Answer
If the tenant is required to withhold tax, such as a company, a business owner or a self-employed professional, it withholds 20% from the gross rent paid to the owner and pays it to the tax office with the withholding tax return; the owner receives 80% of the gross rent. If the tenant is not required to withhold, no withholding applies and the owner declares the rental income themselves.
If the owner is a company, there is no withholding; the rent is collected with a VAT invoice. That is why the lease must state clearly whether the rent is gross or net.
Updated: · İnterkon Realty Group