About The Prohibition On Making Contracts In Foreign Currency in Türkiye – Sözleşmeleri Döviz Cinsinden Belirleme Yasağı Hakkında

Merhaba sevgili okuyucularımız.

Bu yazımızda 13 Eylül 2018 tarihinde Resmi Gazete’de yayımlanan 85 sayılı Türk Parası Kıymetini Koruma Hakkında 32 Sayılı Kararda Değişiklik Yapılmasına Dair Cumhurbaşkanlığı kararı ile getirilen Türkiye’de ikamet eden kişilere, Bakanlık tarafından belirlenen istisnai durumlar dışında, sözleşme bedellerini ve sözleşmeden kaynaklanan ödeme yükümlülüklerini döviz cinsinden veya dövize endeksli olarak belirleme yasağı hakkında Türkiye’deki meslektaşından bilgi alan Yabancı bir avukat ile meslektaşı arasında geçen bir diyalog hazırladık. Metinde geçen kelimelere ilişkin minik bir sözlük ve test çalışması da sizi bekliyor olacak.

Keyifli çalışmalar dileriz …

DIALOGUE

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Mr. John: Good day, Ms. Deniz. I’ve come across some information about leasing contracts in Turkey and the prohibition on making contracts in foreign currency. Can you provide more details on this?

Ms. Deniz: Good day, Mr. John. Certainly. The prohibition on making leasing contracts in foreign currency under the Real Estate Lease Agreement applies when two conditions are met: the parties involved must be residents of Turkey, and the property to be leased must be located in Turkey. If at least one party is not a resident in Turkey or the property is not in Turkey, the prohibition on making contracts in foreign currency does not apply.

Mr. John: I see. What are the penalties for entering into a leasing contract in foreign currency?

Ms. Deniz: Making a leasing contract in foreign currency is considered an offense and is subject to an administrative fine.

Mr. John: And what are the sanctions for making such a contract?

Ms. Deniz: In the case of making a leasing contract in foreign currency, an administrative fine ranging from 3,000 to 25,000 Turkish Liras may be imposed. The authority to impose the administrative fine lies with the Public Prosecutor. In case of recurrence, these fines are doubled. However, for proceedings to be initiated at the Republic Chief Prosecutor’s Office, the complaints must be accompanied by concrete information and supporting documents (invoices, contract samples, price quotes, etc.).

Mr. John: Can I enter into a leasing contract in foreign currency with a foreign tenant?

Ms. Deniz: Yes, it is possible. Non-Turkish citizens residing in Turkey can agree on the lease amount in foreign currency or indexed to foreign currency, as explicitly regulated in the ‘Regulation on the Protection of the Value of the Turkish Currency No. 32’ for lease agreements with non-Turkish citizens.

Mr. John: If I want to change an existing leasing contract to be in foreign currency, is that possible?

Ms. Deniz: It is possible to convert the lease amount from Turkish Lira to foreign currency if the conditions for making a leasing contract in foreign currency are met, and both parties mutually agree to the conversion.

Mr. John: Is there a special permission required for making a leasing contract in foreign currency?

Ms. Deniz: Making a leasing contract in foreign currency for a property in Turkey is only possible if the tenant is a foreigner, i.e., not a Turkish citizen. When renting to a foreigner, it is crucial to have the lease contract signed in the presence of a notary and subsequently submitted to the Immigration Office. Following this procedure, a leasing contract can be made with a foreigner.

Mr. John: Are there additional documents required if making a leasing contract in foreign currency with a foreign tenant?

Ms. Deniz: Normally, a leasing contract is not strictly required to be in writing; however, when entering into a lease agreement with a foreign tenant, it must be done in the presence of a notary. Additionally, this contract must be submitted to the Immigration Office. If there is a supporting Turkish citizen who will cover the foreigner’s expenses during their stay in Turkey, a notarized commitment letter and the income documents of the Turkish citizen are sufficient, and notary approval is not necessary.

Mr. John: Can I increase the rent if the tenant wishes to make payments in foreign currency?

Ms. Deniz: In leasing contracts based on foreign currency, the property owner cannot increase the rent in the first five years. After the initial five years, they have the right to raise the rent.

Mr. John: How are tax matters handled when entering into a leasing contract in foreign currency?

Ms. Deniz: According to the Tax Guide for Taxpayers Earning Rental Income (No. 463) by the Revenue Administration Presidency, for leasing transactions in foreign currency, the gross income is determined based on the Central Bank of the Republic of Turkey’s foreign exchange buying rate at the time of collection. The gross income represents the rental amounts received in cash or in-kind during a calendar year related to that year or previous years.

