Short-term rentals—especially through platforms like Airbnb, Booking.com, or Vrbo—have become popular among foreign property owners in Turkey. However, unauthorized short-term rental activity is subject to strict legal restrictions, municipal regulations, and financial penalties under Turkish law. What many foreign landlords don't realize is that operating a rental without the required licenses or tax compliance can result in heavy fines, tenant eviction, and even title deed sanctions.
At ER&GUN&ER Law Firm, our English speaking Turkish lawyers assist clients with full compliance strategies for short-term rental regulations in Turkey. Whether you're renting out a flat in Istanbul, a villa in Bodrum, or an apartment in Antalya, our team ensures your rental activity is legally structured and fully registered. As a trusted real estate lawyer in Turkey, we defend foreign investors and expat landlords in audits, licensing applications, and administrative penalties.
Why Short-Term Rentals Are Regulated in Turkey
Short-term rentals (rentals under 30 days) fall under the scope of “commercial hospitality use” in many Turkish municipalities. Operating such a rental requires specific permits, such as:
- Municipal operation license (belediye işletme ruhsatı)
- Tourism registration number (Turizm İşletme Belgesi)
- Residential zoning compliance certificate
- Tax number and income declaration registration
Foreign owners often rent out apartments on Airbnb without realizing that their activities classify as **unlicensed tourism operations**. The consequences can be serious—especially in larger cities like Istanbul, where the municipal inspection teams actively investigate unauthorized rental activities by foreigners.
Related: legal residence through property ownership in Turkey
What Penalties Apply to Illegal Short-Term Rentals?
Foreigners who engage in short-term rental activity without proper licensing may face the following penalties under Turkish property and tax law:
- Administrative fines starting from ₺150,000 (~$5,000 USD) for operating without a license
- Closure of the rental property by municipal order
- Tax audit and penalties for unreported rental income
- Criminal complaints under tourism and zoning laws
- Eviction lawsuits initiated by other property owners in the same building
- Risk of tapu annotation (şerh) or restrictions on the title deed
We have seen numerous cases where foreign property owners—especially those who purchased for investment purposes—were forced to cease rental operations, pay large back taxes, or defend themselves in court due to lack of awareness about local regulations. These risks are especially high in regions like Kadıköy (Istanbul), Çeşme (İzmir), and Kaş (Antalya).
To understand your exposure, see also: real estate taxation for foreign landlords in Turkey
Income Declaration and Tax Audit Risk for Foreign Landlords
Income from short-term rental activities in Turkey is subject to income tax. Even if the rental is seasonal or intermittent, Turkish tax law mandates declaration of all rental revenue, and issuance of invoices or e-fatura (electronic invoices). Foreign property owners often mistakenly assume that rental income received through platforms like Airbnb or Booking.com is invisible to Turkish tax authorities. This is false.
Turkey is a participant in the OECD CRS (Common Reporting Standard), and tax data is frequently shared between countries. Additionally, online platforms may disclose host earnings to local governments. If rental income is not declared, the Tax Audit Board (Vergi Denetim Kurulu) may initiate an investigation, which can result in:
- Retroactive taxation with penalty interest
- Fines up to 3 times the unpaid tax
- Loss of foreigner-friendly exemptions
- Legal enforcement proceedings and asset freezing in Turkey
Our real estate lawyer in Turkey team works closely with tax advisors and financial auditors to structure Airbnb income in a compliant manner, ensuring you stay within the legal framework for foreign property tax in Turkey.
Also read: taxation of foreign-held Turkish companies
Building Management Conflicts and Condominium Law Violations
Operating short-term rentals in multi-unit buildings may breach the Turkish Condominium Law (Kat Mülkiyeti Kanunu). Many property owners’ associations have internal regulations that prohibit short-term stays or require 30-day minimum rentals. Foreign landlords who ignore these rules may face:
- Cease-and-desist orders from the building management
- Eviction lawsuits filed by co-owners (komşular)
- Damage claims for public disturbance or misuse of common areas
These cases often go beyond civil enforcement and include formal litigation. Our English speaking Turkish lawyers have represented numerous clients in real estate dispute cases involving foreign landlords, especially in areas with high tourism turnover. We defend against civil claims and draft rental contracts that minimize liability under Turkish private law.
For further reference: real estate litigation in Turkey for foreigners
Common Mistakes by Foreign Property Owners
Based on our legal practice, these are the most frequent mistakes made by foreigners renting out property short-term in Turkey:
- Assuming Airbnb activities are informal and exempt from tax or license rules
- Not registering the property with the municipality as a commercial operation
- Failing to file rental income or pay VAT (where applicable)
- Ignoring neighbor complaints or building regulations
- Renting out property through a third party without legal agreement
Every short-term rental case is unique and requires legal tailoring. With increasing inspections in coastal regions and metropolitan cities, foreign property owners are encouraged to seek legal support for rental compliance in Turkey before initiating operations.
For zoning-related guidance: zoning law and tourism regulation overview
Precedents from Turkish Courts: Airbnb Penalty Cases
The Turkish Court of Cassation (Yargıtay) has upheld several decisions confirming the legality of administrative fines and operational shutdowns imposed on foreign property owners engaged in unauthorized short-term rentals. In multiple cases, the court stated that:
- Short-term rentals without a tourism license are commercial activities subject to regulation
- Landlords are responsible for tenant behavior and use of the property
- Municipalities are authorized to seal properties used in violation of zoning laws
These rulings demonstrate that the Turkish judiciary considers unlicensed Airbnb rentals to be a form of unauthorized business operation—not a private lease. As such, fines, access restrictions, and title deed annotations are legally valid enforcement tools.
At ER&GUN&ER Law Firm, we monitor these precedents to develop updated legal strategies for expat landlords and foreign real estate investors in Turkey.
Frequently Asked Questions (FAQs)
- Is Airbnb legal in Turkey? Yes, but only with proper licensing and tax registration. Operating without permits is a violation of multiple laws.
- What licenses are required for short-term rentals? Municipal operation license, tourism registration, and tax registration.
- Can I be fined for renting my property without a license? Yes. Fines can exceed ₺150,000, and authorities may shut down your rental.
- Do I have to declare Airbnb income in Turkey? Yes. All rental income must be reported, even if received abroad.
- Can my neighbors stop me from short-term renting? Yes, under the Condominium Law, building residents may object legally.
- Can I use a Turkish company to manage my rentals? Yes. This can provide tax advantages and legal shielding, but requires proper setup.
- How can I check if my property qualifies for short-term rental? Through a zoning and title deed review by a real estate lawyer in Turkey.
Protect Your Property and Income with Full Rental Compliance
Short-term rentals offer income opportunities for foreign property owners in Turkey, but without proper licensing and legal planning, they also create financial and reputational risks. From tax audits to municipal enforcement and civil lawsuits, non-compliant Airbnb activity is no longer tolerated under Turkish law.
At ER&GUN&ER Law Firm, our team of English speaking Turkish lawyers provides strategic support for all aspects of property rental law in Turkey. We advise expat landlords, structure compliant contracts, manage licensing applications, and defend against fines or title disputes. As your trusted Turkish Law Firm and real estate lawyer in Turkey, we ensure your rental business is legally sound and future-proof.