In Türkiye a rental deposit may not exceed three months' rent for homes and roofed business premises (Article 342, Law No. 6098). By law it goes into a blocked savings account opened by the tenant; if the landlord does not notify the bank of a lawsuit or enforcement within three months after the lease ends, the bank must release it to the tenant. Only proven unpaid rent, utilities and damage beyond normal wear, notified in writing at handover, may be deducted. If the landlord refuses to pay, mediation is mandatory since 1 September 2023 before suing in the civil court of peace.
Every year thousands of foreigners rent a flat in Istanbul, Antalya or Izmir, hand over a deposit on the day they collect the keys and then discover, when they move out, that getting it back is far from automatic. Rents have risen sharply in recent years, so a deposit of two or three months' rent is now a large sum, and the arguments that follow are about the same things: a scratched floor, a wall that "needs painting", an unpaid gas bill, or a landlord who simply stops answering. Turkish law has a specific rule for this money in Article 342 of the Turkish Code of Obligations, Law No. 6098, and since 1 September 2023 a lease dispute generally has to go to mediation before it can go to court. This article explains how much a landlord may ask for, how the deposit should be held, what can lawfully be deducted, how foreign currency deposits are treated, and the practical routes for recovering a deposit that the landlord will not return.
In everyday Turkish the deposit is called depozito, a sum paid at the start of the lease and refunded at the end, while the Code of Obligations uses the word güvence, security given by the tenant. Its purpose is to secure the tenant's obligations under the lease: rent, usage costs and compensation for damage caused by use contrary to the contract. It is not a fee, it is not income for the landlord, and it does not become the landlord's property because the lease has ended.
Article 342 applies to leases of residential premises and roofed business premises, which covers ordinary flats and houses as well as shops and offices. Under Article 339, the rules for these leases do not apply to immovable property allocated by its nature to temporary use and let for six months or less, so a short holiday let falls outside them. A standard one year lease of a flat, whether the tenant is Turkish or foreign, is covered. The deposit is only one part of the tenant's protection; the wider rules on eviction, repairs and notice are set out in our article on tenant rights in Türkiye.
At the signing table a foreign tenant often pays three different amounts at once: the first month's rent, the deposit and the estate agent's commission. Only the deposit is refundable. Keep the receipt or bank transfer for each payment separately and make sure the contract states the deposit amount in figures. A transfer described simply as "payment" invites a later argument that the money was rent paid in advance.
Article 342(1) is short: where the contract requires the tenant to provide security in a residential or roofed business lease, that security may not exceed three months' rent. A landlord may ask for one month, two months or nothing at all, but not more than three. The cap applies to every form of security, so a cash deposit and a blocked bank account count toward the same limit.
Rent in renewed lease years is limited by Article 344 of Law No. 6098 to the twelve month average change in the consumer price index, as explained in our article on rent increase rates in Türkiye. Article 342 does not oblige the tenant to top up the deposit each time the rent rises, and any top up agreed in the contract must still keep the total within three months' rent.
Landlords in high demand areas sometimes ask for four, five or six months, particularly from foreign tenants without a Turkish credit history. A clause requiring more than the statutory maximum cannot be relied on above the cap. In practice the tenant who has already paid the excess can ask for it back, either during the lease or when the deposit is settled at the end, and the excess is a lease receivable like any other. The safer course is to raise the point before signing, when the landlord can still choose a different arrangement.
Article 342(2) provides that where money is given as security, the tenant deposits it in a time savings account, vadeli tasarruf hesabı, a fixed term deposit account, on condition that it cannot be withdrawn without the landlord's consent. Negotiable securities are deposited with a bank on the same condition. The account is opened by the tenant, so the money stays the tenant's and any interest it earns normally accrues to the tenant, while the landlord holds a block that prevents withdrawal.
The bank may release the security only in three situations: with the consent of both parties, upon the finality of enforcement proceedings, or on the basis of a final court judgment. Neither side can empty the account alone.
