Arbitration Costs and Legal Fees in Turkey: 2026 Guide to Arbitrator Fees, ISTAC Expenses and Cost Allocation

Introduction

The cost of arbitration is one of the most important issues businesses should evaluate before commencing proceedings or including an arbitration clause in a commercial contract. Although arbitration may offer specialist decision-makers, procedural flexibility, confidentiality and international enforceability, it is not automatically less expensive than court litigation.

The total cost of arbitration in Turkey depends on several factors, including the amount in dispute, the number of arbitrators, the selected arbitration institution, the complexity of the case, the language of the proceedings, the need for expert evidence and the duration of the arbitration.

A straightforward payment dispute decided by a sole arbitrator on documents may be resolved at a proportionate cost. By contrast, a multi-party construction, energy or shareholder arbitration involving three arbitrators, foreign-law evidence, technical experts, document production and a lengthy evidentiary hearing may require a substantial budget.

The expression “arbitration costs” does not refer only to the arbitrators’ fees. It may include:

• Registration and institutional administration fees;
• Arbitrator fees and expenses;
• Legal counsel fees;
• Expert and consultant fees;
• Translation and interpretation expenses;
• Hearing-room and technology costs;
• Witness expenses;
• Court applications;
• Notification and service costs;
• Annulment and enforcement expenses.

The applicable cost regime depends partly on whether the proceedings are conducted as domestic arbitration under the Turkish Code of Civil Procedure No. 6100, international arbitration under the Turkish International Arbitration Law No. 4686 or institutional arbitration under rules such as the Istanbul Arbitration Centre Rules.

This comprehensive guide examines arbitration costs and legal fees in Turkey, including the 2026 International Arbitration Fee Tariff, the current ISTAC cost scales, attorney fee arrangements, advances on costs, cost allocation and practical methods of controlling the overall arbitration budget.

What Are the Main Costs of Arbitration in Turkey?

Arbitration expenses can generally be divided into two broad categories.

Procedural and institutional costs

These are the costs required to establish and operate the arbitral process. They may include:

• Arbitrator fees;
• Institutional administration fees;
• Registration fees;
• Arbitrator travel and accommodation;
• Tribunal secretary fees;
• Tribunal-appointed expert fees;
• Hearing expenses;
• Official notifications;
• Court fees connected with arbitration.

Party-side costs

These are expenses incurred by each party in preparing and presenting its case. They may include:

• Lawyers’ fees;
• Party-appointed experts;
• Document review;
• Translation;
• Witness preparation;
• Travel;
• Electronic evidence management;
• Internal company costs.

The distinction is important because not every expense paid by a successful party will necessarily be recoverable from the losing party. Turkish legislation expressly identifies several categories of recoverable arbitration costs, but the amount of legal fees ultimately awarded may differ from the actual fees paid to counsel.

Legal Framework Governing Arbitration Costs in Turkey

Domestic and international arbitration are governed by separate statutory provisions, although their cost-allocation principles are substantially similar.

Domestic arbitration costs

Articles 440 to 442 of the Turkish Code of Civil Procedure regulate arbitrator fees, arbitration expenses, advances and cost allocation in domestic arbitration.

Article 441 identifies the principal arbitration expenses as:

• Arbitrator and tribunal-secretary fees;
• Arbitrator travel and other expenses;
• Tribunal-appointed expert and inspection expenses;
• Approved witness expenses;
• Attorney fees awarded under the applicable minimum attorney fee tariff;
• Court fees relating to arbitration applications;
• Notification expenses.

Unless the parties agree otherwise, the unsuccessful party bears the arbitration expenses. Where both parties succeed in part, costs are allocated according to their respective degree of success.

International arbitration costs

Article 16 of the Turkish International Arbitration Law contains a similar framework. It permits the parties to determine the arbitrators’ remuneration directly, refer to established international practices or adopt institutional arbitration rules.

If no agreement, established practice or institutional fee mechanism applies, the arbitrators’ remuneration is determined according to the tariff issued by the Turkish Ministry of Justice. Article 16 also includes arbitrator fees, travel expenses, experts, witnesses, attorney fees, court fees and notification expenses within arbitration costs. Unless otherwise agreed, the losing party bears the costs, while partial success results in proportional allocation.

