Turkey announces a new mechanism for the purchase of the real estate by foreigners in Turkey

Turkey announces a new mechanism for the purchase of the real estate by foreigners in Turkey

Imtilak Real Estate closely followed the news issued by the Department of Foreigners Affairs in the Directorate of Land Registry and Real Estate Survey in Turkey, which concerns foreign investors when buying real estate in Turkey 2022. Find out the details through the following news:

A new mechanism for buying real estate in Turkey for foreigners

The Department of Foreign Affairs in the Directorate of Land Registry and Land Survey in Turkey issued a circular, explaining the mechanism for obligating citizens of foreign countries wishing to buy real estate in Turkey, to pay the price of the property in foreign currencies, and to sell these currencies to the Central Bank of Turkey directly or indirectly, and the most important of what was stated in the circular:

• Foreign citizens pay the financial obligations of the real estate they buy in Turkey in foreign currencies. These currencies are sold to a bank operating in the banking sector in Turkey and then sold by this bank to the Central Bank of Turkey, prior to the start of property transfer transactions in the Land Registry and Land Survey Department.
• Those concerned are obliged to submit a document proving the sale of the property’s price in currency to a bank, by attaching it to the property registration application submitted to the relevant Title Deed Department. The value of the sold currencies in Turkish lira recorded in the aforementioned document is approved as the price of the property in the property registration transactions in the Title Deed Department.

• Transactions of selling currency to a bank are carried out exclusively by the purchaser, seller, or representative of the property under a legal agency.
• The document proving the sale of the currency given by the buying bank should include the personal information of the person concerned, his name, surname, passport number, or the foreigner’s identification number issued by the Turkish Republic, in addition to the value of the currency sold in US dollars, indicating that this amount of currency was sold according to Article 13 of the Circular on Capital Movement issued by the Central Bank of Turkey, entitled "Real Estate Appraisal".
• The amount sold in foreign currency must be equal to the net value of the real estate sale price, and it does not include any additional expenses, such as contract expenses, brokerage fees, and others.

Edited by Imtilak Real Estate©

Reference: General Directorate of Land Registry and Land Survey in Turkey

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