Leasing Offices, Warehouses and Industrial Premises in Turkey (Türkiye): A Guide for Foreign Companies

Almost every foreign business entering Turkey (Türkiye) needs premises: a registered office address for the company, an office for staff, a warehouse for stock, or an industrial unit for assembly or production. Most foreign companies lease rather than buy, at least at first. Leasing is faster, ties up less capital and avoids the separate approval process that applies when a foreign-capital company acquires real estate.

Turkish commercial leases are not simply a matter of contract, however. The Turkish Code of Obligations (No. 6098) contains mandatory rules for leases of "roofed workplaces" (offices, shops, warehouses and other covered business premises) that protect the tenant and override contrary clauses. Leases are also affected by currency rules, tax withholding, land registry practice and the licensing regime that decides whether premises can actually be used for the intended activity.

This guide covers what foreign companies should check before signing, how Turkish lease law works in practice, and the permits needed before operations can start. For buying rather than leasing, see our article on property acquisition, disposal and leasing in Turkey.

Lease or buy?

For most foreign companies the first premises are leased. Typical reasons include:

• Speed. A lease can often be agreed in weeks, whereas a purchase involves title checks, valuation and, for a foreign-capital company, an approval process under Article 36 of the Land Registry Law.
• Flexibility. Business needs in a new market change quickly. A lease allows the company to move or expand without the cost of selling property.
• Capital. Leasing keeps capital available for operations, stock and staff.

Buying can make sense for long-term industrial investments, especially in organised industrial zones (OSBs), where land is allocated or sold under the zone's own rules. Foreign-capital companies can generally acquire real estate needed for their activities, subject to the approval process and to restrictions in military and security zones. See our guide to setting up manufacturing and our article on real estate acquisition by foreign-capitalised entities.

How Turkish law treats workplace leases

The Turkish Code of Obligations contains general lease rules and specific rules for residential and roofed workplace leases. Many of these rules are mandatory, which means a lease cannot validly depart from them to the tenant's detriment. A lease drafted on a foreign template may therefore contain clauses that a Turkish court will not enforce. Our article on the legal framework of lease agreements in Turkey gives further background.

Rent increases on renewal

For workplace leases, the parties can agree how rent changes on each renewal year, but the increase generally cannot exceed the change in the 12-month average CPI for the previous lease year. A temporary 25% cap applied between 2022 and 1 July 2024, but only to residential leases; workplace leases remained subject to the CPI-based limit throughout. CPI figures are published monthly by the Turkish Statistical Institute (TÜİK).

The five-year rent review

Leases that last longer than five years, and leases renewed after five years, allow the rent for the new lease year to be reset. If the parties cannot agree, either side can ask the court to determine the new rent. The court generally considers the CPI change, the condition of the premises and comparable market rents. This is a significant point for long-term warehouse and industrial leases, where market rents may move faster than inflation.

Can the landlord terminate when the term ends?

Generally not. For roofed workplaces, the lease is automatically extended on the same terms for a further year if the tenant does not give notice at least 15 days before the end of the term. The landlord cannot rely on expiry of the term alone. After the lease has been extended for ten years (the "extension period"), the landlord may terminate without giving a reason by serving notice at least three months before the end of each following extension year.

Separately, the landlord can end a lease on statutory grounds, for example:

• persistent late payment of rent, under the rules on repeated written warnings;
• the tenant's written undertaking to vacate on a set date, given after the premises have been handed over;
• the landlord's genuine need for the premises for its own use or that of certain relatives (more relevant to individual landlords);
• reconstruction or substantial renovation that makes use of the premises impossible;
• a new owner's genuine need, within the statutory time limits.

Our article on tenant eviction processes in Turkey explains these grounds and procedures in more detail.

Deposits and additional payments

The security deposit is generally limited to three months' rent. In workplace leases, the tenant generally cannot be required to make payments other than the rent and the agreed ancillary costs. The Code states that clauses requiring a penalty for late payment of rent, or making future rent immediately due on late payment, are invalid. Other penalty clauses, such as those for early termination, may also be open to challenge. Service charges, utilities and the landlord's legitimate costs should be defined clearly as ancillary costs.