How Are Arbitrator Fees Determined?

The method used to calculate arbitrator fees depends on the type of arbitration.

Three principal methods are used in practice:

1. A fee agreement concluded between the parties and the arbitrators;
2. A fee scale contained in institutional arbitration rules;
3. The annual statutory tariff issued by the Ministry of Justice.

In institutional arbitration, the parties ordinarily do not negotiate individual hourly rates directly with the arbitrators. Fees are calculated or fixed under the institution’s rules.

In ad hoc arbitration, the parties and arbitrators may agree on:

• An hourly rate;
• A fixed fee;
• A percentage based on the amount in dispute;
• A staged fee depending on procedural progress.

The fee arrangement should address what happens if the case is withdrawn, settled, terminated early or decided through a partial award.

The 2026 International Arbitration Fee Tariff

The Turkish Ministry of Justice published the current International Arbitration Fee Tariff in the Official Gazette dated 26 March 2026.

The tariff applies where:

• The parties and arbitrators cannot agree on remuneration;
• The arbitration agreement contains no fee provision;
• The parties have not referred to established international rules;
• No institutional arbitration fee rules apply.

It therefore functions as a default statutory mechanism rather than replacing fee arrangements validly adopted by the parties.

Under the 2026 tariff, arbitrator fees are calculated progressively:

The percentages are applied progressively rather than applying one percentage to the entire amount. The fee for three or more arbitrators represents the total tribunal fee to be divided among the arbitrators. Unless otherwise agreed, the chair receives ten per cent more than each of the other arbitrators. The fee is determined according to the tariff in force on the date of the relevant decision.

Illustrative calculations under the 2026 tariff

The following examples demonstrate the tariff calculation:

These figures cover the arbitrator fee only. They do not include lawyers, experts, translations, hearings, travel, notifications or court-related expenses.

The statutory tariff also provides that correction, interpretation or completion of the award does not require an additional arbitrator fee. It separately regulates early termination, withdrawal, settlement, partial awards and situations in which the arbitrator’s mandate ends before completion.

ISTAC Arbitration Costs

The Istanbul Arbitration Centre is one of the principal institutions administering domestic and international commercial arbitrations connected with Turkey.

ISTAC arbitration costs generally consist of:

• A registration fee;
• Administrative costs;
• Arbitrator fees;
• Case-specific expenses.

The amount in dispute is used to calculate administrative costs and arbitrator fees under progressive scales.

Current ISTAC registration and administration fees

ISTAC’s published scale provides for a TRY 1,000 registration fee.

Administrative costs are calculated as follows:

Current ISTAC arbitrator fee scale

ISTAC calculates arbitrator fees separately for a sole arbitrator and a three-member arbitral tribunal.

ISTAC currently states that the arbitrator fee cannot be lower than TRY 5,000. The official scales should be checked when the arbitration is commenced because institutional fees may be revised.

Illustrative ISTAC Cost Calculations

The following figures combine the published registration fee, administrative cost and arbitrator fee.

They exclude legal fees, experts, translations, travel, hearing facilities, technology expenses and other case-specific expenditure.

These examples demonstrate the financial importance of selecting the number of arbitrators.

A three-member tribunal may be justified where:

• The amount in dispute is substantial;
• Several legal systems are involved;
• The dispute is technically complex;
• The parties require different specialist expertise;
• The commercial consequences are significant.

For a smaller documentary payment dispute, a sole arbitrator may offer a more proportionate solution.

Legal Fees in Turkish Arbitration

Legal counsel fees are usually one of the largest components of the total arbitration budget.

Unlike institutional and arbitrator costs, legal fees are not normally calculated through a single mandatory institutional scale. The lawyer and client may agree on the commercial fee structure, subject to Turkish professional rules and the applicable Attorney Minimum Fee Tariff.

Common fee structures include:

Fixed fee

The lawyer charges a predetermined amount for defined stages of the arbitration.

The agreement may divide the work into:

• Pre-arbitration advice;
• Notice of dispute;
• Request for arbitration;
• Written submissions;
• Evidentiary hearing;
• Final award;
• Annulment or enforcement.

