Introduction
Many Turkish citizens living abroad, particularly in Germany, generate income by renting out a home or business property in Turkey that they inherited or acquired over the years through their savings. However, living thousands of kilometers away from where the property is located makes it both legally and practically difficult to handle a dispute with a tenant: the rent may fall behind current market conditions, the tenant may default on payments, may sublet the property to someone else without your knowledge, or may refuse to vacate. In this guide, we outline the main types of rental disputes that can be pursued from abroad under the Turkish Code of Obligations (TBK), along with the general course of action for each. Every heading below is examined in depth in a separate, dedicated article on our Law Blog.
Why a Rental Law Attorney Matters for Turkish Citizens Living Abroad
- A property owner living abroad typically communicates with the tenant with delay and indirectly (through family members, neighbors, or the tenant themselves). Having a lawyer help draft the lease agreement before a rental dispute even arises — with provisions that protect the landlord — ensures the tenancy starts on solid footing from day one.
- Since personally following litigation and enforcement proceedings in Turkey is usually not possible, handling the process through a rental law attorney under a power of attorney becomes practically indispensable.
- Exchange rate and inflation differences can cause the rent to fall well below current market value; this makes rent valuation and rent increase matters especially critical for owners living abroad.
- Small oversights when the lease is formed (missing written agreement, an unclear increase clause, an improperly obtained eviction commitment) can turn into serious losses of rights years later, at the eviction or valuation stage.
Formation of the Lease Agreement
Starting the tenancy on solid ground prevents most disputes that could arise later. Putting the agreement in writing, correctly stating the parties’ identity and contact details, setting the security deposit, and clearly regulating the rent payment method and due date make it far easier to meet the burden of proof later — especially for owners living abroad. Ultimately, getting support from a rental law attorney even before the tenancy begins prevents many problems you might otherwise face down the road. You can read our dedicated article on the key points to watch for when forming a lease agreement.
The Importance of the Rent Increase Clause
Under Article 344 of the TBK, the annual rent increase for residential and commercial (roofed) leases cannot exceed the twelve-month average change in the Consumer Price Index (CPI) from the previous rental year. If the contract sets a fixed rate or indexing method below this cap, the parties are bound by it; if the contract contains no increase clause at all, the CPI rate applies. The law further provides that in residential and commercial leases with a term longer than five years, or renewed after five years, the judge may redetermine the rent by also taking comparable rents into account. For owners managing their property from abroad, correctly structuring the increase clause is the key to keeping rental income current each year without entering into a separate legal dispute.
Rent Valuation Lawsuit
The statutory cap on rent increases in Turkey can sometimes fall below the going market rent. Even where the annual rent increase is applied consistently, the current rent may still remain below the prevailing market rent in the property’s region. The legislature has provided for exactly this situation through the rent valuation lawsuit (kira tespit davası). Generally, once five years have passed since the lease began, this lawsuit allows the current rent to be raised to the region’s prevailing market rent. For owners living abroad, this lawsuit is generally the primary legal avenue for protecting landlords against the erosion of rental income by inflation. You can read our dedicated article on the rent valuation lawsuit, which is used to align the rent with comparable market rates.
Eviction Lawsuits: An Overview
Under Turkish law, evicting a tenant is not a single type of lawsuit but is possible through several different legal avenues, each based on a different legal ground. Each has its own conditions, deadlines, and burden of proof, which is why we have covered each in its own separate article. In general terms, the main grounds for eviction are as follows:
- Eviction Lawsuit for Non-Payment of Rent — Available after the tenant fails to pay the rent and is given a 30-day notice period to pay following a formal warning (ihtar).
- Eviction for Two Justified Warnings — Available where the tenant defaults on rent payment in a way that gives rise to two justified warnings (ihtar) within a single rental year.
- Eviction Based on a Written Eviction Commitment — Available where the tenant has committed in writing to vacate the property by a specific date and fails to honor that commitment.
- Eviction Upon Expiry of the Lease Term (Ten-Year Extension Period) — In fixed-term residential and commercial leases, this gives the landlord the right to evict once the ten-year statutory extension period has elapsed.
- Eviction for Use of the Property Contrary to the Lease — Available where the tenant uses the property contrary to its contractually agreed purpose, or otherwise violates conditions set out in detail in the lease, such as disturbing neighbors.
- Eviction for Landlord’s Need — A request for eviction based on the landlord’s own need, or that of certain close relatives, for housing or business premises; this frequently arises for owners planning to return from abroad. Eviction for need can be pursued in such situations.
- Eviction for Reconstruction or Redevelopment — Available where the landlord plans to carry out substantial repairs, or to demolish and rebuild or expand the property.
- Eviction for the New Owner’s Need — The right to eviction based on the needs of a person who has subsequently purchased the property.
Each of the eviction routes summarized above differs in terms of the specifics of the situation and its applicability, the required documents, and the deadlines involved. You can read our dedicated articles covering these differences in more depth.
Security Deposit Disputes
Whether the security deposit taken at the start of the tenancy will be refunded, and in what amount, upon termination of the tenancy is a frequently encountered issue. You can read our dedicated article on the refund of a tenant’s security deposit.
Rent Agreed in Foreign Currency
The practice — often preferred by owners living abroad — of agreeing rent in a foreign currency, particularly the euro, is subject to the special restrictions under Article 344 of the TBK. You can read our dedicated article on setting the rent in foreign currency.
Taxation of Rental Income and Double Taxation
Rental income from a property in Turkey is subject to declaration in Turkey as income from immovable property (GMSİ). For citizens resident in Germany, the effect of the Turkey–Germany Double Taxation Prevention Agreement on this income will be addressed separately and in depth in a future article.
Pursuing Litigation and Enforcement From Abroad Through a Power of Attorney
Since a Turkish citizen living in Germany usually cannot personally handle a lawsuit or enforcement proceeding in Turkey, the process of granting a power of attorney to an authorized lawyer is of great importance. Procedural matters such as having the power of attorney issued at a Turkish consulate, or executed before a notary abroad and then apostilled, are critical to the process running smoothly. Feel free to contact us regarding how to arrange the power of attorney.
Conclusion
Renting out a property in Turkey while living in Germany carries an added legal risk simply because of the distance involved. Correctly forming the lease agreement, correctly structuring the increase clause, and knowing which legal avenue to pursue in the event of a dispute significantly reduces this risk. You can review the articles published as part of this guide to form your own view. Handling rental disputes with the support and guidance of an attorney experienced in rental law leads to a faster and more secure resolution of the process.
If you are dealing with a rental dispute concerning your property in Turkey, feel free to contact us so we can handle the process from start to finish on your behalf from abroad, through a power of attorney.
