The Problem
Renting commercial space in Turkey — a shop, office, or warehouse — follows different rules than residential leases. Many foreign entrepreneurs sign standard lease agreements without understanding that commercial tenants have fewer protections than residential tenants, that landlords can demand annual increases above CPI, and that early termination penalties can be devastating. Understanding commercial lease law before signing can save you thousands.
How the Law Works in Turkey
Commercial leases are governed by the Turkish Code of Obligations (TBK) Articles 339–356, with important distinctions from residential leases. Unlike residential leases, commercial lease rent increases are not subject to government-mandated caps — parties can freely agree on increase rates. However, if no agreement exists, the court determines increases based on CPI. Lease terms, renewal conditions, and termination notice periods are freely negotiable. The "key money" (hava parası) practice, though technically illegal, persists in prime commercial locations. Goodwill compensation (ticari itibar tazminatı) may be owed to commercial tenants upon eviction.
What the Tourist Should Do
Have a Turkish lawyer review the lease before signing. Negotiate a clear rent increase formula tied to a specific index. Include provisions for early termination, subletting rights, and renovation permissions. Ensure the lease allows the specific business activities you plan to conduct (check zoning — imar durumu). Register the lease with the municipality if required for your business license. Document the condition of the premises with photos before moving in.
The Risks
Commercial landlords can enforce unlimited rent increases if the lease agreement allows it. Early termination without legal grounds means paying rent for the entire remaining lease term. Unauthorized alterations to the premises can be grounds for eviction. If the premises do not have the correct zoning for your business, you may be unable to obtain operating permits and still be liable for rent.
LetFix Solution
LetFix assists foreign entrepreneurs with commercial lease negotiations and disputes in Turkey. Our commercial lawyers review contracts, negotiate favorable terms, and protect your interests throughout the lease period.