A staged fixed fee offers budget predictability but should clearly define what work is included.

Hourly fee

The lawyer charges according to time spent by partners, senior lawyers, associates and other professionals.

Hourly billing may be appropriate where the likely duration and procedural complexity cannot be predicted accurately.

The engagement agreement should regulate:

• Hourly rates;
• Time recording;
• Reporting;
• Travel time;
• Disbursements;
• Currency;
• Taxes;
• Rate revisions.

Hybrid arrangement

A reduced fixed or hourly fee may be combined with a success component.

This arrangement distributes financial risk between the client and counsel while providing a base payment for the work performed.

Success fee

Turkish law permits the parties to agree that a percentage of the claim, award or subject matter will constitute the lawyer’s fee, provided that the agreed percentage does not exceed 25 per cent. The contract cannot provide that a specific part of the non-monetary property or right in dispute will belong directly to the lawyer.

The success-fee provision should define:

• What constitutes success;
• Whether partial recovery qualifies;
• Whether settlement triggers payment;
• How interest and costs are treated;
• When the fee becomes due;
• Whether enforcement and actual collection are required;
• How taxes and expenses are calculated.

The Attorney Minimum Fee Tariff and Arbitration

The 2025–2026 Turkish Attorney Minimum Fee Tariff entered into force following publication in the Official Gazette on 4 November 2025.

Article 17 expressly provides that the tariff applies to all legal assistance performed before arbitrators. The tariff also states that a contractual legal fee cannot be agreed below the applicable minimum tariff.

The tariff does not represent a recommended or standard market price for every arbitration. It establishes a minimum legal threshold.

Actual arbitration legal fees may be significantly higher because of:

• The value of the claim;
• The number of submissions;
• The language of the case;
• Foreign-law analysis;
• Technical complexity;
• Document volume;
• Hearing duration;
• Number of lawyers involved;
• Urgency;
• International enforcement requirements.

An international construction arbitration conducted in English with delay and quantum experts requires substantially more work than a domestic invoice claim based on a limited number of documents.

Contractual Legal Fees and Recoverable Legal Fees Are Different

A critical distinction exists between:

1. The amount the client agrees to pay its own lawyer; and
2. The amount the tribunal orders the opposing party to reimburse.

The client’s contractual legal fees are governed by the engagement agreement and professional rules.

The recoverable attorney fee is determined by the tribunal under the applicable arbitration law, party agreement and institutional rules.

Under the Turkish Code of Civil Procedure, the tribunal may include in arbitration costs an attorney fee assessed for the successful party according to the Attorney Minimum Fee Tariff. The International Arbitration Law contains a comparable provision.

Accordingly, a party should not automatically assume that every Turkish lira, euro or dollar paid to its legal team will be recovered from the opponent.

The tribunal may consider:

• The applicable statutory tariff;
• The degree of success;
• The arbitration agreement;
• The governing institutional rules;
• The reasonableness of the costs;
• The scope of the submissions;
• The parties’ procedural conduct.

The potential difference between actual legal expenditure and recoverable legal fees should be included in the initial budget.

Expert Fees

Experts may be required in disputes involving:

• Construction delay;
• Defects;
• Engineering;
• Energy pricing;
• Financial loss;
• Company valuation;
• Accounting;
• Foreign law;
• Information technology;
• Intellectual property.

Expert costs may include:

• Review of documents;
• Site inspection;
• Preparation of reports;
• Reply reports;
• Expert meetings;
• Hearing attendance;
• Cross-examination preparation;
• Travel.

Complex expert evidence may cost more than the institutional and arbitrator fees.

The parties should instruct experts early and define:

• The issues to be addressed;
• The materials to be reviewed;
• The methodology;
• The timetable;
• The budget;
• The maximum fee or reporting mechanism.

Duplicative or unnecessary expert evidence increases the arbitration budget and may not be recoverable even if the party succeeds.

Translation and Interpretation Expenses

International arbitration frequently involves documents and witnesses in several languages.

Translation expenses may arise from:

• Contracts;
• Correspondence;
• Technical reports;
• Corporate records;
• Witness statements;
• Expert reports;
• Court documents;
• The arbitral award.

