Introduction

International trade creates international debts.

A British company supplies machinery to a Turkish distributor and remains unpaid.

A German manufacturer delivers goods to a Turkish buyer but the buyer refuses to pay the final invoices.

A Chinese exporter receives only part of the purchase price after shipping products to Turkey.

A UAE company lends money to a Turkish business and the repayment date passes without payment.

A foreign consultant provides services to a Turkish company but several invoices remain outstanding.

A European investor sells shares or commercial assets to a Turkish buyer, but the deferred purchase price is never paid.

In each scenario, the foreign creditor eventually asks the same question:

How can I recover my money from Turkey?

The answer depends on more than simply whether the debt exists.

An effective Turkish debt-recovery strategy requires examination of:

• the contract;
• invoices;
• delivery evidence;
• applicable law;
• jurisdiction clause;
• arbitration clause;
• currency of the debt;
• maturity date;
• interest provisions;
• debtor’s corporate status;
• debtor’s Turkish assets;
• existence of guarantees;
• negotiable instruments;
• limitation periods;
• and whether immediate asset-protection measures are necessary.

Turkey has a developed enforcement system under Enforcement and Bankruptcy Law No. 2004 — İcra ve İflas Kanunu (İİK).

One of the most important features of Turkish enforcement law is that a creditor seeking payment of a monetary debt does not always need to obtain a court judgment before commencing enforcement proceedings.

Article 42 of the Enforcement and Bankruptcy Law establishes the ordinary non-judgment enforcement framework for payment of money or provision of security. It also contains a specific exception preventing non-judgment enforcement against foreign states.

This means that an overseas company holding an unpaid commercial invoice against an ordinary Turkish private company may, depending on the circumstances, be able to commence general attachment proceedings — genel haciz yoluyla ilamsız takip without first spending years obtaining a Turkish judgment.

That can provide substantial leverage.

However, the debtor also has a powerful response:

objection.

If the Turkish debtor objects within the statutory period, the ordinary enforcement process stops and the creditor must take further legal action to eliminate the objection.

Debt collection in Turkey should therefore be viewed not as one procedure, but as a sequence:

investigate the debt → identify assets → demand payment → choose enforcement or litigation → respond to objections → secure assets → obtain enforceable title → collect.

For foreign creditors, the most important practical lesson is that speed and asset information are often as important as the strength of the underlying contract.

A legally perfect claim against an insolvent company may be worth less than a moderately disputed claim against a company with identifiable bank accounts, receivables and real estate.

Can a Foreign Company Collect a Debt in Turkey?

Yes.

Foreign individuals and legal entities can pursue private-law claims and enforcement proceedings in Turkey.

Foreign nationality does not prevent a creditor from bringing a Turkish lawsuit or initiating qualifying enforcement proceedings against a Turkish debtor.

However, foreign creditors should be aware of MÖHUK Article 48.

Law No. 5718 provides that foreign natural and legal persons who bring proceedings, intervene in proceedings or initiate enforcement proceedings in Turkey may be required to provide security for legal/enforcement costs and potential damage to the opposing party.

The same Article provides that the court exempts the foreign creditor from security where reciprocity exists.

Therefore, foreign creditors should determine at the beginning whether:

• a treaty;
• reciprocal national treatment;
• or another legal basis

eliminates the security requirement.

The existence of this rule does not mean foreign creditors cannot use the Turkish enforcement system.

It means that security for costs must be included in procedural planning where applicable.

Does Turkish Law Apply to the Contract?

Not necessarily.

International contracts can contain a foreign governing-law clause.

For example:

“This Agreement shall be governed by English law.”

or:

“This Agreement shall be governed by Swiss law.”

MÖHUK Article 24 recognizes party autonomy in contractual obligations and provides that contractual obligations are governed by the law expressly selected by the parties.

Therefore, a Turkish court may sometimes have to decide a debt dispute while applying:

• English law;
• German law;
• Swiss law;
• or another selected foreign law

to substantive contractual issues.

However, the fact that foreign substantive law governs the contract does not automatically mean Turkish enforcement procedure also becomes foreign.

Procedural and enforcement questions before Turkish authorities are governed by the applicable Turkish procedural framework.

International creditors must therefore distinguish:

What law governs the debt?

from

Where and how will the debt be enforced?

Check the Jurisdiction Clause Before Starting

An international contract may contain a clause saying disputes must be resolved:

• before Turkish courts;
• before English courts;
• before German courts;
• through ICC arbitration;
• through another arbitral institution;
• or in another agreed forum.

This can completely change the recovery strategy.

MÖHUK Article 47 permits parties, subject to statutory limits, to agree that certain disputes containing a foreign element and arising from obligations will be heard by a foreign court where Turkish jurisdiction is not exclusive. The provision also regulates the consequences of such jurisdiction agreements.

Therefore, before filing anything in Turkey, the creditor should ask:

Is there a jurisdiction clause?

and

Is there an arbitration clause?

If there is a binding arbitration agreement, filing an ordinary Turkish merits action may be procedurally inappropriate.

