Security for Costs (Teminat) Rules for Foreign Claimants in Turkiye

A foreign national or foreign company suing a Turkish debtor before Turkish courts may be required to deposit security, known as teminat, to cover the potential costs and damages the defendant could incur if the claim fails, though this requirement can be reduced or removed where reciprocity exists between Türkiye and the claimant's home country or where an applicable international treaty provides an exemption.

Security for costs is a procedural safeguard intended to protect a Turkish defendant against the practical difficulty of later recovering its costs from a foreign claimant with no assets in Türkiye if the claimant loses. For foreign creditors planning to sue a Turkish debtor, or for foreign companies more generally bringing claims in Türkiye, this requirement can affect both the cost and the timing of litigation.

The Code of International Private and Procedural Law (MOHUK) No. 5718 contains the specific rule requiring foreign real and legal persons filing lawsuits in Türkiye to provide security, subject to exceptions where reciprocity exists between Türkiye and the claimant's country of nationality, or where an international convention to which Türkiye is a party removes or modifies the requirement. General procedural principles on security and costs are also found in the Code of Civil Procedure No. 6100.

In practice, Turkish courts examine, upon the defendant's request or of their own initiative, whether the claimant is a foreign national or company and whether an exemption applies before ordering security, its amount, and its form, commonly a bank guarantee or cash deposit. Courts also determine the amount of security in light of estimated proceedings costs and potential compensation exposure.

There is ongoing practical debate over the correct scope of the reciprocity exception, given that it depends on evolving bilateral relationships and treaty commitments between Türkiye and other countries, requiring case-specific verification rather than a fixed general answer. Practitioners also debate the proportionality of the amounts ordered as security relative to the value and apparent merits of the underlying claim.

Before filing suit, a foreign claimant should verify whether an exemption from security applies based on its nationality and any relevant treaty, and should be prepared, if no exemption applies, to provide security in the form and amount the court orders as a condition for the litigation to proceed on its merits.

The security requirement is typically raised and resolved as a preliminary procedural matter early in the proceedings, before the substantive claim is examined in detail. Failure to provide ordered security within the time set by the court can result in procedural consequences affecting the progress of the case, so this issue should be addressed without delay once raised.

The Turkish court hearing the underlying claim against the Turkish debtor also decides the security for costs question, generally the commercial or civil court with jurisdiction over the substantive dispute.

Relevant evidence includes proof of the claimant's nationality or place of incorporation, any applicable bilateral treaty or convention supporting an exemption, and, if security is ordered, documentation of the bank guarantee or deposit provided to satisfy the court's order.

A common mistake is assuming that all foreign claimants automatically face a security requirement, without checking whether reciprocity or a treaty exemption applies to the specific country involved. Another mistake is failing to budget for potential security costs when planning litigation timelines and overall recovery strategy against a Turkish debtor.

Does every foreign company need to deposit security to sue in Türkiye? Not necessarily; an exemption may apply where reciprocity exists with the claimant's home country or under an applicable international treaty.

Who decides whether security is required and how much? The Turkish court hearing the case decides, considering the claimant's nationality, any exemption, and the estimated costs and exposure involved.

What form does the security usually take? Commonly a bank guarantee or cash deposit, in an amount and form set by the court.

Can the security requirement delay a debt recovery claim? Yes, if raised and disputed, it can add a preliminary procedural stage before the substantive claim proceeds.

We check the security for costs position for each foreign client at the outset of a claim against a Turkish debtor, since knowing early whether an exemption applies, or how much security to expect, allows for realistic planning of the litigation budget and timeline.