Deductions that can be applied to rental income
Real estate income taxpayers can deduct their donations and expenses specified below, which are included in the 89th article of the Income Tax Law, from their net income stated on their tax returns, either in full or up to a certain amount.
9.1. Life / Personal Insurance Premiums
In annual income tax returns, the portion of premiums paid for personal insurances, except for individual pensions, up to 15% of the declared income can be deducted in determining the net income.
In calculating the deductible amount, the declared income is based on the amount before the deductions for the discounts and losses of the previous year stated in the annual income tax return.
Insurance premiums to be taken into account in determining the base in the annual return are;
- 50% of the accumulation premium paid to life insurances for the taxpayer, spouse, and minor children, and
- 100% of personal insurance premiums such as death, accident, illness, health, disability, maternity, birth, and education.
The total deductible premiums cannot exceed 15% of the declared income and the annual gross amount of the minimum wage (68.850 TL for 2022).
9.2. Education and Health Expenses
If the expenses related to education and health, made for the taxpayer, spouse, and minor children, are reported in the annual tax return and if they do not exceed 10% of the declared income, they can be deducted from the income.
The expenses must be made in Turkey and proven by documents obtained from individuals or legal entities subject to income or corporate tax liabilities.
9.3. Donations and Aid
9.3.1. Donations and aid that can be deducted up to 5% of the declared income