Interpretation may be required for witnesses, experts and hearings.

Translation cost depends on:

• Volume;
• Language combination;
• Urgency;
• Technical complexity;
• Certification requirements;
• Use of simultaneous or consecutive interpretation.

The parties can reduce cost by agreeing that only the relevant parts of long documents will be translated, subject to the tribunal’s direction and the opposing party’s procedural rights.

Hearing and Technology Costs

An in-person evidentiary hearing may involve:

• Hearing-room rental;
• Audio-visual equipment;
• Transcription;
• Interpretation booths;
• Tribunal travel;
• Accommodation;
• Catering;
• Security;
• Document presentation.

Online hearings may reduce travel and venue costs, but they may still require:

• Secure video-conference platforms;
• Technical support;
• Electronic hearing bundles;
• Remote transcription;
• Cybersecurity measures.

The appropriate format should be selected according to the needs of the case rather than assuming that an in-person or online hearing is always preferable.

Witness Expenses

Witnesses do not ordinarily receive a fee merely for giving factual evidence, but the arbitration may generate travel, accommodation and related costs.

Under the domestic and international statutory regimes, witness travel and other expenses may be included in arbitration costs to the extent approved by the tribunal.

Witness expenses should be reasonable and documented.

Excessive travel arrangements or unnecessary attendance may not be recoverable.

Court-Related Costs

Arbitration does not eliminate all court involvement.

A party may need to apply to Turkish courts for:

• Interim attachment;
• Interim injunction;
• Appointment or challenge of arbitrators;
• Evidence collection;
• Extension of the arbitration period;
• Annulment;
• Recognition and enforcement.

These proceedings may generate:

• Court fees;
• Service expenses;
• Translation and certification costs;
• Separate legal fees;
• Security requirements.

Turkish arbitration legislation expressly includes court fees relating to permitted arbitration applications among the categories of arbitration costs.

However, post-award annulment and enforcement proceedings should normally be budgeted separately because they may arise after the arbitral tribunal has completed its mandate.

Advances on Costs

Arbitration institutions and tribunals generally require parties to fund the arbitration before the final award.

Under domestic arbitration, the tribunal may request an advance from each party. Unless otherwise agreed, the advance is paid in equal shares.

If the required advance is not deposited within the period determined by the tribunal, the proceedings may be suspended. If payment is not made within one month after notification of suspension, the arbitration terminates. Any unused balance must be returned after the award.

Under the International Arbitration Law, the tribunal may request an advance from the claimant. Failure to pay within the required period may result in suspension and, after 30 days, termination of the proceedings.

Institutional arbitration rules may contain more detailed mechanisms concerning:

• Separate advances for claims and counterclaims;
• Supplementary advances;
• Payment by one party where the other defaults;
• Suspension of particular claims;
• Final reconciliation of costs.

A claimant should ensure that sufficient funds are available not only for the initial registration fee but throughout the proceedings.

What Happens If One Party Refuses to Pay?

A respondent may refuse to pay its share of an advance in the hope of delaying the case.

Depending on the applicable rules, the claimant may be invited to pay the unpaid portion to allow the arbitration to continue.

Paying the opponent’s share does not necessarily mean that the paying party ultimately bears that expense. The tribunal may allocate the cost against the defaulting party in the final award.

Nevertheless, the claimant must consider the cash-flow consequences. A party commencing arbitration should have sufficient reserves to finance the proceedings even if the opposing party does not cooperate.

Who Ultimately Pays the Arbitration Costs?

The default rule under Turkish domestic and international arbitration legislation is generally that the unsuccessful party bears the arbitration costs.

Where each party succeeds in part, costs are divided according to their degree of success.

For example, a claimant may request TRY 10 million but recover only TRY 3 million. The tribunal may conclude that neither side was entirely successful and divide costs proportionally.

The parties may agree on a different cost rule, such as:

• Each party bears its own legal fees;
• Institutional and arbitrator costs are divided equally;
• The tribunal has complete discretion;
• Costs follow the event;
• Unreasonable procedural conduct affects allocation.

The arbitration clause should not contain a cost provision without considering its consequences.

A clause requiring every party to bear its own costs may discourage recovery of legal fees even where one party’s breach was clear.

