Tool · Rent Withholding
Rent Withholding Tax Calculator
Estimate the gross/net rent and the withholding amount on commercial rent payments. Results are for information only; confirm your exact situation with your accountant.
Enter the rent amount to see the approximate withholding and net/gross rent.
What is rent withholding tax?
Rent withholding is an income-tax deduction whereby, on commercial rent payments, the tenant withholds a set percentage of the rent and pays it to the tax office. In Turkey it applies to commercial rents under article 94 of the Income Tax Law. This tool shows the difference between gross and net rent and the approximate withheld amount; the final figure may vary with the rate and declaration rules.
Who pays the rent withholding?
The party that actually withholds and pays the tax to the office is the tenant (who pays the rent). Economically, however, it is deducted from the owner's income: the tenant withholds the tax on the gross rent, pays the net amount to the owner, and declares and pays the withheld tax to the state. When the owner reports this income on their annual return, they can offset the withheld tax against their computed income tax.
The difference between net rent and gross rent
Gross rent is the total rent stated in the contract before withholding. Net rent is the amount the owner receives after withholding. For example, at a 20% rate the withholding on a gross rent of ₺10,000 is ₺2,000, leaving ₺8,000 net to the owner. With this tool you can calculate approximately both gross-to-net and net-to-gross, clarifying whether your contract is quoted net or gross.
How is withholding on commercial rent calculated?
Commercial rent withholding is found by multiplying the gross rent by the withholding rate. The calculator uses 20% by default, but you can change the rate yourself. In the gross-to-net option the withholding is computed on the gross and net = gross − withholding. In the net-to-gross option the gross is computed backwards from the net received (gross = net ÷ (1 − rate)). Results are approximate and may vary by year and legislation.
Is there withholding on residential rent?
As a general rule, where the tenant is an individual, no withholding applies to residential rental income; the owner declares residential rent on an annual return. Withholding mainly arises on commercial rents and where the tenant is required to withhold. For this reason, selecting the residential type in this tool shows an informational warning; for residential rent tax you can use our separate calculator.
Points to watch
The withholding rate can change over time with legislation; confirm the current rate before signing a contract. Clearly stating in the contract whether the rent is gross or net prevents later disputes. Because the withholding can be offset against the owner's income tax, the owner's annual declaration position should also be considered. This calculator provides only an approximate estimate.
What to watch when renting commercial property
When renting commercial property, alongside the rent, factors such as withholding, VAT, deposit and contract term directly affect net income. Choosing the right tenant profile, payment security and a market-appropriate rent level protects long-term returns. Clarifying the gross-net difference from the outset prevents surprises for both tenant and owner. Knowing current commercial rent levels in your area gives a strong starting point for pricing.
Commercial leasing with Best Point
In Belek, Kadriye, Boğazkent and the wider Antalya region, our team supports you in renting out commercial property such as units, shops and offices. We help reach the right tenant, set a market-appropriate rent, and clarify gross-net and withholding matters during the contract process. You can start with an approximate estimate using the calculator above, then contact us for a region-specific assessment.
Example calculation and common mistakes
Example: on a gross ₺10,000 monthly commercial rent, a 20% withholding is ₺2,000; the owner keeps ₺8,000 net and the annual withholding total is ₺24,000. Common mistakes include: assuming a net amount in the contract is gross, using an outdated withholding rate, treating residential rent as if subject to commercial withholding, and overlooking that the withholding can be offset against the owner's income tax. Consult your accountant for an exact result.
Frequently Asked Questions
What is rent withholding tax?
Rent withholding is when, on commercial rent payments, the tenant withholds a set percentage of the rent and pays it to the tax office (ITL art. 94). This tool shows the gross-net rent and the approximate withheld amount.
Who pays the rent withholding?
The tenant actually withholds and pays it, but economically it is deducted from the owner's rent. The owner can offset the withheld tax against their income tax on their annual return.
What is the difference between net rent and gross rent?
Gross rent is the pre-withholding amount stated in the contract; net rent is what the owner receives after withholding. At 20%, the withholding on a gross ₺10,000 is ₺2,000 and the net is ₺8,000.
Is there withholding on residential rent?
As a general rule, where the tenant is an individual, no withholding applies to residential rent; it is declared on an annual return. Withholding mainly arises on commercial rents.
How is withholding on commercial rent calculated?
Withholding is the gross rent multiplied by the rate (20% by default). Gross-to-net: net = gross − withholding. Net-to-gross: gross = net ÷ (1 − rate). Results are approximate.
Does the withholding rate change by year?
Yes, the rate can be updated by legislative changes. In the calculator you can use the default rate or enter your own current rate; for the exact rate, consult the Revenue Administration (GİB) or your accountant.