On January 24, 2022, the Turkish government issued a new amendment about real estate purchases. The new legislation will be applied to foreign property buyers. The sales price must be converted into Turkish Lira via the Turkish Central Bank.
How Does the New Exchange System Work?
The Land Registry Office demand a Foreign Exchange Document (Döviz Alim Belgesi). The buyer needs to convert the foreign currency value into Turkish Lira before requesting for title deed transfer. The buyer must obtain the document before the sale transaction.
All transactions must be done via a Turkish Bank. Next, you will receive your Foreign Exchange Document after the exchanging transaction. Your document must state the following details such as;
• Name and surname of the person
• Passport number or identification number
• US Dollar equivalent of the foreign currency
• The statement of “This transaction is pursued within the scope of Article 13 of the Circular on Capital Movements”.
Buyer, seller, or a representative acting on their behalf with a power of attorney must follow the procedures.
The currency exchange should be done via a Turkish bank. Other methods such as exchange offices or other third-party sources will not be accepted.
The Central Bank of Turkey only accepts certain currencies for conversion. Payments for currency exchange must be done in USD (US Dollar), Euro, or Pound Sterling. Other currencies firstly must be converted USD, Euro, or Pound via bank. Then you can convert your currency into Turkish Liras.
Currency Exchange is Necessary for All Kind of Real Estate Investments
As a foreigner, you have to submit your Foreign Exchange Document for any kind of real estate purchase in Turkey.
Also, the Directorate of Land Registry and Cadastre demands an approved receipt. This receipt must contain the sales price for the Turkish citizenship applications.
Before the sale transaction, the approved receipt from the buyer to the seller must be submitted with the Foreign Exchange Document. It can be submitted before the commitment procedure or the issuance of the conformity document.
As our president Bayram Tekce stated; the new regulation will not affect negatively the real estate market and process.
Buying a property in Turkey is still a simple and secure process when you work with a professional real estate agent. Bursa Homes ® team would be delighted to assist you to find your dream home.
You can browse the guidebook for real estate purchases by foreigners.