WHEN IS RENT INCREASED IN TURKEY?
Rent increase in Turkey occurs when the rental amount paid by the tenant is raised by a certain rate at the end of the period specified in the lease agreement. Rent increases in Turkey are generally applied annually and are influenced by economic conditions, inflation, and legal regulations.
For residential and commercial leases in buildings with roofs, the rent increase takes place on the contract renewal date. In other words, if a lease agreement is made for one year, it is considered automatically extended for another year in Turkey unless one of the parties terminates it according to Turkish Contract Law. In this case, when the contract term ends, a new rental period begins, and the rent increase is applied accordingly.
IS RENT INCREASED ANNUALLY IN TURKEY?
Rent increases in Turkey are generally applied annually. If a lease agreement is made for one year, the rent increase is calculated each year upon contract renewal based on the Consumer Price Index (CPI) and in accordance with legal criteria. However, even if a lease agreement is initially made for less than one year and later extended, the Turkish Code of Obligations No. 6098 mandates that rent increases must still be applied on an annual basis. In such cases, once the contract is extended, the increase is determined annually and remains subject to legal limitations.
WHAT IS THE HIGHEST RENT INCREASE RATE IN TURKEY?
Rent increases in Turkey are based on the Consumer Price Index (CPI). The CPI announced by the Turkish Statistical Institute (TÜİK) serves as the primary reference for determining the highest rent increase rate in Turkey.
For residential leases in Turkey, the Turkish Code of Obligations mandates that the annual rent increase be determined according to the CPI, subject to legal limitations. This means that property owners in Turkey can raise the rent each year based on the CPI rate announced by TÜİK, but the increase cannot exceed the maximum rate set by law. The highest rent increase rate for in Turkey for residential leases is the TÜFE (Consumer Price Index) rate.
In commercial leases in Turkey, parties cannot freely determine the rent increase rate either. The highest rent increase rate in Turkey for commercial properties must also be based on the CPI announced by TÜİK.
Any contractual provisions imposing an unfair rent increase to the detriment of the tenant in Turkey are not enforceable under general contractual principles. Additionally, if a rented property is sold, the new owner is bound by the existing lease agreement. This means that the rent increase terms agreed upon in the original lease remain valid, and the new owner is responsible for adhering to those terms.
HOW IS THE RENT INCREASE RATE CALCULATED IN TURKEY?
The rent increase rate for residential and commercial properties with roofs in Turkey is calculated using the Consumer Price Index (CPI) published by the Turkish Statistical Institute (TÜİK). The CPI measures the price increase over a year and serves as the basis for rent adjustments in Turkey. The rent increase is determined based on the contract renewal date, following the CPI rate and legal limitations. Incorrect calculations of the rent increase rate in Turkey may lead to disputes, potentially resulting in the tenant’s eviction.
Example Rent Increase Rate Calculation in Turkey:
Suppose the CPI rate for the month when the lease is renewed in 2025 is announced as 50%, and the current rent is 20,000 TL.
- Current rent: 20,000 TL
- CPI rate: 50% (0.50 in decimal form)
- Increase calculation: 20,000 TL × 0.50 = 10,000 TL (rent increase)
- New rent amount: 20,000 TL + 10,000 TL = 30,000 TL
Thus, the new rent amount will be 30,000 TL.
IS VAT OR WITHHOLDING TAX INCLUDED IN THE RENT?
Whether VAT or withholding tax is included in the rent depends on the type of leased property and the terms specified in the lease agreement. It is advisable to seek assistance from a tax lawyer in Turkey to ensure that tax obligations are clearly defined in lease agreements.
Value Added Tax (VAT)
VAT is generally applied to properties leased for commercial purposes. Residential leases in Turkey, however, are usually exempt from VAT. Nevertheless, in certain exceptional cases, VAT may apply if the property is rented for commercial use.
- Residential Leases: In Turkey, VAT is not applied to residential leases. This exemption is regulated by law. However, if the lessor is an economic enterprise, VAT may be applicable. In such cases, whether VAT is included in the rent must be specified in the lease agreement.
- Commercial Leases: If a property is leased for commercial purposes and the lessor is an economic enterprise, VAT applies. The VAT rate for commercial leases is 20%, and the tenant must pay this amount in addition to the rent.
Withholding Tax
Withholding tax is an income tax deduction applied to rental income. While residential leases are exempt from withholding tax, it is applicable to commercial leases.
