Under Article 314 of the Turkish Code of Obligations No. 6098 (TBK), unless otherwise agreed or provided by local custom, rent is payable at the end of each month and at the latest at the end of the lease term. For renewed leases of residential and covered commercial premises, the statutory ceiling on rent increases under TBK Art. 344 is the rate of change in the twelve-month average of the consumer price index (CPI/TÜFE); the 25 percent cap on residential rent increases ended completely on 2 July 2024.
Throughout Turkey, and especially in centres with active property markets and a large, mobile foreign population such as Antalya, Alanya, Mahmutlar, Gazipaşa and Manavgat, lease relationships give rise to serious legal disputes between the parties over the due date of payment, excessive rent increases, restrictions on leasing in foreign currency and rent determination lawsuits. Failing to agree clearly on the payment date when drawing up the lease, or drafting increase clauses contrary to mandatory legislation, can cause landlords and tenants losses of rights that are difficult to remedy.
This legal guide examines in detail, within the framework of the Turkish Code of Obligations No. 6098, Decree No. 32 on the Protection of the Value of the Turkish Currency and Communiqué No. 2018-32/52, the time of payment of rent, the general rent increase regime, the prohibition on leasing in foreign currency and its exceptions, the abolition of the 25 percent cap, and the time limits for a rent determination lawsuit under TBK Art. 345.
When Rent Is Due and the Statutory Presumption (TBK Art. 314)
Under TBK Art. 314, if the lease contains no express provision on payment in advance and there is no binding local custom to the contrary, the tenant must pay the rent and, where applicable, ancillary costs at the end of each month and at the latest at the end of the lease term.
The End-of-Month Presumption and Its Legal Meaning: The legislature has accepted that, where the parties have not freely agreed otherwise, rent is as a rule payable at the end of the month. Therefore, if the lease contains no express provision on the due date, the tenant cannot be forced to pay before the end of the month; before the month ends, no notice of default can be served on the tenant and no enforcement proceedings seeking eviction can be initiated.
Contractual Advance Payment Clause: For the landlord to be able to collect the rent at the beginning of the period of occupation, the lease must contain a due-date clause that leaves no room for doubt. For example, a clear clause such as “Rent shall be paid in advance within the first 5 days of each month into the bank account designated by the landlord” should be included. The tenant cannot be in default before the payment date has passed. For the legal remedies available if rent is not paid, you can find detailed information in our article on the landlord’s rights against a tenant who does not pay rent.
The Prohibition on Leasing in Foreign Currency and Its Exceptions
Under Decree No. 32 on the Protection of the Value of the Turkish Currency and the related communiqués, persons resident in Turkey are prohibited from setting rent for residential and covered commercial premises in foreign currency or indexed to foreign currency; except in special cases such as foreign tenants and free zones, foreign currency clauses are invalid and the contract continues in Turkish lira.
General Rule: Foreign Currency Ban for Residential and Covered Commercial Premises: Under Law No. 1567 and Communiqué No. 2018-32/52, in leases of residential and covered commercial premises concluded between citizens of the Republic of Turkey or persons legally resident in Turkey, the rent and ancillary receivables such as deposits and contractual penalties cannot be agreed in foreign currency or indexed to foreign currency. Clauses contrary to this prohibition are legally invalid, and the contract produces its effects in Turkish lira.
Exceptional Cases Where Leasing in Foreign Currency Is Permitted: Foreign exchange legislation allows a lease to be drawn up in foreign currency where certain specific circumstances exist:
- The tenant is a natural or legal person not resident in Turkey (a foreigner) (residential or commercial leases by non-resident foreigners in Alanya and other coastal towns fall within this scope).
- The tenant is a branch, representative office or liaison office in Turkey of non-residents, or a company in which non-residents directly or indirectly hold 50 percent or more of the shares (for commercial premises).
- Leases of real estate located within free zones.
- Leases to which diplomatic missions, consulates and international organisations are party.
- Duty-free shops and special business areas within airport and port boundaries.
- Leases of property that is not residential or covered commercial premises (for example, leases of vacant land, fields, open car parks or construction machinery).
The 5-Year Rule for Exceptional Foreign Currency Leases (TBK Art. 344/4): If the contract falls within one of the exceptions in the foreign exchange legislation and has been validly concluded in foreign currency, by law no increase in rent can be requested until five years have passed. Excessive hardship under TBK Art. 138 (an action for adaptation of the contract) is the sole exception to this prohibition on increases. After the five-year period has expired, the court may be asked to determine a fair new rent, taking into account changes in the value of the foreign currency, comparable market rents and general economic conditions.
Rent Increase Rules for Turkish Lira Leases and the End of the 25 Percent Cap
Under TBK Art. 344, the statutory upper limit for increases in renewed leases is the rate of change in the twelve-month average of the consumer price index (CPI/TÜFE) announced by the Turkish Statistical Institute (TÜİK). As of 02.07.2024, the 25 percent cap on residential rents ended completely.
General Regime: The 12-Month Average CPI Ceiling: The maximum increase applicable to renewed lease periods for residential and covered commercial premises cannot exceed the rate of change in the twelve-month average CPI announced by TÜİK for the previous lease year. Stating the statutory ceiling expressly in the contract, rather than vague expressions such as “at the rate of inflation” or “the average of PPI and CPI”, prevents disputes.
End of the 25 Percent Cap on Residential Rents on 02.07.2024: The 25 percent statutory cap that applied to residential rents between 11.06.2022 and 01.07.2024, under Provisional Articles 1 and 2 added to the TBK by Laws No. 7409 and 7456, ceased to apply on 02.07.2024 because it expired and no further statutory extension was made. In current practice, the only statutory ceiling for both residential and covered commercial leases is the twelve-month average CPI. For more comprehensive information on landlords’ rights and undertakings to vacate, see our article landlord protection guide.