Mandatory mediation rules also contain an exception where the dispute is subject to a mandatory arbitration route or valid arbitration agreement.

First Step: Investigate the Turkish Debtor

The commercial recovery analysis should begin before sending an aggressive demand letter.

The creditor should identify the debtor precisely.

For a Turkish company, verify:

• exact registered company name;
• trade registry number;
• MERSİS number where available;
• tax information;
• registered headquarters;
• directors/managers;
• shareholders where relevant;
• whether the company remains active;
• whether liquidation has started;
• whether bankruptcy or concordat proceedings exist;
• and whether the contractual counterparty is actually the same legal entity currently being pursued.

This matters because similar company names can create confusion.

For example:

ABC Makine Sanayi Ltd. Şti.

is legally different from:

ABC Makine Dış Ticaret A.Ş.

even if:

• they have the same shareholders;
• same office;
• same website;
• and same commercial brand.

Debt recovery must normally be directed against the actual debtor.

Do Not Confuse the Company With Its Shareholders

A common mistake made by foreign creditors is assuming that shareholders automatically owe the company’s commercial debt.

Generally, the company is a separate legal person.

A contract signed by a Turkish limited liability company normally creates a debt of the company, not automatically a personal debt of every shareholder.

Personal recovery may become possible where there is a separate legal basis such as:

• personal guarantee;
• negotiable instrument;
• independent undertaking;
• tort;
• fraudulent conduct;
• or another statutory ground.

The creditor should therefore identify whether it possesses:

• corporate debt only; or
• corporate debt plus personal security.

This distinction can dramatically change recovery prospects.

Send a Formal Demand Before Enforcement?

A prior demand letter is not always a legal prerequisite for every type of Turkish enforcement proceeding.

However, it can be strategically valuable.

A professional demand can:

• identify the debt;
• state invoices;
• specify maturity;
• calculate interest;
• give a final payment deadline;
• preserve evidence;
• invite settlement;
• and demonstrate seriousness before enforcement.

It can also help establish default where the contractual structure requires a notice before default arises.

The wording should correspond with:

• the agreement;
• payment terms;
• applicable law;
• and the intended later proceedings.

A poorly drafted demand should not accidentally waive rights or offer a new repayment period inconsistent with the creditor’s strategy.

General Non-Judgment Enforcement: A Powerful Turkish Tool

For ordinary monetary claims, Turkish law provides general attachment through non-judgment enforcement — ilamsız icra takibi.

Article 42 of the Enforcement and Bankruptcy Law establishes this route for enforcement concerning payment of money or provision of security.

The practical significance is considerable.

A foreign creditor may potentially commence proceedings based on a monetary claim without first proving the full merits before a court.

This can be particularly useful for:

• unpaid invoices;
• commercial loans;
• service fees;
• sale prices;
• contractual receivables;
• commissions;
• and other due monetary claims.

Official Ministry of Justice materials also explain that ordinary non-judgment proceedings may progress to attachment where the debtor neither pays nor objects to the payment order.

Does the Creditor Need a Signed Contract to Start?

Not necessarily for commencement of an ordinary non-judgment monetary enforcement proceeding.

The Turkish non-judgment enforcement system is procedurally designed so that a monetary claim may be asserted through a takip talebi — request for enforcement.

The Ministry of Justice’s Enforcement and Bankruptcy Law materials identify Article 58 as governing the contents of the enforcement request.

This does not mean evidence is unimportant.

If the debtor objects, the creditor may eventually need to prove the debt before a court.

Therefore, a creditor should preserve:

• signed agreement;
• purchase orders;
• invoices;
• delivery notes;
• customs records;
• emails;
• acknowledgements;
• bank records;
• account statements;
• WhatsApp correspondence;
• and any admission of debt.

The stronger the documents, the stronger the creditor’s position after an objection.

Foreign Currency Debts Can Be Pursued

Cross-border claims are frequently denominated in:

• USD;
• EUR;
• GBP;
• CHF;
• or another foreign currency.

The Enforcement and Bankruptcy Law expressly addresses foreign-currency claims in the enforcement request.

Article 58 requires foreign-currency claims to include the relevant Turkish-lira equivalent/exchange-rate information and the interest claim in the form required by enforcement law.

Turkish Court of Cassation practice also treats proper indication of the Turkish-lira equivalent of a foreign-currency debt in the enforcement request/payment order as an important procedural requirement.

Foreign creditors should therefore not simply write:

“EUR 500,000”

without considering the Turkish enforcement requirements governing foreign currency claims.

The way the debt, exchange rate and payment-date conversion are presented can affect the enforcement file.

Interest on Foreign Currency Claims

Interest requires separate legal analysis.

The contract may contain an agreed rate.

Where there is no higher agreed contractual/default rate applicable, Turkish Law No. 3095 contains special rules for foreign-currency obligations.

The Central Bank explains that under Article 4/a of Law No. 3095, where a higher contractual or default interest has not been agreed, foreign-currency debts use the highest one-year deposit rate paid by state banks for that foreign currency.

