On January 24, 2022, the Turkish government announced a new amendment regarding real estate purchases for foreign buyers. The regulation mandates that the sales amount of the property must be converted into Turkish Lira through The Central Bank of the Republic of Turkey. A Foreign Exchange Document must be obtained before the sale is executed.
Foreign Exchange Document
The Land Registry Office will require a Foreign Exchange Document (Döviz Alım Belgesi) to complete property purchase transactions. Prior to the transfer of the title deed, foreign buyers must convert the sales amount of foreign currency into TL.
The conversion of the entire sales amount must be conducted through a Turkish bank, and the buyer will receive the Foreign Exchange Document upon completion of the conversion.
The payment listed on the document will serve as the official sales price of the property according to the Land Registry Office. The buyer, seller, or a representative with power of attorney can handle the procedures involved in the transaction. The buyer can transfer the payment directly to the seller’s bank account, who can then convert the foreign currency into Turkish Lira through a Turkish bank and obtain the Document.
It is crucial to note that the currency conversion must be done through a Turkish bank not via other sources. Only certain currencies, including the US Dollar, Euro, and Pound Sterling, are accepted by the Central Bank for conversion. Any other currencies must first be converted into one of the accepted currencies through a bank.
If the payment was made prior to the implementation of the amendment, the Foreign Exchange Document won’t be required. Only bank receipts must be submitted to the Land Registry Office as only accepts bank payments. Any other payment methods, such as in-person payments, will not be recognized.