Koca & Ersöz Hukuk Bürosu / Anwaltskanzlei

Obligation for Foreigners to Exchange Currency in Purchase of Real Estate in Turkey

As of January 24, 2022, foreigners must bring a Currency Purchase Document in real estate purchases. This paper aims to answer frequently asked questions without going into technical details in the aforementioned obligation.

Does a foreign person have to Exchange currency in purchasing real estate in Turkey?

-Recent development-
Foreigners that do have not Turkish citizenship must make the payment in Turkish Lira.
Firstly, the buyer has to make an exchange to a Bank, then the bank exchanges the price with the Central Bank of Turkey. The payment will be made in Turkish Lira to the foreign buyer. Thus, the foreign buyer is allowed to buy the real estate by Turkish Lira.

Which Office in Turkey is authorized for the currency exchange?

The foreign currency has to be exchanged in a bank operating in Turkey. The Bank completes the transaction with the Central Bank of Turkey. Otherwise, the Exchange will be invalid according to Turkish law. Therefore, any exchange that has been made in currency offices or in person will be invalid.

How much currency should be exchanged?

The Exchange amount must be equal to the sale price that is stated in Tapu Office.
What is a Currency Purchase Document?

The Currency Purchase Document is a document showing that the foreign currency was sold to a bank operating in Turkey, then sold to the central bank before the sale at the Tapu Office. The document must be submitted by the foreign buyer.
What are the essential parts of a Currency Purchase Document?

The Document must include; the name, surname, passport number, the purchase of the foreign currency in US Dollars (in any case, its TL equivalent is included) and a statement about the validity according to the “Capital Movements Circular Article 13”.

Who are eligible to make the Exchange in the Bank?

The Exchange may be completed by the seller, attorneys or representatives of the buyer and seller as well as the foreign buyer.
What is the exact time for making the Exchange?

The Exchange must have been completed before the sale of the real estate. The document will be formed after the Exchange. The foreign buyer must submit the document before the sale. Otherwise, Tapu Office will reject the application because of the lack of document.
Is there a currency exchange obligation in the Turkish citizenship process?

Regardless of the sale’s reason and effect on citizenship, the foreign buyer has to make the exchange and submit the Document. Therefore, this obligation applies to the citizenship process that contains real estate sales.

What are the requirements in the citizenship process (prosperousness document) except the Currency Exchange Document?

In the citizenship process, the currency exchange document and the bank receipt (showing that the buyer received the money) will be requested by Tapu Office.

Even though the currency exchange document must be submitted before the transaction, the bank receipt can be submitted with the Document or after the sale. However, the bank receipt must be present before the prosperousness document is issued.
Is seller eligible to make the exchange?

Yes, the foreign buyer can make the payment to the seller first and the seller can make the Exchange, then receive the document. In each scenario, the document must be present at the time of the sale.

Are the previous sales valid for Turkish citizenship?

Yes, this rule is applicable after the date of validity and previous sales remain valid according to Turkish law.

Previous transactions do not require a currency exchange document. However, the bank receipt related to the particular transaction has to be submitted to Tapu Office.

Payment in person or similar payments will not be accepted.

Please visit the links below to find out our papers on real estate sales in Turkey.

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