The amount 5.400 TL of rental income from house for the year 2019 is exempted from income tax. If persons, who gain rental income from house, obtain income less than the amount of exception that is established annually (exception amount 5.400 TL for the year 2019) are not required to be registered at the tax offices and not required to file a tax declaration.
Example: Taxpayer (B) rented his house from 430 TL per month and obtained 5.160 TL annually in 2019. In this case, rental income from house less than the exemption amount of 5.400 TL is not to be declared by the taxpayer.
In the case the rental income is not declared between the dates in time or the rental income is understated, it will not be possible to benefit from the exception amount of 5.400 TL for the year 2019. However, those who submit declarations, before any determination is made by the administration, on their own accord for their rental income which they did not declare or include in their declarations on time, will benefit from the related exception.
If the rental income from house exceeds the amount determined for exception, the amount of exception should be deducted from rental income to be declared in the annual tax declaration.
The exception applies only to rental income from properties that have been rented as house. Taxpayers whose rental income from house under 5.400 TL in 2019 do not file a tax declaration for these incomes.
For instance, if there is a rental income obtained and declared at the same time both from house and workplace, the exception applies only to the rental income obtained from house, not to the rental income from workplace.
Persons, who have to declare their income from business, agriculture or professional activities, are not eligible to benefit from 5.400 TL of exception. Besides, persons who gain rental income equal to or above 5.400 TL, of whose gross total of their income including wage, capital investment income, rental income and other incomes exceeding the amount 148.000 TL for the year 2019 jointly or severally, cannot benefit from exception.
In case more than one person has the ownership of a house, the taxation of the rental income obtained from such house will be subject to 5.400 TL (for the year 2019) of exception separately for each proprietor.
Thus, if the inheritance is not shared, every inheritor will benefit from the exception separately.
In case one taxpayer obtains rental income from more than one house, the exception will be applied at once to the total amount of rental income.
Source: Revenue Administration – Guidebook on Rental Income for Non-Resident Taxpayers
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