Procedural Conduct and Cost Allocation

The tribunal may examine whether the costs claimed were reasonable and connected with the arbitration.

Conduct potentially relevant to a cost decision may include:

• Unnecessary procedural applications;
• Late submission of evidence;
• Repetitive arguments;
• Refusal to comply with procedural orders;
• Unreasonable document requests;
• Unsuccessful jurisdictional objections;
• Failure to cooperate with scheduling;
• Rejection of reasonable settlement efforts, where legally relevant.

Cost submissions should explain:

• The amount claimed;
• The work performed;
• Why the cost was necessary;
• How the claim relates to the successful issues;
• Whether the amount is reasonable.

A party should maintain detailed records throughout the arbitration instead of attempting to reconstruct expenses at the end.

Costs after Settlement, Withdrawal or Early Termination

Settlement does not automatically eliminate arbitration costs.

The parties should address in the settlement agreement:

• Arbitrator fees already earned;
• Institutional costs;
• Legal fees;
• Expert invoices;
• Return of unused advances;
• Whether a consent award is requested;
• Allocation of outstanding expenses.

Under the 2026 statutory international arbitration tariff, the amount of the arbitrator fee following settlement, withdrawal or another form of early termination may depend on the procedural stage at which the case ends. The tariff distinguishes between termination before and after the period for presenting evidence has been granted.

Early settlement may significantly reduce future legal, expert and hearing expenses even where part of the arbitrator fee has already accrued.

Annulment and Enforcement Costs

Obtaining a favourable arbitral award does not always conclude the dispute.

The losing party may commence annulment proceedings, or the award creditor may need to enforce the award against assets in Turkey or abroad.

Post-award expenses may include:

• Turkish court fees;
• Foreign local counsel;
• Certified translations;
• Apostille or legalisation;
• Asset investigations;
• Interim attachment;
• Enforcement office expenses;
• Separate attorney fees;
• Appeals.

An enforcement strategy should be developed before the award is rendered.

The claimant should investigate:

• Bank accounts;
• Real estate;
• Company shares;
• Vehicles;
• Receivables;
• Machinery;
• Foreign assets.

A commercially successful arbitration requires both a favourable award and a realistic route to collection.

Is Arbitration More Expensive Than Court Litigation?

There is no universal answer.

Arbitration may initially appear more expensive because the parties pay the arbitrators and institution directly, while judges are publicly funded.

However, cost should be assessed together with:

• Duration;
• Number of appeal stages;
• Specialist expertise;
• Confidentiality;
• International enforceability;
• Procedural flexibility;
• Business disruption.

A focused arbitration before a sole arbitrator may be commercially efficient.

A poorly managed arbitration with three arbitrators, broad document production, several experts and long hearings may become substantially more expensive than court litigation.

The correct question is not whether arbitration is always cheaper, but whether it offers proportionate value for the particular dispute.

How to Reduce Arbitration Costs

Choose a sole arbitrator where appropriate

The difference between a sole arbitrator and a three-member tribunal can be substantial, particularly under institutional fee scales.

Select fast-track arbitration for suitable disputes

Documentary payment or lower-complexity disputes may be suitable for accelerated proceedings.

Draft the arbitration clause carefully

A defective clause may create expensive jurisdictional litigation before the merits are considered.

Limit document production

Requests should be focused on specific and material documents.

Use phased proceedings carefully

Bifurcation may reduce costs if a preliminary issue can dispose of the case. It may increase costs where the issues are closely connected.

Define the issues early

An agreed list of issues can prevent repetitive submissions and irrelevant evidence.

Coordinate experts

Legal and technical teams should identify the necessary expert questions before reports are commissioned.

Consider online hearings

Remote hearings may reduce travel and accommodation costs.

Translate only necessary material

The tribunal and parties may agree that irrelevant sections do not require translation.

Maintain a cost budget

The budget should be updated after major procedural events.

Evaluate settlement continuously

Settlement should be assessed after exchange of pleadings, expert reports and key procedural decisions.