Therefore, an international creditor should not automatically apply the ordinary Turkish-lira interest rate to a USD or EUR debt.

The correct interest depends upon:

• governing law;
• contractual clause;
• currency;
• commercial status;
• date of default;
• and type of transaction.

Special Late-Payment Rules for Commercial Supply Transactions

Certain commercial supply transactions can involve the special late-payment regime in Turkish Commercial Code Article 1530.

The Central Bank publishes the applicable annual late-payment rate and minimum recovery amount for goods and services transactions falling within that provision.

For 2026, the published TTK Article 1530 rate is 43%, and the minimum recovery amount for collection expenses is TRY 2,020.

This should not be treated as a universal rate for every debt.

It applies only where the statutory commercial supply regime is applicable.

A creditor should therefore avoid simply adding 43% interest to every unpaid invoice without analyzing the transaction.

What Happens After the Enforcement Request?

The enforcement office issues a payment order to the debtor in accordance with the statutory enforcement procedure.

For ordinary general attachment proceedings, the debtor has a statutory objection period.

The Enforcement and Bankruptcy Law provides for a seven-day objection period from service of the payment order in the relevant general enforcement procedure.

This is where the debt-recovery path divides.

The debtor can:

pay;

remain silent;

or

object.

Each has completely different consequences.

If the Debtor Does Not Object

If the debtor neither pays nor objects within the statutory period, the enforcement proceeding becomes final for enforcement-law purposes.

Ministry of Justice guidance explains that once the payment order is not challenged, the creditor can move to later enforcement stages such as attachment.

The creditor may then seek attachment of qualifying debtor assets.

This can include, depending on the circumstances:

• bank accounts;
• vehicles;
• real estate;
• company receivables;
• movable assets;
• and receivables owed to the debtor by third parties.

This is why an uncontested non-judgment enforcement proceeding can be substantially faster than first litigating the entire debt claim.

If the Debtor Objects

A timely objection generally stops the ordinary non-judgment enforcement proceeding.

Official Ministry guidance explains that a debtor’s objection suspends the proceeding and that the creditor must eliminate the objection before continuing.

The debtor does not necessarily need to prove that the debt does not exist at the objection stage.

This is one reason debtors sometimes object even where substantial documentary evidence exists.

The creditor then needs to choose the correct route.

Action for Annulment of Objection — İtirazın İptali Davası

One of the principal routes is an action for annulment of objection — itirazın iptali davası.

İİK Article 67 provides that a creditor whose enforcement request has been objected to may bring the action within one year from notification of the objection.

This is a critical procedural deadline.

The merits of the underlying debt are then examined by the competent court.

The creditor must prove matters such as:

• existence of the contractual relationship;
• delivery or performance;
• amount owed;
• maturity;
• and absence of valid payment or discharge.

If successful, the creditor can obtain continuation of the enforcement process.

Depending upon the statutory conditions and circumstances, enforcement denial compensation or related sanctions may also arise, but these should be assessed on the specific file rather than assumed automatically.

Removal of Objection — İtirazın Kaldırılması

In some cases, the creditor may have documents that satisfy the special evidentiary requirements for an objection-removal procedure before the enforcement court.

This is different from an ordinary full merits action.

Whether this route is available depends upon the nature of the documents supporting the debt.

Foreign creditors should therefore have documents reviewed before automatically filing an annulment action.

The correct strategy can be significantly faster where the statutory document requirements are met.

Is Mandatory Mediation Required After an Objection?

For many commercial debt disputes, yes before filing the commercial lawsuit.

The Turkish Commercial Code’s mandatory mediation system applies to commercial actions seeking payment of a sum of money through receivable or compensation claims.

The Ministry of Justice confirms that TTK Article 5/A requires pre-litigation mediation for qualifying commercial monetary claims.

Therefore, where an ordinary enforcement proceeding is objected to and the creditor will file a qualifying commercial itirazın iptali case, mandatory mediation should be examined before the lawsuit.

A foreign element does not remove mediation from the legal framework.

The Mediation Law expressly states that it applies to private-law disputes capable of party disposition including disputes containing a foreign element.

Foreign companies can therefore participate in Turkish mediation through properly authorized representatives where legally permitted.

Mediation Is Not the Same as Giving Up the Claim

Mandatory mediation does not mean the creditor must reduce the debt or accept instalments.

It means the statutory mediation step must be completed before the qualifying lawsuit is filed.

If no agreement is reached, the creditor proceeds to court.

The Ministry of Justice confirms that failure to complete a mandatory mediation requirement before a covered commercial claim can result in procedural rejection of the lawsuit.

For foreign creditors, mediation can nevertheless be commercially useful because it creates a structured opportunity to negotiate:

• immediate partial payment;
• instalment schedule;
• security;
• mortgage;
• guarantee;
• negotiable instruments;
• or another settlement.

The creditor should focus not only on the amount offered but on how the settlement will be secured.

