Clarifications about the updates on buying properties in Turkey by foreigners
Foreign citizens in Turkey who wish to buy a property are obligated to sell foreign currency of the capital allocated for the purchase of the property in Turkey to the Central Bank of Turkey, following Article 13 of the circular relating to the movement of capital, in addition to the conditions related to obtaining Turkish citizenship.
According to the text of the circular: In the transactions of selling real estate to foreigners, the price of the property to be purchased in foreign currency must be sold to the Central Bank of Turkey, and this is done by a bank in Turkey, which in turn gives the foreign citizen a document proving the Central Bank’s purchase of foreign currencies, and then it is submitted land registry Directorate to be able to start the transactions of transferring ownership of the property to the foreign citizen.
This obligation became effective starting from the date of January 24, 2022, which stipulates that the foreign citizen presents the currency purchase document or in Turkish Döviz Alım Belgesi to the Central Bank showing the price of the property according to foreign currencies.
In this article, you will find answers to the most frequently asked questions regarding the process of implementing the aforementioned obligation:
Is there an obligation to exchange currencies in real estate purchases for foreign?
Before starting the transferring process of the property ownership in the relevant land registry Department, each foreign citizen is obligated to pay the amounts for buying a property in Turkey in foreign currencies, in accordance with Circular No. 13 and the set of controls for obtaining Turkish citizenship, and these currencies are paid by the person concerned to one of the banks operating in Turkey Then the bank sells it to the Central Bank of Turkey, and pays its value in Turkish lira to the person concerned.
What is the currency purchase document Döviz Alım Belgesi:
It is a document that certifies the Central Bank of Turkey’s purchase of a certain amount of foreign currency from a bank operating in Turkey, allowing a foreign citizen to buy a property in Turkey, and it is required that it be submitted by the person concerned to the registry Department before proceeding with real estate purchase transactions
What information must the currency purchase document include in order for it to be accepted by the Tapu Directorate?
The document must include, at a minimum: the name and surname of the foreign citizen in whose favor the currency was exchanged, with his passport number, or his identity number issued by the Turkish Republic, the value of the amount sold of foreign currency in US dollars and its value in Turkish lira will be automatically present in the document, and at the end There must be a written declaration indicating that the currency exchange transaction has been carried out in accordance with Article 13 of the Capital Movement Circular.
What are the entities that must exchange foreign currencies?
The exchange of currency by official or unofficial exchange offices makes it illegal for use in real estate purchases and therefore it must be exchanged exclusively through the Central Bank of Turkey, by selling it to it through one of the banks operating in the banking sector in Turkey.
How much foreign currency do I need to exchange?
An amount of foreign currency that exceeds the full price of the property to be purchased must be exchanged according to Article 3 of the circular regarding capital movement issued by the Central Bank of Turkey.
Does the foreign buyer himself have to exchange the currency from the concerned bank?
There is no legal impediment to obligating the foreigner to carry out the disposal process himself. He can do so by himself or whoever he appoints as his representative under a legal power of attorney
Can I do currency exchange after purchase transactions?
It is necessary to carry out the exchange process before starting the purchase transactions that take place in the registry (Tapu) Department, obtaining the currency purchase document and submitting it to the Tapu Department.
How is the assessment of bank access for payments prior to the date of implementation of the decision? How is its value calculated to be disclosed to the Tabu Department?
It is not possible to extract a currency sale document for payments made before the date of implementation of the decision, and therefore a certified bank receipt proving its transfer from the buyer’s account to the seller’s account can be accepted.
But with attention to the fact that the price of the property specified in the title deed is not less than the amount transferred by the seller, but if the payment is in foreign currencies, its value is calculated at the exchange rate in the Central Bank a day before the date of extracting the payment receipt.