Property Management In Türkiye For Absentee Foreign Owners

Abstract

Absentee ownership is not, by itself, legally difficult. The risk lies in fragmented authority, weak reporting, missed statutory dates and informal local arrangements. A foreign owner should create a controlled chain of authority, separate the functions of lawyer, manager and bank signatory where appropriate, document every material instruction, and maintain an annual compliance calendar. This article explains the legal framework and the practical controls that make remote ownership manageable.

Introduction

Foreign ownership of real estate in Türkiye does not require the owner to reside in the country. It does, however, require a deliberate legal and operational structure. The central question is not whether the property can be managed remotely, but who may act, for which purpose, with what evidence, and under whose supervision. Turkish law separates ownership, representation, lease administration, tax compliance and condominium governance. Treating them as a single informal task is the most common source of avoidable disputes.

The applicable framework is drawn principally from the Turkish Code of Obligations No. 6098, the Condominium Ownership Law No. 634, the Property Tax Law No. 1319, the Income Tax Law No. 193, the Mediation Law No. 6325 and, for short stays, Law No. 7464.  This article reflects the legal position reviewed on 23 September 2026. Transaction-specific documents, municipal practice and later amendments must still be checked before action is taken.¹

1. Build the Authority Structure Before the Problem Arises

1.1 A power of attorney is a controlled mandate, not a formality

A Turkish power of attorney, or vekaletname, is the foundation of remote management. The document should identify the representative, the property where useful, and the acts that the representative may perform. Routine management powers may include signing and terminating leases, issuing notices, collecting rent into a designated account, dealing with utilities, attending condominium meetings, obtaining records, paying taxes and dues, instructing contractors within a budget, and appointing counsel for a defined dispute.

Authority to sell, mortgage, donate, settle litigation, waive claims, receive a sale price or delegate powers should not be included merely for convenience. Turkish law recognises revocation, but revocation does not replace prevention. A sound mandate limits the representative by subject, amount, duration, counterparty and reporting obligation. It should also state which powers may not be delegated.

An instrument executed abroad may require apostille or consular legalisation, a Turkish translation and satisfaction of transaction-specific form requirements. The General Directorate of Land Registry and Cadastre publishes detailed guidance for foreign-issued powers used in title transactions.  A power executed at a Turkish consulate may simplify authentication, but the proposed wording should still be reviewed in advance because authority sufficient to collect rent may be insufficient for a title, mortgage or court act.²

1.2 Separate legal authority from day-to-day management

The attorney, property manager, letting agent, accountant and building manager perform different functions. An absentee owner should avoid placing unrestricted contracting authority, rent collection and financial reporting in one person without verification. A written property-management agreement should set the service scope, approval thresholds, procurement rules, permitted deductions, reporting frequency, document-retention duties, insurance obligations, data-protection measures, subcontracting rules, conflicts of interest and termination assistance.

A practical control is to require rent to be paid directly into the owner’s bank account, while the manager receives only an agreed fee and a limited expense float. Maintenance above a stated threshold should require written approval and two quotations, except for documented emergencies. Monthly statements should reconcile the lease, bank receipt, tax position, site dues and invoices.

2. Residential Leasing: The Rules Foreign Landlords Most Often Misread

2.1 Expiry of the stated term usually does not end the tenancy

For covered residential and roofed-workplace leases, the tenant may generally end a fixed-term lease by giving the statutory notice, but the landlord cannot end it merely because the written term has expired. The lease ordinarily extends for one year. After ten extension years, the landlord obtains a termination route subject to the statutory notice and timing rules in Article 347 of the Turkish Code of Obligations.  A foreign landlord should therefore never promise vacant possession to a buyer before counsel has verified the lease history and the available ground for termination.³

2.2 Rent increases require date-specific calculation

Article 344 caps an agreed renewal increase by reference to the twelve-month average change in the consumer price index. The exceptional 25 percent ceiling for residential renewals expired in July 2024. The lawful increase must be calculated for the actual renewal month, using the current official index, the lease wording and any relevant five-year rent-determination rules.  A manager should retain the calculation and the written notice rather than applying a figure copied from another tenancy.⁴

