Introduction

Since January 2022, foreigners purchasing real estate in Turkey have been subject to a currency conversion obligation. This rule was introduced under the Turkish Central Bank’s Capital Movements Circular and the Regulation on the Implementation of the Turkish Citizenship Law.

In practice, this means that before the transfer of property ownership at the land registry, foreigners must convert the purchase amount into Turkish Lira through a bank operating in Turkey. The bank then sells this foreign currency to the Central Bank and issues a special certificate called the Foreign Exchange Purchase Certificate (Döviz Alım Belgesi)

Below, we answer the most frequently asked questions about this obligation.

Key Questions & Answers

1. Why is Currency Conversion Required?

Foreign buyers are required to exchange their funds into Turkish Lira to ensure transparency, official control, and contribution to the Turkish financial system. This prevents off-the-record transactions and strengthens monetary policy.

2. Where should the currency be exchanged?
It must be exchanged through a bank in Turkey. Currency exchange offices or hand-to-hand exchanges are not valid for property purchases.

3. How much must be converted?
The entire purchase price of the property must be converted. Partial conversions are not sufficient.

4. What is the Foreign Exchange Purchase Certificate?
It is an official document issued by the bank confirming that the foreign buyer (or their representative) sold the purchase amount in foreign currency to the Central Bank. This certificate must be presented to the land registry before the transfer of ownership

6. Can the exchange be done after the sale?
No. The currency must be converted before the land registry transaction, and the certificate must be submitted during the process.

7. Does this rule apply in citizenship applications as well?
Yes. Whether the property is purchased for residence, investment, or citizenship by investment, the conversion requirement applies. In addition, for citizenship files, banks also provide receipts showing the money was transferred to the seller’s account.

8. What if the payment was made before the rule entered into force (January 24, 2022)?
In such cases, bank receipts proving the payment are accepted, but no conversion certificate is required.

Practical Steps for Foreign Buyers

1. Transfer the property purchase amount to a bank in Turkey.

2. Request the bank to convert the funds into Turkish Lira under the Central Bank’s regulation.

3. Obtain the Foreign Exchange Purchase Certificate.

4. Submit this certificate (and the bank receipt showing payment to the seller) to the land registry before the title deed transfer.

Conclusion

The currency conversion requirement is now a mandatory part of real estate transactions involving foreigners in Turkey. While it may seem like an additional step, it ensures compliance with Turkish regulations and provides a transparent trail for both property ownership and possible citizenship by investment applications.

Our law firm assists clients in every stage of this process — from preparing the financial documents to finalizing the title deed transfer and, if requested, managing the citizenship application.