Turning Your Bodrum Holiday Home Into Rental Income: Permits, Tax and the Honest Reality
You own a place in Bodrum and it sits empty most of the year. The idea is obvious: if it's going to be empty anyway, why not rent it out and earn something? Fair enough. But since 2024 the rules of this game changed substantially, and the old "just stick it on Airbnb and the money follows" era is officially over. This guide is written from the perspective of the owner and investor who wants to rent to holidaymakers by the night or week, not to a long-term tenant. I'll walk you through the permit side, the tax side, the seasonality and the operational load, honestly and without dressing it up.
Let's be clear up front: short-term rental is not passive income. Run well, it can deliver a strong return in Bodrum. Run badly, it loses money and lands you with serious administrative fines. Getting it right lives almost entirely in the homework you do before the first guest ever checks in.
The new game since 2024: Law No. 7464
Published in the Official Gazette on 2 November 2023, Law No. 7464 on the Tourism-Purpose Rental of Residences, together with its implementing regulation, took effect on 1 January 2024. The core rule it introduced is this: before renting a residence for tourism purposes, the owner must obtain a Tourism-Purpose Rental Permit (Turizm Amaçlı Kiralama İzin Belgesi) from the Ministry of Culture and Tourism. This applies identically to Turkish citizens and foreign owners. Renting short-term to tourists without this permit, even for a single night, is now unlawful.
The law defines "tourism-purpose rental" as letting a residence to users for at most 100 days at a time. Let me clear up the most common misunderstanding immediately: the 100 days is a cap per single contract, not an annual total. It does not mean you may only rent 100 days a year; it means any single tenancy contract cannot exceed 100 days. You can rent all summer, back to back to different guests, as long as each contract stays under 100 days.
If you own an apartment: unanimous neighbour consent is required
This is where many owners get stuck. If you own a flat in a multi-unit building (a typical apartment block), your permit application must include a decision approving tourism rental, taken with the unanimous consent of all flat owners in that building, usually notarized. Note the word: unanimous, not majority. A single objecting neighbour can block your application. If you're eyeing a flat in central Bodrum or in Konacık, factor this in from the start; if you're not on good terms with the building, the project ends before it begins.
If you own a detached villa: a big advantage
This is Bodrum's real trump card. Detached residences (a standalone villa with its own entrance) and high-qualified residences are exempt from the unanimous-consent requirement. So if you own a villa with its own garden, its own pool and its own door, you can obtain the permit without chasing neighbour approval. The detached villa stock in areas like Yalıkavak, Gümüşlük and Göltürkbükü is therefore very well suited to short-term rental. If you haven't bought yet and your aim is genuinely rental income, I'd suggest looking at villas for sale before apartments; on the permit side, you'll save yourself a lifetime of friction.
In housing estates made of several blocks, the rule softens a little: the unanimous-consent requirement applies only to the block containing the unit to be rented, not the whole estate. A copy of the issued permit is also given to the estate management.
Other limits: the 25% and five-unit rules
For anyone thinking of scaling up, two more limits apply. In a building with more than three independent units, a permit can be issued in the same lessor's name for at most 25% of the units in that building. If permits for the same person in the same building exceed five independent units, a workplace opening and operating licence is additionally required; at that point the state starts treating it like a commercial accommodation operation.
How to get the permit
Applications are made entirely through e-Devlet (turkiye.gov.tr). Paper applications made in person are returned without being evaluated. You'll need a UETS (national e-notification) address, which you can obtain free of charge through e-Devlet or at PTT branches.
One thing to watch on the title-deed side: your tapu must show the property as a residence (mesken / konut / ev). If the deed says "arsa" (plot), "tarla" (field) or "bahçe" (garden), you'll also be asked for a building registration document (yapı kayıt belgesi) showing residential use. So check the deed designation of any property you plan to buy from the outset; this detail can lock up the application later.
Good news: there's no application fee for the permit itself. But after approval, document and plaque charges apply (the plaque is the permit plate you hang by the door). These are official charges updated every year by the revaluation rate and can differ by location, so don't plan your costs around a fixed figure. Always confirm the current amount on e-Devlet or with the Muğla Provincial Directorate of Culture and Tourism. If your documents are complete, approval usually comes within a few business days.
The cost of renting without a permit is steep
The fines are designed to deter and they escalate sharply. Get caught renting short-term without a permit and an administrative fine is first imposed per unit, along with a 15-day grace period to obtain the permit. Continue without one after the grace period and the fine multiplies several times over; persist and it climbs to a far larger sum. Tenants who sublet without authorization face a separate fine per contract. Because every amount is revised annually by the revaluation rate, check the relevant articles of Law No. 7464 for the current figures; but the message is plain: the penalty burden is heavy and grows steeply at each step.
The platforms aren't off the hook either. Intermediaries like Airbnb and Booking.com must remove non-compliant listings within 24 hours of notice or face a similarly heavy fine per residence. The permit plate number is expected to be displayed on the listing. So the "the platform will look the other way" assumption no longer holds; the system requires the permit number just to keep the listing visible.