2.3 Deposit, handover evidence and payment records

A monetary security deposit for a residential or roofed-workplace lease is limited to three months’ rent. Article 342 provides a protected banking mechanism where the deposit is given as money or negotiable paper.  The file should also contain a signed condition report, dated photographs, meter readings, an inventory, key record and proof of delivery. Rent should be paid through traceable banking channels with an accurate description of the month and property.⁵

3. Default, Eviction and Mandatory Mediation

Self-help measures are unsafe. Changing locks, cutting utilities, entering without authority or removing possessions may expose the owner and manager to civil or criminal allegations. Non-payment ordinarily requires a legally effective notice and compliance with the cure period under Article 315, or an enforcement route that observes the Enforcement and Bankruptcy Law. Other statutory paths include two justified notices in one rental year, a valid written evacuation undertaking, genuine need, reconstruction and a new owner’s need. Each ground has its own evidence and filing period.

Since 1 September 2023, mediation is generally a condition for filing lawsuits arising from lease relationships, with the statutory exception for eviction through the non-judgment enforcement procedure under the Enforcement and Bankruptcy Law. Condominium and neighbour disputes are also within Article 18/B of the Mediation Law.  Missing a filing period while negotiating informally can defeat an otherwise valid claim, so mediation and limitation or forfeiture periods must be coordinated by counsel.⁶

Court of Cassation perspective

These decisions illustrate a broader point: a valid statutory ground is not enough without proof and procedural timing. Court of Cassation decisions are fact-sensitive and should be applied through the current chamber structure and the complete case file. ⁷

4. Long-Term Leasing and Short-Term Tourism Rentals Are Different Regimes

A lease for 100 days or less, regardless of the user’s travel, education, health or business purpose, may fall within the tourism-purpose housing regime under Law No. 7464 and its implementing regulation. A permit is generally required before advertising or letting, and ordinary apartments may require a notarised unanimous decision of the residential unit owners in the building, subject to the statutory structure and limited categories.  Platform listing, permit display, identity reporting, fire and safety requirements, building rules and administrative fines must be reviewed before a unit is placed on a short-stay platform.⁸

An owner should not attempt to avoid the regime through repeated short contracts or by allowing an unlicensed intermediary to advertise the unit. The management agreement should expressly state who holds the permit, who controls platform accounts, who reports guests, who collects funds and who bears sanctions caused by non-compliance.

5. Tax, Municipal Charges and an Annual Compliance Calendar

5.1 Property tax

Property tax is based on the statutory tax value, not simply the current market price. The building-tax rate is generally 0.1 percent for residential property and 0.2 percent for other buildings, with a 100 percent increase within metropolitan municipality boundaries and adjacent areas.  The tax value is updated under statutory valuation rules. A change in ownership, use, construction or other relevant fact may create a declaration or notification issue that should be checked with the municipality.⁹

5.2 Rental income tax for non-resident owners

A person resident abroad may be a limited taxpayer for Turkish income-tax purposes and may be taxable on Türkiye-source rental income. Whether a return is required depends on the type and amount of income, exemptions, withholding, deductible expenses, ownership shares and any applicable double-tax treaty. The Revenue Administration’s 2026 guide for non-resident rental-income recipients addresses income earned in the 2025 calendar year and should be read with the current return period and annual thresholds.  The safe rule is not that every owner always files, but that every owner obtains an annual documented filing analysis.¹⁰

5.3 A practical owner calendar

6. Condominium Governance and Common Expenses

The management plan, owners’ assembly resolutions, operating project and accounts are not secondary paperwork. They determine how the building or site is administered within the Condominium Ownership Law. An absentee owner should obtain the current management plan, identify the manager, verify the annual budget and appoint a representative for meetings where the power of attorney permits it.

