Airbnb Taxation in Turkey

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Council of State Ruling on Airbnb Taxation in Turkey: Key Decision Explained in Simple Terms

From Business Turkey Today 

Extract:

What was the issue?
The dispute was about how income from short-term rental properties (such as Airbnb) should be taxed in Turkey:

• Should it be treated as business income (subject to income tax + VAT + accommodation tax)?
  
• Or should it be treated as rental income from property (only subject to income tax)?
  

Final joint decision (key outcome)
The 3rd and 7th Chambers of the Council of State concluded:

• Simply renting out a property for short stays (daily, weekly, monthly) does NOT automatically make it a commercial business
  

• For it to be considered a commercial activity, there must be:
  

1. A structured business organization (like a hotel or pension)
   
2. Additional services (food, cleaning, hospitality services, etc.)
   

• If these do not exist:
  

1. The income is considered rental income (property income)
   
2. Not business income
   

• Therefore:
  

1. The tax authority’s general guideline was suspended