Tax: the most confusing part
I have to be honest here, because this is genuinely unsettled. The tax administration has traditionally tended to treat platform-based short-term rental income as commercial income (ticari kazanç), which brings business/tax registration, invoicing, and exclusion from the residential rent exemption. Against this, the Danıştay (Council of State) ruled that short-term rentals without hotel-type extra services should be treated not as commercial income but as rental income (gayrimenkul sermaye iradı, GMSİ). Despite the ruling, in practice the administration largely continued to push the commercial-income approach.
What the high courts have said
Two of the country's high courts have recently given direction on different sides of this business, and it's important not to conflate them. On the tax side, the Council of State, 3rd Chamber (Danıştay 3. Dairesi), in its decision dated 14.04.2025 (E.2024/6160, K.2025/1856), took the view that income arising from renting a residence via Airbnb and the like — purely to earn income and without a commercial organization — should be treated not as commercial income but as rental income (gayrimenkul sermaye iradı). The practical upshot: on this view, there is no obligation to set up a company or business, and (as long as no hotel-type extra services are offered) the residential rent exemption may come into play. Even so, keep in mind that this decision directly conflicts with the administration's established commercial-income approach and that practice remains contested; for your own situation, be sure to consult an accountant.
On the property and condominium side, the Court of Cassation (Yargıtay) points somewhere else. Under the Court of Cassation's settled case law, daily/short-term (tourist) letting of an independent unit in an apartment block or estate turns the property's "residential" use into a workplace-like use, and therefore requires the unanimous consent of all flat owners; absent that consent, the other flat owners can demand that the use be stopped (prohibited). Note that this view dovetails with the "unanimous consent" requirement introduced by Law No. 7464 in 2024 — so while the tax side is contested, the neighbour-consent question for apartments is anchored to the same place by both the statute and the Court of Cassation. These are general information, not legal opinion; decision dates and numbers, and case law itself, can evolve over time.
So it would be wrong to declare flatly that it is one or the other. What should you do in practice? Consult an accountant (SMMM or YMM) and have them assess your situation on its own facts. One important nuance: the residential-rent exemption is capped at an amount that is reset every year and does not apply to those carrying on a commercial activity. So if your short-term rental is treated as commercial income, you can't use that exemption; check the Revenue Administration's circular for the relevant year for the current figure.
Income tax is progressive: the brackets are 15%, 20%, 27%, 35% and 40%. Because the amounts at each bracket threshold are updated every year, don't treat them as fixed; confirm the applicable bands with your accountant or from that year's tariff. The annual return for the prior year is filed 1–31 March, and the tax is paid in two installments (March and July). If the activity is deemed commercial, a VAT (KDV) obligation may also arise; whether accommodation falls under the reduced rate or the standard 20% is part of the same unresolved debate. Nail down every one of these line items with your accountant, because they change from year to year.
Accommodation tax
If you provide overnight stays, the accommodation tax (konaklama vergisi) comes into play. The standard rate is 2% on the accommodation charge. However, by Presidential decree it was temporarily reduced to 1% for the period 1 May 2026 to 31 December 2026. I'm underlining the word temporary: unless extended, it reverts to 2% afterward. The tax is declared monthly and paid by the 26th of the following month. Its legal basis is Article 34 of the Expenditure Taxes Law (No. 6802).
Which areas and property types rent best?
Bodrum isn't a single market; each bay attracts a different guest profile. The broad picture:
- Detached villas with a private pool and sea view see the strongest demand and the highest nightly rates. Yalıkavak, Türkbükü, Göltürkbükü, Gündoğan and Gümüşlük lead here. Proximity to Yalıkavak Marina alone commands a serious price premium.
- Apartments near the town centre and Konacık appeal to a different crowd: easy access, walking distance to the shops, longer stays, and foreign residents. Konacık is also practical for being close to the hospital and supermarkets.
- Areas like Turgutreis and Bitez offer a balanced mid-segment, strong on sunsets, beaches and a family profile.
In short: a villa with a pool earns the highest nightly rate, but a central apartment often holds occupancy more steadily. Which one suits you depends on your budget and how much effort you're willing to put in.
The seasonal reality: the money is made in summer
The backbone of short-term rental in Bodrum is July and August. July is busiest, August is most expensive. The core season runs May to September. The shoulder months (April, May, October, November) are quieter, milder and better value; there's occupancy, but the nightly rate drops. From November to March, luxury villas can sit largely empty. Accept this realistic picture from the start: the large majority of the annual income is earned in a roughly 12-week summer window.
Let's be realistic about occupancy too. Third-party platform data for Bodrum (AirDNA, for instance) showed an average annual occupancy of around 41% across thousands of listings, meaning there's no such thing as being full year-round; demand is heavily seasonal. For well-located villas, summer-season occupancy is often cited around 70–80%. Net annual yields for well-located Bodrum property are commonly discussed in the 5–8% range. These are all conditional averages that vary hugely by property, area, year and management. Nobody can guarantee you a fixed figure, and if someone does, be wary.
