May 30, 2023

Paying income tax on TRNC rented properties


By Chris Elliott……

How many expats realise that if they own a property in Northern Cyprus and rent it to another person that they have to register a contract with the local taxation office and pay the appropriate tax against rental income received by making a monthly payment or if they wish, pay in advance.

They will be required to present a copy of the Propert taxrental contract and tax will be charged as a percentage of the agreed rental fee whether it be Pounds Sterling or Turkish Lira. Tax must be paid in the currency shown on the contract. Once agreed tax will be charged at that rate unless a new contract is registered.

When the contract has expired and a new contract has been made this has to be registered each time. Failure to register on the due date could result in a fine based upon the length of time that the contract has lapsed.

For those people who wish to rent they should note that the contract they agree to is also required to be presented as proof of place of residence when applying for residency in the Turkish Republic of Northern Cyprus.

For those local readers or those off-shore readers who wish to register to pay taxes to the TRNC authorities on rented properties click here to view and download the appropriate English language registration form.

For more information we suggest our readers email as this contact information is shown on the attached form.

6 thoughts on “Paying income tax on TRNC rented properties

  1. My Landlady has failed to sign a new contract after the first one expired in August. I took an Updated contract to her. I signed it and had it witnessed in December, but I have not received a a signed copy of the contact back. She has also not completed repairs to the property or white goods which were reported to her early in 2015.. She is Turkish Cypriot

    1. Hi cathsysw

      The responsibility of paying tax on income earned from renting property is for your landlady to arrange and perhaps you should ask the taxation office if tax was paid against the previous rental contract that you both signed. You will of course need to show them proof of receipt of these rental payments.

      So you say she has not signed a new contract you presented to her in December for an agreement that should have started in August 2015. If you have been paying rent since the old contract expired then the authorities would be unhappy about this as no taxes could be paid because a new contract could not be signed unless she has signed the one you gave her and not given you a copy back. Either way our best advice would be if she is not co-operating then visit the taxation office and make your enquiries there. Don’t forget if you have been paying rent since last August then you need to show proof of payment.

      A timely reminder about property rental contract. Unless you have citizenship you will be required to visit your local Muhtar and show him your rental contract and passport and he will then complete a form which you will along with your rental contract, passport and other appropriate documents you will need to present when applying for or renewing your TRNC residency.

  2. Hello

    The form in the above link part 2. States . Exemption ! And supplying relevant documents. From an old post on a well known expat forum in 2009 someoone is claiming there is an exemption from the tax if you are resident and dont work and you need to supply a muhktars letter and a something fromthe department of employment confirming your now working status. Any up to date info to confirm this ?

    1. Hello Tim,

      Just like the UK, things will have changed from 2009 to 2017.

      The current situation is that if your are a temporary resident in the TRNC and rent a property, the owner has to pay tax even if they are a temporary resident as well. Being employed for both parties makes no difference as property tax has to be paid.

  3. Hi chris

    Have you read the form you posted ? Under legal background and additional information.
    If the landlord requests the tax exemption he/she must submit the relevant documents.

    I cant see what else this exemption might refer to ? It also fits in with the tax card and what has been said in the past by others . This is important as in some circumstances it can help expats .

    Im not an accountant and i could be wrong this situation personally effects me so im investigating. If you do have any further info clarifying the position it would be most helpful.

    1. Hi Tim,

      I had the opportunity today to visit the Girne Tax Office to find out more about the exemptions you are referring to.

      Whilst they were unable to show me a English language document that clarified the facts concerning exemptions, they did inform me that it is only some TRNC citizens that qualify for the exemptions and that the clause did not apply to expats.

      I hope that clarifies the situation for you. If you want to ask further questions our article gives you a phone number and email address for the TRNC Tax Authority.

      Best wishes.

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