Short-Term Residential Rentals

SHORT-TERM RESIDENTIAL RENTALS

Introduction

With the Law No. 7464 on the Rental of Residences for Tourism Purposes and Amendments to Certain Laws (“Law”), which entered into force on 2 November 2023, the issue of renting residences for short periods for tourism purposes has been brought under legal regulation. Within the scope of the Law, it is observed that the conditions for obtaining a permit certificate for residences, the leasing process, the obligations of lessors, and the administrative sanctions to be applied in case of non-compliance with the legislation are regulated in general terms. Following the Law, the Regulation on the Regulation of Tourism-Oriented Residential Rental Activities (“Regulation”), issued by the Ministry of Culture and Tourism and published in the Official Gazette on 28 December 2023, has clarified the subject and provided a roadmap for homeowners.

It is understood that the regulations introduced primarily aim to register unrecorded and non-taxable incomes arising from the rental of residences for tourism purposes, especially in touristic regions, and to make the tourism sector safer in this respect; from this perspective, it is also understood that the regulations progress in parallel with the Ministry of Treasury and Finance’s “Action Plan to Combat the Informal Economy” envisaged for the years 2023–2025.

Obligations to Be Fulfilled by Homeowners in Order to Rent Residences for Tourism Purposes

Within the scope of Article 3 of the Law, it is stipulated that a permit must be obtained from the Ministry in order for a residence to be rented. Although the term “tourism-oriented rental” is used in the legislation, regardless of the purpose, obtaining this permit certificate has been made mandatory for rentals under 100 days.

All applications regarding the permit certificate are made via the Ministry of Culture and Tourism system through e-Government. A single application is made for residences located in the same building and for which a permit certificate is requested in the name of the same person, and if the applicant already has residences in the same building for which a permit certificate has been obtained, it is mandatory to provide information on this matter in the application.

In buildings (a single block) with more than three independent units (residences), a permit certificate may be issued in the name of the same person for a maximum of twenty-five percent of the residences in that building. In other words, it is not possible for a single person to obtain permit certificates for all apartments in a residential building and operate the building as a hotel. In addition, in order to apply for more than five residences in a building, it is also necessary to submit a business opening and operating license.

The documents and information required in permit certificate applications vary depending on the nature of the residence. Residence groups are classified as detached villas; buildings consisting of more than one independent unit; and high-quality residences. However, it is possible to state that, in general, the submission of the information and documents listed below is mandatory.

For real persons, identity card + signature declaration if there is no signature sample on the identity document
For legal entities, tax identification number and trade registry number (for legal entities not registered in the registry, TIN + signature circular/sample)
In case the residence is subject to shared ownership, the above-mentioned documents regarding the owners approving the application in a manner that ensures the majority of shares and shareholders, together with their written declarations of approval
In case of joint ownership, the above-mentioned documents regarding all owners, together with their written declarations of approval
In joint ownership, lastly, the written declaration of all owners specifying the lessor authorized to represent and bind before the Ministry and responsible to the Ministry
A notarized copy of the unanimous decision taken by all condominium owners of residential independent units in the building, stating that it is deemed appropriate to carry out tourism-oriented rental activity in the residence located in the building
If the number of residences in the same building for which a permit certificate is requested in the name of the same lessor exceeds five, a business opening and operating license; additionally, if the building subject to the application is located within residential sites consisting of buildings with multiple independent units, a notarized copy of the unanimous decision taken by all condominium owners
Power of attorney, if the application is made by proxy

Following the submission of the documents required according to the type of residence to the Provincial Directorate or the Ministry (in case it is a residence complex) and the issuance of the permit certificate upon approval, the Directorate conducts an inspection at the relevant address within 30 days.

The Ministry examines issues such as the posting of the obtained permit certificate at the entrance of the relevant residence; whether the residence complies with the declarations made in the application; whether the residence meets the minimum qualifications; whether the residence is properly marketed and promoted through intermediary service providers; whether double leasing is carried out; and whether cleaning, maintenance, pest control activities, etc. are conducted during the rental processes.