A Payment Plan Without Security May Be Worth Very Little

Suppose a Turkish debtor says:

“We accept the EUR 300,000 debt and will pay EUR 25,000 per month.”

The offer may sound reasonable.

But the creditor should ask:

• Is the debtor already insolvent?
• Is there a personal guarantee?
• Will security be provided?
• What happens if one instalment is missed?
• Is the entire remaining balance accelerated?
• Can the agreement be directly enforced?
• Are bank accounts already attached by other creditors?
• Does the company own property?

A poorly secured settlement can simply give the debtor another year to move assets.

Direct Lawsuit Instead of Enforcement

A creditor does not always have to start with non-judgment enforcement.

It may be more appropriate to file a direct lawsuit where:

• the debt is highly disputed;
• extensive evidence is required;
• the contract includes complex conditions;
• declaratory relief is needed;
• damages must be quantified;
• the debtor is almost certain to object;
• or a judgment is strategically preferable.

For qualifying commercial monetary cases, mandatory pre-litigation mediation remains relevant.

The best choice depends upon:

• amount;
• evidence;
• debtor conduct;
• limitation period;
• asset risk;
• and litigation strategy.

Precautionary Attachment — İhtiyati Haciz

One of the most important weapons in serious debt recovery is precautionary attachment — ihtiyati haciz.

İİK Article 257 provides that a creditor holding a matured unsecured monetary claim may request precautionary attachment over qualifying debtor assets under the statutory conditions.

The statute also allows precautionary attachment in specified circumstances for certain unmatured debts, particularly where the debtor has no fixed domicile in Turkey or is preparing to conceal or dissipate assets in the manner described by the law.

A creditor seeking precautionary attachment must present evidence sufficient to persuade the court of the existence of the claim and, where relevant, the statutory attachment grounds.

İİK Article 258 requires the creditor to present evidence capable of creating judicial conviction regarding the claim and applicable attachment basis.

The evidentiary standard is not identical to the final merits judgment.

Court of Cassation practice recognizes that precautionary attachment does not require the creditor to fully and finally prove the entire case at the provisional stage; sufficient prima facie persuasion concerning the claim is the relevant concept.

Why Precautionary Attachment Matters in Cross-Border Cases

Suppose a foreign company is owed EUR 2 million.

The Turkish debtor owns:

• three apartments;
• several vehicles;
• machinery;
• and valuable receivables.

The creditor sends a demand letter.

The debtor immediately begins transferring property to related companies.

If the creditor spends a year litigating before protecting assets, winning the final judgment may become commercially meaningless.

A properly timed precautionary attachment can preserve assets before the debtor reorganizes its balance sheet.

This is particularly important where there is evidence of:

• asset transfers;
• liquidation;
• sudden change of registered address;
• closure of business;
• multiple enforcement files;
• sale of major company property;
• or attempts to move funds abroad.

Precautionary Attachment Usually Requires Security

Courts can require the creditor seeking precautionary attachment to provide security.

Foreign creditors should therefore budget for the security implications of provisional relief in addition to the MÖHUK Article 48 foreign-party security issue where applicable.

The exact amount and form depend on the procedural circumstances and court decision.

This should be factored into recovery economics before filing.

Foreign Judgments: Can They Be Collected Directly?

If the foreign creditor has already obtained a court judgment abroad, the analysis is different.

MÖHUK Article 50 states that a final foreign civil judgment cannot be executed in Turkey without a Turkish enforcement — tenfiz — decision.

Therefore, an English, German, French, American or other foreign judgment normally cannot simply be sent to a Turkish enforcement office as though it were already a Turkish judgment.

The creditor must first examine recognition and enforcement under MÖHUK Articles 50–59 and any applicable treaty.

This issue is fundamentally different from initiating non-judgment enforcement based directly on the underlying monetary claim.

Foreign Arbitral Awards

If the creditor has an international arbitral award rather than a court judgment, a separate framework applies.

Foreign arbitral awards may be enforceable through:

• the New York Convention;
• MÖHUK Articles 60–63;
• or another applicable treaty.

The creditor should not confuse:

foreign judgment enforcement

with

foreign arbitral award enforcement.

The tests, documents and refusal grounds differ.

Negotiable Instruments Can Change the Recovery Route

International trade debts are sometimes secured by:

• promissory notes;
• bills of exchange;
• or cheques.

Turkey has special enforcement routes for negotiable instruments.

These procedures differ from ordinary general attachment.

Before filing, the creditor should review:

• instrument type;
• original document;
• endorsement chain;
• maturity;
• presentation requirements;
• protest requirements where applicable;
• limitation periods;
• and signature authority.

A properly issued negotiable instrument can create stronger procedural leverage than an ordinary invoice.

However, foreign documents should be reviewed carefully to determine whether they qualify as negotiable instruments under the law relevant to the enforcement route.

Bank Guarantees and Independent Guarantees

If the debt is backed by a bank guarantee, recovery may be substantially stronger.

The first question becomes whether the guarantee is:

• independent/on-demand;
• conditional;
• limited by expiry;
• subject to documentary requirements;
• and governed by Turkish or foreign law.

