Unpaid Invoices From Turkish Customers: A Debt Recovery Guide for Foreign Companies

If a Turkish customer has stopped paying, you can recover the money through a formal demand, Turkish enforcement proceedings, or a commercial lawsuit, and a foreign company has the same right to use these tools as a local business does. Unpaid invoices from Turkish customers are usually collected through the local Enforcement Office (Icra Dairesi) under the Enforcement and Bankruptcy Law No. 2004, often after a round of mandatory commercial mediation. This guide walks a foreign supplier through each route, the documents the process needs, how long it takes, and the errors that cost creditors the most time.

What Recovering Unpaid Invoices From Turkish Customers Involves

Recovering unpaid invoices from Turkish customers means turning a commercial claim into an order a Turkish authority will enforce. Turkish law does not require you to win a court case first for a clear money debt. The Enforcement and Bankruptcy Law lets a creditor open enforcement proceedings directly, and the debtor then has a short window to object. If no valid objection comes, the Enforcement Office can attach bank accounts, receivables and property. That makes debt recovery in Turkey for foreign companies faster than many expect, because the first move is administrative, not a full trial.

Your nationality does not limit your standing. A company registered in Germany, the United Kingdom, the Gulf or anywhere else can pursue a Turkish debtor in the same way a Turkish firm would. What matters is the paperwork behind the invoice: a signed contract, a purchase order, delivery records, or an accepted invoice that shows the debt is real and due. The stronger that trail, the quicker collecting debt from Turkish companies tends to go.

Start With a Formal Demand and Interim Attachment

The first practical step is a formal written demand, usually sent as a notarised notice (ihtarname) through a Turkish notary. A notarised demand fixes the date, sets the debtor in default, and starts default interest running if the contract or law allows it. Many Turkish customers pay once a notice arrives on notary letterhead, because it signals that enforcement is next.

Where you fear the debtor is moving money or assets out of reach, Turkish law offers interim attachment (ihtiyati haciz). This is a precautionary order from a commercial court that freezes the debtor's assets before the main claim is decided. You usually need to show the debt and a risk to its collection, and the court often asks for a security deposit, which is refundable. For a foreign creditor worried that a Turkish company will empty its accounts, an interim attachment can be the difference between a paper win and real recovery.

Enforcement Proceedings: The Core Debt Recovery Route

For most unpaid invoices from Turkish customers, Turkish enforcement proceedings (icra takibi) are the main route. The creditor files a request at the Enforcement Office for the city where the debtor is based, and the office issues a payment order (odeme emri) to the debtor. For an ordinary invoice debt with no bond or cheque behind it, this is enforcement without a judgment (ilamsiz icra).

Here is how to recover unpaid invoices in Turkey through this route, stage by stage:

1. File the enforcement request at the Enforcement Office (Icra Dairesi) for the debtor's location, stating the amount, the interest and the basis of the debt.
2. The Enforcement Office issues a payment order (odeme emri) and serves it on the Turkish debtor.
3. The debtor has seven days to pay or to object. Silence works in your favour.
4. If there is no valid objection, the proceedings become final and you ask the office for attachment (haciz).
5. The Enforcement Office attaches the debtor's bank accounts, receivables and registered property.
6. Attached assets are sold and the proceeds are paid out, net of the enforcement fee.

That seven-day objection window is where cases split, and what happens next depends on your paperwork:

• If the debtor does not object in time, the proceedings become final and the Enforcement Office can move to attachment (haciz) of accounts and assets.
• If the debtor objects, the enforcement stops and you must go to court to remove the objection before attachment can continue.
• If your claim rests on a cheque or a promissory note, a faster track for negotiable instruments (kambiyo senetlerine ozgu takip) applies, and the debtor's grounds to object are narrower.

This is why the quality of your documents decides the speed. A debt backed by a signed acknowledgement or a cheque is far harder for a Turkish customer to stall than a plain invoice the buyer can simply dispute.

When the Debtor Objects: Going to Court

If a Turkish debtor objects to the payment order, the next step is a lawsuit to clear that objection. You have two main options under the Enforcement and Bankruptcy Law. An action to annul the objection (itirazin iptali) is filed at the commercial court and lets the judge examine the full merits of the debt; if you win, the court can also award a collection penalty against a debtor who objected without good cause. An action to lift the objection (itirazin kaldirilmasi) is a faster enforcement-court route, but it is only open when you hold specific written proof of the debt.

