Turkish Tenancy Law for Foreign Landlords: Rent Increases, Deposits and Evictions

Buying a property in Turkey to rent out is only half of the investment. The other half is managing the tenancy within Turkish law, which gives residential tenants strong protection. For a foreign owner who lives abroad, understanding the rules on contracts, rent increases, deposits and ending a tenancy is essential before signing with a tenant. This guide covers the main points of the Turkish Code of Obligations for residential lettings.

Last updated: November 2026. This guide is general information, not legal advice. Rules on rent increases and tax are updated regularly.

The Rental Contract

• Written contract: a residential lease can legally be made verbally, but a written contract is essential for a foreign landlord. It should state the parties, the property, the rent, the payment date and method, the deposit, the term and the condition of the property.
• Term: most residential contracts are for one year. If the tenant does not give notice, the contract automatically renews for another year on the same terms, apart from the rent increase.
• Inventory: attach a list of furniture and appliances and photos of the property's condition at move-in.
• Currency: residential rent is generally agreed in Turkish lira. Foreign-currency rent is only possible in limited cases, so check with a lawyer before agreeing a contract in another currency.

Annual Rent Increases

For residential leases, the rent increase at renewal cannot exceed the twelve-month average change in the consumer price index (CPI) announced by the Turkish Statistical Institute (TÜİK). The maximum rate is published every month, so the cap applying to your contract depends on the renewal month. A temporary 25% cap applied until July 2024; since then, the CPI rule has applied again.

• The contract can set a lower increase, but not a higher one.
• If no increase is written in the contract, the CPI-based limit still serves as the ceiling.
• After a tenancy has lasted five years, the rent can be reset through a court case based on market rents.

Security Deposits

• The deposit for a residential lease cannot exceed three months' rent.
• Where the deposit is paid in cash, the law requires it to be held in a savings account in a bank, from which it can only be released with both parties' consent or a court decision.
• Document the property's condition at move-out so that any deductions are clear.

Ending a Tenancy

When the tenant wants to leave

A tenant can end a fixed-term lease by giving notice at least 15 days before the end of the term. Otherwise, the lease renews for another year.

When the landlord wants the property back

The landlord cannot end a residential lease at the end of each year simply by giving notice. Instead, the law allows termination on specific grounds, including:

• The landlord's own need, or a close family member's need, to live in the property
• Major renovation or reconstruction that makes use of the property impossible
• A new owner's need to use the property, within the legal time limits after the purchase
• Repeated late payment of rent, after two justified written warnings within one rental year
• A written eviction undertaking signed by the tenant after the lease began
• The end of a ten-year extension period, after which the landlord may terminate without giving a reason, with notice

Most of these grounds require a court case filed within strict time limits, so plan ahead with a lawyer if you expect to need the property back.

Mandatory Mediation

Since September 2023, most rental disputes, including rent determination and eviction claims, must go to a mediator before a lawsuit can be filed. Mediation is often faster and cheaper than court, and a signed mediation agreement is enforceable.

Rental Income Tax

• Rental income from Turkish property is taxable in Turkey, even if the owner lives abroad.
• Residential rental income is generally declared once a year in March, with tax paid in instalments.
• When the tenant is a company, it usually withholds part of the rent and pays it to the tax office on your behalf.
• Your country of residence may also tax the income, subject to any double taxation agreement.

Confirm your obligations with a Turkish accountant, especially in the first year of renting.

Short-Term Rentals Are Different

Renting by the night or week through platforms is regulated separately and requires a permit. Read our guide to short-term rental rules in Turkey before choosing this strategy.

Practical Tips for Landlords Who Live Abroad

• Screen tenants carefully: employment, references and the guarantor, if any.
• Collect rent by bank transfer so that every payment is documented.
• Keep DASK and home insurance active and know who is responsible for building fees (aidat).
• Use a local manager for viewings, repairs, rent collection and communication with the tenant.

Our property management service in Turkey handles tenant search, contracts, rent collection and maintenance for owners abroad. You can also read our guide to renting out property in Turkey while living abroad and what to expect from rental yields in Turkey.

Frequently Asked Questions

How much can I increase the rent in Turkey?

For residential leases, the annual increase cannot exceed the twelve-month average CPI change published by TÜİK for the renewal month.

Can I evict a tenant at the end of the contract?

Not simply by giving notice. Residential leases renew automatically, and the landlord needs a legal ground, such as own need or major renovation, usually through mediation and court.

How much deposit can I ask for?

Up to three months' rent for a residential lease.

Do foreign owners pay tax on rental income in Turkey?

Yes. Rental income from property in Turkey is taxable in Turkey, whether or not the owner lives there.

Invest With a Clear Rental Plan

Choose properties with steady tenant demand by browsing property for sale in Istanbul, read our Property Turkey guide or talk to our team about managing your property from abroad.