Sena Burcu İnceoğlu - 21 April 2022 - Comments

The Obligation to Provide a Fiscal Guarantee due to Foreignness

The obligation to provide a fiscal guarantee due to foreignness in Turkey is regulated in the Law on International Private and Procedural Law dated 12.12.2007 and numbered 5718. According to the first paragraph of Article 48 of the Law; \"Foreign real and legal persons who file a lawsuit, participate in a lawsuit or follow enforcement proceedings in a Turkish court must provide a fiscal guarantee to be determined by the court in order to cover the costs of litigation and follow-up and the loss and damage of the other party.\" In the second paragraph of the said article, which regulates the exemption from the obligation of providing a fiscal guarantee ; It has been reported that the court will exempt the plaintiff, the participant or the execution proceeding from the guarantee on the basis of reciprocity. The aim of the reciprocity is to provide the same exemption for Turkish citizens in the state where the plaintiff, the participant in the case or the foreigner who carries out the enforcement proceedings is a member. Reciprocity can be provided in three different ways: contractual, legal and de facto within the scope of Turkish Private International Law. Contractual reciprocity will be ensured in the presence of a bilateral or multilateral agreement that provides exemption from the guarantee between the Republic of Turkey and the state of which the real or legal person claimant, the intervening party or the party carrying out enforcement proceedings is a citizen. For this reason, it would be in your best interest to consider the agreements between countries while filing a lawsuit in Turkey on behalf of foreigners. In this way, it may be possible to get rid of unnecessary costs and hassle.