Turkey has become a center of attraction for citizens of almost all nationalities. If you want to realize your investment in Turkey and you are wondering what advantages the investment will provide for you in Turkey, you can find detailed information about the subject in our related article.
Many peoples from Turkey buy property in order to obtain citizenship, residence permit or to make investments. There are some rules and steps to be followed in purchasing real estate, and in some cases, changes are made. With the new regulation in the field of real estate, foreign exchange certificate has become mandatory in the sale of real estate to foreigners. The foreign investor who does not have a foreign exchange certificate will not be able to complete the real estate purchase steps.
Foreign investors who want to buy real estate in Turkey must first apply for a foreign exchange certificate. The obligation to exchange foreign currency for the purchase of real estate by foreigners has been introduced within the scope of the regulations for the protection of the Turkish lira. As of January 24, foreigners who want to buy real estate in Turkey must sell their foreign currency to the Central Bank through a bank operating in Turkey. Then, the foreign investor can complete the transactions by presenting the foreign exchange purchase document issued by the bank to the land registry office.
With the regulation, it should not be forgotten that foreigners who buy a house or land must obtain a foreign exchange certificate, attention should be paid to this issue. In the foreign exchange document, the name, surname, passport number or foreign identity number of the foreign national for whom the foreign currency has been exchanged will be included. Real estate sales contracts can be drawn up in foreign currency or indexed to foreign currency.
Within the scope of the regulation, real estate sales promise agreements will be treated like real estate sales agreements. In cases where foreigners are the seller and the buyer is a Turkish citizen or a Turkish company, the price will be determined in Turkish Lira in real estate sales or sales promise contracts. In cases where the sale price is deposited into the account of the buyer before the publication date of the circular, a retrospective foreign exchange purchase document will not be requested. In real estate sales transactions realized in the past, if the buyer’s account was paid in foreign currency, the last effective selling rate of the Central Bank will be taken as the basis.
Briefly, if we go over the important parts once again;
Within the framework of the circular, it will no longer be possible to purchase property without this document, which will be submitted by foreign buyers as proof that they have converted their foreign currency into Turkish Lira. In order for the document to be accepted by official institutions, it must contain at least the following information:
- Name and surname of the person on whose behalf the currency was exchanged,
- Passport number or foreign identity number,
- The US Dollar equivalent of the foreign currency purchased (TL equivalent is included in all cases.)
- Statement stating that this transaction was carried out within the scope of “Article 13 of the Circular on Capital Movements”
You can easily handle these transactions with a power of attorney. The most important point here is that foreigners must obtain the foreign exchange purchase document before the sale transaction.