Sanctions to Be Applied in Case of Non-Compliance with the Legislation

Administrative sanctions to be applied within the scope of Article 4 of the Law are centered on unauthorized rentals and the failure of permitted rentals to comply with the legislation. Within the scope of the first paragraph of the article:

In case residences rented for tourism purposes are leased without a permit certificate, an administrative fine of TRY 100,000 for each residence (with an additional 15-day period granted to obtain the permit certificate)
An administrative fine of TRY 500,000 for those who continue tourism-oriented rental activities without obtaining a permit certificate within the granted period (in this case, another 15-day period is granted)
An administrative fine of TRY 1,000,000 for those who still continue renting without a permit certificate despite subparagraphs (a) and (b)
An administrative fine of TRY 100,000 for each rental imposed on those who lease tourism-oriented residences rented from the permit certificate holder to third parties in their own name and account
An administrative fine of TRY 100,000 for each rental in case the tenant rents out the residence for tourism purposes in their own name and account
An administrative fine of TRY 100,000 for each rental imposed on those who mediate the tourism-oriented rental of residences without a permit certificate
An administrative fine of TRY 100,000 for each residence imposed on intermediary service providers who do not act in compliance with the legislation
An administrative fine of TRY 1,000,000 imposed on those who, despite concluding lease agreements exceeding one hundred days each time, rent the same residence more than four times within one year from the date of the first agreement

In the second paragraph of the same article, with regard to permitted lessors:

An administrative fine of TRY 50,000 in case the information and documents requested by the Ministry are not submitted within thirty days, are submitted incompletely, or misleading information or documents are provided
An administrative fine of TRY 50,000 in case the change of the lessor through a legal transaction other than inheritance is not notified within thirty days from the date of registration in the land registry
An administrative fine of TRY 50,000 in case the document regarding the payment of the tourism share is not submitted within the period determined by the Ministry or during inspections
An administrative fine of TRY 100,000 in cases where the residence rented for tourism purposes is misleadingly promoted to users through texts, advertisements, posters, brochures, social media, websites, and similar tools regarding its location, nature, and physical characteristics, or where the committed conditions are not met, or where the residence rented for tourism purposes is allocated to the user for a period shorter than that specified in the contract
An administrative fine of TRY 100,000 in case the residence rented for tourism purposes is not delivered to the user in accordance with the contract
An administrative fine of TRY 200,000 in case the payment received is not refunded within the fifteen-day period granted following the application of subparagraph (d)
An administrative fine of TRY 100,000 in case the plaque issued by the Ministry is not posted at the entrance of the residence rented for tourism purposes (a 15-day period is granted)
An administrative fine of TRY 500,000 in case the plaque is still not posted at the entrance of the residence rented for tourism purposes within 15 days despite the application of subparagraph (f)
An administrative fine of TRY 100,000 in case it is determined during inspection that the residence does not meet the qualifications forming the basis for the issuance of the permit certificate (a 15-day period is granted to remedy the non-compliance)

Conclusion and Evaluation

With the Law and Regulation that have entered into force, rentals under one hundred days have been characterized as “tourism-oriented,” and these short-term rentals have been subjected to detailed regulations, aiming in particular to place both tourism and the informal economy on a legal footing in touristic regions; incomes that could not be included in the tax system have been identified and made taxable, and both lessors and tenants have been brought under protection.

Sincerely,

Atabay Law Office

Information Notice on the Processing of Personal Data

Pursuant to the Law on the Protection of Personal Data No. 6698 (“Law”), this Information Notice has been prepared for the purpose of informing the relevant persons about the personal data processed by Atabay Hukuk in its capacity as data controller. Atabay Hukuk respects your personal data and shows the utmost care to ensure the security of your personal data within the framework of current legislation and universal values.

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Atabay Hukuk processes your personal data within the scope of legal limits and in accordance with the current legislation for the purposes of communicating with you in line with the opinions and requests you have stated, fulfilling your requests, establishing or performing a contract, fulfilling the burden of proof, or fulfilling legal obligations. Your personal data may be processed within the scope of internal reporting and statistical studies, provided that it is anonymized.

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Your personal data consisting of your name and surname and e-mail address, and if any, your other personal data specified in the “Subject” and “Message” sections, may be transferred by Atabay Hukuk to the third-party company from which we receive services for the purpose of providing the necessary technical services to realize the processing purposes, within the scope of the personal data processing conditions specified in Article 8 of the Law. In addition, if a public authority, person, institution, or organization is authorized to request your personal data pursuant to the laws, your personal data may be transferred to the authorized person, institution, or organization in accordance with the personal data protection legislation. Requests received from judicial authorities will also be fulfilled in accordance with the legislation.

