In 2026 the default interest (temerrüt faizi) rate varies according to the type of receivable; statutory interest (yasal faiz), default interest and advance interest (avans faizi) are three separate concepts resting on different legal bases and applied at different rates. Which type of interest a creditor may claim is determined by whether the receivable is an ordinary or a commercial one, by whether the parties agreed a rate in the contract, and by the stage the dispute has reached in the dispute resolution process.
Key Takeaways
- In 2026 the statutory interest rate is 31% per annum with effect from 31 July 2026 (Law no. 3095, m. 1).
- In commercial matters, where no rate has been agreed in the contract, default interest is calculated at the advance interest rate of the TCMB (the Central Bank of the Republic of Türkiye), which is 39.75%.
- The rate to be applied to late payment of the price of commercial goods or services within the scope of TTK m. 1530 has been announced as 43% for 2026.
- Where the contractual interest (akdi faiz) rate is higher than the default interest rate, the creditor may claim the contractual interest; where the contract states no rate, statutory or commercial default interest comes into play.
- The 2026 minimum recovery amount (asgari giderim tutarı) that may be claimed for collection costs is 2.020 TL.
What Is Statutory Interest and How Much Is It in 2026?
Statutory interest is the interest applied to obligations under Law no. 3095 on Statutory Interest and Default Interest where no interest rate has been agreed between the parties. In 2026, with effect from 31 July, the annual statutory interest rate is applied as 31%; that rate was calculated by taking 80% of the TCMB rediscount rate as at 31.12.2025 as the basis.
For other matters concerning dispute resolution, you may consult our dispute resolution practice page. For current rates, the announcements of the TCMB should be taken as the basis.
Statutory interest may be applied both in ordinary (non-commercial) obligations and, in cases where no special rate has been agreed in the contract, as default interest. Under the system introduced by Law no. 3095, the statutory interest rate is no longer set as a fixed percentage but is tied to the rediscount rate determined by the TCMB and may be updated during the year; for that reason it is important that the current rate be separately confirmed as at the date on which the calculation is to be made.
What Is Default Interest and In Which Cases May It Be Claimed?
Default interest is a type of interest that the creditor may claim where the debtor fails to perform the debt on its due date (falls into default), which runs according to the period of delay and is subject to different rates depending on whether the debt is of an ordinary or a commercial nature.
In ordinary obligations, default interest is calculated at the statutory interest rate (31% in 2026) unless otherwise agreed in the contract. In commercial matters the position is different: where at least one of the parties is a merchant (tacir) and the debt is of a commercial nature, default interest is calculated, if no rate has been agreed in the contract, at the advance interest rate announced by the TCMB. That rate is applied as 39.75% for 2026. Where the parties have agreed a higher contractual interest rate in the contract, the creditor may claim that higher contractual interest instead of default interest; this right of choice belongs to the creditor.
The Conditions of Default
For default interest to begin to run, the debt must be due and payable (muaccel) and the creditor must place the debtor in default (by a demand notice, ihtar); however, in debts with a fixed due date, default occurs automatically on the due date without any need for a separate demand notice.
What Is Advance Interest and How Does It Differ From Default Interest?
Advance interest is a rate, updated every year, that the TCMB applies to the advance loans it extends to banks, and it is used as a reference in calculating default interest in commercial matters where no rate is stated in the contract; it is not an independent head of claim in its own right.
For information on the professional rules of the Türkiye Barolar Birliği (the Union of Turkish Bar Associations) and on the scale of attorney’s fees, the official sources of the Türkiye Barolar Birliği may be consulted.
The concept of advance interest is frequently confused with that of default interest; yet advance interest is a technical rate that the TCMB applies to rediscount and advance transactions within the banking system, whereas default interest is a right conferred on the creditor because the debtor has paid the debt late. In fixing the amount of commercial default interest, the law refers to the advance interest rate; for that reason, when “commercial default interest” is spoken of, what is generally meant in practice is the current advance interest rate.
How Is Late Payment Interest Under TTK Article 1530 Applied?
Article 1530 of the Turkish Commercial Code provides that, where debts between merchants arising from the supply of goods or services are paid late and no valid rate has been fixed in the contract, a special rate announced each year by the TCMB for that purpose is to be applied; for 2026 that rate has been announced as 43%.