Can the tenant sublet or assign?

A workplace tenant may not sublet or assign the lease without the landlord's written consent. For workplace leases, the law gives the tenant a route to transfer the lease to a third party with the landlord's consent, which the landlord may refuse only for valid reasons. The outgoing tenant generally remains jointly liable with the new tenant until the end of the lease term, for no more than two years. Group restructurings should be considered at the drafting stage if a different group company may later need to occupy the premises.

Due diligence before you sign

Foreign companies are often surprised by how much can go wrong if the premises themselves are not checked. A careful review usually covers the points below.

Title and authority

• Title deed (tapu). Confirm the registered owner, the type of title (full ownership or condominium ownership), and that the person signing the lease is the owner or properly authorised.
• Annotations (şerh) and encumbrances. Check for mortgages, attachments, pre-emption rights, existing lease annotations and other restrictions recorded on the land register. A mortgage enforcement can lead to a new owner, so it is useful to know the risk in advance.
• Co-ownership. Where several people own the property, confirm who is entitled to lease it. See our article on co-ownership in Turkish law.

Zoning and permitted use

• Zoning plan (imar durumu). Confirm that the zoning permits your intended use. A warehouse in a residential zone, or production in a building zoned for offices, will generally not obtain a workplace licence.
• Building occupancy permit (iskan / yapı kullanma izin belgesi). Buildings without an occupancy permit, or with unpermitted extensions, can make the workplace licence difficult or impossible to obtain.
• Condominium management plan. In multi-unit buildings, the management plan may restrict commercial or particular uses.

Building condition and safety

• Structural and earthquake resilience. Turkey is seismically active. For warehouses and industrial units, consider the construction date, structural reports and compliance with current building regulations.
• Fire safety. Fire exits, sprinklers, detection and storage arrangements must meet the fire regulations and the requirements for your activity, particularly for warehouses holding flammable or dangerous goods.
• Floor loads, ceiling heights, loading docks and access. These are commercial points, but they decide whether the space works for your operations.

Currency, tax and registration points

Can the rent be in euros or US dollars?

Usually not, if both parties are Turkish residents. Under the rules issued under Decree No. 32 on the Protection of the Value of the Turkish Currency, real estate lease prices for property in Turkey agreed between Turkish residents generally have to be set in Turkish lira and may not be indexed to foreign currency. A Turkish subsidiary or branch is a Turkish resident for these purposes. There are limited exceptions, and the rules have been amended several times since 2018, so foreign-currency pricing should be checked against the current rules before it is agreed. The legal framework behind these rules (Law No. 1567 and Decree No. 32) was the subject of a 2025 Constitutional Court decision taking effect in July 2026 and of legislative changes, so the current position should be confirmed with Turkish counsel before any contract between Turkish residents is priced in foreign currency. See also our article on foreign currency payments for movable sales, which concerns a different category of transaction.

Withholding tax on rent

Where a company tenant rents premises from an individual landlord, the tenant generally has to withhold income tax from the rent (commonly at 20% at the time of writing) and pay it to the tax office on the landlord's behalf. Where the landlord is a company, the rent is usually invoiced with VAT instead. Rents paid to individual landlords generally have to be paid through banks. Your accountant (mali müşavir) should set up the withholding before the first payment. See the tax guide.

Stamp duty

Lease contracts are subject to stamp duty, commonly calculated at 0.189% of the total rent for the lease term at the time of writing. Where the term is indefinite, special rules apply. Stamp duty is calculated on one original only, even if several are signed, but the drafting of the lease, for example the stated term and amounts, can affect the cost.

Annotating the lease on the land register

A lease can be annotated (şerh) on the land register. A sale does not by itself end the lease: the new owner generally becomes the landlord. Annotation, which must be agreed in the lease, can give further protection, for example against a new owner's termination for its own need and, depending on ranking, in a forced sale. For long-term warehouse and industrial leases, and leases involving significant fit-out investment, annotation is often worth considering.

