamic team. Contact us to get more rental income from your property in Istanbul with our professional rental service.