1. Introduction
Turkey is a regional hub for trade, construction, energy, technology and logistics. As cross-border transactions increase, so do cross-border disputes. For foreign investors and international companies, one of the most critical questions is whether a foreign court judgment or arbitral award can actually be enforced in Turkey against assets located here.
Turkey is not a jurisdiction where “everything must be litigated again from scratch”. Under Turkish law, foreign judgments and arbitral awards can be recognized and enforced through structured procedures, provided that certain conditions are met. At the same time, Turkish courts pay close attention to public policy, due process, and jurisdiction issues.
This article provides a practical, investor-oriented guide on:
- The legal framework for recognition and enforcement
- The conditions for tenfiz (enforcement) of foreign court judgments
- The specific regime for foreign arbitral awards
- The role of public policy and due process defences
- Practical tips for drafting dispute resolution clauses and planning enforcement in Turkey
The focus is on commercial and civil disputes (contract, tort, corporate, IP, banking, construction, etc.), rather than family law or criminal matters.
2. Legal Framework in Turkey
The enforcement of foreign judgments and arbitral awards in Turkey is primarily governed by:
- Turkish International Private and Procedural Law Act (Law No. 5718, “IPPL” / MÖHUK)
- Articles 50–59 regulate recognition and enforcement of foreign court judgments.
- Articles 60–63 (and following) regulate foreign arbitral awards, in harmony with the New York Convention.
- The 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards
- Turkey is a party to the Convention, with the commercial reservation and reciprocity reservation.
- In practice, the New York Convention is applied together with Law No. 5718.
- Bilateral and multilateral treaties
- Turkey has signed various bilateral judicial assistance and enforcement treaties with certain states (for example, on mutual recognition and enforcement of judgments).
- If a treaty exists and is more favourable, it may prevail over the general rules of Law No. 5718.
- ICSID Convention
- For investment disputes falling within the scope of the ICSID Convention, enforcement follows a special regime: ICSID awards are treated as if they were final judgments of Turkish courts, without a separate exequatur review, although execution still proceeds through Turkish enforcement offices.
Understanding which of these regimes applies to your case is the starting point of any enforcement strategy in Turkey.
3. Recognition vs. Enforcement: Key Distinction
Under Turkish law, practitioners often distinguish between:
- Recognition (tanıma):
The foreign judgment or award is acknowledged in Turkey and can be used as a binding determination of rights, for example as a defense in another lawsuit, without immediate execution (no seizure of assets). - Enforcement (tenfiz):
The foreign judgment or award is declared enforceable in Turkey and can be executed via the enforcement offices (icra daireleri) – for example, seizure of bank accounts, attachment of real estate, or other compulsory measures.
In practice, parties usually seek enforcement, because they want to collect money or compel performance. However, in some situations (e.g. for declaratory judgments or status decisions) recognition alone may be sufficient.
The procedural mechanism is similar, but the resulting court decision (tenfiz kararı) is what allows execution to begin.
4. Enforcement of Foreign Court Judgments in Turkey
4.1. Scope: What Counts as a “Foreign Judgment”?
A foreign court judgment under Law No. 5718 is:
- A final judgment rendered by a foreign judicial authority (court or court-like body),
- In a civil or commercial matter (including some labour and IP disputes),
- Which has become final and binding in the country of origin.
Interim measures or non-final procedural orders are generally not enforceable via tenfiz, although they may sometimes be considered as supporting documents in separate proceedings.
Criminal judgments are generally not subject to tenfiz in the same way; they may be taken into account in certain limited contexts (e.g. status of persons, civil consequences).
4.2. Mandatory Conditions for Enforcement
Article 50 and following of Law No. 5718 set out the core conditions. A foreign judgment may be enforced in Turkey if:
- Jurisdiction of the foreign court
- The foreign court must not have usurped jurisdiction that exclusively belongs to Turkish courts under Turkish law (e.g. some matters relating to immovable property in Turkey).
- The foreign court must have a real connection to the dispute (e.g. domicile of defendant, place of performance, etc.) in line with Turkish jurisdiction concepts.
- No obvious violation of Turkish public policy (kamu düzeni)
- The content and result of the foreign judgment must not be manifestly incompatible with fundamental principles of Turkish law.
- Examples often discussed:
- Extremely disproportionate punitive damages,
- Interest rates or compensation considered abusive,
- Judgments obtained through procedures that seriously violate the right to be heard,
- Decisions that are blatantly contrary to basic constitutional principles or mandatory rules.
- Due process and right to defence
- The defendant must have been properly summoned and given a real opportunity to defend themselves in the foreign proceedings.