Once a court confirms the debt, you return to the Enforcement Office with the judgment and continue to attachment and sale. A foreign company that already holds a court judgment or an arbitral award from abroad can instead ask a Turkish court to recognise and enforce it (tenfiz) before opening enforcement, which avoids re-litigating the merits here.

Mandatory Commercial Mediation Comes First

For most commercial money claims in Turkey, mediation is now a precondition to filing a lawsuit. Since the rule took effect, a creditor must complete compulsory commercial mediation (dava sarti arabuluculuk) before a court will hear a monetary commercial dispute. You cannot skip it; a claim filed without the mediation step is rejected on procedure.

Mediation is quick by design and often wraps up within a few weeks. If the parties settle, the signed mediation agreement is directly enforceable, much like a judgment, which can be the fastest way of collecting debt from Turkish companies that are willing to pay but slow. If mediation fails, you receive a final report and can then file the court action. Note that mediation sits before the lawsuit, not before plain enforcement proceedings: you can still open icra takibi first and let the court stage follow only if the debtor objects.

Documents You Need to Collect an Unpaid Invoice

Good paperwork is the real answer to how to recover unpaid invoices in Turkey without a long court fight. Gather these before you start:

• The signed contract, framework agreement, or the purchase order and your terms of sale.
• The invoice itself, with the amount, due date and currency, plus proof it was sent and, ideally, accepted.
• Delivery evidence: dispatch notes, transport documents, or a signed receipt showing the goods or services were provided.
• Any cheque, promissory note or written acknowledgement of the debt, which unlocks the faster enforcement track.
• Account statements and correspondence (emails, messages) where the customer admits the balance or promises to pay.
• A power of attorney for a Turkish lawyer, so your representative can act without you travelling. It is notarised and apostilled abroad, then translated.

Documents in another language usually need a sworn Turkish translation, and foreign public documents often need an apostille to be used in a Turkish court.

Timeline: How Long Debt Recovery Takes in Turkey

How long it takes depends almost entirely on whether the debtor objects. As a rough guide for foreign creditors:

• A notarised demand gives the debtor a short period to pay, usually one to two weeks before you escalate.
• Uncontested enforcement proceedings can reach the attachment stage within a couple of months of the payment order, once the objection window closes.
• Compulsory commercial mediation is designed to finish quickly, often inside a few weeks.
• A contested case that goes through the commercial court can run around one to two years before a final judgment, and longer if it is appealed.

These ranges are current as of the time this article is written and vary by city, court workload and the complexity of the dispute. In our practice at Karanfiloglu Law Firm, the single biggest driver of delay is a weak document trail, because a debtor who can plausibly dispute the invoice will object and push the matter into the slower court track.

Costs of Pursuing Unpaid Invoices From Turkish Customers

The cost of recovering unpaid invoices from Turkish customers separates into official charges and professional fees. On the official side, enforcement proceedings carry application and service charges, and a portion of the recovered sum is collected as an enforcement fee at the end. Court actions carry filing fees that are commonly calculated as a percentage of the claimed amount, part of which is paid up front. An interim attachment usually requires a refundable security deposit set by the court.

On the professional side, lawyer fees are agreed with your representative and are separate from the official charges. A useful feature of Turkish procedure is that a losing debtor is generally ordered to pay court costs and a statutory attorney fee to the winning side, which offsets part of your outlay. Exact figures change every year with the official tariff and the minimum fee schedule, so confirm the current numbers with a lawyer before you budget. Whether a given claim is worth pursuing depends on the amount, the debtor's solvency and the strength of your documents; a lawyer can assess that in a short consultation.

Common Mistakes Foreign Companies Make

Most failed collections trace back to a handful of avoidable errors:

• Waiting too long. Claims are subject to limitation periods under Turkish law, often several years but shorter for some recurring commercial debts. Delay also lets a debtor move assets. Act while the trail is fresh.
• Thin paperwork. An invoice with no contract, no delivery proof and no acknowledgement is the easiest thing for a Turkish customer to dispute, which forces you into the long court route.
• Skipping interim attachment. Winning a judgment against an empty company is a hollow victory. Freezing assets early protects the recovery.
• Ignoring mandatory mediation. Filing a commercial lawsuit before completing compulsory mediation gets the case dismissed on procedure and wastes months.
• No local representation. Enforcement and court deadlines in Turkey are short and strict, and they do not pause for a creditor who is abroad and unaware a payment order was served.

