rack rent in turkey
Author: Attorney Orbay ÇokgörLast updated:

What Can Be Done Legally Against an Excessive Rent Increase in Turkey?

In Turkey, a landlord may, as a rule, raise the rent in renewed lease periods by no more than the 12-month average change in the CPI for the previous lease year; an excessive rent increase above this cap is legally invalid as to the excess. In residential leases in Turkey, the rate at which the rent increases is, as a rule, set by the lease agreement concluded between the landlord and the tenant. Although the legislator has introduced mandatory upper limits on the rate of increase in residential rents in order to protect tenants, tenants in Turkey are today frequently asked to pay excessive rent increases above the legal limits, with high inflation given as the reason. This problem, which places a serious financial burden and eviction pressure on tenants, can be resolved through the mandatory legal safeguards provided by the Turkish Code of Obligations (TCO).

An excessive rent increase is the landlord’s demand, for the new lease period, of a rent above the legal cap laid down in TCO Art. 344. This demand may stem from a high increase clause written into the agreement in advance, or from an excessive amount notified unilaterally by the landlord at the start of the new period. In both cases the tenant’s legal position does not change, and three key questions must be answered when objecting to an excessive rent hike under Turkish law:

  1. Is the requested increase legally binding?
  2. What amount is the tenant obliged to pay in the new period?
  3. Can the tenant recover the excess amount paid?

Article 344 of the Turkish Code of Obligations – Agreements regarding the rental fee to be applied in renewed rental periods are valid, provided that they do not exceed the rate of change in the twelve-month average of the consumer price index in the previous rental year. This rule also applies to rental agreements lasting more than one year.

What Is an Excessive Rent Increase in Turkey and Which Increase Counts as Excessive?

In legal terms, an excessive rent increase in Turkey means exceeding the mandatory legal cap drawn by TCO Art. 344. The yardstick in the legal assessment is not the tenant’s ability to pay, current market rents in the neighbourhood or the percentage size of the requested increase. Under Turkish law, the one and only definitive legal yardstick here is the statutory ceiling.

In every renewal year after the first year of the lease agreement, the maximum rate of increase the landlord may demand is fixed by law. In practice, the following three legal situations are sharply distinguished from one another:

  1. The Agreement Contains an Increase Clause: The rate of increase agreed in the contract in Turkey is valid to the extent that it does not exceed the twelve-month average change in the CPI. Any rent hike above this ceiling is treated as an excessive increase in Turkey, and the excess part is legally invalid.
  2. The Agreement Contains No Increase Clause: If no rate of increase has been agreed in the lease agreement in Turkey, under TCO Art. 344/2 the rent for the new period is set by the judge on the basis of fairness, again without exceeding the 12-month average change in the CPI and taking into account the condition of the leased property. The landlord cannot raise the rent unilaterally.
  3. Expiry of the Five-Year Period (6th Lease Year and the End of Every 5 Years): Under TCO Art. 344/3, in agreements lasting more than five years or renewed after five years (in the sixth lease year and at the end of every five years after that), the judge sets the new rent according to comparable market rents and fairness, no longer bound by the CPI index rate or by the increase clause in the agreement. At this stage the lawsuit the landlord will file is the Rent Determination Lawsuit in Turkey. The rent determined in this way is then increased again within the CPI ceiling in the following lease years.
⚠️ RENT INCREASES CONSIDERED EXCESSIVE IN TURKEY
✓ AGREEMENT HAS AN INCREASE CLAUSE
✓ An increase can be made
The rate of increase in the agreement cannot exceed the 12-month average change in the CPI. The excess part is invalid.
✕ NO INCREASE CLAUSE
✕ No unilateral increase
The landlord cannot raise the rent unilaterally. The new rent may be set by the judge within the statutory conditions.
⚖️ AFTER 5 YEARS
⚖️ Comparable rents are considered
At the end of the five-year period, the rent may be set by the judge taking comparable rents and fairness into account.

The legal rent increase is the mandatory restriction, regulated by Article 344 of the Turkish Code of Obligations (TCO), that sets the maximum rate by which the landlord may raise the rent in the renewed lease periods of residential and roofed commercial lease agreements. Its main purpose is to protect tenants in Turkey against excessive and groundless rent hike demands and to give legal security to the economic balance between the parties. Increase clauses set above the legal cap are deemed definitively invalid (partially void) under TCO Art. 27.

The legal limit on an increase in rent in Turkey is subject to an absolute and mandatory ceiling throughout the first 5 years of the agreement (the index period). This limit operates through two rules:

  • Legal Upper Limit: Under TCO Art. 344/1, the rate of increase applied in renewed lease periods cannot exceed the change in the Consumer Price Index (CPI) announced by TurkStat for the previous lease year, calculated on 12-month averages.
  • Limit on Freedom of Contract: Even if the parties have agreed on a rate of increase above the legal cap in the agreement (for example, a 100% increase clause), the legal cap, i.e. the 12-month CPI average, applies. If, however, a rate below the legal cap (for example, 15%) has been agreed, this lower rate, which favours the tenant, is accepted as valid under Turkish rental law.

2. How Is the CPI Rate for a Rent Increase Calculated in Turkey?

In Turkey, the rent increase calculation relies solely on the “Change Based on 12-Month Averages” announced by TurkStat at the start of each month (usually on the 3rd). This rate is not the monthly inflation rate or the annual inflation rate (compared with the same month of the previous year), which the public often confuse with it.

How Much Can a Landlord Increase the Rent on a Home in Turkey?

In residential leases in Turkey, the amount of the rent hike a landlord can make depends entirely on the 12-month CPI (Consumer Price Index) average announced by TurkStat (the Turkish Statistical Institute). The landlord cannot unilaterally increase the rent by even 1 TL above this rate.

The maximum legal limit applicable to an increase in rent is calculated with the following formula:

🧮 LEGAL RENT INCREASE CALCULATION IN TURKEY
① AMOUNT OF INCREASE
Current Rent × (12-Month Average CPI ÷ 100)
↓
② NEW MAXIMUM RENT
Current Rent + Amount of Increase

2. Sample Scenario and Comparison for a Rent Increase in Turkey

Example Case: For a home with a current rent of 20,000 TL, the 12-month CPI average announced by TurkStat for the renewal period is 50.00%. The landlord, however, citing inflation and local market rents, wants to raise the rent by 100% to 40,000 TL. As the table shows, 10,000 TL of the 40,000 TL demanded by the landlord is an excessive increase. Assuming the agreement contains an increase clause of at least the CPI rate, if the tenant pays 30,000 TL into the landlord’s account, the tenant is deemed to have paid the rent in full and in accordance with the law; eviction proceedings started by the landlord in Turkey on the ground of underpayment will not succeed. If the agreement has no increase clause at all, the tenant owes the current rent until the court sets a new amount.

🧮 EXCESSIVE RENT INCREASE CALCULATION EXAMPLE IN TURKEY
1️⃣ CURRENT RENT
20,000 TL
↓
2️⃣ RENT INCREASE
Landlord’s demand: 100% → 20,000 TL increase
Legal limit: 50% → 10,000 TL increase
↓
3️⃣ NEW RENT
Rent demanded: 40,000 TL
Legal rent: 30,000 TL
↓
⚠️ RESULT
40,000 TL demanded − 30,000 TL legal rent
= 10,000 TL EXCESS DEMAND

3. When Did the 25% Rent Increase Cap End in Turkey?

The temporary 25% cap on residential rent increases in Turkey applied to lease periods renewed up to and including 1 July 2024 and ended on that date. Under the temporary statutory provisions in force between 11 June 2022 and 1 July 2024 (TCO Provisional Arts. 1 and 2), the maximum rent hike on residential leases in Turkey was limited to 25%. With the end of this temporary measure, the system has returned to the general regime of TCO Art. 344.

