Since my interview last week on short-term property rentals in Turkey, we have received many questions from our readers. We have therefore continued our research for definitive answers to these questions, as well as other issues we consider to be outstanding. We have also attempted to clarify some of the less clear aspects of the GIYKIMBIL System. In English, this acronym can be interpreted as the Temporary Residential Property Identification Declaration System.

Working together

Earlier this week I had the honour of meeting the President of DOKTOB (Dalaman Ortaca Koyceğiz Association of Touristic Hotels and Tourism Organisations), Yücel Okutur and DOKTOB member, Volkan Hacıgümüş. They have been working on the implementation of the law since 2013 in cooperation with the Muğla Governorship, the Muğla Jandarma Command and the Revenue Office (Maliye).

I am told that in terms of local and national security, this issue is now a priority.

Closely monitoring GIYKIMBIL System

Yücel Okutur explained that the Muğla Governorship is closely monitoring the implementation of the law and that the organisation is going to approach the relevant authorities to organise public meetings about the new GIYKIMBIL System, as part of the organisation’s on-going public information activities.

Although this law has been in existence for a long time, due to the on-going worldwide threats to international and national security, the Turkish government have decreed that identity verification of all visitors within the country is escalated to priority status.

Apparently, similar legislation has also been introduced in various European countries, including the UK, in order to prevent terrorist activities.

What is the GIYKIMBIL System?

In Turkish the GIYKIMBIL system is the Geçici İkamet Yerleri ve Kimlik Bildirme Projesi. In English, this can be interpreted as the Temporary Residential Property Identification Declaration System.

The current Mandatory Identification Declaration Legislation 1774, as amended by Law 678, on November 22nd 2016 states:

Hotels, motels, taverns, pensions, dormitories, Temporary Rental Properties, campsites, camping areas, holiday resorts and similar private or official, billet houses as well as private health establishments, rest and nursing homes, responsible managers of social facilities of religious and benevolent organisations, are obligated to keep the Identity details and entry-exit records of local and foreign guests who have been provided with a place to stay, at night or day time, free or paid, in line with the examples and procedures on a daily basis and to provide the said records to the general policing organisations as well as the State Statistics Institute, when requested.”

With this new legislation, properties that are used for short-term (temporary) rentals are classified as Pensions. These properties, whether they are apartments or houses, require a license. This must be obtained from the Municipal Council in which the property is located. Only Pension/Hotel business license owners can obtain the user name and password required to use the GIYKIMBIL System. As a result, only registered businesses with local municipalities can be included in the GIYKIMBIL system. This is clearly stated on the T1 application form that can be obtained from the Emniyet Müdürlüğü (website of the Directorate General of Security).

Tax amnesty

Accordingly, irrespective of whether they will operate their property as business or not in the future, property owners who have used their properties for holiday lets (short-term lets-Daily rentals) in the past are required to inform the taxation authorities of this fact in order to take advantage of the tax amnesty for past tax evasion.

The government has declared a tax amnesty on all previous earnings from the rental of the property, providing you have registered your property by the deadline given of June 2017.

Failure to comply will result in previous income received from rental to a third party being consıdered as eligible for taxation. Any advertising of the property in any capacity whatsoever will be viewed for the purpose of this penalty imposition as proof of rental.

For those who decide to cease any future business activity and have applied under the amnesty for tax evasion in previous years within this amendment, the authorities retain the right to monitor for any marketing activity of the property for a period of five (5) years from the date of the declaration.

Once registered, the owners can then continue to operate as long as they comply with the Turkish Business Law (TTK), Turkish Municipalities Laws (Belediye Kanunu) and Ministry of Internal Affair’s GIYKIMBIL system requirements.

Subsequently, as long as there is no payment involved, it is the owner(s) primary (main) residence and there is no evidence of marketing (be it online: via a website, through social media, or by word of mouth), their families, relatives or friends are free to use the property and do not have to inform the authorities of their arrival or departure using the GIYKIMBIL System.

Previously Rented Properties

If you have declared your property as a non-rental entity and are found to be violating this claim, significant fines will be imposed for tax evasion. According to the rules stipulated, you can be charged triple the amount calculated of taxes lost.

Past advertising of any description will be taken as proof of previous rental activity. This includes electricity bills, water bills, social media, word of mouth and online booking sites as well as local and national newspapers.

One must also remember that currently there is a state of emergency in Turkey and officials may ask for IDs or passports and also ask where people are residing (demand an address).

Furthermore, as well as officials, hospitals, pharmacies, hotels and such are connected to the GYKIMBIL system and in the event of an identification check, your declaration on the GYKIMBIL system must match the guests’ declaration.

How to register with GIYKIMBIL system

The owner must apply to the local Police headquarters or the Jandarma (depending on where the property is) with a petition and fill out the necessary forms. However, since the property is classified as a “pension” for the purpose of the law, you need to obtain an operating licence from the council.

Pension licenses are only granted to established companies. For Turkish citizens and foreigners who have work permits in Turkey, sole proprietorship would be acceptable. For foreigners that do not have a work permit, minimum of Limited Company is required to be able to apply for municipality operation license.

The operating licence will enable you to obtain a Facility Number, with which you are issued the password for GIYKIMBIL system. You are also supplied with Software free of charge. However, the software in itself is not enough to enter into the system. The owner will need to purchase interface software to be able to send xml files to the GIYKIMBIL system. If the property is vacant, this too must be declared as part of the daily reporting. Various companies sell the software.

This software is advanced and does the “Daily” sending of guest as well as staff details to GIYKIMBIL database automatically every day, once the initial details are inserted.

Another important point is that if your property is on a residential complex, you must obtain approval of other owners in order to operate a business on site, in accordance with Condominium law.

Currently Rented Properties

As a business, you will be eligible to benefit from a range of incentives, including but not restricted to: discounted utility services and priority status for infrastructure installation and maintenance and various tax incentives and amnesties.

Additionally, all expenses arising from the running of the business will now be classed as tax deductible.

Any inaccuracies found to be within the information provided by either accident or intent will automatically result in a fine.

In addition to this, monthly accounts showing the revenue stream received from rentals must be submitted to the Tax Office. If you declare no income has been received, accounts must still be submitted as evidence of this claim. Income declaration of the business to Tax Office is independent from the GIYKIMBIL system.

What are the fixed costs?

There are a number of fixed costs associated with the scheme. Should you wish to continue renting your property, in order to ensure that you are abiding by the current rules outlined within the amendment; each property owner will be required to instruct the services of an accountant and a legally employed responsible property manager residing in Turkey to communicate with the authorities.

At the time of this article, initial start up costs for registering as a business are approximately 5,000 TL (tax deductible)

On-going costs once registered as a business are approximately 3,000 TL per month excluding income tax (tax deductible), plus 1,128 TL per year as a one off payment (tax deductible).

Don’t get caught out

Please note if your property is not registered and your daily occupancy status is not submitted, you will be deemed complicit and may be liable should the occupants of the property undertake any illegal activity. In the event of this occurring, your villa can be sealed, your guests removed and you may face prosecution resulting in significant fines and/or a custodial sentence.

Fines

Government fines as stipulated by the Minister of Internal Affairs

  • Failure to register your property                       10,383 TL
  • Non reporting of daily occupancy status                700 TL per day
  • Intentional or accidental inaccurate reporting      5,191 TL

Taxes must be paid

Please note that the above requirements also apply if you are paying tax on income earned from you property or properties in you own country. The Inland Revenue Departments of the UK and Turkey, for example, have an agreement that effectively means they can compare notes. Therefore, you must still register and obtain a form from the Turkish Revenue Office to submit to the UK tax authorities.

Conclusion

I am convinced that this time the Government is serious and will strictly implement the legislation. As such, we advise our readers who have an interest in this subject to register as soon as possible, and certainly before June 2017.

Although it seems complicated at the outset, it will only take a few days to form a company, receive your council licence, and begin using the GIYKIMBIL system.

Who is Doğan Şahin?

Doğan is a graduate of Selcuk University  Faculty of Education in Turkey. He lived abroad for about 20 years. He is a Professional English language translator and interpreter accredited by National Accreditation Authority of Translators and Interpreters in Australia (NAATI) and has successfully provided Contracts-Legal translation services to international official and private organizations for over 30 years. 

He is registered as an expert witness at Muğla City Justice Commission. He has published four books, two of them being translations. His articles on Tourism, History and Social Life as well as Blue Cruise Holidays have appeared in many journals and newspapers.

Doğan Şahin will be happy to provide the owners with further details to deal with all legal requirements arising from the new legislation, as well as ways to lower the costs of forming a company and running a legitimate short term let business.