An enforceable bank guarantee can substantially reduce dependence on the debtor’s financial condition.

Foreign suppliers should therefore consider security structure before shipment, not after default.

Personal Guarantees

A personal guarantee from a company owner can also create an additional recovery target.

However, Turkish law contains strict form rules for certain guarantees.

The creditor should not assume that an email saying:

“I personally guarantee payment”

is necessarily equivalent to a legally valid guarantee under all circumstances.

Guarantees should be reviewed for:

• form;
• amount;
• date;
• guarantor capacity;
• governing law;
• and statutory requirements.

A defective guarantee may create false confidence.

Foreign Currency and Exchange-Rate Risk

International creditors face a second problem beyond simple non-payment:

currency depreciation.

Suppose a Turkish company owes EUR 500,000.

If the creditor converts the debt into Turkish lira at the wrong procedural stage without protecting foreign-currency rights, significant economic value may be lost during lengthy litigation.

The Enforcement and Bankruptcy Law contains specific rules concerning how foreign-currency claims must be stated in the enforcement request.

The creditor’s pleadings should therefore clearly address:

• original currency;
• Turkish-lira equivalent required for procedural purposes;
• applicable conversion date;
• interest;
• and the requested form of payment.

Foreign-currency enforcement should not be drafted as though it were an ordinary fixed-lira invoice.

Limitation Periods

Debt recovery should begin with a limitation analysis.

Under Article 146 of the Turkish Code of Obligations, the general rule is that claims are subject to a ten-year limitation period unless another statutory provision applies.

However, Turkish law contains numerous shorter or specialized limitation periods.

Certain claims can be subject to five-year periods or special commercial and negotiable-instrument deadlines.

Therefore, foreign creditors should not conclude:

“All Turkish debts can be collected for ten years.”

The exact claim must be classified.

Relevant factors include:

• contract type;
• invoice nature;
• agency;
• rent;
• employment;
• interest;
• negotiable instrument;
• transport;
• insurance;
• and other specialized regimes.

Mediation and Limitation Periods

Where mandatory mediation applies, Turkish law protects limitation timing during the mediation process.

The statutory mediation framework provides that limitation periods are suspended and forfeiture periods do not run between the mediation application and issuance of the final mediation record.

This is important where the creditor is approaching the end of a limitation period.

However, creditors should not deliberately delay until the final days.

International document preparation, apostille, power of attorney and translation can themselves consume valuable procedural time.

Can a Foreign Creditor Handle the Case Without Coming to Turkey?

Usually, substantial parts of the process can be conducted through a Turkish lawyer under a properly prepared power of attorney.

The foreign creditor may be able to:

• initiate enforcement;
• participate in mediation;
• file lawsuits;
• request attachment;
• attend procedural stages through counsel;
• and conduct collection

without travelling repeatedly to Turkey.

The power of attorney should contain the authority required for:

• litigation;
• enforcement;
• mediation;
• settlement where intended;
• collection;
• and other necessary acts.

Foreign-issued powers may require apostille or legalization and certified Turkish translation depending upon the country and form of execution.

What Evidence Should a Foreign Creditor Send to Turkish Counsel?

A complete initial recovery file should ideally contain:

• contract;
• amendments;
• purchase orders;
• invoices;
• account statements;
• delivery receipts;
• bills of lading;
• customs documents;
• acceptance certificates;
• emails;
• WhatsApp messages;
• debtor acknowledgements;
• payment records;
• partial-payment records;
• guarantees;
• negotiable instruments;
• foreign judgment or arbitration award if one exists;
• company information;
• and evidence about debtor assets.

The creditor should also prepare a concise chronology:

Contract signed: date
Goods/services supplied: date
Invoice issued: date
Due date: date
Partial payments: dates
Final demand: date
Current balance: amount

This can dramatically improve the efficiency of legal review.

Asset Investigation Is Essential

Debt collection should always involve an asset question.

What does the Turkish debtor own?

Potential recovery targets may include:

• real estate;
• vehicles;
• bank balances;
• trade receivables;
• machinery;
• shares;
• intellectual property;
• and movable assets.

For a company, commercial activity itself can be an asset.

A debtor that receives regular customer payments may be more collectible than a company owning no real estate.

Enforcement strategy should therefore be based on actual recoverability, not only the size of the judgment.

Third-Party Receivables

One of the most useful enforcement tools can involve receivables owed to the debtor by third parties.

For example:

A Turkish construction company owes EUR 600,000 to a foreign supplier.

The Turkish debtor itself is owed TRY 20 million by another business.

Turkish enforcement mechanisms can allow attachment procedures directed at qualifying third-party rights and receivables.

This can be more effective than waiting for the debtor to keep cash in its own bank account.

Foreign creditors should therefore consider who regularly pays the debtor.

Insolvency and Bankruptcy Risk

A creditor should determine whether the debtor is merely refusing to pay or is actually insolvent.