For information on the starting point of interest in commercial receivables and on the demand letter process, you may look at our article on the collection of commercial receivables.
This provision was introduced drawing on the European Union legislation on combating late payment in commercial transactions, and is a special rule intended to strengthen payment discipline between merchants. A creditor within the scope of TTK m. 1530 may, where the debtor is in default, claim not only this special rate but also the reasonable expenses it has incurred in collecting the receivable; the minimum recovery amount that may be claimed on that basis has been fixed at 2.020 TL for 2026. That amount may be exceeded where the creditor proves that it has in fact incurred higher expenses; the minimum recovery expresses the floor amount that may be claimed without any separate burden of proof.
The Scope of Application of TTK 1530
This article applies only to obligations between merchants arising from the supply of goods or services; in consumer transactions, or in obligations between parties who are not merchants, it is not this special rate but the general statutory interest rate or the rate agreed in the contract that applies.
Which Type of Interest Applies to Which Receivable?
In an ordinary (non-commercial) obligation where the contract states no rate, statutory interest (31%) applies; in a commercial obligation where the contract states no rate, commercial default interest at the advance interest rate (39.75%) applies; and in the supply of goods or services between merchants where the contract states no rate, the special rate under TTK m. 1530 (43%) applies.
| Type of Interest | Receivable to Which It Applies | 2026 Rate |
|---|---|---|
| Statutory interest | Ordinary obligations, where the contract states no rate | 31% (with effect from 31 July 2026) |
| Commercial default interest | Commercial matters, where the contract states no rate | 39.75% (advance interest rate) |
| TTK 1530 late payment interest | Price of goods/services between merchants | 43% |
| Contractual interest | The rate agreed in the contract | Determined by the parties |
Illustrative Example: Determining the Type of Interest
The following example is entirely hypothetical, is not based on any actual client or file, and has been prepared as an illustration solely in order to explain how the process works. A furniture manufacturer (a merchant) is unable to collect on time an invoice of 300.000 TL arising from the delivery of goods to a chain of stores (also a merchant). If no interest rate has been agreed in the contract and the parties are merchants, the manufacturer may claim the late payment interest at the rate of 43% under TTK m. 1530 together with the minimum recovery amount of 2.020 TL. In a scenario where the same manufacturer issues the invoice to a consumer and the consumer pays late, TTK m. 1530 does not apply and the general statutory interest rate (31%) is taken as the basis.
In What Order Are Partial Payments Appropriated to Interest and Principal?
Unless otherwise agreed, a partial payment made by the debtor is appropriated first to the accrued interest and expenses, and only then, if anything remains, to the principal; this order is laid down in TBK m. 100 and is a rule that operates in the creditor’s favour.
This rule shows that a defence by the debtor along the lines of “I have paid the principal, so no further interest runs” is as a rule not valid. For example, on a receivable with a principal debt of 100.000 TL on which 15.000 TL of interest has accrued, if the debtor pays 20.000 TL, 15.000 TL of that payment is appropriated to the interest and the remaining 5.000 TL to the principal, and interest continues to run on a principal balance of 95.000 TL. The parties may alter this order of appropriation by contract; but where the contract contains no provision to the contrary, the statutory order applies. This point is of great importance for the correct calculation of the current balance on receivables in respect of which payments have been made over a long period and irregularly.
How Is Interest Calculated on Foreign Currency Receivables?
Where a foreign currency debt has been agreed in the contract and no interest rate is stated, under the additional article of Law no. 3095 the interest rate applied in the relevant country for that foreign currency is taken as the basis; the statutory interest rate applicable to the Turkish lira is not applied directly.
In practice, which country’s interest rate is taken as the basis for foreign currency receivables varies according to the currency of the receivable; for receivables denominated in dollars, United States interest rates, and for those denominated in euros, the rates announced by the European Central Bank, may be taken as a reference. Since the determination of these rates is a technical matter, it is important that current rates be confirmed from reliable sources when a claim for interest on a foreign currency receivable is being prepared. Alternatively, the parties may remove this uncertainty from the outset by agreeing in the contract a fixed interest rate directly for the foreign currency debt.
What Is the Relationship Between a Claim for Additional Loss and Default Interest?
Additional loss (munzam zarar) means the further loss of the creditor, arising from the late payment of the debt, which default interest does not cover, and it may be claimed separately under TBK m. 122 provided that the debtor is at fault. This route comes into play where default interest alone does not provide adequate compensation.