Caveat: The details contained in this article on legislation regarding short-term property rentals in Turkey are up to date at the time of publication.

Fethiye Times and the other related parties may not be held responsible for any subsequent changes that do not appear in this article.

For your own convenience

Rather than post comments on this page, should you have any queries or questions please contact Doğan Şahin on gocyolu@hotmail.com

Important:

Dear readers, This post has certainly won the prize for most comments on a single Fethiye Times story but we think the time has come to draw a line… So we will not be approving or replying to any more comments from now on. If (when) there is any more news about this subject we will be sure to advise you. Meanwhile, if you have any questions please contact Volkan Hacıgümüş direct by email at: volkan@legalrentalsturkey.com

93 COMMENTS

  1. I raised a query last week that has still not been answered, please help. If the property owners are not in Turkey until September, how can the representative register them? The original article stated that an original passport of the property owners was needed in order to register on the system.

  2. Also can you please explain this section:

    “Subsequently, as long as there is no payment involved, it is the owner(s) primary residence and there is no evidence of marketing (be it online: via a website, through social media, or by word of mouth), their families, relatives or friends are free to use the property and do not have to inform the authorities of their arrival or departure using the GIYKIMBIL System.”

    Is this only for owners who’s property is their main residence? It reads that way but needs clarifying please.

    • No. It is for all owners who declared to the tax office that they did not and will not use the property for rental business, whether the property is a holiday home or main residence.

      • Thank you for the reply but I’m sorry I do not understand. Please forgive me.

        So if we have not rented our property out before (other than let our family go for free) and have no intention of renting it out in the future – does this mean we still have to register our property?

        We only have this one property in Turkey but it is not our main residence as we live in the UK.

        Thanks.

      • I’m not sure why we would have to declare to the tax office that we do not rent out our own home? Surely if we do not collect any rent from any family member or close friend who stays there would be no requirement to declare to the tax office?

        We do inform the sitesi management if any of our family are staying without us. This is what we understood that we had to do last year.

        This is really confusing and worrying for those of us who only let family stay.

        • Stuart, For your own peace of mind, may I suggest you contact Doğan by email? His email address is clearly shown at the end of the article…

          • Jane, I understand what you are saying but surely it’s better to have things out in the open on here rather than Dogun having to answer lots of separate emails?

            Just a thought?

          • It’s up to you Stuart (and Doğan of course 😉 ) – I’ll leave the two of you to sort it out between you!

          • Michael wilson İf you have at any stage in the past advertised your property or have rented your property, you must inform the tax office of this fact in order to benefit from amnesty, before June 2017. Otherwise those who have found to be operating a business but do not declare this fact will be punished ( fines and associated criminal charges ) Now one may think they can get away with past earnings but I got the feeling that the authorities have been filing details of who rented by way of scanning various sites ( eg. tripadvisor, booking.com, owners direct etc etc) and the water bills and electricity bills, word of mouth and ads in local papers or on facebook wiil be taken as proof of past business.

  3. Joanna If the owner wishes to run the property as a business in the future or not, there are certain things that must be done in the first place a) Owner needs to declare to tax office of previous operation in order to benefit from amnesty. b) Must form a company if an owner wishes to use the property as an income earner in the future.
    You must come to Turkey before June 2017 to do the above or grant a power of attorney to someone from turkey to do all that on your behalf in your absence. Otherwise, it would be logical to cancel the bookings.
    Please use my email for further communication, if any.

  4. Hi
    If we have paid tax each year on short term lets and decide that going forward the costs are too high to continue to do this and we intend to stop, do we have to do anything. Please advise
    Regards,
    Paul

  5. A lot of the many questions I receive are from those owners who have neither rented out nor want to rent out their properties.
    This project is for those who have rented in the past but will or will not rent in the future.
    As such, those who have never rented and do not intend to do so in future don’t need to worry about registering.

  6. Thank you Dogun, that is good news. However I have one more question I need to know the answer to.

    If I let my grown up children (or any close family) stay when we are not there then do we have to register or can we carry on as we are already doing?

    Last question I promise 🙂

      • So according to the information – if we have not rented out in the past and do not rent out in the future then we can let family or close friends stay at our house (without us being there and without charge) and we will not be breaking any rules?

        We would just continue to let our sitesi management know who is staying so that it is recorded?

        • I think it may be best to get some legal advice here. We let some Syrian refugees stay over the winter a few years ago as they had nowhere else to go. We didn’t make any money though, all they payed for was the water and electric they used. We let friends and family stay free of charge also over the last couple of years so our usage of utilities will show they were staying. This looks like it could be a nightmare. Sea, sun, stars and anxiety is not what I need.

          • Bri, the law (2013) and the legislative amendment (November 2016) is clear; if you’ve ever rented (advertised for profit making) that means you wanted business, as far as authorities concerned. If you have not, you do not need to worry. Nobody has any right to query who your (unpaid) guest is under the new project. They are after long time tax dodgers and terrorists and it seems they have a long list of ” fishy business” operating out of turkey and but transferring profit.

        • Stuart, Think of this: an owner, despite all the warnings over the media, tries to avoid paying tax and still sends people over as “unpaid guests”. Right? And the guest is robbed, has an accident whilst driving a Rent A Car, and/or simply suffers by way of force majeure ( eg. wars, conflicts, uprisings, civil war, state of emergency!) …Do you think the insurance of the “guest” will cover the losses? Let me put it another way; who will compensate the poor “unpaid” guest if a bomb explodes in where they happened to be?

        • Stuart, if you read the heading of the article (and the legislation) it affects short term RENTALS. If you haven’t rented and don’t intend to the it doesn’t affect you in any way,shape or form. It’s just something that will put the final nail in the coffin for tourism in Turkey!

          • Thanks Jeff. However there have been many misunderstandings and people have been worried that they cannot let their families continue to stay in their property when they aren’t there.

            This article has explained things now.

  7. Well that should effectively kill off the already struggling Turkish tourist industry. What apartment/small villa owners are going to spend 30000+ytl pa for the privilege of letting their property. I and many others I know simply wouldn’t bother. We don’t take that much in rents!!

    • Jeff
      You could spend much , much less then 30000 per annum to run the small business ( eg one or two apartments). Dont forget that following this project many will be out of business but others will have more clientele . The state mentality is “if you earn you pay tax”. It’s that simple. But the more important point is to prevent terrorists roaming freely ..

      • and also the tax amnesty, tax deduction of expenses as well as various other incentives will still make running ” small business” in Turkey attractive, trust me, weve seen many crisis in turkey before. This time the government wants some kind of regulated tourist industry, I think.

  8. Dogan, unlike most others I am registered for tax and have paid it each year on our lettings.
    My reading of your article is the cost will be:
    3000ytl x 12 = 36000
    1128ytl to register 1128
    37128ytl per annum
    Plus initial set up fee 5000 ytl
    Plus no doubt additional charges for software, accountancy etc.
    I have no problem whatsoever paying the tax based on my income. It’s the associated costs above that will make it completely a waste of time to even consider letting. I let at around £350pw. Say 15 weeks, that’s £5250pa. Why would I pay around £8500 plus set up costs of around £1100 to achieve that. In a town such as Kalkan 90% of tourists stay in independently owned property, with rentals not dissimilar. Goodbye Kalkan! I have no doubt that if these figures are correct, this will either never be implemented or will be rapidly changed. Unless of course Turkey wishes to wave goodbye to the few remaining tourists. Take a look at Egypt and imagine the future.

  9. Dear FT Readers, Thank you to everyone for your comments and questions today. We hope that they have proved useful to other readers. We are now closing the comments, at least until tomorrow… It has been a long day. If you have any urgent questions or queries, rather than comments, please direct them to Doğan Şahin, using the email address in the article.

  10. Is it only the Fethiye Jandarma in karagozler aiding the rental registration please? My friend went to OluDeniz Jandarma this week with Tapu and documents and was sent away!

    • I’m not surprised. The Jandarma aren’t the first port of call. I suggest your friend emails Doğan. He will be able to explain everything.

  11. In reply to jeff:

    Towns are now establishing cooperation systems. That means:

    1) Share the accountant fees
    2) Have only one responsible manager for all the villas
    3) Have a share bargain with a certified accountant to complete initial establishment costs.

    By doing this the establishment costs can be as low as 3,500 lira, fully tax deductible and running costs can be as low as 400 lira. Again this is fully tax deductable.

