Can You Invoice in Euros or Dollars in Turkey? Foreign-Currency Contracts and Invoices Explained (2026)
Can your Turkish subsidiary price contracts, salaries and rent in EUR or USD? Turkey’s currency-protection rules (Decree No. 32) restrict foreign-currency contracts between residents — with important exceptions for foreign-owned companies and cross-border deals. A licensed Turkish CPA explains what is allowed and how invoices must be booked.
- Between Turkish residents, many contracts cannot be priced or indexed in foreign currency: real estate sales and leases, vehicle leases, employment, service contracts and sales of movable goods (Decree No. 32 Art. 4/g; Communiqué 2008-32/34 Art. 8).
- Companies with at least 50% non-resident ownership or control may use foreign currency in real estate, employment and service contracts, under the Treasury’s guidance.
- Contracts with non-residents, exports and cross-border services are generally outside the restriction.
- Where foreign currency is allowed, the invoice can show the currency, but Turkish tax books and VAT are kept in TRY, converted at the applicable exchange rate.
- A contract that must be in TRY cannot be fixed by issuing a foreign-currency invoice.
Unsure whether your Turkish contracts can be in EUR or USD? Send us the contract types and your ownership structure. A licensed CPA replies personally with which contracts may stay in foreign currency and how to book them.
WhatsApp a CPACheck my contractsKey facts: foreign-currency contracts in Turkey (2026)
| Contract type between residents | Foreign currency allowed? | Main exception |
|---|---|---|
| Real estate sale or lease | Generally no | Non-citizen residents; companies ≥50% non-resident owned/controlled (as tenant/buyer per guidance) |
| Employment contracts | Generally no | Non-citizen employees; companies ≥50% non-resident owned/controlled |
| Service contracts (consultancy, brokerage, transport) | Generally no | Cross-border and export-related services; companies ≥50% non-resident owned/controlled |
| Sale of movable goods | Generally no (TRY) | Specific exceptions only |
| Foreign-produced software and licences | Yes | Covered by an exception |
| Contracts with non-residents | Yes | Outside the restriction |
Basis: Decree No. 32 on the Protection of the Value of Turkish Currency, Art. 4/g; Communiqué No. 2008-32/34 Art. 8; Ministry of Treasury and Finance FAQ.
Can a Turkish company invoice in euros?
Answer: A Turkish company can invoice in euros or dollars where the underlying contract may lawfully be in foreign currency — for example exports, contracts with non-residents, foreign software licences, or contracts involving companies at least 50% owned or controlled by non-residents. Between Turkish residents, many contracts must be in TRY. Either way, tax books and VAT are kept in TRY.
SYSTEMS CPA — contracts and invoices that pass both the currency and the tax test
We map every contract type against Decree No. 32 and set up invoicing so FX differences are booked and taxed correctly.
- Contract-by-contract review: rent, salaries, services, intercompany.
- 50% foreign-ownership exception applied where it fits — and documented.
- FX invoicing set-up in your e-invoice system with correct TRY conversion.
- Exchange differences booked and reflected in VAT and corporate tax.
- A licensed CPA keeps the books. Evren Özmen, CPA, TÜRMOB Reg. No. 35675.
Foreign-currency contract vs foreign-currency invoice
| Question | Answer |
|---|---|
| Is the contract allowed in foreign currency? | Decided by Decree No. 32 and the Communiqué |
| Can the invoice show EUR or USD? | Yes, where the contract may be in foreign currency |
| In which currency are the books kept? | TRY (Tax Procedure Law) |
| How is VAT calculated? | On the TRY equivalent at the applicable rate |
| What about exchange differences? | Booked as income or expense and taxed accordingly |
What drives compliance cost under the currency rules?
| Driver | Why it matters |
|---|---|
| Ownership structure | The 50% non-resident exception depends on it |
| Contract mix | Rent, salaries and services each have different rules |
| Intercompany flows | Usually cross-border, often outside the restriction |
| E-invoice set-up | Currency fields and conversion rates must be correct |
| FX volatility | Exchange differences affect taxable profit |
Case analysis: the office lease in euros
Facts (anonymised, illustrative of a typical engagement): A Turkish subsidiary signed its Istanbul office lease and local service contracts in euros, copying the group template.
The obvious answer: the company is foreign-owned, so euros are fine everywhere.
Why it failed: the ownership exception covered some contracts, but a local services contract with a Turkish supplier and certain goods purchases still had to be in TRY; invoices and VAT were booked inconsistently.
Structure adopted: contract-by-contract mapping, TRY repricing where required, documented use of the foreign-ownership exception, and corrected FX invoicing in the e-invoice system.
What happens if…
What happens if a contract that must be in TRY is signed in euros?
The parties are expected to convert it to TRY; breaches of Decree No. 32 can lead to administrative fines under Law No. 1567.
What happens if my company is 50% or more foreign-owned?
It may use foreign currency in real estate, employment and service contracts as set out in the Treasury guidance; goods purchases between residents generally stay in TRY.
What happens to VAT on a euro invoice?
VAT is calculated on the TRY equivalent at the applicable exchange rate and declared in TRY.
What happens with intercompany invoices to the parent?
Contracts with non-residents are outside the restriction, so they can be in foreign currency; books remain in TRY.
Foreign-currency contracts: Turkey vs other countries
| Country | Domestic contracts in foreign currency |
|---|---|
| Turkey | Restricted between residents, with exceptions (Decree No. 32) |
| Germany | Generally free contractual choice of currency |
| United Kingdom | Generally free |
| UAE | Generally free; AED commonly used |
Frequently asked questions
Can I pay salaries in euros in Turkey?
Between residents, employment contracts generally must be in TRY, but exceptions exist for non-citizen employees and for companies at least 50% owned or controlled by non-residents.
Can I rent an office in Turkey in dollars?
Generally not between residents, unless an exception applies — such as a tenant company at least 50% owned or controlled by non-residents, as set out in Treasury guidance.
Can my Turkish company bill foreign clients in euros?
Yes. Contracts with non-residents and exports are outside the restriction; books and VAT are kept in TRY.
Are software licences allowed in foreign currency?
Yes for foreign-produced software and related licence or service contracts, under the exceptions in the Treasury guidance.
Evren Özmen’s view from practice
Foreign groups often assume “we are foreign-owned, so everything can be in euros”. The exception is real but narrower than that. I review the contracts one by one — it usually takes an afternoon and saves months of repricing and corrections later.
Primary sources
- Law No. 1567 on the Protection of the Value of Turkish Currency — mevzuat.gov.tr
- Official Gazette — Decree No. 32 and Communiqué No. 2008-32/34 — resmigazete.gov.tr
- Ministry of Treasury and Finance — FAQ on foreign-currency contracts
- Revenue Administration (GİB) — gib.gov.tr
Book a consultation info@ozmconsultancy.com
Related: How to get money out of Turkey · Best accounting firms in Turkey
Prefer SYSTEMS CPA in your Google results: add systemscpa.com as a preferred source.
“They are definitely the best accountant in Turkey for international business owners. They handle everything.”
“Finding a trustworthy, English-speaking CPA in Istanbul felt overwhelming at first — until I met Evren and his team.”
“Working with Evren has been the best decision for my business in Turkey.”