The Circular of the General Directorate of Land Registry and Cadastre on “Currency Purchase Certificate in Foreign Natural Person Acquisitions” dated 21.01.2022 published and entered into force.
Scope of the Circular
The important changes brought by the Circular in question are as follows:
- Persons who do not have Turkish citizenship is now able to fulfill their payment obligations for real estate purchased in Turkey only in foreign currency.
- However, it has been obligatory to deposit the foreign currency in question to a bank operating in Turkey and have them sold by the bank to the Central Bank before the title deed transactions, stating the reason.
- In this context, the Foreign Exchange Purchase Document to be issued by the bank regarding the relevant foreign exchange sale must be submitted to the relevant land registry office before the sale transaction.
- The Turkish lira amount stated in the Foreign Exchange Purchase Document must be declared to the land registry office as the sales price. In accordance with the circular, the official deed shall be issued on the basis of the TL value shown in the foreign exchange purchase document.
- It is possible to sell foreign currency only by the buyer, seller, their proxies or representatives of the relevant real estate.
- It is obligatory to include the name, surname, passport number or Foreigner Identity Number of the person on whose behalf the foreign currency is exchanged, a statement stating that the foreign currency purchased is equivalent to US dollars and that the relevant transaction is carried out within the scope of Article 13 of the Circular on Capital Movements, in the explanation part of the foreign currency purchase documents.
Conclusion
Foreign real persons are now obliged to deposit the amounts they will pay while acquiring real estate in Turkey in foreign currency in a bank operating in Turkey and have them sold to the Central Bank by the relevant bank.
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