    The equilibrium of the economy suggests that, if you do nothing, just sit and earn money, this system will not last long. You need to learn, research and work hard to increase your profits. And there is now no way of making 20 – 25% on your investment without doing anything, not thinking, not researching, not knowing the industry; not knowing what you are doing. Turkey has been a paradise for illegal renters but that’s over now. Things will be just like they are in the UK or other EU countries. Very orderly; just as most tourists would like it to be. Also, by gaining back the 70% taxes, municipalities now will be able to offer better infrastructure and services. Again, tourists will like this. Tourists do not come to Turkey for the sake of their villa host. They will stay anywhere they are comfortable. So someone being bothered about going legal and not renting anymore, will only help others stay in business to earn a better return on their investment. With the decline of terrorism and a return to peace, there will be four nails out of the coffin; one that Turkish tourism has been in for many years.

  12. I’m trying to simplify this:

    I have an apartment in Calis, It is purely a holiday home for us and we spend about a month in total there over three visits during the course of a year. I do not advertise or rent it out commercially.

    I have very close friends or family staying there (while we are not) on three occasions this year and will not be charging any rental fee.

    From what I have read, I am in a position where I do not have to register the property as a rental property or go through starting up a business.

    A nice simple answer to confirm this or correct it would be appreciated!

    • Im in the same boat as you ian same question ive been trying to get answer
      any other information you get on this i would be glad to hear about

  13. Just to clarify for other readers: I think the line “Short term rentals must register and inform the identity of the gusts via GYKIMBIL system, regardless of paying or non-paying” could make some people think that, even though they are not and never have sought business, they must take some action. This is not the case. If you are not seeking business and earning commercial value out of your property and never have, you do not even need to read this article. You will only benefit from a safer neighbourhood and better municipality services in the future.

    This article is for those who have been and are seeking commercial income from their property using advertising/marketing (by any means). It is these people who need to study the law.

    P.S: I am a member of tourism association and been working closely with the authorities to get the right answers. Actually all the corresponding laws are crystal clear, but nevertheless we have double checked many times for our guests in this country.

    • Thanks Volkan,

      I think this has been a very worrying time for those of us who do not look at our Turkish homes as a business or investment but who just love the country so much they bought a piece of it and enjoy sharing it with those close to us!

      • There is nothing to worry about. The laws that have now been passed are very similar to ones in EU countries. Nothing scary.

        I understand its upsetting for some people (those whom bought the villas for commercial return and have been enjoying the untouched revenues). In 80’s when opium production was banned in Turkey, a lot of farmers revolted and said the agriculture industry would collapse in Turkey. However, with monies saved from trying to control illegal drug trafficking, Turkey was able to invest in the GAP (Southeastern Turkey Irrigation System) and created vast amounts of fertile land for farmers. Since 1980, Turkey had a huge jump in agricultural production and became one of the 7 countries can produce more agricultural products than it needs.

  14. In my view this is just not workable. The loca authorities and police would sink under a welter of admin.
    Plus the holiday business in Turkey has all but collapsed and by making it even more complicated it is another nail in the coffin.
    I have been in the torurist industry for many years and trust me, it will take several years for Turkey’s holiday business to recover . So to level all of these extra costs and admin onto owners is shooting ones self in the foot, and I mean Turkey is doing so.
    Ask all the shops, restaurants, activity centres in Turkey what they think and you will find they are depressed to have the government further putting stumbling blocks on tourists.
    PersonallyI think one should keep ones head below the parapet is renting .

  15. The article says that, once your have registered a company (cost 5,00TL) there will be 3,000TL per month running costs.

    Is the monthly cost really that high?

    • Exactly Ruth!! Both Dogan and Volkan seem to be completely missing the point! Taxes are not the problem. I do not and have never advocated avoiding taxes.
      The point is contained in he article – 3000ytl monthly costs, 1000 annual cost and 5000 set up costs. Are these figures correct or not?
      There is no way single apartment owners will pay such costs. Nor will they join a cooperative. Get real. Is this correct or some form of scare mongering? Where do the figures come from?

  16. Hi Volkan
    Thank you for your comprehensive information. Could you tell me please what is to stop say 8 or 10 property owners together forming a company and all being Directors and obtaining licences and then having one Turkish national or speaking person completing the GYKIMBIL forms online. It we were all Directors of the Company and had a registered interest surely we could all apply for Licences if they really are necessary.
    Second question I thought that the Turkish definition of a Pension was a property with six or more bedrooms so do smaller properties that this come under the same definition ?
    Also friends of mine have Turkish companies and do not pay anything like 3000 TL per month in accountancy and tax fees so I am completely confused as to why 3000TL a month was quoted.
    Many thanks

  17. Hi Jeff and Christina;

    Hi;

    In Turkey, just like in any other country, there are costs to run a business and these can be obtained from the chamber of commerce website or from any accountant.

    here I have summarised figures that come from a certified public account

    Initial Start Up Costs for Registering as a Business:

    Identification Registration Software system for daily occupancy reporting
    500 TL*

    The main software released by Minister of Internal Affairs is free. however the automation software that distributes xml files to be used with the system must be purchased

    Translating and notarising a copy of your passport 150 TL
    Granting Power of Attorney to your accountant to enable them to register your property as a business 150 TL
    Preparation and notarisation of Articles of Association by your accountant 500-750 TL (depending on the complexity of the agreement)
    Company Establishment fees (payable to your accountant) 800 TL
    Authorised Signatory documentation 40TL
    Registration to Chamber of Commerce

    2000 – 2500 TL*

    (Depending on the scope of business registration)

    TOTAL 4140 – 4890 TL*
    (tax deductable)

    Ongoing Costs Once Registered as a Business

    VAT Stamp Tax 34 TL per month
    Quarterly Concise Statement Tax 34 TL per month
    Quarterly Temporary Tax Stamp 47 TL per month
    Annual Corporation Tax Stamp 128 TL per year
    Annual Registratıon of Accounting Books (to enable you to provıde legal invoices for rental income received) 1000 TL per year
    Income Tax 20% of all profit made EXCLUDING establishing, running and depreciation costs of the property and all associated expenses.
    Accountants Fees 350-400 TL per month
    Mandate Manager salary

    Mandate Manager SGK (mandatory social securıty)

    Minimum 1600 TL per month

    Minimum 700 TL per month

    Total Minimum – 2300 TL per month

    Total Approx 2800 TL per month excluding Income Tax*
    (tax deductable)Plus 1128 TL per year as one off payments.*
    (tax deductable)

    Now, if someone doesn’t want to pay these, doesn’t want to be part of a cooperative (I have difficulty understanding why not) and just wants to put some money and expect to earn money (about 20% returns per year!!!), well i am sorry but unless you are in a big criminal scheme, its not possible anywhere in the world.

  18. Hi Christina;

    thats exactly what i mean, you can establish a cooperation and share the cost of the mandatory manager. Each company must have at least 1 worker (Turkish). However, if you cooperate (you don’t even have to establish a legal cooperation, just agree among each other), than 8-10 property owners can pay the salary of 1 worker. In Turkey minimum wage is 1600 liras. SGK 700 liras and public accountant fees for limited company book keeping is 300 – 400 liras. Then there are some more costs – to by tax stamps – i explained in my last comment. All this approximates to -/+ 3000 liras. But these costs can be shared amongst friends with a system.

    Legal definition of pension: bir odası, bir bölümü ya da bütünü genellikle belli bir süre için kiraya verilen, istenirse yemek de yenilebilen ev.

    Translation: A house or building that a room of it or the whole of it can be rented for a given time, and if wanted to food can be served.

    What separates pension from hotel is the services that are offered. for instance a hotel can open business within business, i.e: Hair dresser, money exchange, concierge etc. A pension can offer b&b, food and if you obtain a separate license also alcohol. Nothing else.

  19. I can’t help but reply Richard;

    A country with 7 billion USD worth of tourism industry, for sure can use help from your views. However, there is the other side of the coin:

    1) The loss of tax from illegal rented villas totals 2.5 billion USD
    2) Municipalities take water, road, sewage, electricity whatever, and receive 0 tax from these people.
    3) Small hotel and pension owners that make the same revenue off a villa have 3-4 staff, basically 3 – 4 times of the monthly costs stated here and they do survive amid the unfair competition. They do this by hard, really hard work. So can you!
    4) The government just made the VAT tax 0% for foreigners who would like to purchase property in turkey. So those who decides to sell, there will be a huge market.
    5) There is no administration overload for the government as limited companies are managed by Private Certified Public Accountants (Mali Müşavir)
    6) This system works in Spain, Italy, the UK, Denmark, Norway, Sweden, Switzerland, Morocco, Portugal, Germany… Why wouldn’t it work here?
    7) Businesses who work legally really struggle, as 75% of hosts don’t pay taxes. Once the illegality is out, those that remain will make good money. More smiley faces, better service. (Tourists love all this)
    8)With the municipalities collect taxes they will bring better service to tourists (Tourists love)
    9) Less terrorism threat and less bombs (Tourists love this too)
    10) More unified and a fair system for everyone; more taxes collected for the government; more peace in your neighbourhood, with the shared costs system your annual costs would be about two weeks rent. What else do you want?