Article 342(3) gives the tenant a route that does not depend on the landlord's cooperation. If, within three months following the termination of the lease, the landlord has not notified the bank in writing that he has brought an action against the tenant relating to the lease or has started enforcement or bankruptcy proceedings, the bank must return the security on the tenant's request. The tenant therefore needs proof of the termination date and must wait out the three months; after that, a written request to the bank is enough unless the landlord's notice has reached it in time.
The statutory bank arrangement is rarely used. In most Turkish leases the deposit is paid in cash or transferred to the landlord's personal account, and the landlord keeps it until the keys are returned. This does not make the deposit unlawful or lost, but it changes the tenant's position in four ways.
A tenant who has already paid in cash should not panic. Collect every document that shows the payment, ask the landlord to confirm the amount in a message or email during the lease, and treat the bank account route in section 3 as an option to request when the lease is renewed.
Many foreign tenants are asked to pay rent and deposit in euros, dollars or pounds. Whether this is lawful depends on who the parties are, not on the landlord's preference.
Under Article 4(g) of Decree No. 32 on the Protection of the Value of the Turkish Currency, issued under Law No. 1567, persons resident in Türkiye may not agree the price and other payment obligations of a real estate lease in foreign currency or indexed to foreign currency, except as the Ministry of Treasury and Finance allows. The Ministry's published guidance on Communiqué No. 2008-32/34 states that for leases concluded after 13 September 2018 the deposit must also be set in Turkish Lira, while deposits under leases concluded before that date did not have to be converted.
Article 8(3) of the communiqué allows the contract price and the other payment obligations arising from a real estate lease to be agreed in foreign currency where the tenant is a person resident in Türkiye who does not hold Turkish citizenship, or a company falling within paragraph 19 of the same article, broadly one in which persons resident abroad hold 50 percent or more or have control. The Ministry's guidance confirms this is an option, not an obligation: the parties may still agree on Turkish Lira. Persons resident abroad are outside the communiqué altogether. A dual national living in Türkiye cannot rely on the citizenship exception. More detail is in our article on the foreign currency ban in lease agreements.
Where a foreign currency deposit is lawful, it is refunded in the same currency. Where it is not, both parties are exposed to an administrative fine under Article 3 of Law No. 1567, imposed on each party separately with amounts revalued annually, and the currency clause itself becomes a point of dispute when the refund is calculated. Article 344(4) adds that where rent is lawfully agreed in foreign currency, it cannot be changed for five years, subject to the hardship rule in Article 138.
Article 334 requires the tenant to return the property in the condition in which it was received, but the tenant is not liable for wear and deterioration resulting from use in accordance with the contract. Faded paint after three years, light marks where furniture stood, a worn tap washer or carpets flattened by ordinary use are wear. A burned worktop, broken door, holes from mounted shelves left unrepaired, pet damage or mould caused by never ventilating a room may be damage for which the tenant is responsible. The line depends on the length of the tenancy, the age of the fittings and the condition at move in.
Under Article 341, unless the contract or local custom provides otherwise, the tenant bears usage costs such as heating, electricity and water, and the party bearing costs must provide copies of the supporting documents on request. Unpaid rent, unpaid utility bills in the landlord's name and unpaid building service charges that the contract places on the tenant can lawfully be set against the deposit, provided the landlord can show the amount.
Article 346 prohibits imposing on the tenant any payment obligation other than rent and ancillary costs, and specifically invalidates penalty clauses for late rent and clauses making future rent due at once. Article 334(2) invalidates agreements under which the tenant undertakes in advance to pay compensation other than for losses caused by use contrary to the contract. In practice this means that clauses such as "the deposit is not refundable", "the tenant pays for full repainting regardless of condition" or "the deposit is forfeited if the tenant leaves early" are open to challenge.