Under Article 20, owners contribute to common expenses according to the statutory allocation rules unless a lawful basis provides otherwise. Liability follows ownership, not physical occupation. Article 22 may also make a tenant or another person with a continuing right of use jointly liable, within the statutory limit, but this does not justify an owner ignoring the account.  Unpaid dues can lead to enforcement and statutory late compensation. An owner disputing a charge should preserve the resolution, budget, allocation table and payment history, and obtain advice promptly because simply withholding every payment can worsen the position.¹¹

7. Currency, Banking and Repatriation

The foreign-currency rules must be applied to the residence status of both parties and the available exception. The general restriction concerns certain contracts between persons resident in Türkiye, including real-property leases, but the legislation and communiqué contain exceptions. A non-resident foreign owner should not be told categorically that every lease must be in Turkish lira, or categorically that foreign currency is permitted. Counsel should verify the parties, property, purpose and current communiqué before the currency clause is signed. ¹²

Legitimate net rental income may generally be transferred through the banking system, subject to tax, anti-money-laundering and bank compliance requirements. The owner should retain the lease, title evidence, tax identification number, tax return or filing analysis, payment ledger and explanation of transfers. The receiving bank may request source-of-funds evidence even where Turkish exchange rules allow the transfer.

8. Insurance, Vacancy, Repairs and Access

Compulsory earthquake insurance, DASK, covers defined physical damage to the building within policy terms and limits. It does not replace broader property, contents, loss-of-rent, water-damage or owner-liability cover.  Policies should identify the correct property and insured interest, and should be reviewed after renovation or a change of use.¹³

Vacancy creates distinct risks: unnoticed water leaks, unlawful use, expired insurance, utility debt and loss of evidence about condition. A management protocol should specify inspection frequency, notice to occupants, emergency access, photographs, key custody and data-protection safeguards. A manager should never assume a general power of attorney permits unrestricted entry into an occupied home. Access must be based on the lease, consent, emergency or lawful procedure.

9. A Legal Control Framework for the Absentee Owner

10. Frequently Asked Questions

Can I manage a Turkish property without travelling to Türkiye?

Usually yes. A carefully drafted power of attorney, direct banking arrangements, a written management agreement and local professional support can cover most recurring acts. A physical inspection remains prudent, and some transactions may require additional formalities.

Can a landlord end a residential lease when the fixed term expires?

Usually not on expiry alone. The statutory residential lease regime generally extends the agreement, subject to the tenant’s termination right and the landlord’s limited statutory routes. The exact lease history and notice dates must be reviewed.

How much may rent be increased in 2026?

There is no single annual figure applicable to every renewal. Article 344 requires a date-specific calculation using the twelve-month average CPI cap, subject to the lease, the five-year framework and any judicial rent determination.

Do I owe condominium dues if the unit is empty?

Yes. Common-expense liability is connected to ownership and the approved allocation, not merely to use. A vacancy does not remove the obligation.

May I list the apartment for short stays?

Only after confirming Law No. 7464, the permit requirement, building-consent rules, title status, local requirements and management-plan restrictions. A platform listing is not a substitute for a permit.

Must rent be denominated in Turkish lira?

Not always. The answer depends on whether the parties are resident in Türkiye and whether a current exception applies. The currency clause should be checked before signature.

What should I ask a Turkish lawyer before appointing a manager?

Ask for a title and lease review, a power-of-attorney matrix, a compliance calendar, a manager agreement, bank-flow controls, an insurance review and a written plan for notices and dispute escalation.

What if the tenant stops paying?

Do not use self-help. Obtain the ledger and lease, issue the correct formal notice or enforcement demand, and coordinate mediation and court or enforcement deadlines with Turkish counsel.

Conclusion

For an absentee foreign owner, good property management is a legal-control system. The owner should know who can sign, who receives money, who verifies expenses, which deadlines apply, how building decisions are challenged and how evidence will be produced if a dispute arises. A narrow but sufficient power of attorney, a disciplined management agreement, direct financial visibility and early Turkish legal advice usually cost far less than correcting years of informal administration.