Comparing Your Main Recovery Options

In short, start with a demand, secure assets if there is any flight risk, then open Turkish enforcement proceedings. If the debtor objects, complete mediation and let the commercial court decide. Handled in that order, unpaid invoices from Turkish customers are recoverable for a foreign company that keeps its documents in order and acts without delay.

Talk to a Lawyer in Istanbul

If you would like advice on your own situation, Karanfiloglu Law Firm is a registered law office in Istanbul serving foreigners and Turkish clients across Turkey. You can reach us by phone or WhatsApp at +90 532 659 35 11, by email at karanfiloglu.lawyer@gmail.com, or visit us at Merkez Mah. Hasat Sk. No:12, 34384 Şişli, İstanbul. Contact us to discuss your situation.

Frequently Asked Questions

Can a foreign company legally recover unpaid invoices from Turkish customers?

Yes. A foreign company can recover unpaid invoices from Turkish customers using the same enforcement proceedings, mediation and court actions available to a Turkish business. Your standing does not depend on nationality; it depends on proof that the debt is real and due. A Turkish lawyer can act for you under a notarised and apostilled power of attorney, so you do not need to be present in Turkey.

How do I recover unpaid invoices in Turkey without going to court?

You can often recover unpaid invoices in Turkey without a trial by sending a notarised demand and then opening enforcement proceedings (icra takibi) at the Enforcement Office. If the debtor does not object within the short statutory window, the office can attach accounts and assets without any court judgment. A settlement reached in commercial mediation is also directly enforceable.

What happens if the Turkish debtor objects to the payment order?

If the debtor objects, the enforcement pauses and you must go to court to clear the objection. You file either an action to annul the objection at the commercial court or, where you hold specific written proof, a faster action to lift it at the enforcement court. Once the court confirms the debt, you return to the Enforcement Office and continue to attachment.

Is mediation required before suing a Turkish company for a debt?

Yes, for most commercial money claims mediation is a precondition to filing a lawsuit. Compulsory commercial mediation must be completed first, and a claim filed without it is dismissed on procedure. Mediation does not block plain enforcement proceedings, though; you can open icra takibi first and only reach the court stage if the debtor objects.

How long does debt recovery in Turkey for foreign companies take?

Uncontested enforcement can reach the attachment stage within a couple of months, while a disputed case that goes through the commercial court often runs around one to two years. Mediation usually finishes within a few weeks. These ranges are current as of the time this article is written and vary with the court, the city and the complexity of the dispute.

What documents do I need to collect debt from Turkish companies?

You need proof that the debt exists and is due: the contract or purchase order, the invoice, delivery evidence, and any cheque, promissory note or written acknowledgement. Account statements and correspondence where the customer admits the balance help too. Foreign documents usually need a sworn Turkish translation and often an apostille to be used in a Turkish court.

Can I enforce a foreign judgment against a Turkish customer?

Yes. If you already hold a court judgment or an arbitral award from abroad, you can ask a Turkish court to recognise and enforce it (tenfiz) rather than litigating the debt again in Turkey. Once recognised, the foreign decision can be enforced through the same Enforcement Office procedure as a domestic judgment.

About the Author

Kaan Karanfiloğlu is the founder of Karanfiloglu Law Firm, an Istanbul-based registered law office serving Turkish and international clients across Turkey. He is a lawyer registered with the Istanbul Bar Association (Reg. No. 58270) and the Union of Turkish Bar Associations (No. 133074), and has practised law in Turkey since 2017. He holds an LL.B. from Galatasaray University Faculty of Law (2016) and advises clients in Turkish, English and French; Russian- and Chinese-speaking clients are served through native-speaking advisors at the office.

Disclaimer: This article provides general information about Turkish law and is not legal advice. Laws, regulations, official fees and procedures change over time and every situation is different. For advice on your specific circumstances, please consult a qualified lawyer. No liability is accepted for any loss arising from reliance on the information in this article.