Arbitration Cost Checklist

Before commencing arbitration in Turkey, a party should calculate:

1. Registration fee;
2. Institutional administration fee;
3. Sole arbitrator or tribunal fee;
4. Own legal fees;
5. Potential adverse legal fees;
6. Expert costs;
7. Translation and interpretation;
8. Hearing and travel expenses;
9. Court applications;
10. Interim measures;
11. Annulment proceedings;
12. Enforcement expenses;
13. Foreign local counsel;
14. Taxes and currency risk;
15. The opponent’s likely participation in advances.

The analysis should then compare the expected cost with:

• The amount recoverable;
• The probability of success;
• The debtor’s assets;
• Settlement prospects;
• The commercial importance of non-monetary relief.

Frequently Asked Questions

How much does arbitration cost in Turkey?

The total cost depends on the amount in dispute, number of arbitrators, institution, legal fees, experts, translations and hearing requirements. There is no single fixed price.

What is the 2026 International Arbitration Fee Tariff?

It is the statutory default tariff published by the Ministry of Justice on 26 March 2026. It applies where no fee agreement, institutional rule or established international mechanism determines arbitrator remuneration.

How are ISTAC fees calculated?

ISTAC calculates a registration fee, administrative cost and arbitrator fee according to the amount in dispute and whether the case is decided by a sole arbitrator or tribunal.

Is a sole arbitrator cheaper?

Generally, yes. Both the statutory tariff and ISTAC scale provide lower total arbitrator fees for a sole arbitrator than for a three-member tribunal.

Are lawyers’ fees included in ISTAC’s published calculator?

The published institutional scales concern registration, administration and arbitrator fees. Party legal fees, experts, translations and hearing expenses must be budgeted separately.

Can lawyer fees be agreed as a percentage?

Yes. Under the Turkish Lawyers Act, a percentage-based fee may be agreed, provided that it does not exceed 25 per cent of the claim, judgment or monetary subject matter.

Does the losing party pay all legal fees?

Not necessarily. Turkish legislation permits an award of attorney fees according to the applicable minimum tariff, but the actual fees paid by a party may exceed the amount recoverable.

What happens if the advance on costs is not paid?

The proceedings may be suspended and ultimately terminated if the required advance is not deposited within the statutory or institutional period.

Are expert fees recoverable?

They may be included in arbitration costs where they were necessary, reasonable and accepted under the applicable legal or procedural framework.

Are enforcement costs included in the arbitration award?

Post-award enforcement is a separate process and usually requires an additional budget for court fees, lawyers, translations and execution expenses.

Conclusion

Arbitration costs and legal fees in Turkey depend on the procedural framework, amount in dispute, number of arbitrators and complexity of the case.

The main cost categories include:

• Arbitrator fees;
• Institutional expenses;
• Lawyers’ fees;
• Experts;
• Translations;
• Hearings;
• Witnesses;
• Court applications;
• Enforcement.

In international ad hoc arbitration, the Ministry of Justice’s 2026 International Arbitration Fee Tariff applies only where the parties have not adopted another valid fee mechanism. The tariff uses progressive percentages and distinguishes between a sole arbitrator and a tribunal of three or more arbitrators.

In ISTAC arbitration, registration, administrative and arbitrator fees are calculated under the institution’s published scales. A sole arbitrator may offer substantial cost savings where the dispute does not require a three-member tribunal.

Legal fees are agreed separately between the client and its lawyers, subject to the Turkish Lawyers Act and Attorney Minimum Fee Tariff. A percentage-based success fee may be agreed up to the statutory 25 per cent limit. The actual legal fees paid by a party should not be confused with the attorney fee recoverable from the opposing party.

Unless the parties agree otherwise, the default Turkish rule is that the unsuccessful party bears the arbitration costs. Where both sides partially succeed, costs are allocated according to the degree of success.

Businesses should prepare a complete arbitration budget before commencing proceedings. The analysis should include not only the institution and arbitrators but also experts, translations, hearings, court applications, annulment and enforcement.

Careful drafting, selection of a proportionate tribunal, disciplined evidence management and early settlement analysis can significantly reduce the cost of arbitration.

For commercial disputes connected with Turkey, specialised arbitration counsel can assist with calculating the likely budget, selecting the appropriate procedure and designing a cost strategy that reflects both the legal merits and the prospects of actual recovery.