What tax to pay when renting out property in North Cyprus

In 2026, when renting out property in Northern Cyprus, the landlord pays tax on rental income: 8% for contracts in Turkish Lira and 13% for contracts in foreign currency. The lease agreement must be registered with the tax office at the location of the property. Upon registration of the contract, an additional stamp duty of 0.5% of the total rental amount under the contract is paid.

• Rental Tax Rates
• Long-term Rentals
• Short-term Rentals
• Registration of the Lease Agreement
• When to Pay the Tax
• Documents and Forms
• What to Do in Case of Early Termination
• Frequently Asked Questions
• If You Need Help with Property Rentals in Northern Cyprus
• If You Need Legal Advice on Rentals and Taxes

Rental Tax Rates

The tax amount depends on the currency specified in the lease agreement. For contracts in Turkish Lira, a rate of 8% applies; for contracts in foreign currency, the rate is 13%.

The tax is paid on the rental amount specified in the agreement. If the contract is concluded for a year, the tax office may calculate payments based on the total rental amount for the entire term of the contract.

Long-term Rentals

For long-term rentals, the contract must be registered with the tax office. This is important not only for tax payment but also for the legal validity of the agreement.

Long-term rentals are typically used for residence, residency permits (RP), and leasing offices or commercial premises. If the tenant needs a registered address, a contract without a tax office stamp is usually not suitable.

Short-term Rentals

The same principle applies to short-term rentals: 8% for contracts in TL and 13% for contracts in foreign currency. Form V.D.91 is used when paying the tax.

Short-term rentals can be arranged as daily, monthly, or seasonal. If the property is rented out regularly, tax obligations should be checked before the rental begins, especially if the property is listed on short-term rental platforms.

Registration of the Lease Agreement

The lease agreement is registered at the tax office of the district where the property is located. Upon registration, a stamp duty of 0.5% of the total contract amount is paid.

The procedure is described in detail in a separate article: How to Register a Lease Agreement in Northern Cyprus.

How to Do It

1. Prepare a signed lease agreement.
2. Make copies of the landlord's and tenant's passports.
3. Prepare a copy of the title deed or a document confirming the right to the property.
4. Apply to the tax office at the location of the property.
5. Pay the stamp duty and rental tax.
6. Obtain the registered contract with the tax office stamp.

When to Pay the Tax

Rental tax is usually paid by the 15th day of the month following the month in which the rental income was received. Alternatively, the tax can be paid upfront for the entire rental period upon registration of the contract.

If the contract is required for a residency permit or official confirmation of address, it is better to complete the contract registration and pay the relevant fees before submitting the documents.

Documents and Forms

The following are usually required for contract registration and tax payment:

• lease agreement
• landlord's passport
• tenant's passport
• copy of the title deed or a document confirming the right to the property
• contact details of the parties
• form V.D.91 for short-term rentals

The official tax service states that for correct taxation of landlords, title deed data and copies of contracts must be submitted to the Tax Department system. For new contracts, identity data and contact information of the parties are also attached to the agreement.

• Rental Income Declaration
• Form V.D.91

What to Do in Case of Early Termination

If the lease agreement is terminated early, the tax office must be notified. Otherwise, the tax may continue to accrue under the registered contract, and penalties may be charged for non-payment.

It is best to formalize early termination in writing: the parties sign a termination agreement, after which the document is submitted to the tax office.

Glossary

• Vergi Dairesi — Northern Cyprus Tax Office.
• V.D.91 — the form used when declaring short-term rentals.
• Stamp Duty — a fee paid upon contract registration, calculated based on the total contract amount.
• Title Deeds / Koçan — a document confirming ownership of the property.

Frequently Asked Questions

What tax does a landlord pay when renting out property?

8% for contracts in Turkish Lira and 13% for contracts in foreign currency.

Is it necessary to register the lease agreement?

Yes. The lease agreement is registered at the tax office at the location of the property.

How much does it cost to register a lease agreement?

Upon registration, a stamp duty of 0.5% of the total rental amount under the contract is paid.

When should the rental tax be paid?

Usually by the 15th day of the month following the month in which the rental income was received. Payment for the entire term of the contract at the time of registration is also possible.

What should be done if the contract is terminated early?

The tax office must be notified and the termination of the contract should be formalized in writing so that the tax does not continue to accrue.

Who pays the tax: the tenant or the landlord?

The tax pertains to the landlord's income. In practice, the payment procedure may be specified in the contract, but the responsibility for correct taxation of the income lies with the recipient of the income.

Is it necessary to pay tax for short-term rentals?

Yes. The same rates apply to short-term rentals: 8% for TL and 13% for foreign currency.

If You Need Help with Property Rentals in Northern Cyprus

You can contact our partner — Vadim Chernyakov.

Phone: +90 533 882 40 55
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If You Need Legal Advice on Rentals and Taxes

You can contact our legal partner — DeJure for a consultation with a licensed lawyer in Northern Cyprus.

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