Commercial Contracts in Turkey: What Foreign Businesses Should Know
Commercial contracts in Turkey are governed by the Turkish Code of Obligations and Commercial Code.
Author: Lawyer Kaan Karanfiloğlu
· 13 min read

Rental disputes in Turkey usually come down to three questions: how much the rent can rise, whether the tenant can be made to leave, and who pays for unpaid rent or damage. For foreign landlords and tenants, the rules are set mainly by the Turkish Code of Obligations, and since 2023 most of these disagreements must go through mediation before a court will hear them. This guide explains how rental disputes in Turkey actually work, what the law allows on each side, and where foreigners most often go wrong.
Whether you rent out a flat in Istanbul or live in one on a residence permit, the same law applies to you as to a Turkish citizen. Nationality does not change your rights or your obligations under a residential lease. Rental disputes for foreign landlords in Turkey therefore turn on the same rules that govern every other tenancy.
Most rental disputes in Turkey fall into a small number of recurring categories. Knowing which one you are in tells you which rule and which route applies.
A single tenancy can produce more than one of these at once. A tenant behind on rent may also be contesting the last increase, for example.
Landlord and tenant law in Turkey is set out mainly in the Turkish Code of Obligations (Turk Borclar Kanunu, Law No. 6098), in its sections on residential and roofed-workplace leases. These rules are protective of tenants, and most of them cannot be waived by a clause in the contract. A lease term that gives the tenant less than the Code allows is generally unenforceable, even if the tenant signed it.
A few points of landlord and tenant law in Turkey matter to almost every dispute:
Rent increase disputes in Turkey are governed by a cap tied to inflation. For a renewing residential lease, the Turkish Code of Obligations limits the yearly increase to the twelve-month average change in the consumer price index published by the Turkish Statistical Institute. A clause that promises the landlord more than that ceiling is not enforceable for the part above it.
Between 2022 and mid-2024 a temporary statutory cap of 25 percent applied to residential rent increases. That temporary cap has expired, and as of the time this article is written increases are again tied to the twelve-month average consumer price index. Because this figure changes every month, confirm the current rate before you rely on a number.
If the parties cannot agree, either side can ask a court to set the rent through a rent-determination case (kira tespit davasi). After five years, the court is not bound by the inflation cap and can reset the rent to a fair market level based on an expert valuation. Rent increase disputes in Turkey are one of the most common reasons foreign landlords and tenants end up in front of a judge.
A landlord in Turkey cannot evict a tenant at will. The Code allows it only on defined grounds, and the landlord must use the correct procedure for the ground relied on. The main lawful grounds are these:
There is also the long-tenancy route. After a residential lease has run for ten years of renewals, the landlord can end it without giving a reason, provided they give at least three months' notice before the end of the following lease year. For non-payment specifically, the landlord can start enforcement proceedings at the enforcement office (Icra Mudurlugu) with an eviction demand, which runs on a faster track than a full court case.
How to resolve a rental dispute in Turkey now follows a set order, because mediation comes before court for most money and eviction claims. These are the usual stages.
Whether mediation or a direct enforcement route fits your situation depends on the ground, the amounts and the paperwork you already hold; a lawyer can assess it in a short consultation.
For most rental disputes in Turkey, mediation is now the compulsory first step and court is the fallback. The table below shows how the two compare on the points foreigners ask about most.
| Point | Mandatory mediation | Court case |
|---|---|---|
| When it applies | Rent amount, money claims, eviction of leased property | After mediation fails, or where mediation is not required |
| Who decides | The parties, with a neutral mediator | A judge, often with an expert report |
| Typical length | Usually a few weeks | Usually several months to over a year |
| Outcome | Binding settlement if agreed | Enforceable judgment |
| Privacy | Confidential | Public procedure |
Mediation is not optional for the covered categories. Skipping it is the single most common procedural mistake we correct.
Rental disputes in Turkey vary widely in length depending on the route and the court's workload. As a rough guide:
These are general ranges, not promises. In our practice at Karanfiloglu Law Firm, the cases that drag longest are the ones where the landlord served notices informally and has to reconstruct a paper trail after the fact.
A handful of avoidable errors cause most of the trouble we see. Each has a straightforward fix.
Foreign landlords sometimes assume a lease signed abroad or in English changes these rules. It does not; the Turkish Code of Obligations governs property located in Turkey regardless of the contract's language.
The cost of a rental dispute in Turkey has two parts: official charges and everything else. Official charges include court filing fees, which in money claims are calculated as a percentage of the amount claimed, plus expert and service fees. The mediation stage carries its own fee scale, and where the parties do not settle the state covers the first couple of hours under the mandatory scheme as of the time this article is written.
Other costs include lawyer's fees, notary charges for formal notices, and translation or sworn-interpreter costs if documents are not in Turkish. Because official fees and the mediation tariff are updated regularly, treat any figure you read as a starting point and confirm the current amounts before you budget. A lawyer can give you a realistic estimate once the route and the amount in dispute are clear.
Rental disputes in Turkey are governed by the tenant-protective Turkish Code of Obligations, run through mandatory mediation before court for most rent and eviction claims, and turn on whether the right notice, ground and procedure were used. Foreign landlords and tenants have the same rights and duties as Turkish parties. Most rental disputes for foreign landlords in Turkey settle at the mediation stage when the paperwork is in order. Getting the paperwork and the sequence right from the start is what keeps a disagreement from becoming a long case.
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, Şişli, İstanbul. Contact us to discuss your situation.
Most rental disputes in Turkey are resolved first through mandatory mediation, and only through the courts if mediation fails. Since 1 September 2023, disputes over the rent amount, money claims from a lease, and eviction of leased property must go to mediation before a lawsuit can be filed. Rental cases that do reach court are heard by the Civil Court of Peace where the property is located.
No, a landlord cannot evict a tenant at will. Eviction is allowed only on the grounds set out in the Turkish Code of Obligations, such as genuine need, reconstruction, a new owner's need, or repeated default. The main exception is the long-tenancy route, where after ten years of renewals the landlord can end the lease without a reason, provided the correct three-month notice is given.
For a renewing residential lease, the yearly increase is capped at the twelve-month average change in the consumer price index published by the Turkish Statistical Institute. A temporary 25 percent cap applied from 2022 to mid-2024 but has expired. Because the index figure changes monthly, confirm the current rate before applying it.
Yes, mediation is compulsory for most money and eviction claims arising from a lease. Landlord and tenant law in Turkey requires the parties to attempt mediation before court for these categories, and a lawsuit filed without it is dismissed on procedure. A settlement reached in mediation is binding and enforceable like a court judgment.
It depends on the route. Mediation usually takes a few weeks, enforcement-office eviction for unpaid rent often a few months, and a full rent-determination or eviction lawsuit commonly several months and sometimes more than a year. Expert valuations and hearing dates are what usually stretch court timelines.
The tenant can demand the deposit back in writing and, if refused, pursue it through mediation and then the Civil Court of Peace. The deposit for a residential lease is capped at three months' rent and should be held in a bank account. The landlord can only withhold amounts they can prove relate to unpaid rent or damage beyond ordinary wear.
Yes, rental disputes in Turkey are decided under the same law for everyone. The Turkish Code of Obligations governs property located in Turkey regardless of the parties' nationality or the language of the contract. A lease written in English or signed abroad does not change the protections the Code gives.
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; the firm also serves clients in Russian and Chinese with experienced in-office translators.
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.
The content on this site is for general information and does not constitute legal advice.
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