When cross-border commercial disputes, contractual breaches, or financial defaults jeopardize an investment in Türkiye, foreign investors must act rapidly to prevent local debtors or business partners from dissipating corporate assets. A central question facing foreign enterprises is whether a foreign investor can legally freeze the assets of a Turkish company before formally filing a substantive lawsuit.
Under Turkish procedural law, the short answer is yes.
Governed primarily by the Code of Civil Procedure No. 6100 (CCP) and the Execution and Bankruptcy Law No. 2004 (EBL), foreign investors can secure emergency court orders to freeze physical, financial, and intangible assets before initiating a main lawsuit on the merits.
To achieve this, foreign claimants must utilize two primary statutory mechanisms: Preliminary Injunctions (İhtiyati Tedbir) for non-monetary, asset-specific claims, and Pre-Judgment Attachments (İhtiyati Haciz) for monetary debt recoveries.
This comprehensive guide analyzes the legal framework, statutory criteria, procedural steps, security deposit requirements, and international enforcement aspects of obtaining pre-litigation asset-freezing orders against Turkish companies.
1. Core Statutory Mechanisms: Injunction vs. Pre-Judgment Attachment
Turkish law distinguishes between freezing specific assets tied to an ownership or contractual dispute and freezing general commercial assets to secure a monetary debt. Choosing the correct mechanism is critical, as filing under the wrong framework will result in summary dismissal by Turkish commercial courts.
PRE-LITIGATION ASSET FREEZING PATHWAYS
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PRELIMINARY INJUNCTION (*İhtiyati Tedbir*) PRE-JUDGMENT ATTACHMENT (*İhtiyati Haciz*)
• Governed by Civil Procedure Code Art. 389 • Governed by Execution & Bankruptcy Law Art. 257
• Used for non-monetary / property-specific claims • Used exclusively for securing monetary debts
• Target: Specific asset, share, or IP in dispute • Target: Bank accounts, real estate, general assets
• Requires proof of irreparable harm / status change • Requires proof of due debt or debtor flight risk
1. Preliminary Injunction (İhtiyati Tedbir – CCP Art. 389)
A Preliminary Injunction is designed to preserve the status quo regarding a specific subject matter in dispute (dava konusu).
- Application Scope: Used when the dispute centers on the ownership, possession, or transfer rights of a specific asset—such as corporate shares, real estate, industrial machinery, patents, or software code.
- Statutory Requirement: The applicant must demonstrate that if the current status quo changes, realizing their right will become significantly harder or impossible, or that severe, irreparable damage will occur.
- Legal Effect: The court order directly freezes the specific asset, preventing the Turkish company from selling, transferring, mortgaging, or encumbering it during or prior to litigation.
2. Pre-Judgment Attachment (İhtiyati Haciz – EBL Art. 257)
A Pre-Judgment Attachment is a provisional remedy strictly designed to secure monetary claims and debt recoveries.
- Application Scope: Used when a foreign investor holds a monetary receivable against a Turkish company (e.g., unpaid loan agreements, commercial supply debts, liquidated damages, or breach of contract claims) and needs to freeze company bank accounts, real estate, or third-party receivables.
- Statutory Requirement: The debt must generally be due and payable (vadesi gelmiş) and unsecured by a pledge or mortgage.
- Exception for Undue Debts: Undue monetary debts can also be attached if the foreign investor proves that the Turkish debtor company has no fixed domicile, is concealing assets, or is preparing to flee or fraudulently transfer assets to evade creditors.