For example, where the creditor has been obliged to take out a loan at a higher rate of interest because it could not collect the money owed, it may claim the difference between the default interest and the loan interest as additional loss. In order for additional loss to be claimed, the creditor must prove its loss concretely; unlike default interest, this is a claim that places the burden of proof on the creditor. Where the debtor proves that it was not at fault, the claim for additional loss may be rejected; in that respect additional loss is an exceptional claim accepted on more limited conditions than default interest.
When Does Interest Start to Run on Claims Arising From Tort?
On claims for compensation arising from a tort (haksız fiil), interest as a rule begins to run from the date on which the tort (the loss) occurred; this creates a starting point different from that in contractual receivables, where default arises by a demand notice or on the due date.
For the application of interest to compensation claims arising from a traffic accident, you may consult our article on objecting to the determination of fault in a traffic accident.
This difference produces important consequences, particularly in compensation actions based on tort such as traffic accidents and workplace accidents: the victim may claim interest from the date on which the loss occurred and does not have to wait for the date on which the action is brought or the demand notice is served. For that reason, when determining the starting date of interest in compensation actions based on tort, the courts take the moment at which the loss arose as the basis; however, the starting date of interest may differ according to the head of loss (pecuniary loss, non-pecuniary loss, loss of financial support and the like), and this point is assessed separately according to the particular file.
Reflecting the claim for interest correctly in the enforcement proceedings (icra takibi) directly affects the process of collecting the receivable; for the general enforcement procedure see our article on the time limit for objecting to enforcement proceedings and its consequences, and for the application of interest to commercial receivables see our article on the collection of commercial receivables.
How Is a Claim for Interest Made in Enforcement Proceedings?
When starting enforcement proceedings, the creditor may claim, alongside the principal of the receivable, the interest already accrued and the interest that will accrue from the date of the proceedings; the request for proceedings (takip talebi) must state clearly which type of interest and which rate is claimed.
If no interest rate is stated in the request for proceedings, or if it is stated incorrectly, the enforcement office will as a rule take the statutory interest rate as the basis; however, where it is clearly stated that the receivable is of a commercial nature and that a higher rate (advance interest or contractual interest) is claimed, that rate is applied. If the debtor objects to the proceedings, whether the interest rate has been calculated correctly is also one of the matters that may be examined in an action for the removal or the annulment of the objection. For that reason, stating the type and rate of interest correctly and in accordance with the legislation when the request for proceedings is being prepared is important in order to forestall objections that may arise later. Where the creditor wishes to see the amount of accrued interest approximately before starting proceedings, the statutory and commercial interest calculation tool may be used; the final amount must nevertheless be checked separately against the particular file. A receivable that cannot be collected together with its interest may be made the subject of proceedings within the scope of enforcement and bankruptcy law.
The Effect of Changes in the Interest Rate on Ongoing Proceedings
Since the statutory or commercial default interest rate may change during the year, on a long-standing receivable it may be necessary to apply different rates for different periods; the rate in force at the relevant time must be taken as the basis for each period, and applying a single rate to the whole period produces an erroneous result.
This becomes particularly important in actions and enforcement proceedings that last for years; the creditor or its attorney must make the calculation taking into account all the rate changes in force during the period that has elapsed since the starting date of interest. The courts and enforcement offices also have regard to this difference between periods during the expert examination; calculations that are erroneous or made on a single rate may become the subject of an objection.
What Is the Limitation Period for a Claim for Interest?
Claims for interest are subject to a five-year limitation period (zamanaşımı) independently of the principal receivable to which they attach (TBK m. 147); even if the principal receivable is not time-barred, the part of a continuing interest claim going back more than five years cannot be claimed.
To calculate the general limitation periods you may use our limitation period calculation tool, and to research the practice of the Yargıtay (the Court of Cassation) you may use the Yargıtay Decision Search system.
This rule means that, on a receivable that has gone unpaid for a long time, not the whole of the accumulated interest but only the part corresponding to the last five years may be claimed; it is important that creditors assert their claims for interest in good time, so that no rights are lost. The plea of limitation (zamanaşımı def’i) is not taken into account by the court of its own motion unless it is raised by the debtor; for that reason the debtor must raise this plea in the proper form and in good time.
