Foreign Company’s Turkish Property Is Seized for Debt: Emergency Legal Remedies – 2026 Updated Guide

What can a foreign company do when its Turkish property is seized for debt? Learn about enforcement objections, lifting attachment, auction protection and urgent legal remedies.

What Happens When a Foreign Company’s Property Is Seized?

A foreign company may face serious operational and financial risks when real estate in Turkey is attached or seized for debt.

The action may arise from:

• A private enforcement proceeding;
• A court judgment;
• A provisional attachment;
• A mortgage enforcement;
• Tax or public debt;
• A commercial lawsuit;
• A creditor’s emergency application; or
• A debt attributed to a related company or shareholder.

The first step is to identify the legal basis of the seizure. Different procedures may apply depending on whether the debt is final, disputed, secured or owed to a public authority.

Can a Foreign Company Challenge the Seizure?

Potentially. A foreign company may challenge the seizure if:

• There is no valid debt;
• The wrong company was pursued;
• The debt was already paid;
• The enforcement file contains a service defect;
• The creditor lacks authority;
• The amount is incorrect;
• The attachment exceeds the debt;
• The property does not belong to the debtor;
• A required court decision is missing; or
• The enforcement violates an arbitration or jurisdiction agreement.

The company should not assume that an attachment is valid merely because it appears in the title records or an enforcement file.

What Type of Seizure Was Imposed?

The company should determine whether the measure is:

Ordinary Attachment

An ordinary attachment may be imposed during enforcement to secure payment of a debt and may restrict transfer or sale of the property.

Provisional Attachment

A provisional attachment may be granted before the creditor obtains a final judgment where the creditor claims an urgent risk that assets will be concealed or transferred.

Mortgage Enforcement

If the property secures a loan, the mortgage creditor may have a separate enforcement route and priority rights.

Public Debt Seizure

Tax or other public debts may be collected through different administrative procedures. The company may need to use administrative objections and court remedies.

Court-Ordered Interim Protection

A court may restrict disposal of property while a dispute is pending. The company should obtain the order and the underlying case file.

Can the Company Request Removal of the Attachment?

The foreign company may request removal or limitation of the seizure where:

• The debt has been paid;
• Adequate security is provided;
• The creditor agrees to release the property;
• The property value substantially exceeds the debt;
• The wrong property was attached;
• The enforcement was cancelled; or
• The attachment was imposed unlawfully.

A company may offer payment security or another asset to prevent the property from being sold while the dispute continues.

The request should be supported by title records, valuation reports, payment evidence and corporate documents.

What If the Debt Belongs to a Related Company?

A foreign company’s property should not automatically be used to pay the debt of a separate subsidiary, shareholder or affiliate.

Separate legal personality may protect the company where:

• The debt belongs to another legal entity;
• There is no guarantee;
• The company did not sign the relevant contract;
• No mortgage or security was granted;
• There is no valid group liability; and
• The creditor cannot establish a legal basis for pursuing the property.

The company should review the contract, guarantee documents, corporate structure, security registrations and enforcement file.

If the foreign company did provide a guarantee or mortgage, the analysis may be different.

What If the Property Does Not Belong to the Debtor?

If a creditor attaches property owned by a third party, the owner may need to assert its ownership and request removal of the seizure.

This may arise where:

• The property belongs to a foreign parent company;
• A subsidiary occupies the property but does not own it;
• A shareholder’s personal debt is pursued against company property;
• The title records were misunderstood;
• A transfer was completed before the debt; or
• A trust, lease or ownership structure was ignored.

The company should provide title records, purchase documents, payment evidence and corporate ownership information immediately.

Can the Company Challenge the Underlying Debt?

The company may have a defense based on:

• Payment;
• Invalid contract;
• Defective goods or services;
• Set-off;
• Limitation;
• Lack of authority;
• Incorrect calculation;
• Forgery;
• Arbitration;
• Foreign jurisdiction;
• Failure of contractual conditions; or
• Lack of proper notice.

A challenge to the debt and a challenge to the seizure may be separate steps. The company should assess both the underlying obligation and the enforcement procedure.

What If the Property Is About to Be Sold?

If the property is scheduled for auction or another sale process, the foreign company should act immediately.

Possible remedies may include:

• Challenging the enforcement;
• Requesting suspension of the sale;
• Seeking urgent court protection;
• Paying or securing the debt;
• Objecting to valuation;
• Challenging the auction notice; or
• Claiming that the property is not legally subject to sale.

A property sale may be difficult to reverse after completion, particularly if third-party rights arise.

The company should obtain the sale date, valuation report, auction conditions and enforcement notices without delay.

Can the Company Challenge the Valuation?

Yes, if the property has been undervalued or the creditor seeks to sell it without considering its true market value.

The company may request review of:

• Market value;
• Zoning and development rights;
• Building value;
• Rental income;
• Location;
• Existing leases;
• Mortgage priority;
• Property condition; and
• Comparable sales.

An independent valuation may support an objection and help prevent a sale below market value.

What If There Is a Mortgage?

A mortgage may affect the priority of creditors and the sale process.

