The Necessary Requirements of Foreign Currency Purchase Document
Rıza Güneş
Learn about the essential requirements for purchasing foreign currency with our comprehensive guide.
According to the Article 13 of the Capital Movements Circular titled "Real Estates";
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(2) Payment obligations of real estate purchased in Turkey by persons who do not have citizenship ties with the Republic of Turkey are fulfilled in foreign currency. This foreign currency is sold to a bank, and by the bank to the Central Bank, by stating the reason before the title deed transactions. Payment is 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) Those concerned are obliged to submit the foreign exchange purchase document proving that the foreign exchange, which is the sales price, has been sold to a bank, to the title deed administration. The Turkish lira amount registered in the foreign exchange purchase document is declared to the title deed administration as the sales price by the persons concerned.
(4) Within the scope of the second paragraph, it is possible to sell foreign currency to banks only by the buyer, seller, their proxies or representatives of the relevant real estate.
(5) In the explanation part of the foreign currency purchase documents to be issued by the banks regarding the foreign exchange sales to be made within the scope of the second paragraph, at least the name, passport number or Foreigner Identification Number of the person whose name is exchanged, a statement stating that the foreign currency purchased is in US dollars and that this transaction is carried out within the scope of this article is required.
In the 4th article titled "Principles regarding the Transaction" of the Implementation Instruction for the Sales of Foreign Exchange to the Central Bank of the Republic of Turkey within the scope of Article 13 of the Circular on Capital Movements;
"(1) Transactions to be carried out within the scope of this Implementation Instruction are limited to the currencies subject to purchase and sale by the Central Bank.
(2) The currencies to be sold by the banks to the Central Bank are US dollars, Euros and British pounds. In transactions made in other currencies, the said foreign currency amounts are converted into US dollars, Euros or British pounds and sold to the Central Bank at the indicative cross exchange rates determined by the Central Bank at 15:30 the day before the transaction day.
(3) Foreign exchange sales to banks can only be made by the buyer or seller of the relevant real estate or their proxies or representatives.
(4) In the explanation part of the foreign currency purchase documents to be issued by the banks regarding foreign Exchange sales to banks regarding the foreign exchnage sales, at least the name, passport number or Foreigner Identification Number of the persob whose name is exchanged, a statement stating that the foreign surrency purchased is in US dollars and that it was carried out within the scope of Article 13 of the Circular on Capital Movements must be added is required.
that being said, accordingly;
In the acquisition of real estate by foreign real persons, the sale price of the real estate by the buyer, seller, their proxies or representatives to a bank to be sold to the Central Bank in USD or equivalent foreign currency before the acquisition, and the sales transaction of the "Currency Purchase Certificate" to be issued by the bank must be submitted to the Land Registry Office beforehand.
" In the Foreign Currency Purchase Document, at least, the name, passport number or foreign identity number of the person on whose behalf the foreign currency is exchanged, the US Dollar equivalent of the foreign currency purchased (TL equivalent in any case is included) and a statement stating that this transaction was carried out within the scope of "Article 13 of the Circular on Capital Movements".
In the third paragraph of the 13th article of the circular of reference (b), the relevant persons are obliged to submit the foreign exchange purchase document proving that the foreign currency with the sales price has been sold to a bank in the application for title deed transactions.
The Turkish lira amount registered in the foreign currency purchase document is declared to the land registry administration as the sales price by the relevant parties, so the official deed is prepared on the basis of the TL value shown in the Foreign Currency Purchase Document,
For this reason, the fact that a payment item (commission, expense, etc.) other than the real estate sales / promise to sell contract value is not included in the foreign currency sales amount based on the declared value,
Particular attention should be paid to the foreign currency sales amount, since the value declared in the official promissory note (for sale) will be made to the bank within the scope of these regulations;
Required.
According to the GUIDE ON THE REGULATION ON THE IMPLEMENTATION OF TURKISH CITIZENSHIP LAW;
The approved bank receipt must be submitted to the land registry office which shows that the minimum amount required by the regulation is paid to the real estate seller or the person concerned.
By the Land Registry Directorates, whether the transfer/payment of the price is made by the buyer or the related persons to the account of the seller or the relevant persons (Attorney, Spouse, Owner of the Construction Contract in return for Flat, Foreclosure or Mortgage Payee, Account of the Company Owner, etc.) ; reasonable interest assessment will be made.