- If the defendant was in default, the court will check whether the service of process complied with applicable international standards and whether the defendant was aware (or could reasonably have been aware) of the proceedings.
- Final and binding character
- The foreign judgment must be final under the law of the country of origin.
- Usually proven by a certificate of finality (kesinleşme şerhi or equivalent).
- No conflict with a Turkish judgment or ongoing case
- If there is a conflicting Turkish judgment between the same parties on the same subject, the foreign judgment will not be enforced.
- If there is an ongoing case in Turkey that was initiated earlier between the same parties and relating to the same dispute, this may also bar enforcement.
- Reciprocity (Mütekabiliyet) – applicable mainly to judgments
- Historically, Turkey required de jure or de facto reciprocity regarding enforcement of judgments between Turkey and the state of origin.
- Today, reciprocity is often satisfied through treaties or demonstrated practice, and the courts tend to interpret this condition in a pragmatic way, especially in commercial matters.
- For arbitral awards, reciprocity is governed primarily by the New York Convention rather than general reciprocity rules.
4.3. Competent Courts and Venue
The competent court for enforcement applications is the civil court of first instance (asliye hukuk mahkemesi). Venue is typically determined by:
- The domicile of the defendant in Turkey, or
- If the defendant has no domicile in Turkey, the place where enforcement will be carried out (for example, where the assets are located).
If there is more than one potential place (e.g. bank accounts in several cities), the claimant may choose the most practical venue.
4.4. Required Documents
A typical tenfiz application must include:
- Enforcement petition (tenfiz dilekçesi)
- Identifying the parties, summarizing the foreign proceedings, stating the legal grounds, and explicitly requesting recognition and/or enforcement.
- Original or certified copy of the foreign judgment
- Duly legalized or apostilled, depending on whether there is an applicable convention between Turkey and the state of origin.
- Certificate of finality
- Proving that the decision is final and enforceable in the country of origin.
- Sworn Turkish translation
- All foreign documents must be translated into Turkish by a sworn translator and stamped by the notary public (and sometimes by the consulate depending on the practice).
- If applicable, proof of reciprocity or relevant treaty
- Often referenced in the petition via legal arguments rather than separate documentation, but specific treaties may be attached where useful.
Court fees and translation costs can be significant in large disputes, and should be budgeted in advance.
4.5. Procedure and Timeline
The enforcement procedure is generally written, but the court may hold a hearing where the parties present arguments.
Typical steps:
- Filing of application with all supporting documents.
- Preliminary examination by the court (formal requirements).
- Notification of the claim and supporting docs to the defendant.
- Defendant’s response and possible objections (public policy, lack of jurisdiction, due process violations, etc.).
- Evaluation of conditions under Law No. 5718 and – where relevant – applicable treaties.
- Decision on recognition and/or enforcement (partial or full).
The court does not re-examine the merits of the case. It only checks the formal and limited substantive conditions listed by law. However, public policy and due process arguments can sometimes lead to detailed discussions.
The enforcement decision can be challenged via appeal and, where conditions are met, cassation (Yargıtay). Only after the decision becomes final can the creditor fully proceed with execution.
5. Enforcement of Foreign Arbitral Awards in Turkey
Foreign arbitral awards follow a special regime, due to Turkey’s obligations under the New York Convention and the provisions of Law No. 5718.
5.1. What is a “Foreign” Arbitral Award?
An arbitral award is considered foreign if:
- The seat of arbitration (place of arbitration) is outside Turkey, or
- The award is deemed foreign under the New York Convention criteria.
Awards rendered in arbitrations seated in Istanbul but governed by international arbitration law (e.g. under the International Arbitration Law No. 4686) are generally treated as domestic or international domestic awards, and may follow slightly different enforcement rules.
For foreign awards, the New York Convention + 5718 framework applies.
5.2. Conditions for Enforcement
Under the New York Convention and Law No. 5718, the court will enforce a foreign arbitral award unless the debtor (award-debtor) proves one of the limited grounds for refusal. These grounds are similar to Article V of the New York Convention and include:
- Invalid arbitration agreement
- The arbitration agreement must be valid under the law to which the parties have subjected it or, failing any indication, under the law of the country where the award was made.
- Typical issues: lack of signature, lack of authority, incapacity of a party, unclear or pathological clauses.
- Denial of due process
- A party was not properly notified of the appointment of the arbitrator or of the arbitral proceedings, or
- The party was otherwise unable to present its case (e.g., no real opportunity to submit evidence).
- Excess of authority or ultra petita
- The award deals with matters not contemplated by the submission to arbitration, or
- The arbitral tribunal decided beyond the scope of the arbitration agreement.
