With the Presidential Decree No. 85, which came into force on September 13, 2018, it is prohibited to make a rental agreement in foreign currency in Turkey. The purpose of this ban is to prevent tenants from suffering by preventing increases in rental prices resulting from exchange rate fluctuations.
Scope of the Prohibition:
The scope of the ban includes all rental agreements made between persons residing in Turkey.
Whether the ban will be applied in case of persons resident abroad or a foreign organization is subject to special provisions.
All types of real estate lease agreements, including residential and workplace leases, are subject to this prohibition.
Result of Contracts Contrary to the Prohibition:
Contracts made in violation of the prohibition of making a lease in foreign currency are invalid.
In this case, the tenant is obliged to pay the legal rent.
Overpaid rental fees can be refunded.
Exceptions to the Prohibition:
In some exceptional cases, it is possible to conclude a rental agreement in foreign currency. These exceptions are:
There must be a written agreement between the parties that the rental prices may be increased by the average inflation rate on the date of the contract.
Determination of the rental fee according to the rental prices determined by the state.
Determination of the rental fee according to foreign rental prices.
Benefits of the Ban for the Tenant:
It provides protection against increases in rental prices resulting from exchange rate fluctuations.
It allows the rental price to be determined in advance and facilitates budget planning.
It reduces the risk of legal disputes.
Benefits of the Ban for the Leaseholder:
It prevents problems that may occur in the collection of rent.
It reduces the likelihood that tenants will avoid paying.
It ensures the stability of the rental price in long-term rental agreements.