    I could go on and on but i am preparing to give a lecture, as the guest speaker, at the tourism university so i will have to cut it short, but i will use your ideas on one of our tourism board meetings.

    I held a masters degree in economics and a masters degree in business development and i am involved in many volunteer projects for tourism. So every opinion counts, but the studied ones counts more.

  20. Thank you so much Vokan that clears up a few of the questions that I have had. I have paid tax for many years on my rental property in Turkey and am already registered with an authorised Accountant to do so. but Your information has really helped as if eight or ten of us were to go ahead with this and one of them was Turkish and was our Maintenance company then it obviously makes the situation a lot simpler and easier for the rest of us. Many many thanks for taking the time to explain all of this to us so thoroughly .

    • Hi again Christina;

      I have some good and some bad news I am afraid. Please read till the end:

      We are, all of us, in one way or another immersed within the guest welcoming industry, be it providing accommodation, supplying hospitality services or creating tour experiences; the list is endless. The safety and complete satisfaction of our guests is critical to ensure the continued success of the tourism economy within Dalyan and further afield as without this we, and our guests, will suffer.

      We, tourism professionals, are striving to offer help and expertise to our loyal and longstanding clients as well as building new relationships with those friends we have not yet met. We operate on a transparent not for profit basis, seeking only to make the registration process as streamlined and simple as possible, giving clarity and peace of mind to all those affected by the new change in legislation. With our help, we hope that many property owners will have the ability to continue in business within the rental market, allowing us in turn to further accommodate the varying needs of their guests for a long time to come.

      The changes to the law have as we know caused unrest and confusion within a community previously united in the desire to promote our country as the wonderful holiday destination that we know it to be. It is our deepest wish that our help/advise and services will allow this to continue and as such we endeavour to do all we can to assist wherever possible, however we are able.

      Regarding your comment above:

      We get a lot of questions regarding the new legislation about short term rentals in Turkey.
      One of the most asked questions is:

      “We have a villa which we rent out having paid tax on earnings in the past and we have a managing agent who is a registered business. My understanding from your update is that we will have to register as a business as a Limited Company to comply, My first understanding was that as long as our managing agent registered our property and our details they would manage the system under their own business.”

      The misconceptions property owners have is that in past they have been filing their rental income via GMSI. However, as explained below, this is not the right way and the revenue service has laws that clearly states without obtaining a legal company, you can not declare your rental income on short term rentals. here is the revenue service’s explanation of the law and the new legislation:

      Short term rental properties (daily – weekly –anything less than 1 year-) is not considered as “Rental Income” by the Revenue Office, and it is considered as “Commercial Income”. For rental incomes filing GMSİ is enough and its filed only once a year with income statement. However, commercial incomes are filed under “Real Basis Of Incomes” and are due to keep accounting books., and to file VAT decleration as well as yearly income tax decleration.

      But why does the Revenue Office considers short term rentals as Commercial Income? Its because the incomes derived from short term rentals are higher than the average long term rental incomes realized and also short term rentals are ready to be rented for next renter immediately after the current guests leaves. Also they consider that acts of marketing is necessary to offer such services, these properties are considerd to create commercial income. (Specific law of: Ankara Internal revenues Service, B.07.1.GİB.4.06.16.01-120(37-12/10)-928 13/09/2012)

      Also the owners of short term rentals has to consider the legal risks. Persons rent for short term creates high activity in one premises and it makes it difficult for authorities to follow the activity. Sometimes the owner rents and sometimes realty agents and a lot of time online marketing media is used. Therefore as per the new legislation taken into effect on November 22nd of 2016, all short term rented houses not only has to declare their revenues in “Real Basis of Income” by establishing a company, but also they will have to register each guest to GYKIMBIL system.

      Furthermore, I regret to say, it would appear that what you have been paying is not legal. It has no legal grounds and actually by doing so there is a strong chance you have been breaking the law. I suggest you urgently discuss this with your accountant.

    • Absolutely, Doğan Bey. I am very grateful to you and Volkan Bey for the article and your comprehensive and helpful replies in the comment section. I am sure the readers are too.

    • Sorry folks but you have your heads in the sand. Either people will ignore it or If it goes ahead Turkish tourism is dead in the water. There is no way single small property owners will continue letting. That will also put the brakes an what little property sales there are. So no more villa and apartment construction. Watch the backlash when locals in a place like Kalkan get to hear about this!
      You still haven’t demonstrated to me how it will be economically viable to continue letting with an annual income of say 15000 ytl before expenses.
      You are also the only ones to tell me I need a company to let a property. Nothing from my accountant and nothing from tax office.

      • Hi Jeff,

        We are not authority. In Turkey laws clearly state that the person is reponsible of knowing the laws. Even your accountant will not be responsible, only you. Why don’t you google around a bit. Go to the ministry of internal affairs website, turbans, jandarma’s, minister of tourism’s. Google Minister Celik’s vow to end illegal short term rents in turkey or attend one of our meetings we will start to organise with the Governor of Muğla, presidents of Ortaca, Köyceğiz, Bodrum and Fethiye and the chief of the Chamber of Commerce. If you are still not convinced, just do whatever you like. We can not discuss this. It’s like you want us to say to you its okay to break the law. We did not make the laws. If its not viable for you, just don’t do the business. If you can’t do the time, don’t do the crime. Its up to you.

        Just to make things a bit easy for you, here I am sending you some of the very real legal documents that has been summoned to every single governor in this country this month:

        Kimlik Bildirme Kanunu’nda Yapılan Değişiklik Hakkında Önemli Duyuru

        T.C. İçişleri Bakanlığı Emniyet Genel Müdürlüğü’nün 81 il Emniyet Müdürlüklerine dağıtımını yaptığı 12.12.2016 tarih ve 900 sayılı yazı ile yapılan bildirim, T.C. Bodrum Kaymakamlığı İlçe Emniyet Müdürlüğü’nden gelen ve Ek’te yer alan 27.12.2016 tarih ve 380 sayılı yazı ile Birliğimize ulaşmıştır. İlgili kuruluşların tabi olacağı yükümlülüklere ilişkin anılan yazılar link olarak ekte sunulmaktadır.

        İçişleri Bakanlığı gayri-resmi otelcilik hizmeti verilmesinin önüne geçmek için, günlük kiralık daireler hakkında birtakım kararlar almıştı.

        11 Ekim 2013 tarihinde yapılan yasal düzenlemelere göre, günlük kiralık evler pansiyon statüsüne alındı ve ruhsat şartı getirildi.