Rent Determination Lawsuit, Time Limits and the Notice Requirement (TBK Art. 345)
A rent determination lawsuit can be filed at any time; however, for the court’s decision to apply from the start of the new lease period, where the contract contains no increase clause, the lawsuit must be filed, or a written notice served, no later than 30 days before the start of the new period.
| Situation Under the Lease | Statutory Procedure and Notice Requirement | Date From Which the Court Decision Applies |
|---|---|---|
| No Increase Clause in the Lease | The lawsuit must be filed, or a written notice served, at least 30 days before the start of the new period. | Binding from the start of the new lease period. |
| No Increase Clause in the Lease (30 Days Missed) | If the 30-day period is missed or no written notice is given, a lawsuit may still be filed. | The court decision takes effect for the following (subsequent) lease period. |
| Increase Clause in the Lease | A lawsuit may be filed at any time until the end of the new lease period (no separate 30-day prior notice is required). | The new rent determined applies from the start of the new period. |
Fairness Based on Comparable Rents in Leases Exceeding 5 Years (TBK Art. 344/3): In leases lasting longer than 5 years or renewed after 5 years, the CPI ceiling ceases to be binding. The court sets a new rent in line with market value, taking into account the location of the property, its condition of use, comparable market rents and an equitable reduction (the sitting-tenant discount).
Mandatory Mediation as a Precondition for Filing: Under Article 18/B of the Law on Mediation in Civil Disputes No. 6325, as introduced by Law No. 7445, applying to a mediation office before filing a lawsuit is a mandatory procedural precondition in rent determination and eviction disputes. If no agreement is reached in mediation, the court may be approached with the final mediation report.
Key Principles of Lease Law and Comparison Table
The comparison table below summarises the general rules on the due date of payment, increase ceilings, foreign exchange restrictions and determination lawsuits in lease law practice:
| Legal Institution | Legal Basis | Basic Rule and Statutory Limit | Special Exceptions |
|---|---|---|---|
| Due Date of Payment | TBK Art. 314 | End-of-month presumption (at the end of each month unless otherwise agreed) | Payment in advance may be agreed in the lease |
| TRY Rent Increase Ceiling | TBK Art. 344/1-2 | Rate of change in the TÜİK twelve-month average CPI | In leases exceeding 5 years, determination based on comparable market rent may be requested |
| Residential 25 Percent Cap | Laws No. 7409 and 7456 | Ended completely as of 02.07.2024 | The twelve-month average CPI ceiling also applies to residential leases |
| Foreign Currency Rent Ban | Decree No. 32 | Prohibited between residents for residential and covered commercial premises | Foreign tenants, free zone and port leases |
| Increases in Foreign Currency Leases | TBK Art. 344/4 | No increase may be requested during the first 5 years | Excessive hardship (adaptation) under TBK Art. 138 is reserved |
| Rent Determination Lawsuit | TBK Art. 345 | May be filed at any time; mediation is mandatory | The 30-day notice rule determines the date from which the decision applies |
Frequently Asked Questions
If the lease does not state a payment date, when must the tenant pay?
Under Article 314 of the Turkish Code of Obligations No. 6098, if there is no contractual advance payment clause between the parties and no local custom, rent is payable at the end of each month and at the latest at the end of the lease term. The landlord cannot force the tenant to pay, or send a notice of default, before the end of the month.
Can the landlord demand a rent increase above the twelve-month average CPI?
No. Article 344 of the Turkish Code of Obligations is mandatory, and even if the parties agree, the increase cannot exceed the twelve-month average CPI for the previous lease year. Agreements on increases above the ceiling are invalid. Only in leases that have lasted 5 years can a rent determination lawsuit be filed to request a rent above the ceiling based on comparable market rents.
Is the 25 percent cap on residential rent increases still in force?
No. The 25 percent statutory cap on residential rent increases that applied between 11 June 2022 and 1 July 2024 ceased to apply completely on 2 July 2024. Since that date, the twelve-month average CPI has been the statutory upper limit for all renewed residential and covered commercial leases.
How is a rent determination lawsuit filed against a tenant who has completed 5 years?
When the 5-year period of the lease has been completed, the landlord may file a lawsuit to determine a new rent based on comparable market value, without being bound by the CPI ceiling. Before filing, the mandatory mediation process must be completed and, if the lease contains no increase clause, a notice must be served 30 days in advance for the decision to apply from the start of the new period.
Can a lease in foreign currency be concluded with a foreign tenant?
Yes. Under Decree No. 32 on the Protection of the Value of the Turkish Currency and Communiqué No. 2018-32/52, rent may be agreed in foreign currency in contracts where the tenant is a foreign natural or legal person not resident in Turkey. However, it should be borne in mind that, under TBK Art. 344/4, no rent increase can be requested for five years in foreign currency leases.
Conclusion and Legal Assessment
In a lease relationship, determining the due date of payment, the statutory control of increase rates, the validity of foreign currency clauses and rent determination lawsuits are subject to technical procedural rules and strict time limits that extinguish rights. Clarifying the payment date when concluding the contract, complying with statutory increase ceilings and observing foreign currency restrictions prevent disputes that may arise later.
Particularly in leases involving local and foreign parties in the Antalya and Alanya region, from drafting the contract through to eviction and rent determination proceedings, it is important that the process be conducted within the proper legal framework and that professional legal advice be obtained from a lawyer in order to avoid any loss of rights.
Legal Notice: This text has been prepared for general information purposes only and does not constitute legal advice. sophoshukuk.com makes no referral, guarantee or promise of outcome. Each case must be assessed on its own particular circumstances; for your specific dispute, please obtain professional advice from a lawyer.