Buying property in Northern Cyprus is often considered not only for residential purposes but also as a source of passive income. However, when renting out a property, it is important to consider local tax regulations and the rental agreement registration procedure.

Starting in 2026, landlords will be required to pay tax on rental income. The tax amount depends on the currency in which the rental agreement is drawn up.

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Rental Tax Rates

The following rates are currently in effect:

• 8% — if the rental agreement is concluded in Turkish lira (TRY)
• 13% — if the agreement is concluded in a foreign currency (GBP, USD, EUR, etc.)

The tax is calculated based on the rental amount specified in the agreement.

If the agreement is concluded for a long term, the tax office may take into account the total rental amount for the entire agreement period.

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Long-Term Leases

For long-term leases, the agreement must be registered with the tax office in the location of the property.

This is important not only for tax purposes but also for the legal validity of the contract itself.

Long-term leases are most often used:

• for residential purposes;
• for obtaining a residence permit;
• for renting offices;
• for commercial premises.

If the tenant requires an official registered address, a contract without a tax stamp is usually not suitable.

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Tax Calculation Examples

Rent 20,000 TL per month
20,000 TL × 8%
➡️ Tax: 1,600 TL per month

Rent 500 GBP per month
500 GBP × 13%
➡️ Tax: 65 GBP per month

Rent 1,000 USD per month
1,000 USD × 13%
➡️ Tax: 130 USD per month

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Short-Term Rentals

The same principle applies to short-term rentals:

• 8% — for contracts in TL
• 13% — for contracts in foreign currency

Form V.D.91 is used for tax payment.

Short-term rentals can be arranged:

• daily;
• Monthly;
• Seasonal.

If the property is regularly rented out through short-term rental platforms, it is recommended to clarify tax obligations in advance.

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Registering the Lease Agreement

The lease agreement is registered with the tax office in the county where the property is located.

Additional fees apply upon registration:

• Stamp duty — 0.5% of the total lease amount.

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How the Agreement Registration Process Works

The typical process is as follows:

1. A signed lease agreement is prepared.
2. Copies of the tenant and landlord's passports are made.
3. A copy of the title deed or property document is prepared.
4. Documents are submitted to the tax office.
5. Stamp duty and tax are paid.
6. A registered lease agreement with a tax office stamp is issued.

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When is the tax paid?

Tax is generally paid:

• By the 15th day of the month following the month in which the rental income is received.

In some cases, the tax can be paid immediately for the entire rental period when registering the contract.

If the contract is required for:

• a residence permit;
• proof of address;
• official procedures,

it is best to register it and pay all fees in advance.

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What documents are usually required

To register the contract and pay the tax, the following are usually required:

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

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Important: Transferring data to the tax system

According to the requirements of the TRNC Tax Authority, title deed data and copies of lease agreements must be transferred to the Tax Department's system.

When registering a new contract, the following is also provided:

• details of the parties;
• contact information of the tenant and landlord.

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What to do in case of early termination of the lease

If the lease is terminated early, the tax office must be notified.
Otherwise, taxes may continue to accrue under the registered agreement, and late payment may result in penalties and fines.

It is best to formalize the termination in writing:

• the parties sign the lease termination agreement;
• the document is submitted to the tax office.

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Renting out property in Northern Cyprus is not only a source of income but also carries certain tax liabilities. It is important to understand in advance:

• the tax rate you will pay;
• how to properly register the agreement;
• what documents are required;
• and how to avoid penalties when changing the lease terms.

If you are planning to rent out property in Northern Cyprus, contact HUB Property. We will help you navigate the registration process, tax nuances, and advise you on how to organize the rental process smoothly and safely. ☀️🏡