Declaration Requirements for Rental Income in 2024

Tax declaration requirements for individuals earning rental income may change annually. As of 2024, it is essential to closely monitor the exemption and declaration thresholds set for residential and commercial rental income. This article provides information on the conditions under which rental income must be declared, exemption amounts, and declaration thresholds for 2024.

Obligation to Declare Rental Income in 2024

1. Residential Rental Income Exceeding the Exemption Threshold

For taxpayers earning only rental income (real estate capital income) within a calendar year, the exemption amount for residential rental income has been set at 33,000 TL for 2024. (For 2025, this amount will be 47,000 TL.)

If your annual residential rental income in 2024 exceeds the 33,000 TL exemption threshold, you are required to submit a tax declaration.

2. Workplace Rental Income Subject to Withholding Tax

Specific declaration thresholds also apply to commercial rental income. Taxpayers whose gross workplace rental income exceeds 230,000 TL in 2024 are required to submit an annual tax declaration. (For 2025, this threshold will be 330,000 TL.)

When determining whether a tax declaration is required, the following factors should be considered:

  • The gross rental income subject to income tax withholding must be calculated.
  • The portion of residential rental income exceeding the exemption amount must be included.
  • Other income subject to declaration should also be considered.

3. Rental Income Not Subject to Withholding or Exemption

Some rental income is not covered by withholding tax or exemption. For such income, the declaration threshold is 13,000 TL for 2024. (For 2025, this threshold will be 18,000 TL.)

For example, income from leasing workplaces to taxpayers whose earnings are determined under the simplified taxation system is not exempt. Therefore, any rental income exceeding 13,000 TL must be declared.

Special Cases Regarding Rental Income Declaration

  • Rental Income of Family Members: Each individual is required to declare rental income from properties they own separately. If a property is held under joint ownership within a family, each member must declare their share of rental income proportionally.
  • Declaration on Behalf of Minors or Legally Incapacitated Individuals: If the taxpayer is a minor or legally incapacitated, the declaration must be signed by their parent, guardian, or trustee.
  • Jointly Owned Properties: If a property or right is co-owned by multiple individuals, each owner must declare only the rental income corresponding to their share.

Conclusion

Taxpayers whose rental income exceeds the declaration thresholds set for 2024 must submit an annual income tax declaration. By considering exemption amounts and declaration limits, you can determine whether your rental income needs to be reported. To avoid penalties, ensure that your rental income declaration is submitted on time.


Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.