Decree No. 32 explained: what can and cannot be priced in foreign currency in Türkiye

Decree No. 32 does not forbid holding or sending foreign currency; it limits one thing: contracts between Turkish residents that fix the price in foreign currency. This guide explains who counts as a resident, which contracts must be in lira, the main exceptions, what happens if a contract breaks the rule and which amendments came in 2025. Status checked on 2 November 2026 against the ministry texts.

What Decree No. 32 is and who counts as a resident

Decree No. 32 of 1989 on the Protection of the Value of the Turkish Currency is the framework for foreign exchange in Türkiye. Its basic rule is liberal: importing and exporting foreign currency is free, and residents may hold, buy and sell it through banks and authorised institutions. The restriction that surprises people was added on 13 September 2018 as Article 4(g): residents may not fix payments between themselves in foreign currency, or index them to it, in the contract types listed by the implementing Communiqué No. 2008-32/34, except in cases the Ministry of Treasury and Finance allows. “Resident” means legal residence, not citizenship. A foreigner living in Türkiye on a residence permit is a resident, and so is a Turkish citizen working abroad. A deal between a resident and a non-resident is a different matter: residents may accept foreign currency from non-residents. The detailed list is in Article 8 of the Communiqué.

Which contracts between residents must stay in lira

Article 8 of the Communiqué bars foreign-currency pricing and indexation for contracts that two residents conclude among themselves. The main categories are the sale of immovable property located in Türkiye, the lease of residential and roofed commercial property, employment contracts, service contracts such as consulting, brokerage and transport, and the sale or lease of vehicles. The ban covers the price and every related payment, and it also catches indexation: a lira rent that rises with the euro is treated as foreign-currency-indexed. Bills or notes issued under such a contract cannot carry a foreign-currency amount either. In practice, a Turkish landlord and a Turkish tenant, or a Turkish employer and a Turkish employee, sign in lira. The contract may still be negotiated with an eye on exchange rates, but the clause itself, and the payment, must be expressed in lira.

The main exceptions

The Communiqué lists many exceptions, and the wording of each paragraph decides who must qualify. The ones most relevant to foreign clients: sales and leases of immovable property, employment contracts and service contracts may be in foreign currency where the relevant party is a resident without Turkish citizenship. Further exceptions cover leases of licensed tourism facilities and duty-free premises, accommodation at certified facilities, services connected with exports or performed abroad, foreign-produced software, contracts of public bodies (but not their property sales, leases or employment), capital market instruments, and branches of foreign companies and free-zone companies for work and service contracts. Sales of movable goods other than vehicles have been allowed in foreign currency since 6 March 2025. Because the exceptions are narrow and paragraph-specific, check the exact paragraph before signing a foreign-currency contract.

What happens if a contract breaks the rule

The breach is treated as a violation of the Turkish currency regime. Under Article 3 of Law No. 1567 an administrative fine is imposed by the public prosecutor on each party; a repeat within five years doubles it. The amounts are revalued every year, so we quote none: ask the competent authority for the current range. There is also a civil risk. Scholars disagree whether such a contract is void, but the Court of Cassation (Yargıtay) has repeatedly leaned towards nullity, may raise it on its own motion and has held that a creditor can struggle to enforce a foreign-currency claim. Contracts concluded before 13 September 2018 had to be re-set in lira; where the parties could not agree, the price is recalculated from the Central Bank rate of 2 January 2018 adjusted by monthly consumer price changes. A signed foreign-currency lease is therefore a risk for both sides.

Recent amendments and the current state

The key dates, as confirmed in the ministry texts and the Official Gazette: 13 September 2018, Article 4(g) introduced; 30 January 2021, accommodation services at certified facilities allowed in foreign currency; 6 March 2025, Communiqué No. 2025-32/72 allowed foreign-currency sales of movable goods other than vehicles; 15 March 2025, Presidential Decree No. 9595 (Gazette 32842) raised the threshold for taking lira cash abroad from 25,000 to 185,000 lira, tightened rules on derivatives, and allowed shareholders and group companies to give foreign-currency sureties for a resident borrower’s foreign-currency loans; 9 July 2025, Communiqué No. 2025-32/76 changed payment methods for importing processed precious metals, with gold limited until 31 December 2026. The core ban on residents’ foreign-currency contracts for property, rent, employment and vehicles remains. We found no later amendment, but check the Official Gazette before a transaction.

Sources

• ms.hmb.gov.tr — Ministry of Treasury and Finance: consolidated text of Decree No. 32 (mevzuat.gov.tr blocks automated access, so the ministry copy was used)
• ms.hmb.gov.tr — Ministry of Treasury and Finance: consolidated Communiqué No. 2008-32/34, Article 8 (FX contracts)
• resmigazete.gov.tr — Official Gazette of 9 July 2025: Communiqué No. 2025-32/76
• alomaliye.com — consolidated copy of Communiqué No. 2025-32/76; penalties and case-law summary: CBC Law, January 2026 (secondary source)

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