The 100-Day Rule: Why Turkey’s New Law Changes Everything
For international investors, the decision between short-term and long-term rentals in Turkey used to be purely financial: which yields more? But a regulatory shift has added a new layer of complexity. Under Law No. 7464, any rental period of 100 days or less is classified as a tourism activity and requires a special license from the Ministry of Culture and Tourism. This affects not only the income you can earn but also the feasibility of managing the property from abroad.
The law, which came into force in 2026, was designed to regulate the booming short-term rental market. It mandates that landlords obtain a tourism license and comply with safety and operational standards. For apartment buildings, this often requires unanimous approval from all other residents—a significant hurdle that can delay or even block your plans. As a foreign investor, you must factor this into your strategy.
This article breaks down the real-world implications for your rental investment, focusing on net yields, operational realities, and long-term resale value. Whether you’re eyeing a studio in Istanbul or a villa in Antalya, understanding the trade-offs is essential.
Short-Term Yield vs. Reality: Calculating Net Profit After Licensing and Operations
Gross rental yields for short-term lets in Turkey can appear attractive—often cited at 8-12%—but the headline number ignores the operational intensity. Unlike long-term rentals, short-term properties incur significant costs:
- Licensing costs: Application fees, inspections, and potential renovations to meet safety standards.
- Higher vacancy rates: Unless you’re in a top tourist destination, occupancy fluctuates seasonally.
- Cleaning and upkeep: Between guests, professional cleaning, linen, and utilities add up.
- Management fees: If you’re not on-site, property management companies typically charge 20-30% of rental income.
After these expenses, net yields often converge with long-term rentals. For example, a short-term let in a coastal city might gross 10%, but after costs, the net could be 5-6%. A long-term rental in the same area might gross 5%, but with minimal operational costs, the net could be 4-4.5%. The gap narrows, and the short-term model demands far more of your time and attention.
Moreover, the licensing process itself is not just a formality. For apartments in multi-unit buildings, the unanimous neighbor approval requirement is a common stumbling block. Many investors discover this only after purchasing, leading to delays or the inability to operate legally. This risk must be weighed against the potential upside.
The Long-Term Advantage: Stability, Lower Costs, and Predictable Income
Long-term rentals offer a different value proposition: predictability. With a standard one-year lease (renewable), you know your monthly income. Vacancy is typically minimal, and operational costs are limited to occasional maintenance and property tax. For a foreign investor who wants a passive income stream, this is often the more sensible choice.
Tenant management is also simpler. Long-term tenants handle utilities and daily upkeep themselves. You don’t need to coordinate check-ins, cleaning schedules, or handle guest issues at odd hours. This is particularly valuable if you’re investing remotely.
Financially, while the gross yield is lower, the net yield can be competitive. With lower expenses and consistent occupancy, the long-term model provides a stable return that supports your overall investment thesis. Additionally, it aligns better with the citizenship by investment program, which requires holding the property for at least three years. A long-term tenant provides steady income during this period, whereas short-term lets require constant management to maintain income.
Property Profile: Matching Your Apartment or Villa to the Right Rental Strategy
Not every property suits both models. The location, layout, and building type influence which strategy is viable—and legal.
Short-Term Sweet Spots
- City center studios: In tourist hubs like Istanbul’s Sultanahmet or Taksim, compact units attract business travelers and tourists.
- Coastal villas: In Bodrum, Antalya, or Fethiye, villas with pools and sea views command premium nightly rates.
- Resort areas: Properties near beaches or ski resorts benefit from seasonal peaks.
Long-Term Favorites
- Suburban apartments: In residential districts like Başakşehir or Çekmeköy in Istanbul, demand for long-term rentals is steady from professionals and families.
- University areas: Proximity to universities ensures a constant pool of student tenants.
- Business districts: Areas like Levent or Maslak attract expatriates and corporate tenants.
The key is to align your property choice with your management capacity and investment horizon. If you want hands-off income, a long-term rental in a stable residential area is safer. If you’re prepared to manage operations and have a high-risk tolerance, a short-term let in a prime location could yield more—but only after navigating the legal hurdles.
The Foreign Investor’s Checklist: Legal Steps for Both Rental Models
Regardless of your choice, certain steps are non-negotiable for foreign investors. Here’s a streamlined checklist:
- Obtain a tax number: Required for any property purchase and rental income.
- Open a Turkish bank account: Needed for rental payments and expenses.
- Register the purchase with the Title Deed (TAPU) office: This transfers ownership and triggers the title deed transfer tax.
- For long-term rentals: Sign a lease contract and register with the local tax office.
- For short-term rentals: Apply for the tourism license, obtain the required permits, and ensure building approval.
For short-term rentals, the tourism license application is submitted to the Ministry of Culture and Tourism. You’ll need to provide property details, safety certificates, and proof of building approval. If you’re not in Turkey, this process can be time-consuming—another reason to consider professional assistance.
Premiers™ can guide you through these steps as part of our FastTrack™ service. Our in-house legal team handles the paperwork, so you can focus on your investment.
Resale Strategy: How Your Rental Choice Affects Your Future Exit
Your rental strategy doesn’t just affect income; it influences the property’s resale value and the pool of potential buyers.
Short-term rentals often appeal to investors looking for high yields. If you’ve obtained a tourism license, this can be a selling point—it’s a valuable asset that new owners can use immediately. However, the property may be seen as ‘high-maintenance’ by some buyers, and the license might not be transferable in all cases.
Long-term rentals appeal to a broader market, including families and professionals who want a turnkey home. The property is likely in better condition, as long-term tenants treat it more carefully. This can lead to a smoother sale and a wider buyer pool.
Also, consider the citizenship by investment requirement: you must hold the property for three years. During this period, your rental strategy should maximize returns while maintaining the property’s condition. A long-term tenant ensures consistent care, while short-term guests may cause more wear and tear.
Long-Term vs. Short-Term: A Final Verdict for the Hands-Off Investor
For the majority of foreign investors—especially those seeking citizenship and a passive investment—long-term rentals are the more prudent choice. They offer stable, predictable income with minimal operational burden, allowing you to enjoy the benefits of Turkish citizenship without the headaches of managing a holiday let.
Short-term rentals can be lucrative, but they demand active management, a tolerance for regulatory complexity, and a willingness to handle the ups and downs of tourism. If you’re willing to invest that effort, or if you have a trusted local partner, the rewards can be significant.
Ultimately, the decision hinges on your personal goals, resources, and risk appetite. At Premiers™, we help investors navigate these choices daily. Our BestAll™ program connects you with properties that match your strategy, and our Premiers™ 48 experience lets you see firsthand what your investment could look like.
Ready to explore? Book a free consultation with our investment advisors and get a tailored analysis of which rental strategy suits your portfolio.