Learn about commercial lease disputes in Turkey and the legal rights of foreign business tenants. Discover rent increase rules, eviction procedures, lease termination, security deposits, commercial property disputes, and legal remedies in this 2026 Updated Legal Guide.

Leasing commercial premises is one of the first legal steps taken by many foreign companies entering the Turkish market. Whether opening a branch office, retail store, restaurant, warehouse, manufacturing facility, logistics center, hotel, clinic, or technology office, the commercial lease agreement forms the legal foundation of the business operation.

However, disputes between landlords and commercial tenants are common. Rent increase disagreements, early termination claims, security deposit disputes, maintenance obligations, eviction proceedings, currency issues, and renewal conflicts can significantly affect business continuity and investment security.

Commercial lease relationships in Turkey are primarily governed by the Turkish Code of Obligations (TCO). While commercial parties generally enjoy greater contractual freedom than residential tenants, many provisions protecting tenants remain mandatory and cannot be excluded by contract. Foreign business tenants benefit from the same statutory protections as Turkish companies unless a specific law provides otherwise.

This 2026 Updated Legal Guide explains the legal rights of foreign business tenants in Turkey, the most common commercial lease disputes, and the practical strategies businesses should adopt before signing or terminating a commercial lease.

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Can Foreign Companies Lease Commercial Property in Turkey?

Yes.

Foreign individuals and foreign companies may generally lease commercial property in Turkey.

Typical leased premises include:

• Office buildings.
• Retail shops.
• Shopping mall units.
• Restaurants.
• Hotels.
• Warehouses.
• Factories.
• Industrial facilities.
• Medical clinics.
• Logistics centers.

Commercial leases are commonly entered into by:

• Turkish subsidiaries.
• Branch offices.
• Representative offices (where legally permitted).
• Joint ventures.
• Foreign-owned Turkish companies.

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Essential Elements of a Commercial Lease

A properly drafted commercial lease should clearly regulate:

• Identity of the parties.
• Property description.
• Lease term.
• Monthly rent.
• Payment currency.
• Rent adjustment mechanism.
• Security deposit.
• Maintenance obligations.
• Permitted business activities.
• Subleasing rights.
• Assignment provisions.
• Termination procedures.
• Dispute resolution.

Ambiguous lease terms frequently become the source of costly litigation.

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Rent Increase Disputes

Rent adjustment is one of the most common commercial lease disputes.

Typical disagreements concern:

• Inflation adjustments.
• Foreign currency clauses.
• Market rent reviews.
• Renewal increases.
• Extraordinary economic conditions.
• Contract interpretation.

Commercial leases should clearly specify:

• Adjustment dates.
• Calculation methods.
• Applicable indices.
• Currency provisions.

Where mandatory statutory rules apply, contractual clauses inconsistent with those rules may not be enforceable.

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Foreign Currency Lease Issues

Commercial leases involving foreign investors frequently specify rent in:

• Euro.
• US Dollar.
• British Pound.

Foreign currency clauses should always be reviewed carefully because Turkish legislation regulating contracts denominated in foreign currency may affect certain transactions depending on the parties and the nature of the lease. Transaction-specific legal advice is recommended before execution.

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Security Deposits

Commercial lease agreements commonly require a security deposit.

The agreement should specify:

• Deposit amount.
• Method of payment.
• Bank account details.
• Conditions for return.
• Permitted deductions.
• Interest arrangements where applicable.

Disputes frequently arise when landlords refuse to return deposits after termination.

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Maintenance and Repair Obligations

The lease should distinguish between:

Landlord Responsibilities

Typically:

• Structural repairs.
• Roof.
• Building framework.
• Major building systems.
• Common areas.

Tenant Responsibilities

Typically:

• Daily maintenance.
• Minor repairs.
• Interior decoration.
• Operational equipment.
• Cleaning.

The allocation of responsibilities should be expressly defined.

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Lease Renewal

Many commercial leases include automatic renewal provisions.

The parties should review:

• Renewal notice periods.
• Rent review mechanisms.
• Renewal conditions.
• Extension options.
• Termination rights.

Failure to comply with contractual notice requirements may affect renewal rights.

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Early Termination

Commercial tenants sometimes need to terminate leases because of:

• Business restructuring.
• Relocation.
• Insolvency.
• Declining sales.
• Corporate acquisitions.
• Force majeure events.

The legal consequences depend on:

• The lease terms.
• Applicable provisions of the Turkish Code of Obligations.
• The circumstances of termination.

Early legal advice can reduce financial exposure.

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Eviction Proceedings

Landlords may seek eviction in circumstances permitted by Turkish law.

Common grounds include:

• Non-payment of rent.
• Expiration of lease rights where statutory conditions are met.
• Breach of contractual obligations.
• Misuse of the premises.
• Unauthorized subleasing in breach of the agreement.
• Other grounds recognized by law.

Eviction generally requires compliance with statutory procedures and cannot be carried out unilaterally.

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Business Interruption

Commercial lease disputes may interrupt business operations.

Potential consequences include:

• Loss of customers.
• Supply chain disruption.
• Employee relocation.
• Contract breaches.
• Financial losses.
• Reputational damage.

Businesses should develop contingency plans where significant lease disputes arise.

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Assignment of Lease

Foreign investors often assign leases during:

• Mergers.
• Acquisitions.
• Corporate restructuring.
• Business sales.