The end of the measure has two practical consequences for the tenant:

  • The Ceiling Rate Has Changed: The fixed 25% maximum increase in rent on residential leases has been lifted, and the legal cap has risen back to the 12-month CPI average.
  • No Freedom to Raise the Rent at Will: The lifting of the 25% rent increase cap does not mean that landlords may raise the rent by any rate they like. The CPI ceiling in TCO Art. 344 remains in force without interruption; any rent hike demand exceeding the announced legal CPI average is excessive and legally invalid.
⚠️ THE 25% CAP HAS ENDED, SO WHAT HAS CHANGED?
📅 1 July 2024: The temporary 25% increase cap on residential rents ended.
⚖️ But there is no freedom to raise rents at will: Increases are again limited to the 12-month CPI average under TCO Art. 344.

What Are the 2026 Residential Rent Increase Rates in Turkey?

The maximum increase ceiling applicable to residential lease agreements renewed in 2026 in Turkey is determined according to the 12-month CPI averages announced every month by the Turkish Statistical Institute (TurkStat). These rates constitute the highest rent increase a landlord may legally make. Calculate the maximum applicable rent increase in Turkey using this rent increase calculator.

2026 LEGAL RENT INCREASE RATES IN TURKEY
Year / MonthMaximum Applicable Increase Rate
2026 January34.88%
2026 February33.98%
2026 March33.39%
2026 April32.82%
2026 May32.43%
2026 June32.24%
2026 July32.03%
2026 August31.90%
2026 September31.79%
2026 October31.49%
*The legal rent increase ceilings for the following months will continue to be announced by TurkStat at the start of each month under the relevant legislation.

What Are the 2026 Commercial Rent Increase Rates in Turkey?

As of 2026, the rates of increase applicable to roofed commercial premises leases are, just as for residential leases, fully subject to the provisions of Article 344 of the Turkish Code of Obligations. For this reason, the monthly CPI rates in the table above also form the maximum increase for shops, offices and other roofed commercial premises in Turkey:

  • No Distinction Between Homes and Business Premises: TCO Art. 344 is mandatory in nature and draws no legal distinction at all between leased property that is a home or roofed business premises.
  • Binding Force of the CPI Ceiling: Even if a higher rate of increase has been agreed between the parties in a commercial lease agreement, the rent hike on business premises in Turkey likewise cannot exceed the 12-month CPI average announced by TurkStat.
  • Position of Merchant Tenants: The fact that the commercial tenant is a company, a merchant or a tradesperson does not change this mandatory ceiling rule. Landlords cannot demand a unilateral or excessive rent hike above the legal CPI cap from commercial businesses either.

What Is the Rent Increase Rate for Properties Owned by Companies in Turkey?

Under rental law in Turkey, whether the landlord is a natural person or a company (legal entity) creates no legal difference or privilege whatsoever as regards the rate of rent increase. In residential and roofed commercial leases, the CPI ceiling in TCO Art. 344 applies in the same way whoever owns the property.

1. Application of TCO Art. 344 to Corporate Owners

Article 344 of the Turkish Code of Obligations regulates, in mandatory terms, the maximum rate of increase applicable to residential and roofed commercial leases. This provision covers all landlords, whether individuals or companies:

Where the landlord is a company, the parties are still strictly bound by the mandatory provisions of Turkish rental law and by the terms of the agreement:

  • No Excessive Increase on Corporate Grounds: It is legally impossible for companies to demand an increase above the legal cap by relying on their legal personality, general assembly resolutions, internal company policies or business costs.
  • Binding Force of the Agreement: A company owner must remain bound by the agreement with the former owner or the terms of the previous period; it cannot unilaterally impose a new and excessive rent.
  • Equality of Rights: The debts and obligations of corporate landlords towards the tenant are assessed on exactly the same legal footing as those of natural persons; the tenant’s statutory shield of protection under Turkish law remains fully in place.
  • Sale of the Property: When the leased property is sold to a company or another person, the new owner becomes a party to the existing lease agreement and is bound in the same way by the increase clause and the CPI ceiling that bound the previous owner (TCO Art. 310).

objecting to a very high rent increase rate in Turkey

What Happens If the Lease Has No Rent Increase Clause in Turkey?

Where a lease agreement contains no provision at all on the increase in rent for the new period in Turkey, an automatic increase in rent by operation of law is legally impossible. In such cases the landlord has no right to raise the rent unilaterally and cannot demand an increased payment by pointing to the inflation rate.

1. Where the Lease Agreement Contains a Rent Increase Clause

If the agreement contains a provision on the rate of increase, the parties’ intention prevails; however, that intention is bound by the mandatory limits of TCO Art. 344:

  • If an Increase Based on CPI / PPI or a Fixed Percentage Has Been Agreed:
    • Rates Exceeding the Legal Cap: If, under Turkish law, the rate set in the agreement is higher than the CPI (12-month average) change (for example, “the rent will be increased by 70% every year” or, in a year in which the PPI exceeds the CPI average, “an increase at the PPI rate will be made”), the part exceeding the legal cap is definitively invalid. The tenant is only obliged to pay an increase up to the CPI rate.
    • Rates Below the Legal Cap: If the rate set in the agreement is lower than the CPI (for example, “the rent will be increased by 15% every year”), the lower contractual rate is accepted as valid and the tenant is protected. The landlord cannot claim the difference in Turkey.

2. Where the Lease Agreement Contains No Increase Clause (TCO Art. 344/2)

If the lease agreement contains no express or implied provision at all on the rate of rent increase:

  • No Automatic Rent Hike: The landlord cannot make a unilateral or automatic increase, not even at the CPI rate that forms the legal cap. As long as the tenant continues to pay the current rent under the agreement, under Turkish law the tenant is not deemed to have underpaid and cannot be placed in default.
  • Obligation to Go to Court: For the landlord to raise the rent in the new period, applying to the court for a rent determination is required under TCO Art. 344/2.
  • The Judge’s Legal Limit: When the case is filed, the judge sets the new rent by taking into account the condition of the leased property, its use and fairness. Yet even the judge cannot order an increase exceeding the 12-month average change in the CPI.
⚖️ RENT INCREASE PROVISION IN THE AGREEMENT
Provision in the AgreementApplicable Rate of IncreaseLegal Consequence / Basis
If a rate higher than the CPI is writtenThe 12-month CPI average applies.The excess part is invalid. TCO Art. 344/1
If a rate lower than the CPI is writtenThe lower contractual rate applies.The lower rate favouring the tenant is binding. TCO Art. 344/1
If the agreement has no increase clauseNo automatic increase. The judge decides.The judge sets the rent without exceeding the CPI. TCO Art. 344/2

Does a Tenant in Turkey Have to Sign a New Lease Agreement Every Year?

When the lease term expires, a tenant in Turkey does not have to sign a new lease agreement or renew the existing one every year. Under Turkish Code of Obligations (TCO) Art. 347, in residential and roofed commercial leases, unless the tenant terminates the agreement by written notice given at least 15 days before the end of the term, the lease agreement is deemed extended automatically for 1 year on the same terms.

1. The Landlord’s Request to Sign a New Lease Agreement in Turkey

Landlords who cannot exceed the legal cap on increases (TCO Art. 344 / CPI) frequently resort in practice in Turkey to terminating the existing agreement and having the tenant sign a new lease agreement at a higher rent. Their main aims in doing so are:

  1. Creating a New Starting Rent: Assuming that a new agreement lets them set the rent freely.
  2. Making the High Rent the New Starting Point: Turning the high-rent new agreement into the new starting point both for the CPI increases in later years and for the 5-year period required for a rent determination based on fairness and comparable rents under TCO Art. 344/3.

2. Does a Renewal Agreement Affect the Five-Year Lease Period in Turkey?

A renewal agreement signed at a rent below the market rate does not restart the five-year rent determination period; if the renewal rent matches the market rate, the new agreement is accepted as a new starting point.