2. Strategic Comparison: Key Procedural Requirements
| Procedural Vector | Preliminary Injunction (İhtiyati Tedbir) | Pre-Judgment Attachment (İhtiyati Haciz) |
|---|---|---|
| Primary Statutory Basis | Code of Civil Procedure No. 6100, Art. 389 | Execution and Bankruptcy Law No. 2004, Art. 257 |
| Nature of Claim | Non-monetary, specific property or equity right | Liquidated or unliquidated monetary debt |
| Scope of Freezing | Restricted to the specific asset in dispute | Broad scope: Bank accounts, real estate, vehicles, receivables |
| Standard of Proof | Approximate proof (Yaklaşık İspat) of right and risk | Approximate proof (Yaklaşık İspat) of debt and default |
| Mandatory Court Security | Required (Court discretion, usually 15%–30%) | Statutorily mandatory (15%–30%, higher for foreign entity) |
| Strict Substantive Deadline | Must file main lawsuit within 2 weeks of order | Must file lawsuit or execution within 7 days of execution |
| Ex Parte Proceedings | Permitted without hearing the debtor company | Permitted without hearing the debtor company |
3. High-Priority Asset Targets for Pre-Litigation Freezing
When a Turkish commercial court grants an asset-freezing order, execution officers enforce the order across public and private administrative registers. Foreign investors can freeze several primary corporate asset categories:
FREEZING TARGET CATEGORIES
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COMMERCIAL BANK REAL ESTATE & PROPERTY VEHICLES & FLEET EQUITY SHARES & THIRD-PARTY RECEIVABLES
ACCOUNTS (TRY/FX) (TAK BİS Register) (E-GDM Register) CORPORATE LEDGERS (EBL Art. 89 Notices)
• Immediate lock • Lien registered • Traffic registry • Frozen via Trade • Blocked payout from
on active funds on title deeds embargo issued Registry & MKK local customers
- Commercial Bank Accounts: Serving an attachment order on Turkish commercial banks immediately freezes active Turkish Lira (TRY) and foreign currency (USD/EUR) balances up to the specified claim amount.
- Real Estate Holdings (TAKBİS): Freezing orders are served electronically on the General Directorate of Land Registry (TAKBİS), placing an immediate legal lien (şerh) on registered commercial land, factories, or corporate offices.
- Corporate Equity Shares: For Joint-Stock Companies (A.Ş.) or Limited Liability Companies (Ltd. Şti.), freezing orders are served on the local Trade Registry Office, Central Securities Depository (MKK), and entered into company share ledgers to block share transfers.
- Third-Party Receivables (EBL Art. 89 Attachment Notices): Execution offices can issue third-party attachment notices to the Turkish debtor’s key corporate clients or distributors, legally ordering them to pay outstanding invoices into the court execution account rather than to the debtor company.
- Moveable Assets and Commercial Fleets: Automated notices served on the National Vehicle Registry (E-GDM) place immediate sale restrictions on company vehicles and transport fleets.
4. The Evidentiary Threshold: Approximate Proof (Yaklaşık İspat)
A common foreign misconception is that a court will only freeze assets after conducting a full, lengthy evidentiary trial. Under Turkish procedural law, pre-litigation asset freezing is an emergency protective measure governed by the standard of Approximate Proof (Yaklaşık İspat).
APPROXIMATE PROOF DYNAMICS
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STANDARD OF PROOF REQUIRED EX PARTE HEARING STRUCTURE
• High probability of valid claim • Applications filed ex parte (*Dosya Üzerinden*)
• Documented contractual relationship • Turkish debtor receives no advance notice
• Plausible risk of asset dissipation • Prevents tipping off debtor before assets lock
- High Degree of Probability: The foreign investor is not required to provide absolute, undeniable proof at the pre-action stage. Instead, they must submit clear documentary evidence demonstrating a high degree of probability that the claim is legally valid and that the risk of asset dissipation is real.
- Documentary Support: Standard evidence includes written contracts, notarized payment undertakings, commercial invoices, bank transfer receipts, written default notices, and correspondence showing bad-faith attempts by the debtor to hide or liquidate assets.
- Ex Parte Proceedings (Dosya Üzerinden): To preserve the element of surprise and prevent the Turkish company from draining bank accounts upon learning of the application, courts usually decide on pre-litigation freezing applications ex parte—strictly on the papers, without holding an open hearing or notifying the debtor company in advance.
