Cash payments are soon to become illegal for tenants of residential accommodations.
As outlined in the draft regulation:
If 10% of the rent is less than the 5,000tl a flat fine of 5,000tl will be applied.
For instance, starting from October 1, 2024 if a landlord rents a property for 25,000tl per month and 15,000tl of that rent is paid in cash for the next 3 months, a 15,000tl fine will be imposed on both the landlord and tenant for the months of October, November, and December.
The Public consultation process has now begun on proposals to change current regulations in this area. Rent payments made in cash will result in a fine for every month the payment is made.
Draft regulation put forward by Revenue includes a statement where a minimum fine of 5,000tl will become payable by both landlords and tenants where cash payments are made.
All Rental payments, be they long or short term, must be made through the banking system or via the PTT.
Current regulation of the law, accounts for tenants and landlords of Commercial premises only.
Under the existing regulation, only landlords and tenants of business properties were fined for cash payments, but residential tenants were not. However, recent changes in the law, passed in July and published in August 2024 now allow fines for residential tenants as well.
If rent is paid in cash instead of through a bank or the PTT, both the tenant and landlord will face fines equal to minimum 10% of the rent amount for each violation, with a minimum of 5,000 lira. Previously, this penalty was set at min. 5% of the rent with a minimum of 3,000 lira.
The aim of the this new regulation under the law passed in July 2024, is to regulate those unregulated transactions which will benefit tenants, as this system will prevent landlords seeking in excess rental payments in the long term plus rental payments will be officially recorded.