For the types of interest applied to consumer loan and credit card debts, see our article on the restructuring of credit card debt, and for the interest that will run on attorney’s fees, see our article on who pays the opposing party’s attorney’s fee. You may follow current interest rates on the official site of the TCMB and the relevant statutory provisions on the TBMM legislation page.
What Will the Other Side Do?
In disputes involving claims for interest the debtor side also has its typical objections; knowing these objections in advance makes it easier to prepare a correct calculation.
The assertion that the interest rate claimed has been calculated incorrectly or too high. The debtor may argue that the rate applied does not correspond to the TCMB communiqué for the period in question. This assertion is met by making a comparative calculation with a table of the rates by period.
The assertion that the debt is not of a commercial nature and that the lower statutory interest should therefore apply. This is assessed by proving the parties’ status as merchants and the commercial nature of the matter through the trade registry record or the content of the invoice.
The plea that the five-year part of the interest claim is time-barred. This is met by calculating the period between the dates on which the interest accrued and the date of the claim.
The assertion that the partial payment was appropriated to the principal. The debtor may argue that the payment it made should be deducted directly from the principal; whereas under TBK m. 100, unless otherwise agreed, payment is appropriated first to the interest, and this rule is assessed together with the payment receipts.
Which objection comes to the fore varies according to the type of receivable and to the terms of the contract; for that reason it is important that the documents forming the basis of the interest calculation be prepared in full before the claim is made. To assess in advance which objection your file will meet, you may get in touch.
Frequently Asked Questions
What is the statutory interest rate in 2026?
With effect from 31 July 2026 the annual statutory interest rate is 31%; that rate was determined by taking 80% of the TCMB rediscount rate as the basis.
At what rate is default interest calculated in commercial matters?
Where no rate has been agreed in the contract, default interest in commercial matters is calculated at the advance interest rate announced by the TCMB (39.75% for 2026).
To which receivables does the rate under TTK 1530 apply?
That rate applies where debts between merchants arising from the supply of goods or services are paid late and the contract contains no valid rate, and it is 43% for 2026.
What happens if the contract contains a high contractual interest rate?
Where the contractual interest rate is higher than the statutory or commercial default interest, the creditor may claim the contractual interest; this right of choice belongs to the creditor.
What is the minimum recovery amount?
It is the floor amount that may be claimed for collection costs within the scope of TTK m. 1530 without any burden of proof; for 2026 it has been fixed at 2.020 TL.
In what period does a claim for interest become time-barred?
Claims for interest are subject to a five-year limitation period under TBK m. 147; they are assessed independently of the principal receivable.
May additional loss be claimed in every case?
No. Additional loss may be claimed provided that the debtor is at fault and that the creditor proves its loss concretely; in that respect it is subject to more limited conditions than default interest.
When does interest start to run on compensation arising from a tort?
As a rule it starts to run from the date on which the loss occurred; this is a starting point different from the moment of default in contractual receivables.
Where a partial payment is made, is the principal or the interest discharged first?
Under TBK m. 100, unless otherwise agreed, a partial payment is appropriated first to the accrued interest and expenses, and only then, if anything remains, to the principal.
Is the Turkish lira statutory interest rate applied to foreign currency receivables?
No. Where no interest rate is stated in the contract, under the additional article of Law no. 3095 the interest rate applicable to the foreign currency in question is taken as the basis.
Table of Time Limits
| Time limit | How long | Starting point |
|---|---|---|
| Limitation period for a claim for interest | 5 years | From the date on which each period of interest accrued |
Sources
- Türkiye Cumhuriyet Merkez Bankası (TCMB)
- Türkiye Barolar Birliği (the Union of Turkish Bar Associations)
- Yargıtay (the Court of Cassation) Decision Search System
- Türkiye Cumhuriyet Merkez Bankası (TCMB)
- tbmm.gov.tr
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- The Time Limit for Objecting to Enforcement Proceedings and Its Consequences: 2026 Guide
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This article is for general information purposes and does not take the place of legal advice. Your particular situation requires a separate assessment of your file.
This article has been prepared on the basis of the legislation in force as at 17.09.2026.
Av. Yahya Köse
Enforcement and Bankruptcy Law, Real Estate Law, Lease and Eviction Law, Criminal Law, Dispute Resolution, Preventive Law
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