5. Security Deposit Requirements and Foreigner’s Security (Cautio Judicatum Solvi)
To protect Turkish companies against frivolous or bad-faith asset freezing applications, Turkish courts require foreign applicants to provide financial security before enforcing a pre-litigation freezing order. Foreign investors face two distinct security obligations:
DUAL SECURITY REQUIREMENTS
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DAMAGES SECURITY DEPOSIT (*Teminat*) FOREIGNER'S SECURITY (*Yabancılık Teminatı*)
• Protects debtor against improper freezing losses • Governed by Private International Law Art. 48
• Standard rate: 15% to 30% of total claim value • Mandatory security for court costs & legal fees
• Form: Cash deposit or Turkish Bank Letter • Waived if bilateral treaty or reciprocity exists
1. Damages Security Deposit (Haksız İhtiyati Tedbir/Haciz Teminatı)
When a court grants a pre-litigation freezing order, it orders the applicant to deposit a cash bond or a letter of guarantee with the court cash office.
- Purpose: Covers potential losses suffered by the Turkish company if the foreign investor ultimately loses the main lawsuit and the freezing order is deemed unjustified.
- Amount: Typically set at 15% to 30% of the total claim value or asset value being frozen.
- Accepted Form: Cash in Turkish Lira or convertible foreign currency, or an unconditional, irrevocable Letter of Guarantee (Teminat Mektubu) issued by a licensed Turkish commercial bank.
2. Foreigner’s Security for Court Costs (Cautio Judicatum Solvi)
Under Article 48 of the International Private and Civil Procedure Law No. 5718 (Law No. 5718), foreign real entities or corporate bodies initiating legal proceedings or requesting interim attachment in Türkiye must deposit an additional security to cover potential court fees and opposing party legal costs.
- Exemption via Bilateral Treaties & Hague Convention: A foreign investor is exempt from this additional foreigner’s security if:
- The foreign investor’s home state is a signatory to the Hague Convention on Civil Procedure of 1954, OR
- There is a bilateral judicial assistance agreement between Türkiye and the foreign investor’s home country establishing mutual security waivers (Reciprocity).
6. Strict Substantive Lawsuit Filing Deadlines
Securing a pre-litigation freezing order is only an interim victory. Turkish law enforces strict deadlines requiring the foreign investor to initiate substantive litigation or execution proceedings shortly after the freeze is ordered. Failure to meet these statutory deadlines causes the freezing order to automatically expire by operation of law.
STRICT SUBSTANTIVE DEADLINES
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FOR PRELIMINARY INJUNCTIONS FOR PRE-JUDGMENT ATTACHMENTS DEBTOR OBJECTION WINDOW
• Must execute within 1 WEEK • Must execute within 9 DAYS • Debtor may object within
• Must file main lawsuit within • Must file lawsuit or execution 7 DAYS of learning of
2 WEEKS of execution date within 7 DAYS of execution the ex parte freeze order
Deadlines for Preliminary Injunctions (CCP Art. 390 & 393):
- Execution Request: The foreign investor must request the enforcement office or court to execute the injunction order within one week from the date the order was issued.
- Substantive Lawsuit Filing: If the injunction was obtained before filing the main lawsuit, the foreign investor must file the main lawsuit on the merits within two weeks from the date the injunction order was executed.
Deadlines for Pre-Judgment Attachments (EBL Art. 261 & 264):
- Execution Request: The foreign investor must request the competent Execution Office (İcra Dairesi) to enforce the attachment within nine days from the date the order was issued.
- Substantive Action Filing: Within seven days of serving the attachment notice or executing the freeze on company assets, the foreign investor must initiate either:
- A formal Debt Enforcement Proceeding (İcra Takibi) by serving an Payment Order (Ödeme Emri), OR
- A substantive Debt Recovery Lawsuit (Eda/Alacak Davası) before the competent commercial court.
If these deadlines are missed by even a single day, the freezing order is automatically voided, and the Turkish company may apply to court to have all bank blocks and property liens removed immediately.