In real estate capital income, the income is considered earned when it is collected. Therefore, for rental income to be taxable, it must be collected. Payment can be made by depositing money in the name of the property owner to a bank, public institution, enforcement office, notary, or post office, or by transferring the rent receivable to another person upon the tenant’s request or by offsetting it with the tenant’s debt. In such cases, rental income is considered collected.

Is there anything else you would like to know, Mr. John?

Mr. John: Thank you, Ms. Deniz. Your detailed explanation has been incredibly helpful. I appreciate your expertise in clarifying these legal aspects of leasing contracts in Turkey.

Ms. Deniz: You’re welcome, Mr. John. If you have any further questions or need additional clarification in the future, feel free to reach out. It’s crucial to navigate these legal nuances properly. Have a great day!

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VOCABULARY LIST

Foreign Currency Lease Agreement – Dövizle Kira Sözleşmesi
Real Estate Lease Agreement – Gayrimenkul Kiralama Sözleşmesi
Administrative Fine – İdari Para Cezası
Public Prosecutor – Cumhuriyet Savcısı
Recurrence Situation – Tekerrür Durumu
Republic Chief Prosecutor’s Office – Cumhuriyet Başsavcılığı
In the presence of a notary – Noter Huzurunda
Immigration Office – Göç İdaresi
Commitment Letter – Taahhütname
Revenue Administration Presidency – Gelir İdaresi Başkanlığı
Tax Guide – Vergi Rehberi
Gross Income – Gayri Safi Hasılat
Prohibition – Yasak
Conditions – Koşullar
Residents – Yerleşik Kişiler
Imposed – Uygulanmış
Procedural – Prosedürel
Notarized – Noter Onaylı
Crucial – Hayati Önem
Nuances – İncelikler
Expertise – Uzmanlık
Clarifying – Açıklık Getirme
Navigating – Yönlendirmek
Properly – Doğru Bir Şekilde

TEST

Question 1: What is the Turkish term for “Real Estate Lease Agreement”?
a) Gayrimenkul Kiralama Sözleşmesi
b) Cumhuriyet Savcısı
c) Noter Huzurunda
d) Tekerrür Durumu

Question 2: In the dialogue, what is the consequence of making a leasing contract in foreign currency?
a) Criminal charges
b) Administrative fine
c) Notarized approval
d) Tax exemption

Question 3: What authority is responsible for imposing the administrative fine mentioned in the dialogue?
a) Immigration Office
b) Cumhuriyet Başsavcılığı
c) Gelir İdaresi Başkanlığı
d) Taahhütname

Question 4: What is the English equivalent for “İdari Para Cezası”?
a) Administrative Fine
b) Public Prosecutor
c) Prohibition
d) Nuances

Question 5: What document is mentioned as necessary for initiating proceedings at the Republic Chief Prosecutor’s Office?
a) Lease Agreement
b) Commitment Letter
c) Supporting documents
d) Tax Guide

Question 6: According to the dialogue, when can the property owner increase the rent in a foreign currency lease agreement?
a) Anytime
b) After the first year
c) After the initial five years
d) Only with tenant approval

Question 7: What is the Turkish term for “Public Prosecutor”?
a) Yasak
b) Cumhuriyet Savcısı
c) İdari Para Cezası
d) Noter Onaylı

Question 8: Which entity is responsible for determining the gross income in a foreign currency lease agreement?
a) Immigration Office
b) Cumhuriyet Başsavcılığı
c) Gelir İdaresi Başkanlığı
d) Taahhütname

Question 9: What does “Noter Huzurunda” mean in English?
a) Tax Guide
b) In the presence of a notary
c) Commitment Letter
d) Gross Income

Question 10: According to the dialogue, what is “Gayri Safi Hasılat” in English?
a) Administrative Fine
b) Public Prosecutor
c) Prohibition
d) Gross Income

Question 11: What is the consequence of entering into a leasing contract in foreign currency for the first time, according to the dialogue?
a) Notarized approval
b) Criminal charges
c) Administrative fine
d) Tax exemption

Question 12: What is the Turkish term for “Tax Guide”?
a) Yasak
b) Vergi Rehberi
c) İdari Para Cezası
d) Gayrimenkul Kiralama Sözleşmesi

Question 13: When can the property owner increase the rent in a foreign currency lease agreement, according to the dialogue?
a) After the first year
b) Anytime
c) Only with tenant approval
d) After the initial five years

Question 14: What is the consequence of recurrence in making leasing contracts in foreign currency, as mentioned in the dialogue?
a) Double administrative fine
b) Criminal charges
c) Tax exemption
d) Notarized approval

Question 15: According to the dialogue, what is the role of the Cumhuriyet Başsavcılığı?
a) Initiating proceedings at the Republic Chief Prosecutor’s Office
b) Imposing the administrative fine
c) Determining the gross income
d) In the presence of a notary

Answers