TRNC Mandates Bank-Processed Rent Payments Starting January 2025
The Ministry of Finance has announced that, effective January 1, 2025, all rent payments and collections in the Turkish Republic of Northern Cyprus (TRNC) must be conducted exclusively through banks. This new regulation, published in the Official Gazette on November 14, 2024, applies to all residential and commercial properties and aims to enhance transparency and proper documentation in the rental market.
The regulation, titled the “Regulation on the Obligation to Make Collections and Payments Regarding Workplace and Residence Rental Transactions through Banks,” requires compliance from both registered taxpayers and non-registered individuals. It also covers short-term rentals, such as weekly or daily housing agreements.
Rent transactions must be processed through methods such as bank deposits, transfers, EFT/EÖS, checks, or payments made via bank or credit cards. Online banking transactions are also considered valid. Landlords and tenants will receive official receipts or account statements from banks, which will serve as proof of payment and ensure accountability.
Penalties for Non-Compliance
To enforce this regulation, the Ministry has outlined penalties for landlords and tenants who engage in cash transactions. Tenants paying rent in cash and landlords accepting such payments will face fines. However, tenants can avoid penalties by reporting any violations to the Revenue and Tax Office within five business days of the cash payment and ensuring that the payment is subsequently made through bank channels.
A Step Toward Transparency
By requiring all rental transactions to go through banks, the Ministry of Finance aims to create a more transparent and regulated rental market in the TRNC. This move ensures that all financial transactions are properly documented, reducing the risk of unreported income and increasing trust in the rental sector.
For further details, consult the Official Gazette or announcements from the Ministry of Finance.