This assumption of landlords has been clarified by the decision of the Court of Cassation, 3rd Civil Chamber, Case No. 2025/3450, Decision No. 2026/1141, dated 03.03.2026. According to that decision; it must be examined whether the rent set in the renewed agreement matches comparable and market rents; if the rent is found not to match the market rate, the periods elapsed must be counted from the start date of the first agreement, even if 5 years have not passed since the new agreement was signed, and, if the conditions are met, the rent must be determined according to fairness and equity. If, on the other hand, the rent in the renewed agreement is found to match the market rate, the rent for the period claimed is set on the basis of that amount by applying the index.

This principle has a two-way legal consequence in Turkish rental law:

  • For the Tenant: If the rent agreed in the renewal agreement matches the market rate, the new agreement is treated as a new starting point and in later years increases are made on that amount within the CPI ceiling. If the rent was below the market rate, signing a new agreement while the tenancy continues does not legally reset the earlier period of tenancy; if 5 years have passed since the start of the first agreement, the tenant may face a rent determination lawsuit based on fairness and equity, even if only a short time has passed since the renewal.
  • For the Landlord: Token renewals at a rent below the market rate do not restart the 5-year rent determination period; the landlord may seek a determination based on fairness and equity by counting the period from the start of the first agreement.

3. Consequences of Accepting a Higher Rent in a New Agreement in Turkey

Whether a high starting rent accepted in a renewal agreement in Turkey is subject to the statutory CPI ceiling depends on whether the agreement is genuinely a new lease relationship or a renewed period of the continuing relationship. The following points are decisive in this assessment:

  • Scope of the Ceiling: TCO Art. 344/1 ties the parties’ agreements on the rent applicable in renewed lease periods to the CPI limit. A document signed between the same parties while the lease relationship continues without interruption may amount to such an agreement on the rent for the new period; the starting rent in a new lease relationship set up by the parties from scratch, however, is not subject to that limit. Which situation applies is determined according to the circumstances of the specific case. In regional court of appeal practice in Turkey, it has been held that payments made by the tenant under a new rent agreed with the tenant’s consent are not subject to the legal increase restriction (İzmir Regional Court of Appeal, 23rd Civil Chamber, 27.06.2025, Case No. 2024/3426, Decision No. 2025/1209).
  • The Basic Mistake in Practice: A common mistake by tenants is to assume that, after signing a high-rent new agreement under pressure from the landlord, they can always object to that rent under TCO Art. 344 by saying “an excessive increase was made”. If the high rent was accepted as the starting rent of a new lease relationship, the protection of the legal cap does not reduce that rent retrospectively; where the signed document only sets the rent for the renewed period, whether the limit in TCO Art. 344/1 applies is assessed separately. Because of this uncertainty, having a high-rent renewal agreement reviewed before it is signed is far safer than objecting afterwards.

4. Can an Undertaking to Vacate Be Demanded in Return for a Rent Increase in Turkey?

Making a rent increase demand or the renewal of the agreement conditional on the tenant signing a blank or post-dated undertaking to vacate (tahliye taahhütnamesi) is an unfair imposition frequently encountered in practice in Turkey. The legal consequences of this imposition are assessed from two angles:

  • The TCO Art. 346 Prohibition: Apart from the rent and ancillary costs (service charges etc.), no other payment obligation can be imposed on the tenant. In particular, agreements providing that a penalty will be paid or that future rents will fall due if the rent is not paid on time are invalid. This prohibition concerns additional payment obligations; the validity of an undertaking to vacate is instead assessed under the conditions of TCO Art. 352/1.
  • Undertakings Given Under Pressure: Undertakings to vacate signed under pressure of an increase while the lease continues or at the renewal stage are the subject of legal disputes on the ground that they impair the tenant’s free will. For an undertaking to vacate to be valid in Turkey, it is subject to strict conditions such as having been given after the leased property was handed over, in writing and of the tenant’s free will (TCO Art. 352/1). If the property is not vacated on the date undertaken, the landlord must apply for enforcement or file a lawsuit within one month starting from that date.
🏠 RENEWAL OF THE LEASE AGREEMENT IN TURKEY
SituationLegal ConsequenceLegal Basis
🔄 If the tenant does not give notice of termination within the required periodThe lease agreement is deemed to be extended for one year under the same termsTBK Art. 347
💰 If the renewal rent is consistent with the market rentIt becomes the starting point for the new lease; subsequent annual increases are subject to the 12-month CPI average ceilingCourt of Cassation, 3rd Civil Chamber, 03.03.2026
📉 If the renewal rent is below the market rentThe five-year period is calculated from the beginning of the initial lease agreementCourt of Cassation, 3rd Civil Chamber, 03.03.2026
⚠️ Requesting an eviction undertaking in return for a rent increaseIts validity depends on the undertaking being given in writing and voluntarily after delivery of the propertyTBK Art. 352/1

The tenant does not have to accept a rent hike demand above the legal cap in Turkey. Under Turkish law this legal consequence arises directly from the mandatory provision of the law (TCO Art. 344), without depending on the tenant raising a separate objection or obtaining a court decision.

If the rate of increase agreed in the contract exceeds the statutory ceiling in Turkey, the increase is made not at the contractual rate but at the 12-month average change in the CPI. This principle is expressly set out in the Court of Cassation, 3rd Civil Chamber, Case No. 2026/1213, Decision No. 2026/1751, dated 30.03.2026 principle decision resolving the conflict between decisions of the regional courts of appeal. That decision stressed that TCO Art. 344 is mandatory for residential and roofed commercial leases.

Even if the agreement contains a clause stating “The rent will be increased by 60% every year”, the tenant is not obliged to pay the part exceeding the CPI rate announced for that year. The fact that the agreement was signed in advance does not change this outcome, because mandatory statutory provisions form the outer limit of freedom of contract in the Turkish legal system.

If the rate agreed in the contract is below the legal cap under Turkish law, the statutory ceiling does not come into play and the lower contractual rate applies. According to the 30.03.2026 decision of the Court of Cassation, 3rd Civil Chamber, if the contractual rate was set lower than the change in the CPI, the increase is made at that lower rate. Applying this lower contractual rate is a mandatory rule under TCO Art. 344/1.

  • If the contractual rate is above the legal cap: The excess part has no legal effect, and the statutory CPI ceiling applies directly.
  • If the contractual rate is below the legal cap: Since the statutory rate is not a right or a minimum increase guarantee for the landlord, the landlord cannot claim the difference by pointing to high inflation; the lower contractual rate is valid.

3. Is a Rent Increase Above the CPI Possible in Turkey?

Raising the rent above the CPI rate is legally invalid as to the excess part during the first five lease years under TCO Art. 344/1. However, if the tenant pays the excess amount with consent and without objection, a later claim to recover these payments may be rejected on the ground of the good faith rule. As a rule, before the Turkish courts a rent above the CPI can only be reached through a rent determination lawsuit after the five-year period has expired.

  • Contract Clauses Are Invalid: Clauses in a lease agreement providing for an increase above the CPI are void to the extent that they exceed the mandatory statutory limit.
  • Nature of the Statutory Ceiling: The index rate in TCO Art. 344/1 is not a minimum right of increase that the landlord may claim in all circumstances, but a maximum upper limit that cannot be exceeded. The landlord cannot escape the lower contractual rate or the legal cap by relying on high inflation.

The sanction for a rent increase agreement or contract clause exceeding the legal limit in Turkey is not that the whole agreement is treated as invalid or terminated. In legal scholarship (doctrine) and settled Court of Cassation practice, this legal situation is called “modified partial invalidity” and, under Turkish Code of Obligations (TCO) Art. 27/2, it has two main consequences:

a. The Agreement Survives (Validity Is Preserved)

The fact that the increase clause in the lease agreement exceeds the mandatory statutory ceiling or is defective does not end the lease relationship. The agreement remains validly in force with all its provisions; all other rights and obligations of the parties arising from the agreement are unaffected.

