By Justin Mays:
Foreigners who want to buy real estate in Turkey are now obligated to convert their foreign currency into Turkish Lira and acquire a currency purchase document.
In this blog, Prime Property Turkey gives you all the details about the currency purchase document, how you can get it, and more.
What is a currency purchase document?
A currency purchase document is a document that a foreign real estate buyer presents and submits to the Title Deed Directorate as evidence of having sold foreign currency worth the property's price to the Central Bank of Turkey via any bank functioning within the Turkish banking sector. This document is also called “Döviz Alım Belgesi”.
When did this rule come into force?
This rule was put into action on 24 January 2022., making it compulsory to obtain the currency purchase document for the foreign property buyer by giving the currency first to any Turkish bank, which will then sell this money to the Central Bank of Turkey in exchange for Turkish Lira to pay to the foreign property buyer. The buyer can then begin the process of transferring ownership of the property.
Which institutions exchange foreign currency?
Only the Central Bank of Turkey has the authority to exchange foreign currency after the money determined as the property's price is sold to any one of the banks in Turkey.
Who can exchange the currency to the bank to obtain the currency purchase document?
The foreign buyer is not the only person who can carry out the currency exchange. It can also be carried out by the seller or even the foreign buyer’s attorney, granted that the attorney possesses the POA (power of attorney).
Suppose the foreign buyer possesses a bank account in the Republic of Turkey. In that case, they can deposit the foreign currency into their account, sell the money via their bank and submit that money once it is converted into Turkish Lira to the property seller’s account.
Another way to do this is, in case the foreign buyer does not possess their own bank account, they can send the foreign currency to the property seller’s account so that the seller can sell this money to the Central bank through their bank and receive the currency purchase document.
How much currency should be exchanged to acquire the currency exchange document?
The foreign currency amount to be exchanged should be the value of the total price of the property to be bought.
What information should the currency purchase document possess for the Title Deed Directorate to accept it?
The following details should be present within the currency purchase document:
- The name and surname of the individual exchanging the currency.
- Their passport number or identification number.
- The USD equivalent of the purchased foreign currency.
- A statement that claims that this foreign exchange was made within the scope of the “Circular on Capital Movements Article 13”.
The Land Registry Directorate will not accept the currency purchase document if this information is missing.
Does this rule apply to those who buy real estate to acquire Turkish citizenship?
A foreign currency purchase document is necessary for foreigners who wish to buy property and apply for Turkish citizenship or buy real estate in Turkey without any desire to become a citizen.
Did you find this blog post helpful?
Prime Property Turkey’s in-house legal team is always ready to assist foreign property buyers from different countries in the real estate purchase process, as well as their citizenship and residency applications.
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