21 January 2019

On 18 January 2019 the Law to Amend the Tax Laws and Several Laws and Decrees Having the Force of Law numbered 7161 ("Omnibus Act") changed the cap on increases in lease rates for residences and roofed workplaces. Accordingly, the cap stipulated under the Turkish Code of Obligations numbered 6098 will change from the producer price index to "the change in the twelve-month averages of the consumer price index" as of 1 January 2019.
The Omnibus Act includes another important provision effecting the lessees of the workplaces who are merchants. Prior to the Omnibus Act, the rent increases in all leases including the workplaces leased by the merchants, had been capped at the producer price index; however, that cap would be effective on 1 July 2020. The Omnibus Act amended that cap to the “change in the twelve-month averages of the consumer price index”, and also removed the temporary postponement of the cap for such leases.
The Omnibus Act also includes a provision, in line with the recent amendments to the Decree No: 32 on the Protection of the Value of Turkish Currency, prohibiting the determination of the lease prices in foreign currency.


For further information, please contact:

Attorneys at Law
+ 90 (212) 236 36 44

Levent Mah. Sülün Sok. N.23
34330, Beşiktaş/Istanbul

This client alert provides very brief and generic information on certain recent legislative developments, for informational purposes only and is not intended and should not be construed as a legal advice.