Prohibition on Paying and Contracting in Foreign Currency 2025 (Exceptions, Updates and Guidance)

Introduction

In Turkey, the prohibition on paying in foreign currency and contracting in foreign currency was introduced in 2018 and is still in force. The aim is to maintain the stability of the Turkish Lira and reduce the risks that may arise in the market.

However, a significant change was made in the scope with Communiqué No: 2025-32/72 published in the Official Gazette dated March 6, 2025.

This guide will cover the current scope of the ban, exemptions, implementation processes and new amendments as of 2025.

What is the Foreign Currency Payment Ban?

“Foreign currency payment prohibitions” are legal restrictions that prevent Turkish residents from making payments in foreign currency or indexed to foreign currency among themselves.

Legal Basis

• Law No. 1567 on the Protection of the Value of Turkish Currency
• Decree No. 32 and related communiqués
• Presidential Decree No. 85 (2018)

Prohibition and Scope of Contracting in Foreign Currency

The basic rule for contracts between Turkish residents is to determine the price in Turkish Lira.

Types of Prohibited Contracts (as of 2025)

• Real estate sale and lease agreements
• Vehicle sale and lease agreements
• Labor contracts (employee salaries and benefits)
• Service contracts (consultancy, software, training, etc.)
• Contracts of work

🔎 2025 Update: Securities Sale Contracts

Innovation introduced by Communiqué No: 2025-32/72 (Official Gazette, March 6, 2025):

• Except for contracts for the sale of vehicles between residents , contracts for the sale of securities may be denominated in foreign currency.
• This amendment covers business transactions such as sales of machinery, equipment and commodities.

Foreign Currency Rent Prohibition (Residential and Commercial Premises)

Lease agreements are one of the most frequently asked areas.

• Housing and workplace rents between residents cannot be made in foreign currency.
• Indexation to foreign currency is also not possible.
• All rental rates must be set in Turkish Lira.

Exception: Lease agreements with non-residents.

For more information, see Who is considered a resident in Turkey?

Foreign Currency Business and Service Contracts

• Labor contracts: Employee salaries should be regulated in TRY.
• Service contracts: TL is essential for transactions such as training, consultancy and technical support.
• However, an exception is possible for exports and foreign currency earning services.

Exceptions Contracts in Foreign Currency

Exceptions specified in the Communiqués:

1. Export, import and transit trade
2. Contracts with non-residents
3. Defense industry and infrastructure projects
4. Agreements with international financial institutions
5. Certain contracts of companies with foreign currency income
6. Companies operating in free zones
7. Self-employed persons earning foreign service income
8. Transactions of companies with foreign capital
9. 2025 update, contracts for the sale of securities (excluding vehicles)

📌 For these exemptions to apply, foreign currency income must be documented.

Implementation Process

Old Contracts

Prior to 2018, foreign currency contracts have been converted to TL.

New Contracts

According to the 2025 amendment:

• Contracts for the sale of securities other than vehicles may be denominated in foreign currency.
• Other areas should be based on TL.

Audit and Sanctions

• Authorized institution: Ministry of Treasury and Finance
• Sanctions
  • Invalidity
  • Fines(Law No. 1567)
  • Additional obligations
  • Re-adaptation or termination

Frequently Asked Questions (FAQ)

1. Which contracts are covered by the ban on foreign currency payments?

Real estate, vehicle, employment, service and work contracts.

2. Can contracts for the sale of securities be denominated in foreign currency in 2025?

Yes. With Communiqué No. 2025-32/72, contracts for the sale of movable assets, except for vehicle contracts, can be made in foreign currency.

3. Can I conclude a lease agreement in foreign currency?

Not among residents in Turkey. It is possible with persons abroad.

4. What are the foreign currency earning exemptions?

Exports, free zones, foreign services and companies with foreign currency income.

5. What is the consequence of a contract that violates the prohibition?

Invalidation and fine.

Conclusion and Recommendation

The ban on foreign currency payments and contracts is of great importance for the protection of the Turkish economy. With the 2025 update, allowing the use of foreign currency in contracts for the sale of securities was a step that facilitated commercial life in particular.

📌 However, an incorrectly drafted contract risks invalidity and administrative sanctions.

👉 As MFY Legal, we offer professional support in contract drafting, preparation of exception documents and dispute resolution.

Contact us to manage your process without risk.