Under Turkish law, the voidness/invalidity covers only the part exceeding the legal cap in the statute. The increase clause is not removed entirely because of the excessive rate held invalid; the increase clause is kept in force, corrected to the statutory maximum rate (the 12-month CPI average).

Practical Legal Consequence: If the parties agreed, for example, on an 80% increase and the legal CPI cap for that period was 50%, the increase clause in the agreement is not cancelled entirely. The excessive 30% part is deemed definitively void, and the increase remains valid on the basis of the remaining 50% legal part. The tenant is only obliged to pay this 50% legal rate.

⚠️ THE LEGAL RENT INCREASE LIMIT CANNOT BE EXCEEDED IN TURKEY

📝 Contractual rent increase: 80%

The portion exceeding the CPI ceiling is invalid.

⚖️ Legal CPI ceiling: 50%

The increase remains valid up to this rate.

❌ Invalid (excessive) portion: 30%

The tenant is not required to pay this portion.

📄 Remaining provisions of the lease

Remain valid in full (TBK Art. 27/2).

5- Does Paying A Higher Rent Mean The Tenant Has Accepted The Increase In Turkey?

An increase clause exceeding the legal cap (the 12-month CPI average) in Turkey does not become valid as a contractual term just because the tenant has paid. Past payments, however, are treated differently: If the tenant paid the amount above the legal limit knowingly, without raising any objection or reservation of rights and of their own free will, current judicial practice in Turkey treats these payments as the tenant’s adoption of the new rent and rejects a later claim for repayment as contrary to the good faith rule (Turkish Civil Code (TCC) Art. 2). So although paying without objection does not make the increase binding for the future, it may in practice block the refund of past payments.

1. Breach of Mandatory Provisions and Partial Invalidity in Turkey

An increase clause above the statutory ceiling does not bind the tenant for the future, but the refund of past payments is assessed separately. This distinction rests on two basic rules:

  • The Mandatory Nature of TCO Art. 344: Article 344 of the Turkish Code of Obligations is relatively mandatory, i.e. it protects the tenant. An increase clause above the legal cap does not bind the tenant for the future as a contractual term. That said, refund of payments made by the tenant with consent and without objection may be refused on the ground of the good faith rule, as explained below.
  • Partial Invalidity (TCO Art. 27): Increase clauses exceeding the legal limit are definitively invalid (partial invalidity). The tenant may argue that the excess payment was made under pressure, under the threat of eviction or to avoid a dispute; in that case, however, the Turkish courts expect the tenant to allege and prove a defect of consent (duress, threat, mistake). General statements that payment was made under the risk of eviction are not considered sufficient for a refund unless proven.

2. Refund of Overpaid Amounts in Turkey

Whether overpaid amounts can be refunded in Turkey depends on whether the increase was objected to and how the payment was made. The following principles apply to refund and set-off:

  • Unjust Enrichment (TCO Art. 77): Payments made above the legal cap can be reclaimed under the unjust enrichment provisions if the increase was objected to in time or the payments were made with a reservation of rights.
  • Right to a Refund and Set-Off: If these conditions are met, under Turkish legislation the tenant may claim the refund of overpayments above the legal cap through a lawsuit or set these amounts off against the rent for future months. Resorting to set-off for payments made without objection, however, is risky: If the court does not accept the right to a refund, the amount set off may be treated as underpayment and lead to default.

The reservation of rights (ihtirazi kayıt) has become the decisive condition in practice for the right to a refund in excessive rent increase disputes. If payments continue for a long time without any objection and without any note being made, current judicial practice in Turkey rejects the refund claim:

  • Commercial leases: The Court of Cassation, 3rd Civil Chamber, held that the refund claim of a merchant tenant who paid the rent without a reservation of rights was contrary to the good faith rule (11.02.2026, Case No. 2025/3463, Decision No. 2026/600).
  • Residential leases: The İzmir Regional Court of Appeal, 23rd Civil Chamber, rejected the refund claim of a residential tenant who had voluntarily paid above the legal limit as contrary to the good faith rule in TCC Art. 2, on the ground that no defect of consent had been alleged and proven, and this decision has become final (27.06.2025, Case No. 2024/3426, Decision No. 2025/1209).
  • Legal basis: Under TCO Art. 78/1, a person who voluntarily performs an obligation they did not owe can only reclaim it by proving that they performed it in the belief that they owed it.

By contrast, the refund claim of a tenant who objected to the increase in time and made the difference payments within the framework of that objection is accepted in Turkey. For this reason, it is decisive under Turkish rental law that a tenant forced to pay an amount above the legal limit adds a reservation of rights note (preserving their rights) on every payment and notifies the landlord of the objection in writing.

Reservation of Rights Wording for a Bank Transfer / EFT / Warning Notice

This payment exceeds the statutory rent amount calculated pursuant to Article 344 of the Turkish Code of Obligations for the period of [Month/Year]; all my legal rights regarding objections, lawsuits, and the reimbursement of overpaid amounts with respect to the excessive portion demanded are hereby reserved.

high rent increase in Turkey

Can a Landlord Evict a Tenant Who Refuses a Rent Increase in Turkey?

A landlord in Turkey cannot evict a tenant merely because the tenant refused an excessive rent increase; eviction is possible only where one of the grounds listed in the law exists. The landlord’s right to demand a rent increase from the tenant is restricted by mandatory statutory provisions in Turkey. In practice, the answer to this question depends on the distinction between the tenant making no increase at all (also refusing the legal increase) and the tenant refusing the landlord’s excessive rent hike demand.

If a tenant whose agreement contains an increase clause keeps paying the old rent without the legal increase, the tenant falls into default as to the unpaid part and faces a risk of eviction if payment is not made within the 30-day period given in the warning notice. If the lease agreement contains an increase clause, the tenant is obliged, in the renewed lease period, to pay the rent with the contractual rate added or, if that rate exceeds the CPI, the increase corresponding to the 12-month CPI average announced by TurkStat. If the agreement has no increase clause, the tenant does not fall into default by paying the current rent until the court sets a new amount (TCO Art. 344/2); the risk of default described below therefore applies only where there is an increase clause or where the new rent has been set by the court.

  • Falling into Default (TCO Art. 315): If a tenant whose agreement contains an increase clause continues to pay the old rent without making the increase required by that clause (at most the CPI rate), the rent is deemed unpaid as to the underpaid part and the tenant falls into default (debtor’s default).
  • Enforcement Proceedings and Warning Notices: For the unpaid difference, the landlord may send the tenant a written warning notice (through a notary public) or start enforcement proceedings without a court judgment using Form No. 13.
  • 30-Day Payment Period: A notarised warning notice or an enforcement payment order gives the tenant a 30-day payment period. If the tenant does not pay the legal increase difference within those 30 days, under Turkish law the landlord may have the tenant evicted from the property by filing an eviction lawsuit before the Enforcement Court or the Civil Court of Peace.

2. Position of a Tenant Who Refuses an Excessive Rent Hike Demand in Turkey (Unlawful Eviction Pressure)

If the landlord demands an excessive rent increase exceeding the legal limits (the CPI ceiling) in Turkey, the tenant is under no obligation to accept this unfair demand. The tenant’s legal position against an excessive rent hike demand in Turkey is as follows:

  • Refusing an Unlawful Rent Increase Is Not a Ground for Eviction: A tenant’s refusal to accept the high increase rate demanded unlawfully in Turkey, and paying only the increase up to the legal CPI cap, is entirely lawful.
  • Lawsuits Filed Will Be Dismissed: Eviction lawsuits filed by the landlord merely on the ground that “the tenant did not pay the 100% increase I asked for” are dismissed before the Turkish courts. Refusing an unlawful rent increase in Turkey does not constitute a valid or justified ground for eviction in the landlord’s favour.