7. Step-by-Step Workflow for Foreign Investors
Executing a successful pre-litigation asset freeze against a Turkish business entity requires a coordinated legal approach:
ASSET FREEZING WORKFLOW
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1. EVIDENCE DRAFTING 2. EX PARTE FILING 3. SECURITY DEPOSIT 4. EXECUTION & MAIN SUIT
• Gather contracts, • File emergency application • Post 15%–30% bond • Serve bank/registry blocks
invoices & proof with Commercial Court or bank guarantee • File main lawsuit within
of asset risk • Request ex parte decision with Court Cashier statutory deadline
Step 1: Pre-Filing Evidentiary Audit
Assemble all written commercial contracts, choice-of-law agreements, unpaid invoices, notarized warnings, bank transaction records, and corporate records. Establish clear proof showing either the existence of a due monetary debt or ownership rights over specific corporate assets.
Step 2: Emergency Application to Turkish Commercial Court
File an emergency application for a Preliminary Injunction or Pre-Judgment Attachment before the Specialized Commercial Court of First Instance (Asliye Ticaret Mahkemesi) at the location of the Turkish company’s registered headquarters or where the assets are situated. Request an immediate ex parte order without notice to the debtor company.
Step 3: Deposit Required Security Bonds
Upon receiving a favorable interim order, immediately deposit the court-mandated security bond (cash or Turkish bank guarantee letter) with the court cashier to activate the enforcement decree.
Step 4: Immediate Service and Asset Lock
Deliver the court decree to the competent Execution Office (İcra Dairesi). The execution officer will issue real-time electronic attachments to bank networks (UYAP), the national land registry (TAKBİS), trade registries, and third-party commercial debtors.
Step 5: Launch Substantive Litigation on the Merits
File the main lawsuit or initiate formal debt execution proceedings within the mandatory statutory windows (7 days for attachments; 2 weeks for injunctions) to maintain the asset freeze throughout the duration of the legal dispute.
8. Impact of International Arbitration Clauses
Foreign investor contracts often include international arbitration clauses (e.g., ISTAC, ICC, LCIA, or UNCITRAL). A common question is whether an arbitration agreement prevents a foreign investor from applying to Turkish domestic courts for a pre-litigation asset freeze.
Under International Arbitration Law No. 4686 (Law No. 4686), the presence of an international arbitration clause does not prevent a party from requesting pre-litigation protective measures from local Turkish courts.
ARBITRATION & LOCAL COURT INTERACTION
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RIGHT TO APPLY TO LOCAL COURTS VALIDITY PENDING ARBITRATION
• Permitted under Law No. 4686 Art. 6 • Interim freeze granted by Turkish court
• Applying to local court is NOT a waiver • Investor must initiate arbitration tribunal
of the underlying arbitration agreement proceedings within statutory time limits
- Statutory Authorization (Law No. 4686 Art. 6): A party may apply to a local Turkish court before or during arbitral proceedings for a preliminary injunction or pre-judgment attachment. Requesting protective orders from a local court is not considered a waiver of the arbitration agreement.
- Fulfilling the Substantive Suit Requirement: When a foreign investor secures a pre-litigation asset freeze from a Turkish court in a matter subject to arbitration, initiating formal arbitration proceedings before the designated arbitral institution within the statutory deadline (e.g., 30 days under Law No. 4686, or the applicable procedural rules) satisfies the requirement to file a substantive action, keeping the asset freeze active throughout the arbitration.
Executive Summary
Foreign investors possess clear, enforceable statutory rights under Turkish law to freeze the assets of a Turkish company before formally filing a substantive lawsuit. By selecting the correct legal mechanism—Pre-Judgment Attachment for monetary debts or Preliminary Injunction for specific property disputes—investors can swiftly block bank accounts, real estate holdings, commercial fleets, and equity shares.
ACTIONABLE STRATEGY CHECKLIST
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SELECT MECHANISM SATISFY PROOF STANDARDS POST SECURITY MEET FILING DEADLINES
• Attachment for • Present clear contracts & • Deposit 15%–30% • File main lawsuit
monetary receivables evidence showing risk of cash bond or bank or execution within
• Injunction for asset dissipation under letter of guarantee 7 to 14 days of
specific property approximate proof standard with court cashier executing the freeze
By leveraging ex parte court applications, fulfilling security deposit requirements, and strictly respecting post-attachment litigation deadlines, foreign investors can protect their commercial interests and prevent local debtors from dissipating assets in Türkiye.