        *** İlgili tebligat: Günübirlik Kiralanan Yerler konulu İçişleri Bakanlığı Genelgesi
        T.C.
        İÇİŞLERİ BAKANLIĞI
        İller İdaresi Genel Müdürlüğü
        Sayı : 26554408.010.06.01/6094 26/11/2013
        Konu : Günübirlik Kiralanan Yerler
        ……………..VALİLİĞİNE
        Yerleşim yeri adresi beyanında bulunma, 5490 sayılı Nüfus Hizmetleri Kanununun 50 nci maddesinde düzenlenen zorunlu bir bildirimdir. Geçici konaklamada bildirim ise 1774 sayılı Kimlik Bildirme Kanunu hükümlerine göre yürütülmekte, kişilerin beyanları çerçevesinde geçici konaklama hizmeti veren işletmeler tarafından yerine getirilmektedir. 1774 sayılı Kanun`da öngörülen usule aykırı bildirim yapılması veya bildirimin hiç yapılmaması idarî yaptırıma tabidir. Kimlik bildirme hizmetleri uzun bir süredir online sistemler vasıtasıyla işletmeler tarafından genel kolluk birimlerine yapılmakta ve kolluk birimlerince denetlenmektedir.
        Yukarıda açıklanan şekilde kullanılan apart daire veya rezidansların aynı zamanda öğrencilere yönelik yurt ve pansiyon gibi hizmetler içinde kullanıldığı görülmektedir.Yurt veya pansiyonların,10/08/2005 tarihli ve 25902 sayılı Resmî Gazete`de yayımlanarak yürürlüğe giren İşyeri Açma ve Çalışma Ruhsatlarına İlişkin Yönetmelik hükümlerine tabi birer işyeri niteliğinde oldukları, yetkili idarelerden usulüne uygun olarak işyeri açma ve çalışma ruhsatı alınmadan çalıştırılamayacağı açıktır. Yurt ve pansiyon olarak kullanılan bu gibi yerler hakkında söz konusu mevzuata göre hareket edilmesi gerekmektedir.
        Genel güvenlik açısından önemli bir risk alanı oluşturan bu yerlerdeki güvenlik açıklarının giderilmesi, suç ve suçluyla mücadelede etkinliğin artırılması, uygulamada yaşanan sorunların çözümlenebilmesi, kanuni, idarî ve mali tedbirlerin alınması bakımından aşağıdaki tedbirler uygulanacaktır:
        Günübirlik kiraya verilen apart daire, rezidans veya apart şeklindeki yurt ve pansiyon niteliğindeki yerlere yönelik denetimlere ağırlık verilecektir. Belirtilen apart daire ve rezidanslar ile işletmecileri ya da sahipleri hakkında yapılan tespitler gecikmeksizin ilgisine göre bundan sorumlu kurumlara bildirilecektir.
        Buralarda mevzuata aykırılık tespit edilmesi halinde ilgili mevzuat çerçevesinde kişi hak ve özgürlükleri ihlal edilmeden gerekli işlemler yapılacaktır.
        Halihazırda öğrenci yurdu olarak kullanılan apart daire, pansiyon ve rezidansların 3/12/2004 tarih ve 25659 sayılı Resmî Gazete `de yayımlanarak yürürlüğe giren Özel Öğrenci Yurtları Yönetmeliğinin yurt binalarında aranacak şartları düzenleyen 6 ncı maddesinde belirtilen bazı şartları taşımadıkları, özellikle can ve mal güvenliği bakımından tehdit oluşturan yangınlara karşı gereken tedbirlerin alınmadığı görülmekte olup, bu konuda eksikliği tespit edilen yerlerle ilgili olarak yetkili mercilerce gerekli işlemler yapılacaktır.
        Günübirlik konaklamalarda kullanılan apart daire, rezidans ve benzeri yerlerin 1774 sayılı Kimlik Bildirme Kanunu hükümlerine tabi oldukları açıktır. Bu Kanun ile 13/07/1974 tarihli ve 14944 sayılı Resmî Gazete`de yayımlanarak yürürlüğe giren Kimlik Bildirme Kanununun Uygulanması İle İlgili Yönetmelik hükümlerine göre konaklama yerini işletenler, konaklayanların kimlik bilgileri ile tesise geliş ve ayrılış kayıtlarını örneğine ve usulüne uygun şekilde günü gününe tutmak ve genel kolluk kuvvetlerinin her an incelemelerine hazır bulundurmakla sorumludur. Buna aykırı hareket edenlere aynı Kanunun 15 inci maddesi gereğince idari para cezası uygulanacaktır.
        Mülki İdare Amirleri başta olmak üzere ilgililer tarafından konunun titizlikle takip edilerek, yetkili idarelerce günübirlik kiralanan yerlere ilişkin işlemlerin yukarıda belirtilen usul ve esaslara uygun olarak yürütülmesini ve uygulama sonucundan Bakanlığımıza bilgi verilmesini önemle arz ve rica ederim.
        Muammer GÜLER
        İçişleri Bakanı

        *****

        Vergi kaybı önleyen düzenlemeye günlük kiralanan tüm işletmelerde geçici ikamet yerleri olarak kimlik bildirme sistemine dahil edildi.

        Günlük evlerin pansiyon ruhsatıyla kayıt altına alınmasıyla konaklayan müşterilerin kimlik bilgileri emniyete bildirilecek. Pansiyonlar kanun değişinceye kadar her akşam konaklayan müşterilerinin kimlik bilgilerini bağlı bulunduğu polis merkezine bildirecek.

        Konaklama bilgileri internet üzerinden emniyet genel müdürlüğüne de aktarılacak. Polis pansiyon sahiplerinden gelen müşteri bilgilerini genel bilgi tarama GBT ve ulusal yargı ağı projesi üzerinden sorgulayacak. Hakkında yakalama ya da tutuklama kararı bulunan kişi kiraladığı evde göz altına alınacak.

        Yapılan uyarıya karşın ruhsat almadan pansiyon hizmeti vermeye devam eden günlük kiralık evler mülki amirin kararı ile geçici sürelerle mühürlenecek.

        Ancak, 2013 ylında çıkartılan bu kanuna gore, ev sahiplerine kabahatler kanununun “emre aykırı davranış suçundan” 183 lira idari para cezası kesilecekti. Cezanın caydırıcı olmaması ve günlük kiralanan evlerin denetimi ve cezayı kesecek kurumların net olmaması sebebi ile bugüne kadar bu kanun pratikte uygulanamıyordu.

        Vergi kaybına neden olan bu bu denetimsizliğin önüne geçebilmek ve artan terror tehdidine karşı önlem alabilmek için, 22 Kasım 2016 tarihinde yürülüğe giren 678 sayılı KHK ile 1774 Sayılı Kimlik Bildirme Kanunu’nun 2. Maddesi’nin 1. Fıkrasında sayılan tesislere“günübirlik kiralanan evler” eklenmiştir. Böylece anılan maddenin son hali şu şekilde düzenlenmiştir.

        “Otel, motel, han, pansiyon, bekâr odaları, günübirlik kiralanan evler, kamp, kamping, tatil köyü ve benzeri her türlü, özel veya resmî konaklama yerleri ile özel sağlık müesseseleri, dinlenme ve huzur evleri, dinî ve hayır kurumlarının sosyal tesislerinin sorumlu işleticileri, bu yerlerde ücretli veya ücretsiz, gündüz veya gece, yatacak yer gösterdikleri yerli veya yabancı herkesin kimlik ve geliş – ayrılış kayıtlarını, örneğine ve usulüne uygun şekilde günü gününe tutmak, genel kolluk örgütlerinin her an incelemelerine hazır bulundurmak, Devlet İstatistik Enstitüsüne, talebi halinde vermek zorundadırlar.”

        • 1774 sayılı Kanunun ek 1 inci maddesinin ikinci fıkrası aşağıdaki şekilde değiştirilmiş ve aynı maddenin sonuna aşağıdaki fıkralar eklenmiştir.

        “Bu Kanun’un 2 nci maddesinde sayılan özel veya resmi her türlü konaklama tesisleri tüm kayıtlarını bilgisayarda günü gününe tutmak, genel kolluk kuvvetlerinin bilgisayar terminallerine bağlanarak mevcut bilgi, belge ve kayıtları genel kolluk kuvvetlerine anlık olarak bildirmek zorundadırlar.
        İkinci fıkrada belirtilen genel kolluk kuvvetlerinin terminallerine bağlanmayanlara ONBİN TÜRK LİRASI, anlık veri göndermeyen veya gerçeğe aykırı kayıt tutanlara BEŞBİN TÜRK LİRASI İDARİ PARA CEZASI, mülki idare amirlerince verilir. BU FİİLLERİN TEKRARI HALİNDE İŞLETME RUHSATLARI İPTAL EDİLİR. Bu maddeye göre verilen idari para cezaları tebliğinden itibaren bir ay içinde ödenir.

        Bu Kanunun 2 nci maddesinde sayılan özel veya resmi her türlü konaklama tesisleri, ikinci fıkrada belirtilen genel kolluk kuvvetlerinin terminallerine bağlanmak için gerekli işlemleri bu maddenin yürürlüğe girdiği tarihten itibaren iki ay içinde ( 22 OCAK 2017’ye kadar ) tamamlar.
        Bu maddenin uygulanması ile görevi gereği bu verileri kullanan kamu personelinin denetimine ilişkin usul ve esaslar İçişleri Bakanlığı tarafından belirlenir.”

        Dolayısıyla; 1774 Sayılı Kanun’un 2. Maddesi’ndeki faaliyetler ile özellikle günübirlik ev kiralama ve ev turizmi yapan tüm seyahat acentalarımızın 22 OCAK 2017 TARİHİNE KADAR bağlı oldukları en yakın Polis Merkezi Amirliği’ne dilekçe ve ekteki 27.12.2016 tarih ve 380 sayılı yazıda belirtilen belgeler ile birlikte müracaat etmek zorundadırlar.