- Composition of the tribunal or procedure not in accordance with agreement or law of seat
- If the procedure or constitution of the tribunal deviated from the parties’ agreement or the law of the seat, and this deviation was material, the award may be refused.
- Award not yet binding or set aside
- If the award has not yet become binding or has been suspended or set aside in the country of origin, the Turkish court may refuse enforcement or stay the case until the set-aside proceedings are resolved.
- Non-arbitrability and public policy
- Turkish courts can refuse enforcement if:
- The subject matter is not arbitrable under Turkish law (e.g. some real-estate rights, certain family or public law matters), or
- Enforcement would be contrary to Turkish public policy.
- Turkish courts can refuse enforcement if:
Public policy considerations are especially important. Turkish courts are generally arbitration-friendly, but they will not enforce awards that clearly violate fundamental principles of Turkish law, basic procedural fairness, or mandatory rules.
5.3. Procedure and Documents
The enforcement of a foreign arbitral award is also sought before the civil court of first instance at the place of the debtor’s domicile or where enforcement will occur.
The claimant typically submits:
- Enforcement petition (tenfiz dilekçesi) explaining:
- The background of the arbitration,
- The applicable arbitration rules and law,
- The amount and nature of relief granted,
- Why enforcement should be granted under the New York Convention and Law No. 5718.
- Original or certified copy of the award,
- Original or certified copy of the arbitration agreement (or clause),
- Sworn Turkish translations of all relevant documents,
- If necessary, evidence that the award is final and binding under the law of the seat or the applicable rules (many institutional rules provide that awards are final when rendered).
The court examines only the limited refusal grounds. It does not re-hear evidence or review the merits.
5.4. Interaction with Setting-Aside Proceedings
If the award is challenged in the courts of the seat, the Turkish court has discretion to:
- Adjourn its decision on enforcement until the set-aside case is resolved, and
- Require the judgment debtor to provide security if the creditor requests enforcement despite pending set-aside proceedings.
Strategically, parties sometimes initiate parallel set-aside proceedings abroad and enforcement proceedings in Turkey to increase negotiation leverage. However, Turkish courts are increasingly sophisticated in managing such parallel proceedings.
5.5. ICSID Awards
For ICSID awards:
- Turkey, as a contracting state, must recognize and enforce ICSID arbitral awards as if they were final judgments of its own courts.
- There is no exequatur review on public policy or due process grounds.
- Enforcement is carried out via Turkish enforcement offices, based on the authenticated copy of the ICSID award and the relevant formalities.
For foreign investors, ICSID can therefore be a powerful option, especially where enforcement risk is a key concern.
6. Public Policy in Practice
“Public policy” (kamu düzeni) is one of the most frequently invoked and debated refusal grounds in tenfiz cases.
Key features of Turkish public policy review:
- Narrow and exceptional
- Turkish courts and high court precedent often emphasize that public policy review should be exceptional and not used as a back-door merits review.
- Examples of potential public policy concerns
- Awards granting punitive damages significantly beyond compensatory principles may face scrutiny.
- Judgments obtained through serious procedural irregularities (e.g., no real notice, manifest bias) may be refused.
- Decisions that openly contradict mandatory Turkish law or constitutional principles (e.g., prohibition of interest in consumer loans beyond legal caps, violation of foreign exchange rules in certain regulated sectors) can raise issues.
- Arbitration-friendly trend
- In recent years, Turkish courts have increasingly adopted an arbitration-friendly approach, limiting public policy objections to clear and serious violations.
For foreign parties, it is crucial to anticipate public policy concerns at the drafting stage (e.g., avoiding extreme penalty clauses) and during the proceedings (ensuring proper notice, fair hearing, and respect for mandatory rules likely to be relevant in Turkey).
7. Practical Issues in Enforcement in Turkey
7.1. Locating and Securing Assets
An enforcement decision is only as valuable as the assets you can reach. In Turkey, once tenfiz is granted and becomes final:
- Creditors can start execution proceedings (icra takibi) to:
- Attach bank accounts,
- Seize movable assets,
- Register liens on real estate,
- Seize receivables from third parties.
In some situations, it is also possible to seek interim attachment (ihtiyati haciz) or other protective measures even before the tenfiz decision becomes final, subject to conditions and security.
7.2. Limitation Periods
Law No. 5718 does not explicitly set a separate limitation period for tenfiz applications. Instead, limitation periods generally follow the substantive law and the nature of the claim:
- If the underlying claim would be time-barred under Turkish law, this may impact enforceability.
