What is the foreign exchange document that foreigners must provide along with other essential paperwork when engaging in real estate transactions, and how can it be obtained?
For purposes such as citizenship or investment, foreigners must adhere to specific procedures when acquiring real estate in Turkey. This involves selling funds to the Central Bank via a bank operating within Turkey, converting their currency into Turkish Lira. Subsequently, the intermediary local bank issues the necessary foreign exchange purchase certificate, which must then be presented to the Land Registry Offices. Without this crucial document, real estate transactions cannot be finalized.
A critical aspect to note throughout this process is that the foreign exchange purchase certificate must originate from a bank operating within Turkey. The declared amount in the deed and the sum indicated on the receipt must align. Moreover, this certificate must be prepared prior to the completion of the sale transactions. However, complications may arise in this regard. As the document is exclusively obtainable from a bank within Turkey, foreign nationals intending to purchase real estate must possess a residence permit in Turkey or hold an account at a branch of the same bank in their home country.
foreign exchange purchase certificate must be submitted to the land registry office before the sale proceeds.
Essential Information in the foreign exchange purchase certificate:
- Name and surname of the foreign buyer engaging in foreign exchange transactions
- Passport number or identification number of the foreign individual conducting the currency Exchange
- Turkish Lira price and the equivalent amount of foreign currency purchased in USD (US Dollars)
- Declaration confirming that the transaction falls under the purview of “Article 13 of the Circular on Capital Movements”
It is also feasible to utilize multiple foreign exchange purchase certificates to match or exceed the sales price, wherein these documents are collectively presented, and the total amount serves as the basis for the transaction.
