Major amendments to tax laws approved: From rental apartments to vehicles — new regulations enacted

On October 23 2025, the Budget and Planning Commission of Turkey’s Grand National Assembly (TBMM) approved the bill “On Amendments to the Tax Laws and Some Other Laws and Decree Law No. 631”.

Key changes include:

Revision of tax-exempt income from residential rentals; the exemption is narrowed and limited to pensioners, disabled, widows and orphans.

Regulation of deductibility of interest expenses for credits used to buy non-residential rental property; aimed at equalising tax burdens between financed and non-financed ownership.

Increase of the ceiling for contribution-based income from 7.5 to 9 times the minimum wage.

Stricter rules for property and vehicle transactions: lower declared values will face increased sanctions.

Some provisions will take effect from January 1 2026.