- Residential Leases: No withholding tax is deducted from residential rent. The tenant is only responsible for paying the agreed rental amount.
- Commercial Leases: Withholding tax applies to commercial leases. The commercial tenant must deduct 20% of the rental amount as withholding tax and pay it to the tax office on behalf of the property owner.
Under Turkish real estate law, the landlord is responsible for taxes such as property tax and cleaning tax, and the tenant has no obligation regarding these payments.
WHAT HAPPENS IF THE LEASE AGREEMENT DOES NOT SPECIFY A RENT INCREASE RATE?
If the lease agreement does not specify a rent increase rate in Turkey, the landlord has no automatic right to raise the rent. However, the landlord may file a rent determination lawsuit to request an adjustment. In such cases, the court will determine the rent increase in Turkey based on the Consumer Price Index (CPI) and regulate the tenant’s payment obligations accordingly. A rent determination lawsuit is used when disputes arise between the parties, ensuring that any rent adjustment complies with legal requirements.
WHAT IS THE MAXIMUM RENT INCREASE RATE FOR RESIDENTIAL PROPERTIES IN TURKEY?
The maximum rent increase rate for residential properties in Turkey is determined annually based on the Consumer Price Index (CPI) announced by the Turkish Statistical Institute (TÜİK). As of 2025, rent increases in Turkey are calculated according to the annual CPI rate and cannot exceed a legally defined upper limit. The highest rent increase rate for residential properties in Turkey can be up to the CPI rate, but this rate is subject to specific legal restrictions.
For instance, if the CPI rate for 2025 is set at 50%, the landlord cannot increase the rent by more than 50%. Any contractual provisions to the contrary are invalid. According to the Turkish Code of Obligations, rent increases are applied upon contract renewal and must be based solely on the CPI rate. If a different increase rate is specified in the lease agreement and it is lower than the CPI rate, the agreed rate remains valid. However, if the agreed rate exceeds the CPI rate, it is deemed invalid. Even if the lease agreement is registered with the title deed, any rent increase in Turkey exceeding the CPI rate remains legally unenforceable.
Therefore, the highest rent increase rate in Turkey for residential properties are strictly limited to the CPI rate, which is announced annually by TÜİK.
WHAT IS THE MAXIMUM RENT INCREASE RATE FOR COMMERCIAL PROPERTIES IN TURKEY?
Previously, parties to a commercial lease agreement could freely determine the rent increase rate in Turkey. However, recent legal amendments have imposed a limitation similar to that of residential leases, restricting commercial rent increases to the Consumer Price Index (CPI) rate. Under this regulation, rent increases in Turkey for commercial properties must also be based on the CPI rate, and parties cannot agree on a rate exceeding this threshold. Any contractual provisions contrary to this rule are legally invalid. This change was introduced to protect tenants and ensure a fairer rent adjustment system in commercial leases.
WHEN WAS THE 25% LEGAL LIMIT ON RENT INCREASES REMOVED IN TURKEY?
The legal 25% cap on residential rent increases in Turkey was lifted as of July 1, 2024. After this date, rent increases will either be determined based on the 12-month average CPI rate or agreed upon between the tenant and the landlord, provided that the agreed rate does not exceed the CPI rate. To protect tenants’ rights in Turkey and prevent potential disputes, it is essential to stay informed about legal regulations.
WHAT ARE THE RENT INCREASE RATES FOR 2025 IN TURKEY?
According to the data announced by the Turkish Statistical Institute (TÜİK), the rent increase rates applicable to residential and commercial leases in Turkey for 2025 are as follows:
Month | 12-Month CPI Rate (%)
January 2025 | 58.51
February 2025 | 55.23
March 2025 | 53.83
The Rent Increase Rate Calculation Tool can be used to calculate rent increase rate in Turkey.
CAN RENT INCREASE RATES BE OBJECTED TO IN TURKEY?
Tenants in Turkey have the legal right to object to rent increases. Rent increases for residential properties are determined based on legal criteria, particularly the Consumer Price Index (CPI). If a landlord demands an increase exceeding the legal limit, the tenant is not obligated to accept it.
Tenants can review whether the requested increase complies with legal limits and, if necessary, object to it, requesting an adjustment within the legal framework. In such cases, the tenant has the right to challenge excessive rent increases and refuse any unlawful adjustments.