Fit-out, reinstatement and insurance

Foreign companies often invest heavily in fit-out: offices, racking, cold rooms or production lines. The lease should address:

• Landlord consent for alterations, and who obtains any building or alteration permits;
• Rent-free or reduced-rent periods during fit-out;
• Ownership of improvements at the end of the lease and any reinstatement obligation;
• Compensation for improvements if the lease ends early for reasons attributable to the landlord;
• Insurance: building insurance (usually the landlord's), contents and business interruption insurance (usually the tenant's), and compulsory earthquake insurance (DASK) where applicable;
• Maintenance and repairs: Turkish law allocates ordinary maintenance to the tenant and major repairs to the landlord, and contractual allocation should be clear.

Licences you need before operating

Signing a lease does not mean you can operate from the premises. Most workplaces need a workplace opening and operating licence (işyeri açma ve çalışma ruhsatı), issued by the municipality or, inside an organised industrial zone, by the zone directorate.

• Classification. Workplaces are classified under the workplace licensing regulation, for example as sanitary or non-sanitary establishments (gayrisıhhi müessese) depending on the activity's potential effect on health and the environment. Non-sanitary establishments, such as many production and some storage activities, are subject to more detailed requirements.
• Fire safety approval. A fire department compliance report is commonly required for warehouses and industrial premises.
• Signage permit. External signs generally need a separate permit from the municipality.
• Environmental permits. Depending on the activity, environmental permits or an environmental impact assessment may be required. See setting up manufacturing.
• Social security workplace registration. If staff will work at the premises, the workplace must be registered with the SGK. See hiring employees.

It is good practice to make the lease conditional on the licence, or to obtain informal confirmation from the municipality, before committing to a long term or to a costly fit-out.

Specialised warehouses

Some storage activities require more than a standard lease and licence.

• Customs warehouses (antrepo). Storing non-cleared imported goods under customs control requires customs authorisation, a guarantee and compliance with customs procedures. A business can use a licensed public customs warehouse or apply to operate its own. See customs, import and export.
• Dangerous goods. Chemicals, flammables and other hazardous goods are subject to specific storage, fire-safety, environmental and occupational health and safety rules.
• Food and cold storage. Food storage generally needs registration or approval under food safety legislation.
• Licensed warehousing. Turkey has a separate licensed warehousing regime for certain agricultural products, operating under its own rules.
• Free zones. Warehouses inside free zones operate under the free zone regime, with an operating licence from the free zone authority.

Should you use a logistics provider instead?

Many foreign companies start with a third-party logistics (3PL) provider rather than their own warehouse. The provider already holds the premises, licences and staff, and may offer customs warehousing. This avoids a long lease commitment while volumes are uncertain. The trade-offs are less control, contractual dependence and the need to check the provider's licences, insurance and liability terms. Where a 3PL also handles customs formalities, the scope of its representation should be clear.

When things go wrong: disputes and eviction

Since 1 September 2023, most disputes arising from lease relationships require an application to mediation before a lawsuit can be filed. This covers, for example, rent determination, collection of rent and many eviction claims. Certain enforcement proceedings without a court judgment follow their own route. If mediation fails, the dispute goes to the civil courts. Arbitration clauses in leases of property in Turkey raise specific questions of validity and should be considered carefully.

Common disputes include rent increases on renewal, the five-year rent review, service charge allocation, repairs, unauthorised alterations and eviction. Good records (correspondence, inspection reports, payment records) matter in every one of them. For litigation support, see our dispute resolution in Türkiye page.

Lease checklist for foreign tenants

Bilingual leases (Turkish and English) are common. Where versions differ, the lease should say which prevails. In practice the Turkish text is what authorities and courts will read.

Frequently asked questions

This guide is general information about Turkish law and practice at the date shown above. It is not legal, tax or customs advice and should not be relied on as such. Rules, thresholds and procedures in Türkiye change frequently and their application depends on the facts, so take advice on your own circumstances before acting. Advice on Turkish law is provided through lawyers qualified in Türkiye.