        Yukarıda belirtilen düzenleme ile yatak sayısı belirtilmeden özel veyaresmi her türlü konaklama tesisleriile günübirlik evler kanun kapsamında alınmış olduğundan;

        22 OCAK 2017 TARİHİNE KADAR EMNİYET GENEL MÜDÜRLÜĞÜ SİSTEMİNE ( GEÇİCİ İKAMET YERLERİ KİMLİK BİLDİRME SİSTEMİ -kısaca “GİYKİMBİL”- )BAĞLANMAYANLARA, BAĞLANDIKLARI HALDE ANLIK OLARAK VERİ GÖNDERMEYEN, GERÇEĞE AYKIRI VEYA GERÇEĞE UYMAYAN KAYIT GİREN SORUMLU İŞLETİCİLERE İLGİLİ KANUNLARDA YER ALAN MADDELERE MUHALEFETTEN ADLİ VE İDARİ YASAM İŞLEM YAPILACAĞI BELİRTİLMEKTEDİR.

        ——-

  21. Just to let everyone know… The “comments’ approver/moderator” needs a break… to work on another story for Fethiye Times! So, from 19:00 (Turkish time) no more comments or replies will be approved until tomorrow morning.

  22. Oh dear, sorry you have got upset Volkan. First of all As I have said previously my lettings are not illegal! All income is declared in Turkey and UK and all taxes paid.
    There is no question of me not wanting to do the time so therefore not doing the crime. I have not and will not commit any crimes. I am making a simple statement that myself and others will not spend 37000ytl pa for 15000ytl income. I doubt you would either! So it’s quite simple, I won’t let.
    You say the system works in various eu countries. I know of no requirement in italy nor Spain where an individual (as opposed to a limited company) cannot let a property.
    I will wait with interest to see what happens slightly longer term!

  23. WOW! From me, just a little ‘Thank You’ to Jane, Dogan and Volkan for dealing with all these comments, and for answering my question quickly and clearly. I do think that we need to remember that Dogan and Volkan are only trying to help, they have not created the law and are not responsible for any part of it.

    • You are most welcome Joanna and thank you for clarifying our stand. As professionals in our different field it’s our social duty to help people understand the regulations. If we have made even the tiniest contribution, we are happy.

  24. Good morning everyone. For those who are currently in Turkey I am sure you been watching the news on every single national channel that operations involving thousands of police against illegally rented short term houses yesterday cracked down about 4000 premises in 3 big cities with fines more than 2.5 million only in istanbul only in 1 day.

    Hi Jeff. I am no way upset. As I replied to your email to me, if you are saying your taxed and still in this business, than others can pay their taxes and survive too. You are the proof of viability.

    Regarding laws in other countries, please check http://www.investopedia.com/articles/investing/083115/top-cities-where-airbnb-legal-or-illegal.asp

    For Italy, please read: http://www.italymagazine.com/community/post/letting-property-holiday-rental
    You can’t even rent your primary home at all (Prima Case) If you have second home, upon registering and paying taxes on all income and letting the police of the guests every day possible. Not complying so fines are 15,000 euros

    For Spain (new legislation passed in February 2016, please read: https://www.spain-holiday.com/rentalbuzz/decree-of-the-tourist-accommodation-in-andalucia
    Also, for renting unregistered holiday homes in spain the fines are set to 180,000 euros.

    Investors decides if the investment/return ratio is viable for them to get into that business or not. therefore it depends on the person. In Dalyan average weekly rental fees are 1000 gbp and many are able to rent 16-20 weeks. You are the proof Jeff, you have been “registered” and paying your taxes. I just hope that you have been really registered and really been paying your taxes and you are not one of the many whom were mislead by their accountants to file “rental income” rather than “commercial income.” (I explained the difference on my earlier comments.) Because if you were, I am sorry but you have been violating Internal Revenue Laws B.07.1.GİB.4.06.16.01-120[37-12/10]-928 13/09/2012

    Remember, doing commercial business, you are responsible of knowing all laws, not your accountant. In the end, your accountant will have no liability against the government, it will be you who will face the concequences of not studying.

    I am just trying to be a help Jeff. Please don’t be upset or be put off by my words. I strongly belief those who will put the effort and make the right decisions can make good business in short term rentals as this industry are going to be regulated now and not anyone with some money will be able to penetrate the market.

  25. Volkan I just wanted to say a big thank you as you have very clearly explained the new law. I for one will make sure that I am totally legal . To date I always have been and my Turkish Accountant is at the moment looking into the best way forward for all of us registered with him. Thank you for taking the time to respond to my questions . I see you have a very comprehensive helpful website offering a registration service of your own, but as I am in Kalkan not Fethiye which is Antalya region for my own part it makes more sense for us to form a company in that region and we are actively doing this at the moment so that it is registered before the deadline in June. Like you it does annoy me the amount of People who have not been paying tax to date and those who have until now evaded it. I have been paying tax both in Turkey and the UK for many years and now only rent one apartment which is available for a maximum of 14 weeks per year. With the new laws I can see I am going to have to make it available for longer. This system is fairer it is just becoming used to it and making sure we all get it right. I have been also talking to several other People in Kalkan who have Management Companies and Real Estate Companies and they are all now looking into the best way forward to make sure that all of their Clients are legal. One Management Company I spoke to has already said that if their Clients will not register under a company and get a licence they are not prepared to handle their rentals as they too apparently can also be held responsible for fines. Once again many thanks.

  26. Hi Christina,

    I am glad I could be of help. Our small company does local area tours. help with registering is a non-profit based organisation.

    There is one point I should stress. As how you saying you have been paying your taxes under rental income, once you register as company and become legal, you will probably be better off.

    For instance we have villa owners here have been paying GMSI rental income tax approximately 4000 liras a year. However, once you establish a company you will only pay tax on your earnings. Your purchase of your apartment (Price on tapu) will also be an expense. Therefore, until you pay all your investments, you won’t pay any income tax.

    This said, lets say it took you 4 years to cover your investments, 4 years without paying income tax, if you were paying 4000 liras tax a year, thats 16,000 liras you don’t pay now because you are company. Therefore that alone will cover all establishment and running costs in a central management system.

    There are many other advantages. I.E you can purchase cars, phone lines, all your utilities everything you buy will be tax deductible.

    Wish you all the best. Always you or your accountant can call for 2nd opinion. I am sure there will be a meeting organised in kalkan very soon and with some of the owners seating to do business your rentals will stretch to 25+ weeks.

    Best wishes

  27. I try to follow the information written here.
    I only have 1 question. What if rental income is under the 10000 tl a year?
    is it count as former rental income ? as you dont have to pay tax over this amount

  28. I have read with interest the above article, and thanks for all the contributions and answered questions. I rented my house for the first time last year, 4 weeks in the summer. I was however thinking of renting out this year for longer periods. Just one question, I have spoken to an agent and they have said they will handle the rentals and registering of the passport numbers. They seems to think I will not need to register as a Limited Company ?? Thanks in advance.

    • Hi Marcia,

      The only way they can handle your registration is that you would rent your property to them with full rights and than they would apply for the municipality license under their name and it would be their business. however, if you are given this option, please ask them following questions:

      1) The stop tax (The tax on ranted income) will be charged to their company. Therefore you will be paying double taxes. how do they plan to absorb thins?
      2) All the monies must be deposited to their accounts and you would legally have no right over your property for as long as you have the agreement going on, what kind of guarantees they will offer you.
      3) Will they open all their company accounting to you so you can check your incomes/expenses?
      4) All risques involving running a company, even after closing the company will be upon to them. Are they aware of this?
      5) How many properties do they plan to keep under their company as each would mean a branch with separate license. have they run a hotel before? Do they know what guest logging is? Are they familiar with hotel taxation system and will be able to comply and protect your rights?

      If you do not 100% trust that the company will be 100% truthful to you than this kind of agreement would be very risky. At the end of the year whatever profit they say you made you would have to take that (Or loss)

      Running a hotel is a serious business and many aspects involved. You must choose a company that knows how to handle it. Please remember, an average villa makes about same revenue as small scaled hotel and now they will be considered a hotel and run under same rules.

      Establishing your own company allows you to keep your property legally and there are many advantages. please talk to a certified public accountant (Mali Müşavir) before you decide anything.

