New Currency Exchange Regulations for Foreign Property Purchases

Foreigners must now exchange their foreign currency for the Turkish Lira in order to purchase and sell real estate, thanks to a recent reform to Turkish law.

What are the conditions?

• Foreign buyers and sellers should first send their money to a Turkish bank to convert their currencies (US dollar, Euro, or British pound) to the Turkish Lira 
• A Turkish bank should be used for this transaction. 
• The currency must be converted for the entire payment amount. 
• The bank will then provide a Foreign Exchange Document (Döviz Alım Belgesi) to the purchaser.
• Then the document will be presented to the Land Registry Office as proof that the cash has been converted into Turkish Lira prior to the property acquisition. The regulation takes effect on January 24, 2022. As of this day, a foreigner cannot purchase a property without a Foreign Exchange Document.

To be accepted by the Land Registry Office, the document must include the following information:

• The individual on whose behalf the currency is exchanged's name and surname
• US Dollar equivalent of the foreign currency purchased (passport number or ID number) (TL equivalent is always included.)
• "This transaction is carried out in accordance with "Article 13 of the Circular on Capital Movements," according to the statement.

The buyer and seller of the relevant real estate to be sold, or their proxies or representatives, must exchange foreign money. For example, the buyer can pay money to the seller's account, and the seller can then perform an exchange transaction with the central bank through bank.

Giving a power of attorney might help you manage the procedure. The important thing to remember here is that the document must be obtained prior to the sale transaction.

For currency exchange for property purchases, the Central Bank of the Republic of Turkey only takes USD, Euro, or Pound Sterling. The other currencies should be converted into one of the monetary units listed above. It will not be valid if buyers exchange their money for real estate purchases at a currency exchange office or in person.

Is Currency Exchange in Citizenship Transactions Required?

Obtaining a Foreign Exchange Document (Döviz Alım Belgesi) is required for all real estate transactions made by foreign buyers, regardless of the cause. This means that if any of the sites a buyer or a seller is a foreigner the mentioned document is a MUST.

In addition, the Directorate of Land Registry and Cadastre requests the paperwork as well as the approved bank receipt indicating that the money has been delivered to the seller's account in citizenship transactions.

Before the selling transaction, foreign buyers must produce the payment receipt (money transfer from the buyer to the seller) together with the paperwork. It can also be presented prior to the commitment procedure or, at the very least, the issue of the compliance document.

However, it must be submitted to the Land Registry and Cadastre Directorate before the sale can take place. You can reach the full document prepared by Land Registry and Cadastre Directorate's website at: https://www.tkgm.gov.tr/en/node/9112.

No doubts! This new regulation won't cause any serious issues to foreign real estate buyers. Property buying in Turkey is still a safe and simple process for working people.

If you are curious about the purchase process do not hesitate to contact our professional team:

• Call us at +90 242 512 25 00
• Send us an e-mail at [email protected]
• or visit our office in Alanya on Atatürk Blv. 62 07-400 Turkey