Under Article 6 of the Turkish Civil Code, Law No. 4721, each party must prove the facts on which it bases its right. The tenant proves that the deposit was paid and the lease ended; the landlord who wants to keep part of it must prove the damage or debt, that the tenant is responsible for it and what it costs to repair. Article 335 adds a strict condition: on return the landlord must inspect the property and notify the tenant immediately in writing of defects for which the tenant is liable, failing which the tenant is released from liability, except for defects that could not be detected by ordinary inspection, which must also be notified immediately once found.
Most deposit disputes are decided by the evidence created on two days: the day the keys were collected and the day they were returned.
A tenant who leaves Türkiye after the lease should arrange all of this before departure. A deposit claim can be pursued from abroad through a lawyer, but missing photographs cannot be recreated later.
Start with a clear written demand stating the deposit amount, the handover date and the bank details for the refund. If that is ignored, send an ihtarname, a formal notice served through a notary, giving a short deadline. Under Article 117 a debtor of a due debt falls into default upon the creditor's notice, and from then on default interest runs at the rate set by the legislation in force under Article 120. The notice also fixes the landlord's position: either he pays, or he must name the deductions he claims.
Where the deposit sits in a blocked account, wait until three months have passed from the termination of the lease, then apply in writing to the bank under Article 342(3). Unless the landlord has notified the bank within that period that a lawsuit or enforcement proceeding has been started, the bank must release the money.
Article 18/B of the Law on Mediation in Civil Disputes, Law No. 6325, added by Law No. 7445 and in force since 1 September 2023, makes an application to a mediator, arabulucu, a precondition for bringing an action in disputes arising from a lease relationship, with the exception of eviction through enforcement without judgment. A deposit claim falls within this rule. The application is made to the mediation office where the competent court is located, and under Article 18/A the mediator must conclude the file within three weeks of appointment, extendable by one week in compelling cases. If no agreement is reached in meetings under two hours, the two hour fee is paid from the Ministry of Justice budget. A party who skips the first meeting without a valid excuse is ordered to bear half of the other side's court costs even if it later wins. An agreement reached in mediation must obtain an annotation of enforceability from the civil court of peace, after which it can be enforced like a judgment.
The tenant can also start ilamsız icra, enforcement proceedings without a prior judgment, at an enforcement office under Article 58 of the Enforcement and Bankruptcy Law, Law No. 2004. A creditor living abroad must designate an address in Türkiye in the request. The landlord receives a payment order and has seven days to object under Article 62. If he does not object, the proceedings become final and the tenant can move to attachment. If he objects, the proceedings stop, and the tenant may bring an action for annulment of the objection, itirazın iptali, within one year under Article 67, where a debtor found to have objected without justification can be ordered to pay compensation of at least 20 percent of the amount. That action is a lease dispute, so in prevailing practice mediation must be attempted before it is filed.
Under Article 4 of Law No. 6100, all disputes arising from a lease relationship, including claims for money, are heard by the civil court of peace, sulh hukuk mahkemesi, regardless of value. The action can be filed at the landlord's domicile or, under Article 10, at the place where the contract is to be performed, which for a lease is usually where the property is. The final mediation minutes stating that no agreement was reached must be attached to the statement of claim.
| Route | How It Works |
|---|---|
| Bank release, consent | Both parties sign; bank releases the blocked account (Article 342(2)) |
| Bank release, three month rule | No written notice of proceedings to the bank within three months after termination; bank pays on tenant's request (Article 342(3)) |
| Formal notice | Notarised ihtarname puts the landlord in default (Article 117) |
| Mediation | Mandatory before any lease action since 1 September 2023; three weeks plus one (Law No. 6325, Articles 18/A and 18/B) |
| Enforcement without judgment | Payment order; seven days to object; annulment action within one year (Law No. 2004, Articles 62 and 67) |
| Lawsuit | Civil court of peace, regardless of amount (Law No. 6100, Article 4) |
A tenant who returns the property before the end of the term or without observing the notice period remains liable under Article 325 for a reasonable period within which the property could be let on similar terms, unless the tenant finds a solvent replacement the landlord can reasonably be expected to accept. The landlord must deduct the expenses he has saved and any benefit from letting the property again. This is often why a landlord holds back the deposit after an early exit, and why the amount he may keep is limited to the actual loss, not a fixed penalty. The full rules are in our article on moving out before the lease ends.