Bibliography and References

Legislation

• Turkish Code of Obligations No. 6098, especially Articles 315, 342, 344, 347 and 350 to 356.
• Condominium Ownership Law No. 634, especially Articles 20, 22 and 30 to 38.
• Property Tax Law No. 1319, especially Articles 8, 18 and 29.
• Income Tax Law No. 193.
• Mediation in Civil Disputes Law No. 6325, Article 18/B, as inserted by Law No. 7445.
• Law No. 7464 on the Rental of Residences for Tourism Purposes and Certain Amendments.
• Decree No. 32 on the Protection of the Value of Turkish Currency and Communiqué No. 2008-32/34.

Judicial decisions

• Court of Cassation, former 6th Civil Chamber, E. 2009/11390, K. 2010/1350, 11 February 2010.
• Court of Cassation, 6th Civil Chamber, E. 2015/8286, K. 2016/3259.

Official and institutional materials

• Revenue Administration, 2026 Guide for Rental Income Earners Not Resident in Türkiye.
• General Directorate of Land Registry and Cadastre, Circular No. 2015/5 and guidance on powers of attorney issued abroad.
• Ministry of Culture and Tourism, official guidance on tourism-purpose residence permits.
• Natural Catastrophe Insurance Pool, official DASK coverage guidance.
• Turkish Statistical Institute, Consumer Price Index releases.

Selected legal books

• Fikret Eren, Borçlar Hukuku Özel Hükümler, Yetkin Yayınları.
• M. Alper Gümüş, Borçlar Hukuku Özel Hükümler, Cilt I, Vedat Kitapçılık.
• M. Kemal Oğuzman, Özer Seliçi and Saibe Oktay

Footnotes

^{1. Turkish Code of Obligations No. 6098; Condominium Ownership Law No. 634; Property Tax Law No. 1319; Income Tax Law No. 193; Mediation in Civil Disputes Law No. 6325; Law No. 7464, all as in force on 23 September 2026.}

^{2. General Directorate of Land Registry and Cadastre, Circular No. 2015/5, Powers of Attorney Issued Abroad, and the related official guidance, https://www.tkgm.gov.tr/sites/default/files/2020-12/2015-5_sayili_genelge_0.pdf.}

^{3. Turkish Code of Obligations No. 6098, Article 347.}

^{4. Turkish Code of Obligations No. 6098, Article 344. The temporary 25 percent residential rent-increase rule ceased to apply to renewal periods beginning after 1 July 2024.}

^{5. Turkish Code of Obligations No. 6098, Article 342.}

^{6. Mediation in Civil Disputes Law No. 6325, Article 18/B, inserted by Law No. 7445, Official Gazette No. 32154, 5 April 2023; effective for the relevant provisions from 1 September 2023.}

^{7. Court of Cassation, former 6th Civil Chamber, E. 2009/11390, K. 2010/1350, 11 February 2010; Court of Cassation, 6th Civil Chamber, E. 2015/8286, K. 2016/3259. See the official Court of Cassation and Ministry of Justice case-law services.}

^{8. Law No. 7464 on the Rental of Residences for Tourism Purposes and Certain Amendments; Regulation on Activities Concerning the Rental of Residences for Tourism Purposes, Official Gazette No. 32413, 28 December 2023; Ministry of Culture and Tourism official permit guidance.}

^{9. Property Tax Law No. 1319, Articles 8 and 18; Revenue Administration, Property Tax Guide. The ordinary building-tax rates are one per thousand for residences and two per thousand for other buildings, applied at twice those rates within metropolitan municipality boundaries and adjacent areas.}

^{10. Revenue Administration, 2026 Guide for Rental Income Earners Not Resident in Türkiye, concerning income obtained in the 2025 calendar year, https://intvrg.gib.gov.tr/hazirbeyan/assets/pdf/DUYURU_UNIVERSAL_2026_2026_darmukellefkirageliri.pdf.}

^{11. Condominium Ownership Law No. 634, Articles 20 and 22.}

^{12. Decree No. 32 on the Protection of the Value of Turkish Currency, Article 4(g), and Communiqué No. 2008-32/34, Article 8, as amended. Residence status and the current exceptions must be checked for each lease.}

^{13. Natural Catastrophe Insurance Pool, official guidance on compulsory earthquake insurance coverage, https://dask.gov.tr/tr/teminat-ve-kapsami.}

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.