Commercial Lease Agreements in Turkey: What to Check Before Signing
Commercial lease agreements in Turkey are governed by the Turkish Code of Obligations, but a number of practical points — the currency the rent is set in, how increases are calculated, and what happens after several years of tenancy — matter more in practice than the general statutory framework alone, and are exactly where a foreign tenant most often gets caught out.
The Currency Rule for Commercial Lease Agreements
Turkey has, at various points, restricted setting commercial lease rent in a foreign currency, generally requiring rent for commercial real estate leases to be denominated in Turkish lira instead, subject to specific exceptions. Because this rule and its exceptions have been adjusted over time, the current currency requirements should be confirmed directly for your specific lease rather than assumed from a template contract or a previous lease you may have signed some years ago.
How Rent Increases Are Generally Calculated
Where a lease is denominated in Turkish lira, statutory rules generally limit how rent can be increased at renewal, often tying permitted increases to an official price index rather than leaving the increase entirely to negotiation. This is one of the more commonly misunderstood aspects of commercial lease agreements in Turkey — a landlord cannot simply set any renewal increase they choose, and a lease clause that conflicts with the statutory limit may not be enforceable as written.
- 01Confirm the Rent Currency
Check whether the lease can lawfully be denominated in a foreign currency or must be in Turkish lira.
- 02Review the Increase Mechanism
Understand how and by how much rent can be increased at renewal.
- 03Check Renewal and Duration Terms
Understand your rights as the lease term extends over multiple years.
- 04Review Assignment/Subletting Rights
Confirm whether you can assign or sublet the space if your business needs change.
- 05Clarify Termination and Deposit Terms
Understand early termination conditions and what happens to any deposit.
Tenant Protections Strengthen Over Time
Turkish law generally provides increasing protection for a commercial tenant the longer a lease relationship continues, with certain renewal and termination protections becoming more significant after a lease has run for an extended number of years. This means a landlord's ability to simply decline renewal or significantly alter terms is more limited for a long-standing tenant than it might be at the very start of a lease — a point worth understanding when negotiating an initial term.
Fit-Out, Improvements and Deposits
A well-drafted commercial lease should clearly address who bears the cost of fit-out and improvements, what happens to fixtures at the end of the lease, and the terms under which a security deposit is held and returned. Leaving these points to informal understanding rather than clear contractual terms is a common source of dispute when a commercial tenancy eventually ends.
Local Context
Commercial premises for tourism, hospitality and retail businesses are in steady demand around Fethiye, and foreign business owners entering into a first commercial lease here often assume it works similarly to a lease in their home country — the currency and rent-increase rules in particular are areas where that assumption tends to cause the most friction.
Frequently Asked Questions
Can my commercial lease be set in euros or another foreign currency?
This depends on the current rules and any applicable exceptions, which have changed over time — this should be confirmed directly for your specific lease rather than assumed, since an unlawfully structured currency clause can create problems later.
Can my landlord raise the rent by any amount at renewal?
Generally no — where statutory rent-increase limits apply, a landlord is generally restricted to an increase tied to an official index rather than an arbitrary figure, and a clause exceeding this limit may not be enforceable as written.
Do I get stronger rights the longer I stay in a commercial lease?
In general terms, yes — Turkish law provides increasing tenant protection as a commercial lease relationship continues over an extended period, which is worth understanding when negotiating both the initial term and any renewal.
Can I sublet or assign my commercial lease to another business?
This depends entirely on the specific terms of your lease agreement — some leases restrict or prohibit assignment and subletting, so this should be checked and, if needed, negotiated before signing rather than assumed to be automatically allowed.
What happens to my deposit if I terminate the lease early?
This depends on the lease's specific termination terms and the circumstances of the early termination — a clearly drafted lease should address this directly rather than leaving it to be resolved after the fact.
If you're reviewing a commercial lease in Turkey, get in touch — see our Commercial & Company Law page for the full scope of what we help with.
This article is provided for general information only and does not constitute legal advice; commercial lease rules, including currency requirements, are periodically updated and should be confirmed for your specific agreement.
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