The lease should specify:

• Assignment rights.
• Required landlord consent.
• Conditions for approval.
• Continuing liability of the original tenant.

Assignments made without required consent may create legal complications.

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Subleasing

Commercial leases should regulate whether:

• Subleasing is permitted.
• Partial occupation is allowed.
• Group companies may occupy the premises.
• Franchises may operate from the location.

Unauthorized subleasing may constitute a contractual breach.

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Improvements to the Premises

Businesses frequently invest in:

• Interior design.
• Renovations.
• Machinery installation.
• Security systems.
• Technology infrastructure.
• Branding.

The lease should address:

• Landlord approval.
• Ownership of improvements.
• Restoration obligations.
• Compensation upon termination.

These issues should be resolved before renovation work begins.

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Insurance

Commercial leases should clarify responsibility for:

• Property insurance.
• Public liability insurance.
• Fire insurance.
• Business interruption insurance.
• Equipment insurance.

Insurance obligations should complement—not duplicate—the landlord’s existing coverage.

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Dispute Resolution

Commercial lease disputes may concern:

• Rent.
• Deposits.
• Repairs.
• Termination.
• Eviction.
• Currency issues.
• Damage claims.
• Interpretation of lease clauses.

Depending on the lease, disputes may be resolved through:

• Negotiation.
• Mandatory mediation where required by law.
• Turkish courts.
• Arbitration, if validly agreed.

Choosing an appropriate dispute resolution mechanism at the drafting stage can reduce future costs and delays.

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Common Mistakes by Foreign Business Tenants

Foreign businesses frequently:

• Sign untranslated lease agreements.
• Ignore mandatory provisions of Turkish law.
• Fail to review zoning restrictions.
• Overlook foreign currency regulations.
• Accept unclear rent adjustment clauses.
• Ignore maintenance obligations.
• Invest heavily before confirming lease security.
• Neglect assignment provisions.

These mistakes often result in expensive commercial disputes.

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Best Practices Before Signing a Commercial Lease

Businesses should:

• Conduct legal due diligence on the property.
• Verify the landlord’s ownership.
• Review zoning and licensing requirements.
• Negotiate rent adjustment provisions.
• Clarify maintenance responsibilities.
• Review termination clauses.
• Confirm assignment rights.
• Obtain legal advice before signing.

Careful contract review significantly reduces commercial risk.

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Why Professional Legal Assistance Is Essential

Commercial leasing requires expertise in:

• Turkish contract law.
• Commercial real estate.
• Property law.
• Corporate law.
• Commercial litigation.
• Construction law.
• Regulatory compliance.
• Commercial negotiations.

An experienced Turkish commercial real estate lawyer can:

• Draft and negotiate lease agreements.
• Review rent adjustment clauses.
• Protect tenant rights.
• Resolve landlord disputes.
• Handle eviction proceedings.
• Advise on lease assignments.
• Represent businesses in mediation and court proceedings.
• Reduce long-term commercial risks.

Obtaining legal advice before signing a commercial lease is considerably less expensive than resolving a dispute after the business has commenced operations.

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Frequently Asked Questions

1. Can foreign companies lease commercial property in Turkey?

Yes. Foreign companies and foreign-owned Turkish entities may generally lease commercial premises under the same legal framework applicable to domestic businesses.

2. Can landlords increase commercial rent whenever they wish?

No. Rent increases are governed by the lease agreement and the applicable mandatory provisions of Turkish law where relevant. Clauses should be drafted carefully to avoid future disputes.

3. Are commercial leases allowed in foreign currency?

They may be, depending on the parties and the nature of the transaction. Turkish foreign currency regulations should be reviewed before signing.

4. Can a landlord evict a commercial tenant without a court process?

Generally, no. Eviction must usually follow the legal procedures established by Turkish law and cannot be carried out unilaterally.

5. Can a tenant assign a commercial lease?

Only if the lease agreement and applicable law permit the assignment or the required landlord consent is obtained where necessary.

6. What happens to improvements made by the tenant?

This depends on the lease agreement and applicable law. Ownership, compensation, and restoration obligations should be addressed expressly in the contract.

7. Is mediation required before filing a commercial lease lawsuit?

Certain commercial disputes may be subject to mandatory mediation under Turkish law before court proceedings can begin. Whether this requirement applies depends on the nature of the dispute.

8. Why should foreign businesses hire a Turkish commercial real estate lawyer?

A Turkish lawyer can negotiate tenant-friendly lease terms, review rent adjustment and termination provisions, ensure compliance with mandatory Turkish law, advise on foreign currency restrictions, and protect the business in lease negotiations or disputes.

Legal Support – Contact Our Commercial Real Estate Lawyers

A commercial lease is often one of the most valuable legal assets of a business operating in Turkey. Properly negotiated lease terms help protect operational continuity, reduce financial risk, and prevent costly disputes with landlords.

Fırat Fesih Kaya and our legal team advise foreign investors, multinational corporations, retailers, manufacturers, hotel operators, logistics companies, healthcare providers, entrepreneurs, and international businesses on commercial lease agreements, landlord-tenant disputes, rent adjustment claims, eviction proceedings, lease assignments, commercial real estate transactions, and all aspects of Turkish commercial property law.

Phone: +90 312 434 22 22

Mobile: +90 532 769 22 22

Email: info@firatfesihkaya.av.tr

Address: Mevlana Boulevard No:221, Yıldırım Tower, Office No:148, 06520 Balgat, Çankaya, Ankara, Turkey