3. On What Grounds Can a Landlord Evict a Tenant in Turkey?

The Turkish Code of Obligations ties the eviction of a tenant to grounds set out in an exhaustive list. Under Turkish rental law, the landlord may seek eviction not because an excessive rent hike was refused, but only on the following legal grounds:

  1. Non-Payment of the Legal Rent (TCO Art. 315 / Art. 352/2): Falling into default by failing to pay according to the contractual increase clause (at most the CPI rate), or receiving two justified warning notices within the same lease year.
  2. Written Undertaking to Vacate (TCO Art. 352/1): The existence of a valid written undertaking to vacate given by the tenant of their free will after the leased property was handed over.
  3. Need for a Home or Business Premises (Eviction Due to Need – TCO Art. 350 / 351): A genuine and compelling need for the property as a home or business premises for the landlord, their spouse, descendants (children, grandchildren), ascendants (mother, father) or other persons they are legally obliged to support.
  4. Reconstruction and Redevelopment (TCO Art. 350/2): The property becoming unusable because of major repairs, extension or reconstruction.
  5. The Tenant or Spouse Owns a Home in the Same District (TCO Art. 352/3): The tenant or the spouse living with them owning a habitable home within the municipal boundaries of the same district or town, and the landlord not knowing this when the agreement was concluded.
  6. Expiry of the Ten-Year Extension Period (TCO Art. 347/1): After the ten-year extension period ends, the landlord may terminate the agreement without giving any reason, provided that notice is given at least three months before the end of each following extension year.
🏠 EVICTION RISK BY TENANT CONDUCT IN TURKEY
Tenant’s Payment ConductLegal NatureEviction Risk
Paying the legal CPI increaseFull and complete legal payment.✓ NONE

Not a ground for eviction.
Refusing an excessive rent hike demandLegitimate exercise of a statutory right.✓ NONE

Not a ground for eviction on its own.
Making no increase at all

Continuing to pay the old rent despite an increase clause
Debtor’s default due to underpayment.✕ YES

If payment is not made within 30 days.
Not paying on timeBreach of contract / two justified warning notices.✕ YES

An eviction lawsuit may be filed if the conditions are met.

When Can a Landlord Raise the Rent Above the CPI Limit in Turkey?

The statutory ceiling, the 12-month average change in the CPI, is a binding upper limit during the first five lease years in Turkey, and exceeding it through a unilateral notice is not possible in any period. In Turkey, the ordinary way for a landlord to obtain an increase above the CPI ceiling is the expiry of the 5-year period and a court decision (a rent determination lawsuit). Where there is an extraordinary situation other than inflation and market conditions that could not be foreseen when the agreement was made, a rent adaptation lawsuit based on TCO Art. 138 may exceptionally come into play.

1. Rent Increase in the First Five Lease Years (TCO Art. 344/1)

The legal rate of increase applicable during the first 5 years from the start of the agreement (throughout 4 extension years) is subject to strict conditions:

  • The CPI Ceiling Is the Only Yardstick: The maximum rent hike applicable in this period is the 12-month average change in the CPI announced by TurkStat.
  • No Increase Based on Comparable Rents: During this 5-year period the landlord cannot demand an increase above the CPI ceiling on grounds such as “the rent has fallen below comparable rents”, “the area has gone up in value” or “market conditions have changed”. In practice in Turkey, this period is called the index period.

2. Resetting the Rent at the End of Five Years (TCO Art. 344/3)

The new rent for a tenant who has completed 5 years is not limited by the CPI ceiling; it is set by the judge through a rent determination lawsuit in Turkey, taking comparable rents and equity into account. Under TCO Art. 344/3, in lease agreements lasting more than 5 years or renewed after 5 years, and at the end of every 5 years thereafter, the rent applicable in the new lease year is set by the judge (through a Rent Determination Lawsuit).

At this stage, known in practice as the fairness and equity period, the CPI ceiling is no longer the only limit, and the judge assesses the following criteria as a whole:

  1. 12-Month CPI Average: No longer an absolute upper limit, but only one of the factors to be assessed.
  2. Condition of the Leased Property: The type of property, its surface area, its location, wear and tear, and changes over the years are taken into account.
  3. Comparable Rents: Current free-market rents for similar properties in the same area are taken as the basis.
  • Exceeding the CPI Is Lawful: In this period, a new rent set by the court that exceeds the CPI rate is not unlawful. Under Turkish law, the tenant’s defence at this stage should target not the size of the increase but whether the choice of comparables and the expert assessment are correct.
  • Fairness and Equity Reduction: A fairness reduction at the judge’s discretion is applied to the current market rent established by the expert, taking into account that the tenant has occupied the property for a long time and is a long-standing tenant. The rate of the reduction is not fixed and depends on the circumstances of the specific case; the Court of Cassation has also upheld a reduction of 5% applied in view of the length of the tenancy.

3. Rent Adaptation Lawsuit Based on Excessive Hardship (TCO Art. 138)

Some landlords who want to raise the rent before the 5-year period expires resort to filing a rent adaptation lawsuit based on the “Excessive Hardship” provision in TCO Art. 138. The limits of this route have been set by the case law of the Court of Cassation as follows:

  • A Route Restricted by Court of Cassation Case Law: With the Court of Cassation, 3rd Civil Chamber decision dated 10.03.2025 (Case No. 2024/1083, Decision No. 2025/1439) resolving a conflict of decisions, and the decision dated 30.03.2026 (Case No. 2026/1213, Decision No. 2026/1751) continuing that approach, seeking adaptation under TCO Art. 138 on the grounds that form the subject of a rent determination lawsuit has been ruled out. However, both decisions expressly accept that an adaptation lawsuit can be filed if the other grounds and conditions in TCO Art. 138 are met.
  • Reasoning: Actual high inflation, loss of the currency’s purchasing power, general rent inflation and increases in comparable rents fall within TCO Art. 344 (rent determination). These grounds cannot at the same time form the subject of an adaptation lawsuit based on TCO Art. 138. Before the Turkish courts, an adaptation lawsuit cannot be filed before 5 years have passed by relying solely on high inflation.
⚖️ LEGAL REGIMES APPLICABLE TO RENT INCREASES IN TURKEY
Period / Legal InstitutionApplicable PeriodMaximum Increase YardstickCan the CPI Ceiling Be Exceeded?
Index Period
TCO Art. 344/1
Years 1–512-month CPI average✕ CANNOT BE EXCEEDED

Mandatory ceiling
Fairness and Equity Period
TCO Art. 344/3
6th year and the end of every 5 yearsFairness, comparable market rent and CPI✓ CAN BE EXCEEDED

By court decision
Rent Adaptation Lawsuit
TCO Art. 138
Within 5 years
(on inflation alone)
Extraordinary circumstances✕ CANNOT BE FILED

Court of Cassation practice

How to Object to an Exorbitant Rent Increase in Turkey?

If the landlord wants to raise the rent excessively, the tenant in Turkey should reject the excessive increase in writing, pay the legal rent on time and, if the dispute continues, turn to mediation and litigation. An objection to an excessive rent increase in Turkey is not pursued as a complaint to an administrative body; it is conducted as a 4-stage legal process that prevents the tenant from losing rights and from facing unfair eviction. Following the order of the stages and the statutory deadlines is decisive.

1. Written Objection to the Landlord and Notarised Warning Notice in Turkey

The landlord must be notified, in writing and in a provable form, that the excessive rent increase demand is not accepted. Although the notice may be given in ordinary written form (WhatsApp, e-mail, etc.), sending a warning notice through a notary public is legally essential in Turkey so that the date of service is documented conclusively and proof is easier in any later lawsuit.

