Are you thinking of buying a property abroad? Turkey may be the perfect destination for your trip. In recent years, large-scale development has been carried out in certain parts of Turkey, and the value of Turkish real estate has skyrocketed and is recognized worldwide.
The Turkish government has introduced new regulations recently to support the Turkish lira. Due to the fluctuation of exchange rates, one of these provisions is for foreigners who want to buy real estate ownership in Turkey as of January 24th, 2022. The Country Registration Office demonstrates that the buyer has exchanged foreign currency (USD, EUR, etc.) with the exact revenue declared in the land registration.
HM Land Registry requires a foreign exchange document (Döviz Alm Belgesi). Before applying for a transfer of ownership certificate, the buyer must convert the sale amount of the foreign currency into Turkish lira. You must complete the paperwork before you can make a purchase transaction.
The reader might wonder if this new regulation has a big impact, or if it will make a big difference? To answer your thoughts, not really. Most of the real estate sales are done in Turkish lira anyway, so foreign buyers need to exchange foreign currency and transfer the required amount to the Turkish lira buyer’s bank account. Thus, it doesn’t have much of an impact, but it’s important to understand and implement the new regulations correctly.
Under this new regulation, foreigners will sell forex to the central banks through local banks. Documents certifying this exchange will be required when transferring the property certificate in the name of the purchaser. Created by the bank and contains the buyer’s name and passport or ID card number and amount. Forex documents are not required if payment is made before the start date. However, you will only be able to pay at the bank, so you will need to submit a bank confirmation to the land registry. Additional payment methods such as cash are not available. If the purchase also aims to obtain Turkish citizenship, you will also need a bank transfer slip from the buyer’s account to the seller’s account.
The foreign currency must be exchanged at a bank operating in Turkey. Therefore, the foreign currency cannot be exchanged at exchange offices, and the exchange currency must be the same amount as the property sales price.
According to Bayram Tekce, Chairman of Tekce Overseas, the new foreign exchange law will not adversely affect real estate prices or existing sales processes.
If you work with a reputable real estate agent, buying real estate in Turkey is still an easy and safe process. The Property Invest team will be happy to guide you through the property-purchase process.