03.12.2023

Introduction

Nowadays, it is seen that real and legal persons rent real estate for daily, weekly and monthly periods, through platforms such as airbnb, booking, sahibinden.com or without intermediaries, in order to obtain financial benefits. Many of our clients ask questions like these; "Is Airbnb legal in Turkey?", "Can I do an Airbnb in an apartment?", "Can I re-rent the house I rent for a short term?"

First of all, rest assured, short-term rentals are legal in Turkey through applications such as Airbnb. However, since there were gaps in the control of rentals made to date, rentals under 100 days have been defined as rentals for tourism purposes and their conditions have been regulated with the new regulations that will be explained in detail below.

Legislative Amendment

The Law on Renting of Residences for Tourism Purposes and Amending Certain Laws (“Law”), publicly known as the “Airbnb Law”, was published in the Official Gazette dated 02.11.2023. With this Law, the rental of residences for tourism purposes was regulated. In this context, important regulations have been introduced regarding the conditions and obligations that the tenant, lessor and intermediaries must comply with in rentals made to real and legal persons for up to 100 days at a time, and the sanctions to be applied in case of violation. At this point, it should be emphasized that rentals for more than one hundred days at a time are outside the scope of the Law.

Innovations Introduced by the Law

• Obligation to obtain a permit:

In order for houses to be rented for tourism purposes, the lessor must obtain a permit from the Ministry of Culture and Tourism (“Ministry”) or the governorship authorized by the Ministry before concluding a “tourism rental contract”.

In applications for a permit, the decision taken unanimously by all flat owners in the building where the independent section subject to the permit is located, stating that it is deemed appropriate to carry out rental activities for tourism purposes, must be submitted. For housing estates with more than one independent section, only the decision of the flat owners in the building where the house to be rented is located is sufficient.

There are different conditions for a person to have a permit for more than one residence;

• In buildings consisting of more than three independent sections, a permit can be issued in the name of the same lessor for a maximum of 25% of the buildings.
• If the number of independent sections subject to a permit issuance in the same building in the name of the same lessor exceeds five; It is mandatory to submit a business and working license, and if the residence is within the site, the decision taken unanimously by all flat owners of all buildings.

However, for residences containing more than one independent section, where there is a provision in the management plan issued in accordance with the Law of Property Ownership that short-term rental activities are allowed and where there are services such as reception, security and a daily cleaning service, a permission certificate can be issued without the following conditions: (i) a unanimous decision of all floor owners of the building, and (ii) granting a permission certificate on behalf of the same lessor for, at most, ¼ of the independent sections.

Lessors who engage in daily rental activities without a permit shall be imposed an administrative fine of TRY 100,000 per residence and shall be given a 15-day period to obtain a permit. If the renting is continued without obtaining a permit at the end of the given period, an administrative fine of TRY 500,000 shall be imposed and a period of 15 days shall be given again. If the permit is not obtained within this period, an administrative fine of TRY 1,000,000 shall be imposed.

• Obligation to hang a plaque:

After the permit procedures are completed, the plaque, whose qualifications are determined by the Ministry, must be hang at the entrance of the residence rented for tourism purposes.

If the permit certificate holders do not hang the plaque at the entrance of the flat, an administrative fine of TRY 100,000 shall be imposed and an extension of 15 days shall be granted. If the plaque is not hung within this period, an administrative fine of TRY 500,000 shall be imposed.

• Prohibition of sub-rents

It is prohibited for the users to rent the house rented from the permit holder to a third party in their own name and on their own account, or to rent the house rented for the purpose of being used as a residence in their own name to third parties for tourism purposes in their own name and account. However, it is not within the scope of this prohibition for legal entity tenants to let their own personnel use the housing they rent for tourism purposes. In the case of violation of the sub-rent prohibition, an administrative fine of TRY 100,000 shall be imposed per agreement.

• Identity reporting obligation

In order to ensure public order and prevent crime, the entry, exit and accommodation status of the users should be recorded and their identity information should be reported to law enforcement authorities in the rental of residences with a rental permit for tourism purposes, as well as in accommodation places such as hotels and hostels.

• Intermediary and advertising activities

The residence can only be leased for tourism purposes by the lessor itself or exclusively via a third party who is a Group-A travel agency operating certificate (i.e. TÜRSAB license) holder. 

An administrative fine of TRY 100,000 per agreement shall be imposed on those who mediate the renting of residences for tourism purposes without a permit.

Effect on previously made tourism rentals

As of January 1, 2024, which is envisaged for the Law to come into force, those who are currently engaged in daily rental activities must obtain a permit from the Ministry within 1 month from the effective date, until 01.02.2024. The Ministry will evaluate the application within 3 months and lessors whose applications are rejected will not be able to engage in daily rental activities. However, the rights of the tenant of these daily rentals will continue until the end of the contract period.

With the new regulation, tenants have been prevented from renting their real estate through Airbnb and similar applications in order to obtain financial benefits without the knowledge of the property owner, and those who rented the house for tourism purposes in their own name and on their own account, without a permit, for the purpose of using it as a residence in their own name, are subject to legal action. It has been regulated that an administrative fine of TRY 100,000 will be imposed per agreement.

Conditions for Permit Revocation

The permit may be revoked in the following circumstances:

• Upon the request of the permit holder for the permit's cancellation.
• If it is determined that the operation of tourism rentals has ceased.
• If, within the 30day period for permit transfer after a change in lessor other than inheritance, no application is made by the new lessor of the residence used for tourism rentals, or if the change of permit holder is not approved despite meeting the requirements.
• If the tourism rentals are used in a manner contrary to public order, public safety, and general morality and this is reported by competent public institutions and organizations.
• If, during an inspection, it is determined that the residence does not meet the essential criteria for permit issuance, and the noncompliance is not rectified within the given period.

If it is determined during the inspection that the residence does not meet the qualifications for the issuance of a permit, an administrative fine of TRY 100,000 shall be imposed and a period of 15 days shall be given to remedy the violations. If the violations are not remedied within this period, the permit shall be annulled. At this point, in cases of a permit cancellation; The rights of the users of the residences whose permits have been canceled will continue until the end of the contract period.

As a result, people who want to earn income without facing any sanctions through short-term accommodation, especially through sites such as airbnb, booking etc. should;

• obtain a permit by meeting the permit document conditions,
• notify the law enforcement authorities about the people who will be staying,
• declare and pay income tax for the rental income obtained.