Minimum elements the notarised warning notice should contain:

  • Details of the Agreement: The start date of the lease agreement, the full address of the property and the current monthly rent.
  • Rejection of the Excessive Rent Increase Demand: A clear statement that the excessive amount notified by the landlord orally or in writing, and its basis, are not accepted.
  • Legal Calculation: The 12-month average change in the CPI for the renewal month and the legal rent for the new period calculated at that rate.
  • Payment Statement: Notice that the legal rent calculated under TCO Art. 344 will continue to be paid in the new period.
  • Reservation of Rights (Preservation of Rights): A record that the rights arising from unjust enrichment (TCO Art. 77) and the right to sue are reserved in respect of payments or demands exceeding the legal cap.

Sample Closing Wording for a Warning Notice:

“I hereby notify you that in the new lease period I will continue to pay on the basis of the legal rate of increase calculated under TCO Art. 344 (the 12-month CPI average), that I do not accept your excessive increase demand exceeding that rate, and that all my rights to sue, claim and obtain a refund in respect of the amounts demanded in excess are reserved.”

2. Paying the Rent in Full and on Time in Turkey

Objecting to an excessive rent increase in Turkey does not remove the obligation to pay rent. The real legal risk the tenant faces in this process is not the increase demand itself, but the default (TCO Art. 315) and the resulting risk of eviction that arise if payment is disrupted.

  • Paying the Legal Rent: A tenant whose agreement contains an increase clause must pay the new-period rent calculated at the contractual rate (at most the CPI ceiling) in full on the payment date in the agreement. If the agreement has no increase clause, paying the current rent on time until the court sets the new amount removes the risk of default under Turkish rental law.
  • Bank Transfer Description: Paying through a bank and adding a note such as “[Month/Year] Legal Rent under TCO Art. 344” in the description field serves as strong evidence of the period for which, and the legal basis on which, the payment was made. Paying the legal rent on time legally defeats the landlord’s eviction claim through Form No. 13 enforcement proceedings.

If the landlord refuses to accept the rent calculated under the legal limit or sends the amount paid back to the tenant, the tenant can be released from the debt by depositing the rent at a place designated by the judge. Under Turkish law, a creditor’s refusal without good reason to accept performance properly offered results in creditor’s default (TCO Art. 106); in that case the debtor may be released from the debt by depositing the performance (TCO Art. 107).

  • Designation of the Place of Deposit: Under TCO Art. 107/2, the place of deposit is designated by the judge at the place of performance; rent paid, on the tenant’s application, to the place designated by the judge (usually a bank account) has the effect of payment.
  • Payment Sent Back: The landlord returning rent paid at the legal amount as “short” does not by itself put the tenant in default; however, the tenant must deposit the returned amount without delay and keep the correspondence as evidence.
  • Rent for Later Periods: Until the deposit decision is obtained, the rent for each period should be kept ready for payment on the due date in the agreement and deposited without delay once the decision is issued.

4. Mandatory Mediation in Rent Disputes in Turkey

In disputes arising from a lease relationship, since 1 September 2023 applying to a mediator in Turkey before filing a lawsuit has been a precondition for the lawsuit (Law No. 6325, Art. 18/B).

  • Scope: All lawsuits for rent determination, rent adaptation and eviction fall within mandatory mediation in Turkey.
  • Exception: Eviction through enforcement proceedings without a court judgment (enforcement proceedings with an eviction request) conducted under Enforcement and Bankruptcy Law No. 2004 (EBL) falls outside the scope of mandatory mediation.
  • Final Report Requirement: If no agreement is reached at the mediation stage, the original or a mediator-certified copy of the final report recording the failure to agree must be attached to the statement of claim. If the report is not attached, the court warns the claimant to submit it within a one-week final deadline; if it is not submitted within that period, the lawsuit is dismissed on procedural grounds. If it emerges that the lawsuit was filed without applying to a mediator at all, the lawsuit is dismissed directly on procedural grounds for lack of a precondition (Law No. 6325, Art. 18/A).

5. Rent Determination Lawsuit (TCO Art. 345)

In Turkey, a rent determination lawsuit can be filed not only by the landlord but also by the tenant. Under TCO Art. 345, this lawsuit can be filed at any time; however, from which period the rent set by the court takes effect depends on when the lawsuit is filed and on the notice requirement:

  1. Filing the Lawsuit 30 Days in Advance: If the lawsuit is filed at least 30 days before the start of the new lease period, the rent set by the court applies from the start of the new lease period.
  2. Written Notice 30 Days in Advance: If the landlord has given the tenant written notice that the rent will be increased at least 30 days before the start of the new period (giving the notice through a notary public makes it easier to prove), the rent set applies from the start of the period even if the lawsuit is filed as late as the end of the following new lease period.
  3. The Agreement Contains an Increase Clause: If the lease agreement contains an express clause providing for an increase in the new period, the rent set in a lawsuit filed by the end of the new lease period takes effect from the start of that period.
⚖️ STEPS TO OBJECT TO AN EXCESSIVE RENT INCREASE IN TURKEY
1️⃣ WARNING NOTICE
Legal step: Rejecting the excessive increase and stating the legal rent through a notary public.
⏱️ Critical timing: Immediately after the increase notice.
🛡️ Purpose: Easier proof and a written record of the objection.
2️⃣ PAYMENT
Legal step: Paying the increase at the legal CPI cap rate through a bank.
⏱️ Critical timing: The payment due date in the agreement.
🛡️ Purpose: Removing the risk of default and eviction.
3️⃣ MEDIATION
Legal step: Applying to the courthouse mediation office.
⏱️ Critical timing: Before filing a lawsuit.
🛡️ Purpose: Meeting the precondition for the lawsuit.
4️⃣ RENT DETERMINATION LAWSUIT
Legal step: Filing a rent determination lawsuit at the Civil Court of Peace.
⏱️ Critical condition: A warning notice 30 days before the start of the period, or meeting the statutory conditions.
🛡️ Purpose: Having the legal rent determined through the court.

Where to Complain About an Exorbitant Rent Increase in Turkey?

Under Turkish law, an exorbitant rent increase is not an act punishable by an administrative sanction or fine; so there is no administrative “complaint line” to turn to. The most common misconception in practice about an excessive rent increase is the idea that it can be resolved by complaining to an administrative body. The tenant’s protection against an excessive rent hike comes not from administrative authorities but directly from the law (TCO Art. 344) and from the judiciary.

1. Is There a Penalty for a Landlord Who Raises the Rent Excessively in Turkey?

Turkish law provides no administrative fine or prison sentence for a landlord who demands a rent increase above the legal limit. The sanction for an excessive rent hike demand in Turkey is civil, not criminal: the increase clause exceeding the CPI ceiling is partially void and the tenant is not obliged to pay the part above the legal ceiling. No separate fine was provided for landlords exceeding the 25% cap during the period that ended on 1 July 2024 either.

Certain conduct accompanying an excessive rent hike demand in Turkey may, however, have separate legal consequences for the landlord. These consequences are as follows:

  • Partial Invalidity and Refund: No valid debt arises for the part above the legal ceiling (TCO Art. 27); excess amounts paid after an objection or with a reservation of rights can be reclaimed under the rules on unjust enrichment.
  • Consequences of an Unjust Lawsuit: A landlord who files an eviction lawsuit in Turkey without any right to do so, although the tenant paid the legal rent in full, may be ordered to pay, in addition to the costs of proceedings, all or part of the attorney’s fee agreed between the other party and its lawyer, and also a disciplinary fine (Code of Civil Procedure Art. 329).
  • Acts of Pressure: Acts such as threatening the tenant to force payment of the increased rent or entering the home without the tenant’s consent may, where the conditions are met, constitute the offences of threat (Turkish Penal Code Art. 106) or violation of the inviolability of the home (Turkish Penal Code Art. 116).

2. Can an Administrative Application Be Made Against an Excessive Rent Increase in Turkey? (CİMER, Ministries, Complaint Lines)

Applications through CİMER, ministries or consumer lines produce no binding result on the rent in Turkey. Applications concerning the landlord made in Turkey through CİMER (the Presidential Communication Centre), the Ministry of Trade, the Ministry of Justice or consumer advice lines (ALO 175, etc.):

  • Do not lead to an administrative fine being imposed on the landlord.
  • Do not bring the rent down to the legal limit or reduce it.
  • Do not legally protect the tenant against the risk of default or eviction.