- It is therefore advisable to commence enforcement without delay after the judgment or award becomes final.
7.3. Parallel Proceedings
Sometimes, parties:
- Start a lawsuit in Turkey while foreign proceedings are ongoing, or
- Seek to resist tenfiz on the basis that there is a prior or parallel Turkish case.
Turkish courts will examine:
- Which case was filed first,
- Whether they involve the same parties and same cause of action, and
- Whether there is a final Turkish judgment already on record.
Good litigation strategy requires coordination between foreign counsel and Turkish counsel to avoid procedural traps.
7.4. Enforcement Against State Entities and Public Bodies
Enforcing foreign judgments or awards against state entities or state-owned enterprises (SOEs) can be more complex:
- Issues of state immunity (particularly with respect to sovereign assets),
- Special rules for seizure of public assets,
- Political and diplomatic dimensions.
In such cases, careful structuring of contracts (e.g., waivers of immunity, asset-tracing, selecting ICSID where possible) becomes critical.
8. Drafting Dispute Resolution Clauses with Turkey in Mind
To maximize enforceability in Turkey, foreign investors and companies should pay close attention to how they draft:
8.1. Choice of Court Agreements
If you choose foreign courts (e.g., English courts, Swiss courts):
- Make sure the jurisdiction clause is clear, exclusive and in writing.
- Check whether any part of the contract relates to areas where Turkish courts have exclusive jurisdiction (e.g., certain rights in rem over immovables located in Turkey).
- Consider whether there is a judicial assistance or enforcement treaty between Turkey and the chosen forum state.
8.2. Arbitration Clauses
Arbitration is often the preferred route for international contracts with Turkish elements. When drafting:
- Specify a reliable arbitral institution (e.g., ICC, LCIA, ISTAC, etc.) and seat of arbitration.
- Ensure the arbitration clause is valid and enforceable under both the chosen law and Turkish law.
- Consider choosing a seat in a state party to the New York Convention.
- Avoid ambiguous or incomplete clauses that may later be challenged.
8.3. Substantive Clauses Affecting Enforcement
Certain contractual clauses can create difficulties at the enforcement stage in Turkey:
- Excessive penalty clauses or liquidated damages that could be seen as punitive.
- Interest provisions that blatantly exceed legal caps or mandatory rules under potential applicable law.
- Clauses purporting to bypass mandatory Turkish consumer, employment or competition rules.
A clause that looks attractive in negotiations (e.g., very harsh penalties) can later become a public policy obstacle in tenfiz proceedings.
9. Step-by-Step Checklist for Enforcement in Turkey
For practical purposes, foreign creditors can use the following checklist:
- Identify the governing instrument
- Is it a court judgment or an arbitral award?
- Which regime applies: Law No. 5718, New York Convention, ICSID, or a special treaty?
- Confirm finality and binding nature
- Obtain a certificate of finality from the foreign court or arbitration institution, if applicable.
- Collect all necessary documents
- Certified copies of the judgment/award,
- Arbitration agreement (for arbitral awards),
- Certificates of finality and enforceability,
- Proof of proper service if there were default elements,
- Corporate documents showing authority of signatories where necessary.
- Arrange sworn translations and legalization/apostille
- Ensure translations are done by sworn translators and notarized,
- Check whether an apostille or consular legalization is required.
- Engage Turkish counsel early
- To determine the competent court,
- To analyze possible defences that the debtor might raise,
- To identify attachable assets and plan enforcement strategy.
- File tenfiz application
- Prepare a petition that clearly explains how all conditions under Turkish law are satisfied.
- Anticipate and address potential public policy and due process objections.
- Follow up on court proceedings and appeals
- Monitor deadlines for responses and appeals.
- Collect additional evidence if the court requests clarifications.
- Move to execution swiftly after tenfiz
- Start execution proceedings in the enforcement offices once tenfiz is final.
- Apply for interim attachments where appropriate to secure assets.
10. Conclusion
Turkey offers a structured and predictable framework for the recognition and enforcement of foreign court judgments and arbitral awards. While the process is not automatic, it is well-defined and generally supportive of international commerce, especially in arbitration.
For foreign businesses and investors, key takeaways include:
- Understand from the beginning which dispute resolution mechanism best fits your Turkish-related transactions.
- Draft clear and enforceable jurisdiction or arbitration clauses, mindful of Turkish public policy.
- When a dispute arises, conduct the foreign proceedings in a way that respects due process and will stand up under Turkish courts’ scrutiny.
- Plan enforcement proactively, working closely with Turkish counsel to manage timelines, documents, and asset-tracing.
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