The company should determine:

• The mortgage holder;
• The secured amount;
• The date of registration;
• Outstanding balance;
• Enforcement status;
• Priority over other creditors; and
• Whether the property can be released by payment or refinancing.

A seizure by an unsecured creditor may not have the same priority as a registered mortgage. The company should obtain the complete title record and creditor information.

Can the Company Claim Damages for an Unlawful Seizure?

Potentially. If the seizure was unlawful and caused proven loss, the company may seek compensation.

Possible losses may include:

• Lost rental income;
• Financing disruption;
• Business interruption;
• Contract cancellation;
• Reputation damage;
• Additional interest;
• Legal and valuation expenses; and
• Loss caused by an unlawful auction.

The company must generally establish the legal defect and a direct connection between the seizure and the loss.

What Documents Should a Foreign Company Collect?

The company should preserve:

• Title deed records;
• Enforcement notices;
• Court decisions;
• Payment records;
• The underlying contract;
• Invoices;
• Guarantee and mortgage documents;
• Corporate registry records;
• Shareholder and affiliate information;
• Valuation reports;
• Auction notices;
• Service documents; and
• Communications with the creditor.

Foreign corporate documents may require notarization, apostille or legalization and certified translation.

What Should the Foreign Company Do Immediately?

The company should:

1. Obtain the complete enforcement or court file;
2. Identify the creditor and debt basis;
3. Confirm the property’s registered owner;
4. Check the auction and valuation status;
5. Review service and objection dates;
6. Preserve payment and contract evidence;
7. Consider security or settlement;
8. Request lifting or limitation of the attachment;
9. Seek urgent protection against sale; and
10. Avoid transferring assets to conceal them.

Asset concealment or sham transfers may create additional civil or criminal risks.

Can a Foreign Company Act From Abroad?

A foreign company may appoint a lawyer to obtain the enforcement file, submit objections, negotiate with creditors, request release of the property and defend the company in court.

Corporate authorization and power of attorney documents may require notarization, apostille or legalization and certified translation.

Lawyer Fırat Fesih Kaya assists foreign companies with property seizures, enforcement disputes, provisional attachments, mortgage enforcement, auction protection and asset recovery in Turkey.

2026 Legal Considerations

In 2026, a foreign company should distinguish between private enforcement, provisional attachment, mortgage enforcement and public debt collection.

The company should confirm current objection periods, auction procedures, security requirements and court remedies immediately after learning of the seizure. Delay can result in sale, additional costs and loss of practical remedies.

Conclusion

A foreign company whose Turkish property is seized for debt may have urgent remedies, particularly where the debt is disputed, the wrong entity was pursued, the property belongs to a third party or the auction is approaching.

The company may seek cancellation, lifting or limitation of the attachment, suspension of sale, valuation review, security-based release or compensation for unlawful loss.

Frequently Asked Questions (FAQ)

1. Can a foreign company challenge the seizure of Turkish property?

Potentially. The company may challenge the debt, enforcement procedure, ownership basis, valuation or proportionality of the seizure.

2. Can a subsidiary’s debt be enforced against the foreign parent’s property?

Not automatically. Separate legal personality may protect the parent unless it provided a guarantee, mortgage or other valid security.

3. How can the attachment be removed?

The company may seek removal through payment, security, creditor consent, proof of ownership, cancellation of enforcement or another legal remedy.

4. Can the company stop an upcoming auction?

Urgent protection may be considered if the sale is unlawful, the debt is disputed, the valuation is incorrect or the property is not subject to enforcement.

5. Can the company challenge the property valuation?

Yes, particularly where the valuation ignores development rights, buildings, rental income, location or comparable market prices.

6. What if the debt was already paid?

Payment evidence may support cancellation or removal of the seizure, subject to the applicable enforcement procedure.

7. What if the property belongs to another group company?

The owner may need to submit title records and corporate documents proving that the debtor and property owner are separate entities.

8. Can the company claim damages for an unlawful seizure?

Potentially. Proven financing losses, business interruption, lost rent and other direct losses may be recoverable where the seizure was unlawful.

9. What documents are most important?

The enforcement file, title records, contracts, payment records, guarantees, mortgage documents, valuation reports and service records are commonly important.

10. Can a foreign company defend the property from abroad?

Often, yes. A lawyer may act under properly prepared corporate authorization and power of attorney documents, subject to notarization, apostille or legalization and certified translation.

This article is provided for general informational purposes only and does not constitute legal advice. We recommend consulting a lawyer about your specific circumstances to avoid any loss of rights.

Expert Legal Support

A property seizure can threaten a foreign company’s operations, financing and investment in Turkey. Prompt legal assistance can help challenge unlawful enforcement, stop an auction, remove an attachment and protect the company’s property.

Fırat Fesih Kaya Law Office provides legal assistance to foreign companies and investors in Turkey and abroad.

Call: +90 312 434 22 22
WhatsApp: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Office: Mevlana Boulevard No:221, Yildirim Tower, Office No:148, Balgat, Cankaya, Ankara, Turkey