In Turkey, many foreign nationals may become creditors due to business, trade, rental agreements, investments, or personal relationships. For example, a foreigner may lend money to a Turkish citizen, provide commercial goods or services, or have rights arising from a rental contract. However, the question of “How can I collect my receivables in Turkey as a foreigner?” often causes uncertainty.
In this article, we explain in detail the ways foreigners can collect their receivables in Turkey, the legal grounds, and the litigation and enforcement procedures.
In the Turkish legal system, foreigners generally enjoy the same rights as Turkish citizens. This means they have the right to file a lawsuit for debt collection, initiate enforcement proceedings, and enforce court judgments.
The main legal grounds are:
Important Note: Foreigners are not required to reside in Turkey to file a lawsuit or initiate enforcement proceedings. They may carry out all procedures through an attorney by granting a notarized and apostilled power of attorney.
1. Initiating Enforcement Proceedings
A foreign creditor may directly initiate proceedings before the enforcement office:
If the debtor does not object, the receivable can be collected quickly.
2. Objection by the Debtor and Removal of Objection
If the debtor objects to the enforcement proceeding, the creditor must file a lawsuit for removal of the objection before the Civil Court or Commercial Court to continue enforcement.
3. Filing a Debt Collection Lawsuit
If the debt is denied or disputed, the foreign creditor may file a debt collection lawsuit.
4. Enforcement of Court Judgments
Once the creditor wins the lawsuit, the judgment is enforced through the enforcement office:
1. Can a foreigner file a debt collection lawsuit in Turkey?
Yes. Foreign nationals have the same rights as Turkish citizens. They may initiate enforcement proceedings, file lawsuits, and enforce judgments.
2. How can a foreigner collect receivables if they do not reside in Turkey?
Residence in Turkey is not required. A foreign creditor can grant a notarized and apostilled power of attorney to a lawyer, who may handle all procedures.
3. What are the main methods of debt collection for foreigners in Turkey?
The most common methods are:
4. What happens if the debtor hides assets?
The creditor may file a cancellation of disposition lawsuit, which nullifies fraudulent asset transfers and allows seizure of the debtor’s assets.
5. Do foreigners have to pay court fees in Turkey?
Yes. Like Turkish citizens, foreigners must pay court fees and expenses when filing a lawsuit. However, if the debtor loses the case, these costs are imposed on the debtor.
6. What documents are important to prove a receivable in court?
Written contracts, promissory notes, bank transfer receipts, invoices, and payment slips are crucial. Lack of evidence may make debt collection difficult.
7. How long does it take for foreigners to collect receivables in Turkey?
If the debtor does not object, enforcement may be completed within weeks. If litigation is required, the process may take 6 months to 2 years depending on the complexity.
8. Is it mandatory for foreigners to hire a lawyer in Turkey?
It is not legally mandatory, but it is highly recommended. Debt collection and enforcement proceedings are technical. Even small mistakes may result in losing the case. In addition, lawyers have authority to access the debtor’s assets and bank accounts during the process.
9. Can a foreign creditor seize a debtor’s bank accounts in Turkey?
Yes. Following a court judgment or enforcement proceeding, a creditor may request seizure of the debtor’s bank accounts.
10. Are there special rules for foreign investors’ commercial receivables?
No. Foreign investors are subject to the same rules as Turkish investors. Commercial disputes are handled by the Commercial Courts of First Instance.
11. Can a foreign creditor place a lien on real estate in Turkey?
Yes. The creditor may request attachment and mortgage on the debtor’s immovable property through the enforcement office.
12. How is the language barrier resolved in Turkish courts?
The official language of the courts is Turkish. Foreign parties may use sworn interpreters. In practice, the process is usually carried out by lawyers.
13. Is the debt collection process safe and reliable for foreigners in Turkey?
Yes. The Turkish legal system protects the rights of foreigners and applies the principle of equal treatment. With proper documentation and legal representation, the process is secure.
