“Payments for the Purchase of Real Estate in Turkey by Foreigners”
According to the first paragraph of Article 13 of the Capital Movements Circular, banks are permitted to transfer abroad the net amount remaining after deducting taxes and similar liabilities of the income and sale prices of real estate and real rights in rem attached to real estate purchased or owned by non-residents in Turkey.
The obligations to be fulfilled during the acquisition of real estate by such persons are explained in the following paragraphs added to the aforementioned article:
(2) The payment obligations of real estates purchased in Turkey by persons who do not have citizenship ties with the Republic of Turkey shall be fulfilled in foreign currency. This foreign currency shall be sold to a bank and the bank shall sell it to the Central Bank before the title deed procedures, stating the reason thereof. Payment shall be made in Turkish lira to those concerned. The procedures and principles regarding the implementation of this paragraph shall be determined by the Central Bank.
(3) The relevant persons are obliged to submit to the title deed administration the foreign currency purchase certificate certifying that the foreign currency, which is the sale price, has been sold to a bank. The Turkish lira amount registered in the foreign currency purchase certificate shall be declared to the title deed administration as the sale price.
(4) Within the scope of the second paragraph, it is possible to sell foreign currency to banks only by the buyer or seller of the relevant real estate or their proxies or representatives.
(5) The name and surname, passport number or Foreigner Identification Number of the person on whose behalf the foreign currency is exchanged, the US dollar equivalent of the foreign currency purchased and a statement indicating that this transaction is carried out within the scope of this article must be added to the explanation section of the foreign currency purchase documents to be issued by banks regarding the foreign currency sales to be made within the scope of the second paragraph.
The Capital Movements Circular is available here.
Sincerely,
BİLGENER
