Currency Exchange for Foreign Buyers in Their Property Purchases

New Regulation about Currency Exchange for Foreign Buyers in Their Property Purchases

With the new amendment made within the law, foreigners now should exchange foreign currency within the Turkish monetary unit for his or her realty purchases. When purchasing a property, foreign buyers first should send their funds to a Turkish Bank so as to convert their currency to the Turkish monetary unit.

This transaction should be done through a Turkish bank. The currency must be exchanged within the amount of the full payment. Then, the bank will give buyers a far off Exchange Document (Döviz Alım Belgesi).

Buyers will present the document to the Land Registry Office as proof that they need converted the currency into Turkish monetary unit before the property purchase is created. The effective date of the regulation is January 24, 2022. A foreigner cannot buy a property without an overseas Exchange Document as of this date.

The document must contain the subsequent information to be accepted by the Land Registry Office:

• Name and surname of the person on whose behalf the currency is exchanged
• Passport number or ID number
• US Dollar equivalent of the foreign currency purchased (TL equivalent is usually included.)
• The statement of “This transaction is distributed within the scope of "Article 13 of the Circular on Capital Movements".

The exchange of foreign currency must be made by the customer and seller of the relevant land to be sold, their proxies, or representatives. for instance, the client can first send his/her currency to the seller's account, and so the vendor makes the exchange transaction at the financial organization through the bank.

You can handle the method by giving an influence of attorney. The crisis here is that the document must be taken before the sale transaction.
The financial institution of the Republic of Turkey only accepts USD, Euro, or quid for currency exchange on property purchasing.

The other currencies should be converted into one amongst the monetary units mentioned above as a primary step. The transition of the Dollar, Euro, or Pound to the lira are going to be the second step of the method.

It will not be valid if buyers change their money within the currency exchange office or exchange it personally for realty purchase transactions.

Is Currency Exchange Compulsory in Citizenship Transactions?

Regardless of the rationale, obtaining interchange Document is compulsory for all property purchases to be made by foreign buyers.

To add, in citizenship transactions, the Directorate of Land Registry and Cadastre request the document and therefore the approved bank receipt showing that the quantity has been sent to the account of the vendor.

Foreign buyers must present the payment receipt (money transfer from the customer to the seller) along with the document before the sale transaction. It are often also submitted before the commitment process or the issuance of the conformity document at the newest.

But, in any case, it must be submitted to the Land Registry Directorate before the sale process.

Are the Payments Made Before the Effective Date Valid?

Payment receipts made before the effective date are accepted in transactions. there's no must issue a distant exchange document for these transactions.
But, the approved bank receipt must be submitted to the land registry office for these payments. Payments made by other methods can not be accepted, like payment nose to nose.