When initiating a lawsuit or enforcement proceeding in Turkey as a foreign party, you may encounter the requirement to provide a security deposit in addition to court and enforcement fees. This article outlines the legal basis, procedure, and situations in which a security deposit is required or exempted under Turkish law.
Legal Basis for the Security Deposit
The requirement for foreigners to provide a security deposit is based on Article 48 of the International Private and Civil Procedure Law (Law No. 5718):
Article 48 – Security Deposit
- Foreign individuals or legal entities initiating a lawsuit, joining as a party, or initiating enforcement proceedings in Turkish courts must provide security as determined by the court to cover litigation and enforcement costs, as well as damages and losses incurred by the opposing party.
- The court may exempt the foreign party from providing security based on the principle of reciprocity.
According to this provision, security is required when foreign individuals or entities initiate legal proceedings in Turkish courts. However, if a foreign party is the defendant in a lawsuit, they are not obligated to provide a security deposit. To determine whether you are subject to this requirement, consulting English-speaking lawyers is advisable.
In addition to this, Article 84 of the Civil Procedure Code (Law No. 6100) further elaborates on circumstances requiring security deposits:
Article 84 – Circumstances Requiring a Security Deposit
- In the following cases, the plaintiff must provide a suitable security deposit to cover potential litigation expenses:
- A Turkish citizen who does not reside habitually in Turkey initiates a lawsuit, intervenes as a party, or pursues enforcement proceedings.
- The plaintiff is documented as being financially insolvent due to previous bankruptcy, concordat, or restructuring proceedings, or a certificate of insolvency.
- During the litigation, if circumstances necessitating a security deposit arise, the court may also order its provision.
- In cases of mandatory joinder of parties, all plaintiffs are required to provide a security deposit if applicable.
Notably, the security deposit requirement applies not only to foreigners but also to Turkish citizens who do not habitually resident in Turkey.
Exemptions from the Security Deposit Requirement
It is possible to consult English-speaking lawyers to determine whether you are within the scope of collateral exemptions, and in the second part of Article 48 in the previous paragraphs, exemption on the basis of reciprocity is mentioned. The principle of reciprocity is an international agreement between the Republic of Turkey and the state of which the party is a citizen or national and the Republic of Turkey regarding the exemption of the citizens of the two parties from security for the lawsuits to be filed in each other’s countries. These agreements may be bilateral or multilateral (See Hague Convention on Civil Procedure of 1954).
If there is such an agreement between your state of citizenship and Turkey, there will be an exemption from collateral. The official and most up-to-date information on this subject is available on the website of the Ministry of Justice.
On the other hand, under Article 84 of the CCP, security will not be required in the following cases;
The plaintiff benefits from legal aid.
The plaintiff owns immovable property in Turkey or has a secured claim sufficient to cover the required amount.
The lawsuit is filed solely to protect the interests of a minor.
The lawsuit concerns the enforcement of a judgment debt through execution proceedings.
Determining the Security Deposit Amount
The security deposit is calculated to cover litigation expenses, including court costs and attorney fees. Turkish courts often require a percentage of the claim amount, typically around 30%, as the security deposit. However, this percentage may vary depending on the nature of the case, the number of parties involved, and the estimated litigation costs.
Legal representatives may influence the calculation of the security deposit through motions or objections. Working with English-speaking lawyers is highly recommended to navigate this process effectively and to adopt a legal strategy tailored to your best interests.
Disclaimer :This article is for informational purposes only and does not constitute legal advice. For detailed guidance, please consult your legal advisor or attorney.