3. Do Consumer Arbitration Committees Have Jurisdiction over Rent Disputes in Turkey?

Under Code of Civil Procedure (CCP) Art. 4/1-a, disputes arising from a lease relationship fall within the jurisdiction of the Civil Court of Peace regardless of the value or amount in dispute. For this reason, in disputes over the rent, the application is made to the competent Civil Court of Peace after the mediation stage.

4. Judicial Remedies Against an Exorbitant Rent Increase in Turkey

Effective protection against an exorbitant rent increase in Turkey comes not from an administrative complaint but from the invalidity provided directly by the law and from the courts. The legal mechanism to be followed rests on the following principles in the Turkish legal system:

  • Automatic Invalidity (TCO Art. 27): An increase clause exceeding the legal cap (the 12-month CPI average) is already definitively invalid. The tenant’s obligation to pay this excessive part never legally arose.
  • Judicial Solution: The dispute with the landlord is resolved not through an administrative complaint but through compulsory mediation followed by a Rent Determination Lawsuit (Civil Court of Peace).
⚖️ AUTHORITIES AND THEIR JURISDICTION IN TURKEY
Authority / Institution Applied ToLegal JurisdictionOutcome / Effect
CİMER / MinistriesNo jurisdiction / No power to impose administrative sanctions.Cannot intervene in the rent or impose a penalty.
Consumer Arbitration CommitteeAbsolutely no jurisdiction.The application is dismissed on procedural grounds.
Mediation OfficePrecondition for the lawsuit (mandatory stop).If no settlement is reached, a lawsuit can be filed.
Civil Court of PeaceThe competent judicial body.Sets the rent in a binding way by court decision.

Can Overpaid Rent Be Recovered in Turkey?

Whether rent payments exceeding the legal cap (the 12-month CPI average) can be recovered in Turkey depends on how the payments were made. Since rent increase agreements exceeding the mandatory limit are partially void (TCO Art. 27), as a rule no valid debt arises for the amounts above the ceiling. In current judicial practice in Turkey, however:

  • If the increase was objected to in time or the payments were made with a reservation of rights, the overpaid amounts can be reclaimed under the unjust enrichment provisions.
  • If the tenant paid the amount above the legal limit knowingly, without objection and of their own free will, the refund claim is rejected as contrary to the good faith rule (TCC Art. 2) unless a defect of consent is proven.

1. Refund Claim Based on Unjust Enrichment (TCO Art. 77 et seq.)

A tenant who objected to the increase or paid with a reservation of rights may reclaim the excess amounts paid by filing an unjust enrichment lawsuit under TCO Art. 77 et seq., or may set them off against future rent. For payments made without objection, it must first be assessed whether a defect of consent (duress, threat, mistake) can be proven with documents.

Under Turkish law, the burden of proof lies with the tenant in a refund lawsuit. To avoid losing rights, the key evidence to be submitted to the court is:

  • Lease Agreement: Essential for establishing the start date, the initial rent and any increase clause in the agreement.
  • Bank Payment Receipts: Show the amount actually paid for each month, the payment dates and any notes in the bank description.
  • The Landlord’s Written Increase Notice: A notarised warning notice, e-mail, WhatsApp message or written statement showing that the landlord demanded the excessive amount.
  • TurkStat CPI Data: The legal cap and the overpaid difference are calculated on the basis of TurkStat’s 12-month average change rates for the relevant renewal period.

2. Time Limit for Recovering Overpaid Rent in Turkey (TCO Art. 82)

Under TCO Art. 82, refund and other claims arising from unjust enrichment are subject to a two-tier limitation period:

  1. Relative Limitation Period (2 Years): The tenant must make the refund claim within 2 years from the date of learning of the right to reclaim.
  2. Absolute Limitation Period (10 Years): In any event, the right to a refund becomes time-barred once 10 years have passed from the date on which the enrichment occurred (the payment was made).

Critical Legal Warning: In judicial practice in Turkey, the starting date of the 2-year relative limitation period (whether it is the moment of payment or the moment the legal position was realised) is a disputed point. For payments made without objection, asserting the refund claim without delay, through a notarised warning notice or a lawsuit, is vital to avoid a time-bar defence.

⏳ LIMITATION PERIODS FOR REFUND CLAIMS IN TURKEY
⚖️ RELATIVE LIMITATION PERIOD — 2 YEARS
Starting Point: The date on which the right to claim restitution is learned
Legal Basis: TBK Art. 82
⏰ ABSOLUTE LIMITATION PERIOD — 10 YEARS
Starting Point: The date on which the enrichment occurred (the date of payment)
Legal Basis: TBK Art. 82

An increase in rent in the renewed periods of lease agreements is carried out within the framework of the relatively mandatory provisions of the Turkish Code of Obligations (TCO Arts. 344 and 345). The rates of increase the parties set under freedom of contract are valid within the mandatory limits drawn by the law.

A. How Many Times a Year Can the Rent Be Increased in Turkey?

The rent can be increased in Turkey once for each renewed lease year, up to the 12-month CPI average of the previous lease year. In residential and roofed commercial leases in Turkey, the statutory ceiling works on a lease-year basis: TCO Art. 344/1 limits agreements on the rent applicable in renewed lease periods to the 12-month average change in the CPI for the previous lease year. So even if the agreement provides for increases at interim intervals (for example every 6 months), under Turkish law the increases made for one lease year cannot exceed this limit; the excess part is invalid.

B. Does the Landlord Have to Notify the Tenant of a Rent Increase in Turkey?

If the lease agreement contains an increase clause, the landlord does not have to call the tenant or give separate notice for the increase applicable in the new lease period. In that case the tenant compares the 12-month CPI average announced by TurkStat before the renewal month with the contractual rate, calculates the new rent at the lower of the two and pays it on the due date in the agreement.

If the agreement has no increase clause, the landlord cannot raise the rent by unilateral notice; the new rent is set by agreement of the parties or through a rent determination lawsuit. If the landlord notifies the tenant in writing, at least 30 days before the new period begins, that the rent will be increased and files the lawsuit by the end of the following new lease period, the rent set by the court binds the tenant from the start of that period (TCO Art. 345).

For eviction based on default for non-payment of the increase difference, the landlord must send the tenant a written warning notice giving at least 30 days to pay (TCO Art. 315).

C. Written Notice of the Rent Increase and Proof

Documenting the rates of increase and the new-period rent is of critical importance for the law of evidence in Turkey. The landlord serving the increase demand on the tenant by a notarised warning notice or written notice, or the parties concluding a written supplementary protocol on the new rent, prevents future disputes and default risks.

D. What Happens If the Tenant and Landlord Cannot Agree on the Rent Increase in Turkey?

In Turkey, in the event that mutual agreement cannot be provided between the parties regarding the subject of the rent increase rate, pursuant to Law No. 6325 Article 18/B, applying to the mandatory mediation bureau is required. If agreement cannot be provided during the mediation process, the parties can open a Rent Value Determination Lawsuit in the Civil Court of Peace of the location where the real estate is located.

⚖️ CONDITIONS FOR A RENT INCREASE IN TURKEY
Agreement / Term StatusLegal BasisMaximum Applicable Increase RateDecisive Criteria
Agreement Has an Increase Clause
Years 1–5
TCO Art. 344/1Contractual rate
(Max. 12-month CPI avg.)
The contract term and the legal CPI cap.
Agreement Has No Increase Clause
Years 1–5
TCO Art. 344/2Court determination
(Max. 12-month CPI avg.)
The judge’s discretion, the CPI ceiling and the condition of the property.
Agreements Over 5 Years Old
6th year and the end of every 5 years
TCO Art. 344/3Set by the judgeComparable market rents, the CPI and the fairness reduction.
Interim Increase Demands Outside the AgreementTCO Art. 344/1Cannot Be Applied
(Invalid)
The CPI ceiling on a lease-year basis.