      Best Wishes,
      Volkan

  29. Hi Ina. For any income to be considered as Rental Income, therefore to fall under the rule you mention above, the rental activity must not be continuous. In other words, if you rent your house once a year than you can file under rental income and can follow the tax discount rules. however, if the property available to rent readily at any time and rented more than 1 time in short terms in 1 year, than you would fall under real income and would have to pay VAT and you would have to have books (Basically Have company) as this is considered Commercial Activity

  30. I have no problems with some regulation and taxes. On the contrary!! But, in ANY business, and even MUCH MORE with foreign people who do not know the language, the country, the business, the rules of a country, it is SO IMPORTANT to draw up laws with the KISS principle. KEEP IT SHORT AND SIMPLE. Setting up a business. Going to tax authorities. Taking someone in service and being responsible for this person. What is this?? Or becoming a PARTNER of someone else that you do not know??? You are abroad. You just want to go there sometimes, get some sun and rest and enjoy the country, and sometimes rent out your property, just in order to pay the monthly fee so that it is a ‘zero’ operation and so that you can affort to keep your property, so that it is not eating any bread. That is what most people want. What is going to happen? We are not all business people, running commercial activities or companies, and certainly not abroad. So IF GOVERNMENT WANTS TO GET MORE REVENUES/TAXES ON RENTALS, IT IS FINE, but make it SIMPLE. Just let people go 1 time to an insitution to declare that they rent out, fill in some forms, and come with their revenues 1x a year (themselves or the person they give a power of attorney to). Let them get at the same time a form in which is said how much this will be on taxes, and let them pay at the same time, all settled. No company. No personnel. What is this? Nobody wants NOT TO PAY TAXES. But please, make it reasonable (10 à 20% above a certain level) and make is SIMPLE. If then, owners STILL DO NOT PAY THEIR TAXES, OK, this is rather criminal. But if these conditions are not fulfilled, nobody will feel secure. Noboy will still go on doing any ‘business’ (rentals?) in Turkey, people will want to get rid of their properties. Less people even will come to Turkey. Tourism will even go futher down. IT IS NOT LIKE THAT THAT PEOPLE DO NOT WANT TO PAY TAXES. BUT MAKE IT EASY!

  31. Hi Stefanie;

    So, you are saying that I could come to UK (for example) sometimes, and to pay the bills i could use my car as a pirate taxi; the government would have all the necessary laws simplified in Turkish for me so they can get more taxes from the taxi drivers? Does it work like that in the UK or other European countries for that matter? Certainly it wasn’t like that when i lived in England and in USA. On the contrary, the laws in the UK clearly state that the public have a duty to know the law – and ignorance of it is no excuse. They will not give seminars for every single law. Otherwise each time someone born there reaches adulthood they would have give a seminar on every single law.

    It is the duty of civil associations to inform people. As member of TURSAB and DOKTOB we have established an informative site called legalrentalsturkey.com offering free advice or even walk-through registration. Which part in our site you did not understand? Did you apply to us and didn’t get a reply? Did you wanted to register and it was difficult for you? Which part did you get stuck on?

    Also if what you suggested could work, there would be no hotels, pensions in Turkey. A small pension sells their room for £20-£30 per night. What’s their guilt? Why do they have to establish a company but not a property owner? What is so scary and difficult about establishing a company? Also I have a question for you… In December the courts ordered a home owner to pay a £20,000 fine in London for renting her house through AirBnB without paying taxes and the owners of more than 5,000 apartments advertised on AirBnB were summoned to appear in court too. Do you question the decisions of UK government and the London courts also, or you are questioning only what’s happening in Turkey. Another question: Can you do what you are suggesting in any developed country in the world, anywhere, without the prospect of facing severe charges?

    Now the facts: turkey has 40% more bed capacity than the tourists who visit. So, when you sell your property tourists will not think “Oh, Stefanie has sold her villa, I won’t go to Turkey anymore.” They will just stay in another place. The owners of these places (Hotels, pensions) who have been trying hard, despite unfair competition, for years will finally get the worth of all their hard work. Also those who register will make good business. They will pay their taxes and with those taxes the government will provide better infrastructure, which will in turn attract more tourists.

    Let us know which part you have difficulty understanding and we will help you, for free of course. You will be registered in 48 hours and happily continue your business and you will probably be better off financially as you will get all the benefits of being a legal entity.

    best Wishes,
    Volkan

  32. Be VERY careful folks of forming a limited company in Turkey to handle small amounts of letting income. Firstly as has been constantly pointed out by me and others on here, but not addressed, you will be seriously out of pocket.
    Secondly and perhaps more importantly here are a number of serious drawbacks with a limited company:

    In appointing a manager for the company (one of the legal requirements of forming a Turkish company) the manager has many rights as to what they can do with your company. They could rent out your property or sell it without your knowledge, put a debt on the company/property and will have rights of access to rental income in the company bank account. An appointed manager can not be someone who you do not know and explicitly trust.
    Rental income will get paid into the company Turkish bank account. If you then wish to withdraw funds from the account back to the UK you will get levied a further 35% Turkish income tax on top of the company profit taxes you will have already paid.
    Once formed, a Turkish company requires a minimum of two years of formalities to dissolve and is not so easy.

    Whatever you do seek independent advice and do not pay heed to anyone who appears to have a vested interest.
    Let the dust settle before rushing in to do anything. Others are looking at this and will come up with the best way forward for those who only generate small incomes – the comment that most villas (let alone apartments) make as much as a small hotel is laughable!

  33. Hi Jeffrey Ward of Mid Glamorgan,

    I will cut it short:

    1) The very wrong information you are giving regarding the the mandatory mandate managers, falsely informing public regarding the mandate managers duties fall under TTK’s 55th clause, read carefully, or best have a lawyer to explain to you http://www.ticaretkanunu.net/ttk-madde-55/

    2) http://archive.ismmmo.org.tr/docs/malicozum/115malicozum/10_mustafayavuz.pdf

    Unless it is specifically granted to manager, they can not sell anything of the property. Forget selling the property or any part of the property (like a door handle lost) they are responsible every single lira that is lost in the company. Even if they were granted to sell part or whole of the property, its must be specified by the company owner for how much it can be sold at minimum and/or the terms. Managers responsibilities are very high and their abilities drawn very specifically. Unless the owner of the company specifically grants them with a separate notarised order that they can do any kind of harm, they are full responsible for any harm caused to company during their management.

    3) Your 2 bedroom apartment “Jasmine” in Kalkan is rented for 60 gbp/night = 270 liras a day makes 97,200 liras a year (In the tax court it will be calculated like this) (Tax office takes the highest rate) Your apartments face value is 260,000 liras. So your commercial activity yields to 37% revenue. Trust me this is how you will be tried in tax court.

    4) Now its up to you what you choose to do with your life but encouraging others to involve in a serious criminal activity such as tax evasion falls under Criminal Law 5237 clause 39 and you can face serious charges just by your comments on this newspaper. I very strongly suggest to talk to a lawyer regarding everything i am saying to you here.

    5) Your neighbour Caretta Hotel: Face value 3,2 million liras. Average room rate 142 liras. Yearly income (As they are legal entity their declaration will be accepted and won’t be calculated as the maximum they could earn). Their fill ratio 39% er year. 14 rooms x 360 x .39 x 142 liras = 279,000 liras. Their return ratio is 0.08% They have staff to pay salaries and sgk, pay their taxes and you are saying that you can just buy a place neighbouring to them, rent it with unfair competition, don’t pay tax and no one will touch you?

    Yes i can see why you are laughing and hotels and pensions are crying. However who laughs the last laughs the best my friend. Take my advise and get a lawyer because i am sure every single hotel and pension would be joint plaintiff in your case as well as every single tourism and hotelier association. Than we can see how many emlak offices will back you up.

    Volkan

  34. Sorry can i add 6) every other information you have given here is also wrong regarding banking and taxes on funds but really i will not even bother answering them because regardless people may be just learning the drill, they will be smart enough to talk to an official has inspector or a public accountant rather than an emlak offices whom are the only ones will be loosing business with this new law.

  35. Oh dear, I think you’ve got upset again! I don’t think I’ve encourage anyone to break the law. My parting comment was to seek independent advice. You should know from my previous posts I have NO INTENTION whatsoever to engage in tax evasion. I have clearly said if I can’t make this work I will not let. Plain and simple. So,the question of being tried in a tax court doesn’t enter into things. Please DO NOT try to interpret my intentions. Your own ideas of my intentions are completely incorrect.
    The remarks I made about limited companies were based on advice I have been given in Turkey. So doesn’t it just indicate that there is more than just one interpretation out there.

  36. To be fair to Jeff (and many others) I don’t think he is suggesting that owners should not have to register their properties and pay the correct taxes. Most foreign owners would be happy to do so.

    I think he is simply questioning whether it is REALLY necessary to form a limited company in order to do this. There seems to be a lot of disagreement about whether this is really necessary and I have heard from a number of sources (whom I have always found to be reliable) that there may be another way to register without forming a company.