Warning signs include:

• many enforcement files;
• unpaid taxes;
• unpaid salaries;
• repeated cheques;
• asset transfers;
• liquidation;
• factory closure;
• or concordat proceedings.

Once formal insolvency procedures begin, individual recovery strategy can change dramatically.

A creditor may need to:

• file the claim in the insolvency process;
• protect security rights;
• challenge transactions;
• or participate in creditor proceedings.

Waiting too long can reduce recovery substantially.

Debt Collection Is Different From Fraud

Foreign creditors sometimes describe every unpaid debt as fraud.

That is legally dangerous.

A company that orders goods and later suffers financial difficulty may have breached its contract without having committed criminal fraud.

Criminal fraud requires deceptive conduct and criminal intent satisfying the relevant Turkish Criminal Code provisions.

Therefore, the debt file should first be classified correctly.

Possible categories include:

ordinary debt;

contractual breach;

insolvency;

or

actual fraud.

A criminal complaint should not be used simply as pressure in an ordinary commercial payment dispute.

Where there is genuine evidence that the debtor never intended to perform and used deception from the beginning, criminal analysis can be separate.

Settlement vs Litigation

Many commercial debts are ultimately resolved by settlement.

But settlement terms should improve recoverability.

A good settlement may include:

• immediate down payment;
• clear instalments;
• acknowledgment of debt;
• default clause;
• acceleration;
• security;
• personal guarantee;
• negotiable instruments;
• mortgage;
• or another enforceable protection.

The creditor should avoid cancelling existing enforcement or releasing attachment immediately in exchange for an unsecured promise.

How Long Does Turkish Debt Collection Take?

There is no single timeline.

An uncontested non-judgment enforcement proceeding can progress much faster than a contested commercial lawsuit.

A disputed case can involve:

• mediation;
• first-instance trial;
• expert examination;
• witnesses;
• appeal;
• and enforcement.

A foreign creditor should therefore distinguish between:

time to commence legal pressure

and

time to obtain final recovery after full litigation.

The former can be relatively short.

The latter depends heavily upon objections, evidence and appeals.

Example 1: Unpaid Foreign Invoice

A German company sells EUR 150,000 of industrial equipment to a Turkish company.

The machinery is delivered.

The buyer makes no complaint and confirms installation by email.

Payment is not made.

The German creditor has:

• contract;
• invoice;
• customs records;
• delivery record;
• installation confirmation;
• and debtor emails.

A possible strategy may include:

1. formal demand;
2. Turkish non-judgment enforcement;
3. payment order;
4. if no objection, attachment;
5. if objection, mandatory commercial mediation where applicable;
6. action for annulment of objection;
7. asset enforcement.

The fact that the creditor is German does not require it to obtain a German judgment first.

Example 2: Turkish Debtor Is Moving Assets

A UK company is owed USD 2 million.

The Turkish debtor admits the debt but says payment will be made “soon.”

The creditor learns that:

• company real estate is being sold;
• vehicles are transferred;
• and the owner is closing operations.

In this scenario, merely sending another demand letter may be insufficient.

The creditor should immediately consider whether the evidence satisfies the requirements for precautionary attachment under İİK Articles 257–258.

The value of the legal claim may depend on securing assets before litigation concludes.

Example 3: Foreign Judgment Already Obtained

A Dutch company has a final Dutch court judgment ordering a Turkish company to pay EUR 800,000.

The Turkish company owns real estate in Istanbul.

The Dutch creditor should not simply initiate ordinary execution based on the Dutch judgment as though it were a Turkish judgment.

MÖHUK Article 50 requires a Turkish tenfiz decision before the foreign judgment can be executed as a judgment in Turkey.

The strategy therefore becomes:

foreign judgment → Turkish enforcement recognition/tenfiz proceedings → Turkish execution.

Example 4: Arbitration Clause

A Swiss supplier has an unpaid EUR 3 million claim.

The contract contains:

“All disputes shall be finally resolved by ICC arbitration seated in Geneva.”

In that case, a Turkish merits lawsuit may face an arbitration objection.

The creditor should first analyze the arbitration clause.

If an award is later obtained, enforcement in Turkey can proceed under the applicable foreign arbitral award framework, potentially including the New York Convention.

The existence of Turkish assets does not necessarily eliminate the arbitration clause.

Frequently Asked Questions

Can a foreign company collect unpaid invoices in Turkey?

Yes.

Foreign companies can pursue Turkish debtors through enforcement and litigation subject to the applicable procedural rules.

Do I need a Turkish court judgment before starting enforcement?

Not always.

For qualifying monetary claims, Turkish law permits general non-judgment enforcement under İİK Article 42.

Do I need the original invoice?

A debt may be asserted in ordinary enforcement without first obtaining a court judgment, but documentary evidence becomes crucial if the debtor objects.

How long does the Turkish debtor have to object?

In ordinary general attachment proceedings, the debtor generally has seven days from service of the payment order to object.

What happens if the debtor does not object?

The proceeding becomes final for enforcement-law purposes and the creditor may proceed toward attachment and collection.