Rent Increases in Lease Agreements Involving Foreigners in Turkey

Where a property located within the borders of Turkey is the subject of a lease agreement, Turkish law applies regardless of the parties’ nationality, under the principle that the law of the place where the property is located applies (lex rei sitae). The fact that the landlord or the tenant is a foreign national (a natural person or legal entity) does not set aside the mandatory provisions of the Turkish Code of Obligations (TCO) or the rent increase cap.

1. Law Applicable to Foreigners’ Lease Agreements in Turkey

Under Law No. 5718 on Private International Law and Procedural Law (PILA Art. 25/1), contracts relating to immovable property or its use are subject to the law of the country where the property is located. Regardless of whether the landlord or the tenant is a foreign national, this rule has the following consequences:

  • There Is No Exception Under the Law on Foreigners: In lease agreements to which foreign nationals are a party, there is no separate regulation of rent increase rates and no exemption under a law-on-foreigners regime in Turkey.
  • Binding Force of the CPI Ceiling: Even if the landlord or the tenant is a foreigner, the rent hike in renewed lease periods cannot exceed the 12-month average change in the CPI under TCO Art. 344. The parties being foreign does not give legal validity to an increase above this mandatory ceiling.
  • Foreign Currency Lease Agreements (TCO Art. 344/4): Under Art. 8 of the Communiqué (No: 2008-32/34) on Decree No. 32 on the Protection of the Value of the Turkish Currency, persons resident in Turkey cannot agree between themselves on a rent in foreign currency or indexed to foreign currency in lease agreements; this is, however, possible in agreements to which persons resident in Turkey who do not hold Turkish citizenship are a party as tenants. If the agreement is made in foreign currency, under TCO Art. 344/4 the rent cannot be changed until 5 years have passed; this rule applies without prejudice to TCO Art. 138 on excessive hardship. After five years have passed, the rent is set by the judge, also taking into account changes in the value of the foreign currency.

In recent years, alongside the rise in property acquisitions by foreign natural persons in Turkey, the number of foreign investors acquiring property by setting up a legal entity (company), because of legal restrictions or for commercial reasons, has also grown rapidly. The same rules apply to properties leased out by these companies:

  • Position of Foreign-Capital Companies: Foreign-capital companies incorporated in Turkey under the Foreign Direct Investment Law and the Regulation on the Acquisition of Real Estate by Foreign Direct Investments are Turkish legal entities, each subject to Turkish legislation.
  • Equal Subjection to the Legislation: Where properties owned by these companies are let, all mandatory rules of the TCO on the law of obligations and the lease regime apply in full. Under tenancy law in Turkey, the fact that the landlord company has foreign capital does not grant a right to make an unlawful rent increase.

3. Tax Obligations on Foreigners’ Rental Income in Turkey

Foreign natural persons earning rental income (Income from Immovable Property – GMSİ) from their properties in Turkey are subject to Turkish tax legislation. Their tax obligations differ depending on whether they are resident in Turkey:

  • Full and Limited Tax Liability: Under the Income Tax Law (ITL Arts. 3 and 6), foreigners resident in Turkey are taxed as full taxpayers (on both domestic and foreign income), while those not resident in Turkey are taxed as limited taxpayers (only on income earned in Turkey).
  • GMSİ Tax Return: Foreign nationals are, as a rule, obliged to file an annual income tax return for rental income earned in Turkey and to pay the resulting tax. However, under ITL Art. 86, no annual return is filed for full taxpayers for the part of earnings and income within the exemption thresholds (ITL Art. 21 for residential rental income), or for limited taxpayers for income from immovable property taxed in full in Turkey by withholding.
  • Double Taxation Avoidance Agreements (DTAAs): Analysing foreigners’ tax position under the Double Taxation Avoidance Agreements concluded between their own country and Turkey is of critical importance to avoid the risk of international tax penalties and double taxation.
🌍 KEY POINTS FOR RENTAL AGREEMENTS WITH FOREIGNERS
SubjectRegulationLegal Basis
🏠 Applicable lawThe law of the country where the property is located (Turkish law)IPPL Art. 25/1
📈 Rent increase ceiling12-month average CPI; there is no exception for foreignersTBK Art. 344
💶 Rent denominated in foreign currencyPermitted for tenants who are not Turkish citizens and are resident in Türkiye; the rent cannot be changed before five years have elapsedCommuniqué No. 32 on the Decision No. 32,
TBK Art. 344/4
💰 Taxation of rental incomeResidents are subject to full tax liability; non-residents are subject to limited tax liabilityIncome Tax Law (GVK) Arts. 3, 6, 86

Fighting an unlawful rent increase is not merely a monetary dispute; it is directly a process of protecting the right of tenancy, the balance of ownership and the security of housing. In Turkey, getting support from a specialist lawyer in rental law in Turkey against increase demands above the legal limits (the 12-month CPI average) imposed by the landlord is the most critical strategic step in preventing loss of rights, procedural errors, limitation risks and unfair eviction lawsuits.

1. Reviewing the Rent Increase Against the Agreement and the Legislation in Turkey

Turkish Rental law is subject to strict formal requirements and strict deadlines. A single procedural mistake by a tenant objecting to an excessive rent hike (for example, falling into default by paying the rent short or with an incorrect description) may allow the landlord to file an eviction lawsuit for just cause; making overpayments without a reservation of rights may make it harder to reclaim the overpaid amounts. In this process, a specialist lawyer under Turkish rental law:

  • Manages the Reservation of Rights and Notarial Procedures: Makes the legal cap calculation (TCO Art. 344) accurately in warning notices sent through a notary public and reserves the refund rights arising from unjust enrichment (TCO Art. 77).
  • Removes the Risk of Default and Eviction: Structures, without error, the legal rent to be paid and the bank transfer descriptions so that the tenant does not face Form No. 13 enforcement proceedings with an eviction request from the landlord.

2. Representation in Compulsory Mediation and Court Proceedings in Turkey

The compulsory mediation required under Law No. 6325 and the Rent Determination Lawsuit (TCO Art. 345) that follows are technical proceedings under Turkish law. The lawyer’s contribution becomes clear at the following points:

  • Mediation Negotiations: At the mediation table, the lawyer defends the tenant’s legal rights on the basis of mandatory statutory provisions and helps resolve the dispute on fair terms before a lawsuit is filed.
  • Review of Expert and Comparables Reports: In rent determination lawsuits, the lawyer raises technical objections in time to the choice of comparable properties, the wear-and-tear allowances and the fairness and equity reduction rates in the expert reports obtained by the court.

3. Claiming a Refund of Overpaid Rent in Turkey

For tenants who in the past paid above the legal cap under pressure from the landlord or to avoid a dispute, whether a refund is possible under Turkish law depends largely on the existence of an objection and a reservation of rights and on proof of a defect of consent. Professional legal support in Turkey secures:

  • Refund of Past Overpayments: The filing of unjust enrichment lawsuits under TCO Art. 77,
  • Right of Set-Off: The legal groundwork for setting off overpaid amounts against rent owed for future months,
  • Monitoring Limitation Periods: Effective monitoring of the 2-year relative and 10-year absolute limitation periods.

Legal Disclaimer: The copyright in the articles and content on this website belongs to Attorney Orbay Çokgör; the content may be quoted provided that the source is credited and an active link to the relevant page is given. All content on this website is for general information purposes only, does not constitute legal advice and does not create an attorney-client relationship. The information may have become outdated due to changes in legislation and case law; for your specific legal situation, always seek legal assistance from a lawyer.

Previous Post
Company Formation in Turkey and Company Types with Requirements
Next Post
Probate in Turkey and Inheritance Transfer Process