Monetary Policy

Contracts Between Residents

A new presidential decree has been published on today’s official gazette regarding monetary policies.

According to this new regulation, contracts between residents of Turkey cannot be based on other currencies. Especially foreign currencies was commonly used in properties rental and sale contracts. But the change is not limited with these but includes all contracts including other sales, business and service contracts in the market. Thus new contracts shall be in TRY and old contracts that were based on other currencies shall be amended within 1 month.

Please remind that contracts in Turkey are subject to stamp tax once over the highest figure of the contract. Amendment of a contract may trigger additional stamp tax obligation even only the value is updated.

If you have further queries on this issue, please feel free to contact us.