What if the debtor objects?

The ordinary enforcement proceeding stops and the creditor must use the appropriate procedure to eliminate the objection.

How long do I have to file an action for annulment of objection?

İİK Article 67 provides a one-year period from notification of the objection.

Is commercial mediation required?

For qualifying commercial actions seeking payment of money or compensation, pre-litigation mediation is a statutory condition.

Does mediation apply to foreign companies?

The Mediation Law expressly applies to qualifying private-law disputes containing a foreign element.

Can I freeze assets before winning the lawsuit?

Potentially.

Precautionary attachment may be available where the requirements of İİK Article 257 are met.

Do I need to fully prove the debt before obtaining precautionary attachment?

The creditor must provide evidence sufficient to create judicial conviction at the provisional stage. Court of Cassation practice distinguishes this from the final proof standard for the merits.

Can I collect a debt in euros or dollars?

Foreign-currency claims can be pursued, but the enforcement request must comply with Article 58 requirements concerning Turkish-lira equivalent/exchange-rate information.

What interest applies to a foreign currency debt?

The answer depends on the contract and governing law. Where Turkish Law No. 3095 Article 4/a applies and no higher contractual/default rate exists, the relevant reference is the highest one-year deposit rate paid by state banks in that foreign currency.

What is the 2026 commercial late-payment interest rate?

For transactions specifically falling within TTK Article 1530’s goods-and-services late-payment framework, the 2026 rate published by the Central Bank is 43%, with a TRY 2,020 minimum collection-cost compensation amount. It is not a universal interest rate for every commercial debt.

Can I enforce a foreign court judgment directly?

Generally not as a Turkish judgment. A final foreign civil judgment normally requires a Turkish tenfiz decision under MÖHUK Article 50.

Can I pursue a foreign arbitration award?

Potentially yes, through the applicable foreign arbitral award enforcement regime.

Do foreign creditors have to provide security?

MÖHUK Article 48 generally provides for security from foreign parties bringing lawsuits or enforcement proceedings but also provides for exemption on reciprocity grounds.

What is the ordinary limitation period?

TBK Article 146 provides a general ten-year limitation period unless a different statutory rule applies.

Does that mean every commercial debt has ten years?

No. Numerous claims are governed by special or shorter periods.

Can I collect without travelling to Turkey?

In many cases the creditor can act through Turkish counsel under an appropriately prepared power of attorney.

Practical Cross-Border Debt Collection Checklist

Before starting proceedings, a foreign creditor should answer the following:

1. What is the exact legal name of the Turkish debtor?
2. Is the debtor still active?
3. Is the debtor a company or individual?
4. Who signed the contract?
5. Does the contract contain a governing-law clause?
6. Does it contain a Turkish or foreign jurisdiction clause?
7. Does it contain arbitration?
8. What is the original currency?
9. What is the principal amount?
10. When did the debt become due?
11. What interest was agreed?
12. Was a demand notice required?
13. Was performance fully completed?
14. Do invoices match the agreement?
15. Is delivery proven?
16. Did the debtor ever admit the debt?
17. Are there partial payments?
18. Is there a guarantee?
19. Is there a cheque, note or bill of exchange?
20. What assets does the debtor own?
21. Is asset dissipation occurring?
22. Should precautionary attachment be requested?
23. Is non-judgment enforcement suitable?
24. Is a lawsuit preferable?
25. Will mandatory mediation apply?
26. Is there a foreign judgment?
27. Is there a foreign arbitral award?
28. What limitation period applies?
29. Does MÖHUK security apply?
30. Is recovery economically worthwhile?

The final question is often the most important.

A strong creditor does not merely ask:

“Can I sue?”

The creditor asks:

“What is the most efficient path from the debt document to actual money?”

Conclusion

Cross-border debt collection in Turkey can be highly effective where the creditor combines legal enforcement with early asset analysis.

Foreign companies are not required to sit outside Turkey waiting for a Turkish debtor to voluntarily pay.

Turkish enforcement law provides a powerful feature that may surprise overseas creditors:

a monetary claim can, in qualifying circumstances, be placed into ordinary non-judgment enforcement without first obtaining a court judgment.

Article 42 of the Enforcement and Bankruptcy Law provides the legal basis for enforcement concerning payment of money and security.

This can make Turkey different from legal systems where a creditor ordinarily needs to complete a full civil lawsuit before reaching the debtor’s assets.

However, the Turkish system also protects the debtor through a rapid objection mechanism.

In ordinary general attachment proceedings, the debtor generally has seven days from service of the payment order to object.

If the debtor remains silent, the creditor may continue toward attachment.

If the debtor objects, the enforcement proceeding stops and the dispute moves into its next legal stage.

For many creditors, that next stage is an action for annulment of objection under İİK Article 67, which must be brought within one year from notification of the objection.

Commercial creditors must also remember mandatory mediation.

The Turkish Commercial Code requires pre-litigation mediation for qualifying commercial actions seeking monetary receivables and compensation.