    Whatever the official view, and regardless of the rights and wrongs of competition between apartment/villa owners versus hoteliers, the fact remains that most foreign owners renting out an apartment for a few weeks a year cannot make a profit after taking into account the cost of cleaning, pool maintenance, utilities etc – all of which is money going back to the Turkish economy.

    So, if the need to form a company is genuine, most owners will simply stop renting their properties out as the costs will not add up. Hence:

    1. less work for Turkish cleaners
    2. less work for Turkish maintenance companies
    3. fewer visitors to tourist towns; less trade for Turkish shops, restaurants, bars, taxis…

    It is not a zero-sum game. Just because a lot of owners drop out of the market, it does not automatically follow that the number of visitors will remain the same and the “professional” owners who stay in the market will therefore pick up the slack and see an increase in trade…. it doesn’t work that way. If the “amateur” owners are no longer advertising their properties, that in itself will reduce the “visibility” of Turkey as a tourist destination and have a downward effect on the number of people visiting Turkey.

    We have a saying – the overriding Law is the Law of Unintended Consequences. That will almost certainly apply here, however just and noble the intentions of this law may be. It needs a re-think… fast. Just like the 120-day short term residency rule, which was overturned once the consequences became clear.

  37. Thanks for the links to other countries Volkan. I think they prove my point that there is no requirement to form a limited company in those countries.

  38. Jeff,

    here is the law and the translation. please at least read this and it will answer you why I am upset and why are your comments are clearly not acknowledging a very clearly stated law:

    Ministry of internal affairs circular regarding short term rentals
    Turkish Republic
    Ministry of Internal Affairs
    General Management of Governors Offices

    No: 26554408.010.06.01/6094 26/11/2013
    Subject: Houses rented in short term

    To the governor of ———— city

    Reporting of residency is a mandatory that is regulated under the law 5490, article 50. reporting of temporary residential status is regulated by the law 1774 and its reported by the facilities that offer short term hospitality service. For not complying with law 1774 and not informing authorities of the short term stays in hospitality facilities would result in fines and sanctions and the applications of this law is supervised by the police/jandarma.

    As per explained above, its known that some apartments and residences are used as pensions/hotels and/or facilities that hosts students. It is clear that pensions and student dormitories are legislated under “Opening a Business with A Business Licence” laws that were passed in 10/08/2005 with the declaration in legal gazette with number 25902 and are required to obtain a business license and municipality license and they can not operate without these. It is required by law that these residential properties that are used as pensions and or dormitories to be regulated by said laws.

    As these premises cause a security risqué, to be able to fight against crimes and to establish better security, to resolve the problems in application of the above said laws, following precautions will be taken:

    APARTS, RESIDENTIAL PROPERTIES AND HOMES THAT ARE RENTED IN SHORT TERMS AND THOSE WHICH HOSTS STUDENTS WILL BE INSPECTED BY LAW OFFICERS FIRMLY. The reports on said apartment, parts and residences and their owners/managers will be communicated with the authorities immediately.

    If any incomplience with above said laws found, within the boundaries of law and without violating the rights of a person necessary actions will be taken to fine the said premises

    It is clear that residences that are rented to gusts as a short term rental falls under the legislation no 1774 that regulates the informing of authorities for short term residencies. As per the law declared on the official gazette on 13/07/1974 with number 14944, those who rent their residences on short term basis must register their guests, keep records of their arrival and return dates, their identification information and declare under the Short term residencies Declaration law to local authorities.

    As per this circular, it is ordered to local authorities to follow the compliance with this law according to said laws above and report the result of their inspections to our ministry with highest importance.

    Signiture:
    Minister of Internal Affairs
    Muammer Guler

    Now, this law was passed in 2013. What happened recently with the legislation 678 changing the above 1774 law is that the fines are risen to 10,338 liras and also instead of keeping the records its now mandatory that you are in GIYKIMBIL system. So it has always been clear that if you are renting your apartment, you must obtain a business license.

    If you check jandarma/police website, you will see that they are asking you your tax registration and company establishment papers before they include you in GIYKIMBIL system.

    These are not open to discussion. These are not open to interpretation. These are laws, crystal clear.

    Again, the duties of mandate manager and laws/fees on funds and banking are crystal clear as i sent you earlier, not open to discussion, interpretation. bring us laws, talk to us with laws, show us 1 line of law or 1 court ruling example of what you are interpreting, than we will listen to you.

    I, Volkan Hacıgümüş, am declaring that everything i have been saying and doing with our team and with DOKTOB members are solely for the good of the public to help them and to inform them without any monetary expectation. there is nothing in it for me or any of our team. We are just doing our social responsibility with the support and consent of the governors and mayors office as well as chief jandarma officers.

    If anyone, included but not limited to you, question the integrity or credibility of our work, I am ready to stand in front of Turkish court of law or front of any government authority. What we are doing is a social work and everything we are saying is confirmed by government officials. I repeat IT IS A NON PROFUT ORGANISATION. Just because i have a small tour company that doesn’t mean i can not do non profit social work. Unless you go out on a local are tour with us, we will never, ever as you any money for any service we provide. The reason we are doing this under our company and not under DOKTOB is because we wanted to take one step forward than just informing people of the laws, but also bring them together to show them a way to etsablish and run a business with 400-500 liras of monthly costs.

    We have been working so hard and putting so much resources just so we can gather the right information for everyone, again i repeat with the consent and support of authorities. Therefore please stop being spectical and take action before its too late. More than 10,000 short term rental homes sealed and fined in turkey since November. Don’t be one of them. Its not difficult or dangerous to do this legally. Its very simple. Just ask us and we will shortchanged you, we have certified government accountants, lawyers, tax inspectors that can give you free advise. We are organising official meetings in towns to help you. Please please do yourself a favour and read what we are saying on our website.

    Oh and you are welcome

    Volkan

  39. I have been reading this thread with interest and whilst some information has been very helpful and good to know other people are feeling as flabbergasted as I am over this, I have to say it is completely out of order to address Jeff detailing where he lives, which apartment he owns, for how much – that is terrible. What seems to be being missed here is that there is so much mixed information flying around, nothing concrete, most of us are not in Turkey to sort this out, we haven’t been given any notice and to be honest it is very worrying. Of course Jeff isn’t implying to avoid tax for goodness sake – he is simply pointing out the major decisions we are having to make with little time and information. I don’t understand Volkan’s comment regarding the hotels and pensions having been at a disadvantage for many years (because of property owners) – what?!! If someone wants to stay in an apartment or villa rather than a hotel why is that unfair to a hotel owner? The truth of the matter is, taking into account the cost involved in this requirement to form a business it will simply not be cost effective for people with apartments to continue to let especially with the reduced amount of tourists and reduced amount of flights to even get them there in the first place. I totally understand and agree with the need to inform the authorities of guests details but surely there must be an easier way of doing this? I guess those hotel owners are at an even bigger disadvantage now with the blocking of booking.com?!! The whole thing is a joke. Even if I wanted to sell my apartment, who would want to take it on now?

  40. Dear readers, This post has certainly won the prize for most comments on a single Fethiye Times story but we think the time has come to draw a line… So we will not be approving or replying to any more comments from now on. If (when) there is any more news about this subject we will be sure to advise you. Meanwhile, if you have any questions please contact Volkan Hacıgümüş direct by email at: volkan@legalrentalsturkey.com

  41. Hi Jennifer,

    I couldn’t agree wth you more:

    1) Once you are business, all your information, where you live, how much you earn, whats the name of your apartment… everything is public information, it has to be. You will have absolutely 0 privacy regarding your business.

    2) These laws passed in 2013 and since than it has been announced in national media.Tursab sent notifications to every single Emlak office in Turkey. Its been all over the news. Since 2013, you had 3 years to comply.

    3) You don’t understand what? You don’t understand why is it unfair competition? A pension regulated by these laws and pays their taxes and you don’t? And you still don’t understand? Fine, the information we give is free for public use, you can take it or leave it.

    4) more than 10,000 short term rentals have been fined and sealed in turkey in past month. All we are trying is to inform people before this happens to them and/or before a terrorist nestles in their property. Its up to property owners to take whatever action they want.

    5) Time will show if booking.com decision was right or wrong. They can’t do this in UK but its ok to do in Turkey? Everyone can walk around in Turkey without paying tax, without registering, no one asks who you are, what you do and than when things go wrong no one is around. Will you be here defending your case if an ISIS member who was hiding in an unregistered property makes an act in a touristic resort Jennifer? Will you say you would have registered if you simply had more than 3 years to register? Will you be able to say thşs to those who lost their lives or their loved ones?

    6) I rest my case and thanks to Fethiye Times to creating a platform for everyone to have their sayings.

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