Law No. 7464 on Leasing of Properties for Tourism Purposes and Amendments to Certain Laws (the “Law”), published in the Official Gazette of 2 November 2023 and numbered 32357, regulates the procedures and principles of leasing of properties used for tourism purposes to real and legal persons. Today, leasing for tourism purposes has the potential to be an important source of income for property owners. The law that has come into force in Türkiye to regulate activities in this field includes a number of regulations for property-owners and the tourism sector.
The main purpose of the Law is to establish the procedures and principles for the leasing of properties to real and legal persons for tourism activities. In this context, it covers the general principles regarding the leasing of properties for tourism purposes, the issuance of permits, administrative sanctions and the provisions regarding the legislation to which the properties will be subject. The law excludes leases for more than one hundred (100) days at a time. Therefore, leasing for tourism purposes includes the leasing of property to users for any purpose for a maximum of one hundred (100) days. The law also provides a definition of property. In this context, a property includes any independent section that is registered in the land registry for residential purposes or on which there is a residential condominium easement (kat irtifakı) or condominium ownership (kat mülkiyeti).
It is now mandatory for those wishing to lease the property for tourism purposes to obtain a permit. Permits are issued by the Ministry of Culture and Tourism of Türkiye (the “Ministry”) and applications can be made through the Ministry or the Governor’s Office. In addition, a plaque, the qualifications of which are determined by the Ministry, shall be placed at the entrance of the property leased for tourism purposes. The application for a permit must include the unanimous decision of all condominium owners (kat maliki) that it is appropriate to lease the property for tourism purposes. In residential complexes with more than one independent section, this decision only applies to the building in which the property to be leased for tourism purposes is located. The obligation to obtain a permit lies with the lessor.
In buildings consisting of more than three (3) independent sections, a permit may be issued on behalf of the same lessor for a maximum area of 25% (twenty-five per cent) of the sections. However, in case the number of independent sections subject to the issuance of a permit exceeds five (5), it would be subject to further obligations, such as applying for licence to open a workplace.
Going further, leasing activities could also be carried out by (A) group travel agencies certified in accordance with the Law on Travel Agencies and Travel Agencies Union.
A fine of TRY 100,000 (one hundred thousand Turkish Liras) shall be imposed on those leasing without a permit, and a period of fifteen (15) days shall be given to them to obtain a permit for their activities. If a permit is not obtained at the end of this period, the fine increases to TRY 500,000 (five hundred thousand Turkish Liras) and another fifteen (15) days are given. Similarly, if the plaque issued by the Ministry is not placed at the entrance of the property leased for tourism purposes, an administrative fine of TRY 100,000 (one hundred thousand Turkish Liras) shall be imposed, and a period of fifteen days (15) shall be given for the plaque to be placed. However, if the plaque is still not placed at the entrance of the property within this period, an administrative fine of TRY 500,000 (five hundred thousand Turkish Liras) shall be imposed. However, the Law also provides for further sanctions for other types of violations, with administrative fines ranging from TRY 50,000 (fifty thousand Turkish liras) to TRY 1,000,000 (one million Turkish liras).
Penalties are also imposed on those who lease the houses leased for tourism purposes to third parties. High administrative fines are also imposed on those who mediate in unauthorised leasing activities, those who provide services through e-commerce and those who do not remove their content despite warnings. Permit holders are subject to penalties for failing to provide information, providing misleading information and failing to notify the Land Registry of changes. In addition, cases such as non-payment of the tourism share, misleading promotion of dwellings, non-compliance with contracts are also subject to fines.
Conclusion
Like a growing number of other countries, Türkiye has severely restricted the possibility of short-term rentals through this law. The impact of this rigid legislation remains to be seen. The clear aim is to increase the availability of housing for long-term residents, reduce house prices through the additional supply and increase affordability. At the same time, however, there may also be negative effects, as short-term rentals represent an additional source of income for property owners, allowing them to earn money from their properties over and above traditional long-term rentals. It can also contribute to a decline in tourism as travellers have fewer accommodation options, which can affect restaurants, shops and attractions. Visitors using short-term rentals often spend money in the local community.
For more information on the Law and its application, please contact your CMS partner or local CMS expert: Dr. Döne Yalçın, or Arcan Kemahlı.
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