The foreign nature of the dispute does not remove that mechanism: the Mediation Law expressly extends to private-law disputes with a foreign element.

A foreign creditor should therefore see the ordinary contested path as:

enforcement → objection → mediation → annulment action → judgment → continuation of enforcement.

But not every debt should follow exactly that path.

Where the debtor is likely to dispose of assets, precautionary attachment can be far more important than the first payment order.

İİK Article 257 permits precautionary attachment for qualifying monetary claims, while Article 258 requires sufficient supporting evidence.

This can be decisive in international cases.

A final judgment is economically useless if the debtor has already transferred every property and emptied every bank account.

The creditor should therefore investigate assets before alerting the debtor whenever legally and strategically appropriate.

Foreign currency is another important issue.

Cross-border debts are frequently denominated in EUR, USD or GBP.

İİK Article 58 expressly requires appropriate exchange-rate/Turkish-lira information in a foreign-currency enforcement request.

Interest also needs careful treatment.

Where Turkish Law No. 3095 Article 4/a applies to a foreign-currency obligation and no higher contractual/default interest has been agreed, the Central Bank explains that the applicable reference is the highest one-year deposit rate paid by state banks for that currency.

For certain goods-and-services commercial late-payment disputes falling within TTK Article 1530, the 2026 rate published by the Central Bank is 43%, together with the statutory minimum collection-cost amount of TRY 2,020.

These rates should not be used mechanically.

A foreign creditor should first determine:

• governing law;
• contract rate;
• default date;
• currency;
• and the particular legal basis of the claim.

Limitation periods require the same care.

TBK Article 146 establishes a general ten-year limitation period where the law does not prescribe otherwise.

But commercial law contains many specific time limits.

The creditor should never delay collection merely because someone says:

“Turkey has a ten-year limitation period.”

Negotiable instruments, specialist contracts and other claims can operate under different rules.

Where the creditor has already litigated abroad, another important distinction arises.

A foreign court judgment does not automatically operate as a Turkish enforceable judgment.

MÖHUK Article 50 requires a Turkish enforcement decision before a final foreign civil judgment can be executed in Turkey.

Foreign arbitral awards require their own separate recognition and enforcement analysis.

The foreign creditor should therefore identify which of four positions applies:

no judgment yet → ordinary Turkish debt collection;

Turkish judgment → judgment enforcement;

foreign judgment → MÖHUK recognition/enforcement;

foreign arbitral award → arbitral award enforcement regime.

Foreign creditors should also remember that nationality itself can have a procedural consequence.

MÖHUK Article 48 provides for security by foreign natural or legal persons bringing lawsuits or enforcement proceedings, while also authorizing exemption on reciprocity grounds.

This should be checked early so that the requirement does not unexpectedly delay urgent proceedings.

Ultimately, however, the central principle of international debt recovery is commercial rather than technical:

collectability matters as much as liability.

Before beginning litigation, identify:

• bankable assets;
• real estate;
• vehicles;
• receivables;
• shareholders’ guarantees;
• negotiable instruments;
• and signs of insolvency.

A foreign creditor with an excellent contract but no knowledge of the debtor’s assets is operating with only half of the information needed for recovery.

The most effective Turkish debt-collection strategy can therefore be summarized as:

review the contract → identify governing law and forum → calculate the debt → investigate the debtor and assets → preserve limitation periods → consider immediate precautionary attachment → commence enforcement or litigation → respond quickly to objections → secure a legally enforceable result → attach and monetize assets.

International businesses should ideally think about this process before the debt exists.

A well-drafted international commercial agreement should consider:

• governing law;
• jurisdiction or arbitration;
• currency;
• interest;
• payment dates;
• guarantees;
• security;
• and enforcement location.

The strongest contract is not simply one that proves the buyer owes money.

It is one that gives the seller a realistic way to collect that money when payment stops.

For foreign companies dealing with Turkish counterparties, debt recovery should therefore never begin with the question:

“How long will a lawsuit take?”

The better first question is:

“Where is the debtor’s money, and what is the fastest lawful procedure to secure it before it disappears?”

That question usually determines whether cross-border debt collection becomes a successful recovery or merely a favourable judgment on paper.

Legal Disclaimer

This article provides general legal information concerning cross-border debt collection in Turkey and recovery of claims by foreign creditors as of August 2026.

It does not constitute legal, tax or financial advice regarding any specific debt.

The appropriate recovery procedure can vary according to:

• governing law;
• jurisdiction clause;
• arbitration agreement;
• creditor nationality;
• debtor status;
• type of contract;
• invoice documentation;
• currency;
• maturity;
• guarantees;
• negotiable instruments;
• debtor objection;
• limitation period;
• mandatory mediation;
• foreign judgments;
• foreign arbitration awards;
• and the location and legal status of debtor assets.

Foreign creditors with significant claims against Turkish individuals or companies should obtain file-specific legal advice before choosing between non-judgment enforcement, precautionary attachment, litigation, arbitration enforcement or recognition and enforcement of a foreign judgment.