Tenants are sometimes tempted to stop paying the last two or three months and tell the landlord to "keep the deposit". The deposit is security, not prepaid rent, and the landlord is not obliged to accept this. A tenant who withholds rent risks default notices, enforcement and a dispute over damage with no money left to cover it.
A landlord who wants the deposit to work as real security should keep within the three month cap, use the blocked account in Article 342(2) or at least record the payment in the contract, and inspect the property on the day of handover. Article 335 is unforgiving: a landlord who does not notify defects in writing immediately loses the claim, except for hidden defects. Deductions should be supported by photographs, repair quotes or invoices and the final utility bills, and should be listed item by item in writing. Where the deposit is in a bank, the landlord who intends to claim against it must start proceedings and notify the bank in writing within three months of termination. Landlords dealing with arrears will find the enforcement routes in our article on claiming unpaid dues from tenants, and the steps after physical damage in our guide on tenant damage to property. A clear contract prevents most of these disputes, and our rental contracts service covers drafting and review for both landlords and tenants.
No more than three months' rent for residential and roofed business leases, under Article 342 of Law No. 6098.
The law provides that a cash deposit is placed by the tenant in a time savings account that cannot be withdrawn without the landlord's consent, but in practice most deposits are paid directly to the landlord.
There is no fixed number of days for a cash deposit; it becomes refundable once the lease ends and the property is returned, less proven deductions. For a bank deposit, the bank must release it on the tenant's request if the landlord has not notified it of proceedings within three months after termination.
Send a written demand and then a notarised notice; if that fails, apply to mandatory mediation and, if no agreement is reached, start enforcement proceedings or sue before the civil court of peace.
Only if the paint was damaged beyond normal use; ordinary fading and marks after years of occupation are wear for which the tenant is not liable under Article 334.
Generally not, because Articles 334(2) and 346 prevent the tenant from being charged anything beyond rent, ancillary costs and compensation for use contrary to the contract.
Yes if the tenant does not hold Turkish citizenship or lives abroad; between two residents of Türkiye outside the exceptions, deposits under leases concluded after 13 September 2018 must be in Turkish Lira.
Yes. Since 1 September 2023 mediation is a precondition for any lawsuit arising from a lease relationship, except eviction through enforcement without judgment.
The civil court of peace, whatever the amount, under Article 4 of Law No. 6100.
Yes, but you must prove the payment, ideally with the signed contract or a receipt, because witnesses alone are not enough above the Article 200 threshold of Law No. 6100.
Not unilaterally; the deposit is security, and withholding rent exposes you to default notices and enforcement.
The new owner becomes a party to the lease under Article 310, but responsibility for a deposit paid to the previous owner can be disputed, so ask both owners in writing how it was handled.
Yes. A lawyer can conduct mediation, enforcement and court proceedings under a power of attorney, and a creditor abroad designates an address in Türkiye for enforcement.
Yes. Under Article 335 the landlord must notify you in writing immediately after the handover, otherwise you are released from liability except for hidden defects.
A security deposit in Türkiye is capped at three months' rent, belongs to the tenant as security rather than to the landlord as income, and can only be reduced by proven unpaid rent, unpaid usage costs or damage beyond normal wear that the landlord notified in writing at handover. The bank account mechanism in Article 342 protects both sides, but most deposits are paid in cash, which makes documents the decisive factor. Foreign currency deposits are lawful only where the tenant falls within the exceptions, and since 1 September 2023 every deposit lawsuit must be preceded by mediation.
If your landlord is holding back a deposit, or you are a landlord facing damage and arrears at the end of a lease, the outcome usually turns on the contract, the handover evidence and choosing the right route between the bank, mediation, enforcement and the civil court of peace. Before you sign a new lease or send a final demand, speak with our legal team.
