On January 24, 2022, the Turkish government issued a new regulation regarding real estate sales.
The new legislation applies to foreign property buyers and says that the property's sales price must be translated into Turkish Lira via The Central Bank of the Republic of Turkey.
- How Will the Money Exchange Procedure Work?
To proceed with the property purchase transactions, the Land Registry Office will request a Foreign Exchange Document (Döviz Alm Belgesi). Before requesting for title deed transfer, the buyer should convert the sales value of foreign money into Turkish Lira.The paperwork must be completed before the purchase transaction can actually happen.
The entire sales amount should be converted through a Turkish bank. Following the conversion, the buyer will receive a Foreign Exchange Document. This document will provide currency conversion information such as;
- The name and surname of the client on whose own the transactions were performed.
- The passport number or foreign ID number.
- The USD value of the foreign currency.
- The line "This transaction is being pursued in accordance with Article 13 of the Circular on Capital Movements."
The Property Registry Office will consider the payment amount listed on the Foreign Exchange Document to represent the property's sales price.
The processes must be followed by the buyer, seller, or a representative with a legal representative serving on the buyer's or seller's behalf.
The buyer has the option of transferring the entire money to the seller's account. The seller will be able to convert the currency in a Turkish bank and receive the Foreign Exchange Document.
One of the most important things is that the currency conversion should be done through a Turkish bank rather than an exchange office or other sources. Other methods will not be accepted.
The Central Bank of the Republic of Turkey also only accepts specific currencies for conversion. Payments must be sent to the bank in USD (US Dollar), Euro, or Pound Sterling for currency exchange.
To continue, financial units other than the previously mentioned currencies must be changed into USD, Euro, or Pound by a bank. The second stage will be the exchange of foreign currencies to Turkish Lira.
The Foreign Exchange Document is not required if the payment is made before the start date. However, because only payments made through a bank can be accepted, a bank-approved certificate must be given to the Land Registry Office. Additional payment methods, such as cash, will not be accepted.
- Currency exchange is also required while getting Turkish citizenship via real estate investment.
Whatever the reason of the investment, currency exchange is required, and a Foreign Exchange Document is required for each foreign real estate transaction.
Also, the Department of Land Registry and Cadastre requests a bank-approved receipt showing that the pre-determined sales amount for Turkish citizenship application has been deposited into the seller's account.
Before the purchase transaction, the bank-approved receipt of the money transfer from the buyer to the seller must be presented along with the Foreign Exchange Document. It must be provided before the commitment procedure or, at the very least, before the issue of the conformance document.
According to Bayram Tekce, Chairman of Tekce Overseas, the new currency exchange legislation will not have a detrimental impact on property prices or the existing sales process.
Buying real estate in Turkey is still a simple and secure process when you work with a reputable real estate agent. AKDinvest team is delighted to walk you through the process of purchasing a property.
The Land Registry and Cadastre created a guidebook to help with the currency exchange procedure. You may read the legal notice concerning currency exchange by clicking here.