Currency Purchase Document in
Turkey
In Turkey,
there are some special procedures that foreigners must fulfill during the
real estate purchase process. One of these is the Currency Purchase Document (CPD)
application.
As of January 24, 2022,
the regulation that came into effect requires foreign individuals to sell the
currency related to the sale price to the Central Bank of the Republic of
Turkey through a bank and to document the transaction with a Currency Purchase Document.
What is the Currency Purchase Document?
The Currency Purchase
Document is a document that shows that the currency related to the sale
price is sold to the Central Bank of the Republic of Turkey through an
authorized bank when a foreign individual purchases real estate in Turkey.
This application has
become mandatory for foreign individuals acquiring real estate through
purchase.
Currency is not
exchanged directly at the Land Registry Office. The transaction is carried
out through a bank, and the Currency Purchase Document is issued by the
bank.
Who is Required to Have a Currency Purchase Document?
The Currency Purchase
Document application is applied to foreign individuals acquiring real estate
through purchase in Turkey.
Therefore,
foreign individuals wishing to purchase a residence, land, workplace, or
any other property that can be purchased under the legislation in Turkey
must take this application into account during the title deed process.
How to Obtain a Currency Purchase Document?
During the real estate
purchase process, the currency related to the sale price is sold to the
Central Bank of the Republic of Turkey through a bank.
After the transaction,
the bank issues the Currency Purchase Document. In the current TKGM
application, the document is sent to the relevant Land Registry Office by
the bank via Registered Electronic Mail (REM).
Therefore, it is
important to carry out the currency transaction correctly before the title
deed application.
What Amount is Used in the Title Deed?
The amount of the
currency stated in the Currency Purchase Document is reflected as the
value to be used in the official deed as the Turkish lira equivalent of
the exchanged currency.
It is important to
prepare the amounts to be declared in the real estate sale in accordance
with the legislation to prevent delays that may occur in the title deed
transactions.
Can the Currency Purchase Document be Obtained in Parts?
Yes.
In the case of payment of the real estate price in different dates or in
installments, it is possible to issue multiple Currency Purchase Documents
for each payment.
For example,
if part of the sale price is paid in advance and the remaining part is paid
at a later date, separate currency purchase documents can be created for
the payments.
What is the Situation for Real Estate Purchase for Turkish Citizenship?
If it is planned to
apply for Turkish citizenship by purchasing real estate, attention should
also be paid to additional payment documents along with the Currency Purchase
Document.
According to the
statement of the General Directorate of Land Registry and Cadastre, in
applications for acquiring Turkish citizenship through real estate acquisition,
the bank-approved receipt showing the money transfer from the buyer to
the seller must also be submitted.
Therefore, it is
important that bank transfers and explanations in real estate investments
for citizenship purposes are carried out in accordance with the requirements
of the process.
Other Documents Required for Title Deed Transactions
In the real estate
purchase transactions of foreigners, in addition to the Currency Purchase
Document, different documents may also be requested depending on the nature
of the transaction. These may include passport or country ID, title deed
information, real estate market value, DASK policy for properties with
building characteristics, identity information declaration form, and photo.
In transactions carried out for
Turkish citizenship, additional documents such as property valuation report
and bank-approved payment receipt may also come into play.
In title deed transactions
where parties do not speak Turkish, a certified sworn translator may also be
required.
Why is the Currency Purchase Document Important?
The Currency Purchase
Document is not just an ordinary receipt showing a bank transaction. It is
one of the important parts of the title deed process for foreign individuals
acquiring real estate in Turkey through purchase.
Failure to create the
document properly or to complete the necessary transactions on time may
cause delays in the title deed process.
Therefore, it is
beneficial for foreign buyers to check the payment, bank transfer, and
Currency Purchase Document processes before the title deed appointment.
Foreigners wishing to
purchase real estate in Turkey must pay attention to the Currency Purchase
Document procedure while carrying out the title deed transactions.
Selling the currency
related to the sale price to the Central Bank of the Republic of Turkey
through a bank, creating the Currency Purchase Document, and sending the
document to the relevant Land Registry Office via the bank are the main
stages of the process.
Especially in high-value
real estate investments and purchases made for Turkish citizenship, it is
crucial to prepare bank transfers, payment documents, and title deed
papers completely before the transaction for a secure and smooth title deed
transfer.
Note: As the title deed and citizenship
legislation and practices may change over time, it is recommended to check
the current regulations of the General Directorate of Land Registry and
Cadastre and relevant official institutions before the transaction.