Your Rights Regarding the Protection of Your Personal Data

As the relevant person, we inform you that you have the following rights pursuant to Article 11 of the Law:

To learn whether your personal data is processed,
If your personal data has been processed, to request information regarding this,
To learn the purpose of processing your personal data and whether they are used in accordance with their purpose,
To know the third parties to whom your personal data is transferred domestically or abroad,
To request correction of your personal data if it is processed incompletely or incorrectly,
To request the deletion or destruction of your personal data within the framework of the conditions stipulated in the relevant legislation,
To request notification of the correction, deletion, or destruction processes carried out in accordance with the relevant legislation to the third parties to whom your personal data has been transferred,
To object to the occurrence of a result against you by analyzing your processed personal data exclusively through automated systems,
To request compensation for damages in case you suffer damage due to the unlawful processing of your personal data

You may submit your requests regarding your rights listed above via [email protected] or [email protected]. Depending on the nature of your request, your applications will be finalized free of charge as soon as possible and at the latest within thirty days; however, if the transaction requires an additional cost, a fee may be charged in accordance with the tariff to be determined by the Personal Data Protection Board.

Job Application

Information Notice on the Processing of Personal Data

Your Processed Personal Data and Purposes of Processing

If you fill out the job application form on the website www.atabayhukuk.com.tr, Atabay Hukuk processes your personal data within the scope of your job application, consisting of your name and surname, e-mail address, phone number, and resume, which fall under the categories of identity, contact, and personnel data. We kindly request that you do not share special categories of personal data defined as special categories of personal data pursuant to Article 6 of the Law in your resume submitted to us, such as race, ethnic origin, political opinion, philosophical belief, religion, sect or other beliefs, clothing, membership in associations, foundations or trade unions, health, sexual life, criminal conviction and security measures, and your biometric and genetic data. If you include special categories of personal data in your resume, it will be deemed that you have given explicit consent for the processing of such data. Atabay Hukuk will not process special categories of personal data included in your resume and will destroy such data. Atabay Hukuk processes your specified personal data in a limited manner for the purposes of evaluating your job application and determining the candidate to be hired.

Method of Collection of Your Personal Data and Legal Basis for Processing

Your personal data specified above is provided by you via the website www.atabayhukuk.com.tr. Atabay Hukuk processes your specified personal data based on the legal ground that processing is mandatory for the establishment of an employment contract, the execution of the job application process, and the legitimate interests of Atabay Hukuk, provided that it does not harm your fundamental rights and freedoms, within the scope of the personal data processing conditions specified in Article 5 of the Law.

Transfer of Your Personal Data

Your personal data consisting of your name and surname, e-mail address, phone number, and resume may be transferred by Atabay Hukuk to the third-party company from which we receive services for the purpose of providing the necessary services to realize the processing purposes, within the scope of the personal data processing conditions specified in Article 8 of the Law.

In addition, if a public authority, person, institution, or organization is authorized to request your personal data pursuant to the laws, your personal data may be transferred to the authorized person, institution, or organization in accordance with the personal data protection legislation. Requests received from judicial authorities will also be fulfilled in accordance with the legislation. When such obligations arise within the scope of Turkish law, the legal basis of the data processing activity in question is compliance with a legal obligation or otherwise the establishment, exercise, or protection of a right.

Your Rights Regarding the Protection of Your Personal Data

As the relevant person, we inform you that you have the following rights pursuant to Article 11 of the Law:

To learn whether your personal data is processed,
If your personal data has been processed, to request information regarding this,
To learn the purpose of processing your personal data and whether they are used in accordance with their purpose,
To know the third parties to whom your personal data is transferred domestically or abroad,
To request correction of your personal data if it is processed incompletely or incorrectly,
To request the deletion or destruction of your personal data within the framework of the conditions stipulated in the relevant legislation,
To request notification of the correction, deletion, or destruction processes carried out in accordance with the relevant legislation to the third parties to whom your personal data has been transferred,
To object to the occurrence of a result against you by analyzing your processed personal data exclusively through automated systems,
To request compensation for damages in case you suffer damage due to the unlawful processing of your personal data