Legal Issues in Residential and Commercial Lease Agreements in Turkey

The law: The core lease rules sit in TBK No. 6098, Articles 299-356. The protective provisions for residential and roofed-workplace (catili isyeri) leases — rent cap, deposit cap, notice and eviction grounds — apply to both homes and commercial premises such as shops, offices and warehouses.

The law: TBK 344 ties annual rent increases to the 12-month CPI average. A temporary 25% cap applied to residential renewals from June 2022 (TBK Provisional Article 1, added by Law No. 7409), but it lapsed on 1 July 2024. Since 2 July 2024, the CPI average is again the sole legal ceiling for both homes and workplaces. If you saw the widely reported 25% figure, it no longer applies.

Any clause that raises rent more often, or by more than the CPI ceiling, is unenforceable to the extent it exceeds the legal limit. If the parties cannot agree, either side may ask the court for a rent-determination (kira tespit) decision. The tenant or the landlord can bring this suit; the rent the court sets generally applies from the start of the new rental year. After a lease has run five years, the court has broader discretion to adjust the rent toward fair market value, but still within the bounds of the law.

Deposits, Bank Payment and the Foreign-Currency Ban

Three money rules trip up foreign tenants and landlords more than any others. Each has a clear statutory basis.

Deposit cap: maximum three months rent (TBK 342)

For residential and roofed-workplace leases, the security deposit (depozito or guvence bedeli) cannot exceed three months rent. A cash deposit must be placed in a bank account that cannot be touched without both parties' consent (or a court or enforcement decision). After you move out, if the landlord does not start a lawsuit or enforcement proceeding within three months, the bank must return the deposit to you.

Rent must be paid through a bank

Turkish tax rules require rent for homes and workplaces to be paid through a bank, post office (PTT) or similar financial institution, not in cash. Paying cash, which many foreigners do, leaves you without the proof Turkish courts expect and can trigger tax penalties. Always pay by bank transfer with a clear reference such as the month and the address.

Rent cannot be set in foreign currency

Under Decree No. 32 on the Protection of the Value of Turkish Currency and the related Presidential decision, residents of Turkey generally cannot denominate or pay residential or workplace lease rent in foreign currency or index it to one. There are limited exceptions for certain contracts involving foreign-national parties, but you should never assume your lease qualifies.

Ending a Fixed-Term Lease: Notice Periods (TBK 347)

Under Article 347 of the Code of Obligations, a fixed-term lease does not simply end when the term expires:

• Tenant: To avoid automatic renewal for another year, the tenant must give written notice at least 15 days before the end of the term. Notice through a notary is recommended for proof.
• Landlord: A landlord cannot terminate just because the term ended. Only after the tenancy has continued into the 10-year extension (uzama) period that follows the initial term may the landlord give notice — at least three months before the end of the following extension year — to end the lease without showing cause.

Example: A one-year lease running 1 January 2025 to 31 December 2025 renews automatically unless the tenant serves notice by around 16 December 2025. For how the cause-free right works once a tenancy is long-running, see our guide on evicting ten-year tenants in Turkey.

Early Termination by the Tenant (TBK 325)

Foreign tenants often need to leave before the term ends — a job relocation, a move out of Turkey, or a business closing. You can hand the property back early, but you are not automatically free of the rent.

Under TBK 325, a tenant who returns the property before the term ends remains liable for rent and lease obligations for a reasonable period during which the landlord could re-let the premises. That liability ends sooner if you find a suitable replacement tenant — solvent and willing to take over on the same terms — whom the landlord can reasonably be expected to accept. If the parties cannot agree what a reasonable period is, the court decides, often with an expert assessment.

Grounds for Eviction Under Turkish Law

Outside the long-tenancy scenario, a landlord needs a recognised legal ground to evict. The main grounds are below; each has its own notice rule and, for several, a strict filing deadline.

Non-payment of rent (TBK 315)

If a tenant fails to pay rent, the landlord may serve a written default notice (ihtar) giving time to pay — a minimum of 30 days for residential and roofed-workplace leases. The notice must state the unpaid period and amount and the consequence of non-payment; the period can be extended but not shortened. If the tenant still does not pay, the landlord can pursue termination and eviction, or bring enforcement proceedings for unpaid rent under IIK No. 2004. A separate mechanism allows eviction where the tenant receives two justified payment warnings within the same lease year; we explain it in our article on the two justified warnings rule (TBK 352), and we cover the practical steps in our guide on dealing with a tenant who does not pay rent.

Breach or misuse (TBK 316)

If the tenant misuses the property — unauthorised subletting, prohibited animals, or structural alterations such as removing load-bearing walls — the landlord must usually give written notice with at least 30 days to remedy the breach, then may pursue eviction if it continues. Where the tenant deliberately causes serious harm, however, the landlord may terminate immediately, with no cure period.

Landlord's or family's genuine need (TBK 350)

A landlord may terminate where they, their spouse, descendants, ascendants or dependants genuinely need the property as a home or workplace. The need must be real and provable; courts scrutinise pretextual claims, and a successful needs-based eviction usually bars re-letting to a different tenant for three years.

New owner's need (TBK 351)

A buyer who acquires a leased property and needs it for themselves or close family must notify the tenant in writing within one month of acquisition, then may bring an eviction action six months after acquisition — or instead rely on the lease's own term-end grounds.

The Eviction Process and Mandatory Mediation

Turkish eviction is a structured, document-heavy process. The usual steps are:

1. Notice: A valid written notice (often through a notary), citing the correct legal ground and giving the tenant any required cure period.
2. Mandatory mediation: Since 1 September 2023 (Law No. 7445, amending Mediation Law No. 6325), most rental disputes — including eviction, rent determination and rent adaptation — must go through compulsory mediation (arabuluculuk) before a lawsuit can be filed. Skipping this step results in dismissal.
3. Court action: If mediation fails, the landlord files an eviction lawsuit. The court hears both sides and, if successful, issues a decision allowing repossession.

Self-help eviction — changing locks or removing belongings — is illegal and can expose a landlord to liability. If you are facing or pursuing an eviction, contact Lexin Legal early. You can also read our broader overview of resolving rental disputes in Turkey.

A Note for Foreign Landlords

If you own Turkish property from abroad and let it, a few points recur. You will need a Turkish tax number to declare rental income, and an overseas owner usually grants a power of attorney so a local representative can sign the lease, issue notices and act in an eviction. Where the tenant is a company and the landlord is an individual, the commercial tenant generally must apply withholding tax (stopaj) to the rent it pays — a routine but easily missed obligation for foreign businesses renting workplace premises. Our commercial lease and contract review team and Istanbul real estate lawyers handle these arrangements end to end.

Practical Tips for Foreign Tenants and Landlords

For tenants:

• Notarize the lease if you will use it for a residence permit application.
• Pay rent in Turkish lira, by bank transfer, with a clear reference — and keep every receipt.
• Never ignore a default or eviction notice; respond, and if it is a payment issue, cure it within the deadline.
• Confirm the deposit is no more than three months rent and held in a proper bank account.

For landlords:

• Use the correct legal ground and serve notice properly — defects in notice are the most common reason evictions fail.
• Respect the CPI cap on rent increases; over-charging clauses are unenforceable.
• Mind the deadlines: the one-month needs-based filing window (TBK 350/353) and the new-owner timeline (TBK 351).
• Never attempt self-help eviction or retaliatory termination.

Whether you are leasing an apartment in Istanbul or a commercial unit, professional review protects you from costly mistakes. Our Istanbul real estate lawyers can review your lease before you sign.

Frequently asked questions