Operations: this is where the real work is
You got the permit, furnished the villa, published the listing. Now the job starts. Every guest changeover means cleaning, laundry and linen, key handover, guest communication, small repairs, pool care and garden work. All summer this cycle repeats weekly, sometimes more often.
You have two routes. Self-manage: you pay no commission, but if you don't live in Bodrum or can't give it full-time attention, it's exhausting, especially the "the AC isn't working" messages at midnight. Hire a management/co-host service: in Bodrum these typically charge somewhere between 10% and 40% of rental income depending on scope. At the low end it's just listing and pricing; at the high end it's a full package including meet-and-greet, cleaning, linen, maintenance, pool care and key handling. Larger villas naturally cost more to clean and maintain. Think of that commission not as an expense but as the fee paid to someone who absorbs the stress for you.
Furnishing for guests: getting close to hotel standard
The homes that earn good reviews and fill at high rates share one trait: near-hotel-standard fit-out. The non-negotiables:
- Quality beds and linens, with spare sets
- Air conditioning in every room and fast, reliable Wi-Fi (these two directly drive reviews)
- A fully equipped kitchen, smart TV, plenty of towels, a welcome pack
- For villas, a well-maintained private pool, outdoor seating, and a dining/BBQ area
For villas especially, a maintained pool and a pleasant outdoor space visibly raise both the nightly rate and the review score. The Bodrum guest comes to live outdoors; invest in the garden as much as the interior.
How is this different from long-term renting?
Let's settle this, because they're entirely different businesses. Long-term renting (giving the place to one family on a yearly contract) means less effort, less income, less regulation; no permit required, the income is generally treated as GMSİ, and the residential exemption may apply. Short-term tourism rental means higher gross income potential but more effort, more cost, a mandatory permit and a contested tax regime. Which suits you depends on how much you're prepared to be hands-on. If you're leaning toward the long-term side, the examples on our flats for sale page give a feel for that end of the market.
So where do you start?
In order: check the deed designation (is it a residence?), clarify the neighbour-consent situation based on whether it's detached or an apartment, file the permit application through e-Devlet, set up your tax structure with an accountant, then decide on furnishing and your management model. If you don't yet own a property and your goal is clearly rental income, choosing the right type in the right area is half the battle; tell us what you're looking for and we'll point you toward options that are favourable on permit and rental potential. If you're thinking of selling your current place to move into something more suitable, our sellers page is your starting point.
Note: this article is general information, not legal or financial advice. Permit, tax and fine amounts can change year to year and with secondary legislation and court decisions. Confirm with current official sources before acting, and always consult a lawyer and an accountant.
Frequently Asked Questions
Do I really need a permit to rent my home to tourists?
Yes. Since 1 January 2024, before renting for tourism purposes (on contracts of at most 100 days) you must obtain a Tourism-Purpose Rental Permit from the Ministry of Culture and Tourism. The application is made through e-Devlet, and the rule is the same whether you're a Turkish citizen or a foreigner.
Does my detached villa also need neighbour consent?
No. Detached and high-qualified residences are exempt from the unanimous-consent requirement. Unanimous consent is only required for flats in multi-unit (apartment) buildings. Villas in Bodrum with their own entrance and pool are at an advantage here. Court of Cassation case law also holds that short-term letting in an apartment requires the consent of all flat owners, so the requirement is anchored to the same place by both the statute and the courts.
What are the fines if I rent without a permit?
Renting without a permit triggers an administrative fine per unit plus a 15-day grace period; continuing after that multiplies the fine several times over, and persisting pushes it to a far larger sum. Tenants who sublet without authorization face a separate fine per contract. Because the fines are updated every year by the revaluation rate, check the relevant articles of Law No. 7464 for the current amounts; in short, the penalty burden is heavy and escalates step by step.
Does the 100-day rule mean I can only rent 100 days a year?
No, this is the most common misconception. The 100 days is the cap on a single contract. You can rent all summer, back to back to different guests, as long as each contract stays under 100 days.
Is my income taxed as rental income or commercial income?
This point is contested. The Council of State, 3rd Chamber ruled that income from short-term residential letting carried out purely to earn income, without a commercial organization, should count not as commercial income but as GMSİ (rental income) (14.04.2025, E.2024/6160, K.2025/1856). In practice, however, the administration largely continued with the commercial-income approach, and the matter remains unsettled. If treated as commercial, you can't use the residential rent exemption. Consult an SMMM/YMM for your specific situation.
Do I pay accommodation tax, and what's the rate?
If you provide overnight stays, yes. The standard rate is 2%, but it was temporarily reduced to 1% for 1 May to 31 December 2026. Unless extended, it reverts to 2% afterward. It's declared monthly and paid by the 26th of the following month.
Can I do this as a foreign owner?
Yes, foreigners have the same rights and obligations as Turkish citizens here. You'll need a Turkish tax ID and a UETS address, and you must declare your rental income. The permit requirement applies to you identically.