Mandatory Currency Exchange for Property in Turkey: 2026 Guide
Mandatory Currency Exchange for Property in Turkey: Your 2026 Guide […]
Mandatory Currency Exchange for Property in Turkey: Your 2026 Guide to Investment and Residence
For foreigners looking to invest in Turkish real estate, whether for a residence permit, long-term stay, or Turkish Citizenship by Investment, a crucial regulation dictates the currency exchange process. As of 2026, the requirement to convert foreign currency to Turkish Lira via a Turkish bank before property purchase remains firmly in place. This guide provides comprehensive, up-to-date information on this vital process.
Why the Mandatory Currency Exchange? Protecting the Value of the Turkish Lira
The regulation mandating foreign currency exchange for property purchases by non-residents was introduced to bolster the value of the Turkish Lira and enhance the transparency of financial transactions within the real estate sector. The Turkish Ministry of Environment, Urbanization and Climate Change, General Directorate of Land Registry and Cadastre, formalized this requirement through Circular 2022/1, based on earlier Central Bank decisions and communiqués.
The core principle stems from Article 13 of the T.C. Central Bank’s Circular on Capital Movements, which states:
- Payment obligations for real estate purchased in Turkey by non-Turkish citizens must be fulfilled in foreign currency.
- This foreign currency must be sold to a bank, and subsequently by the bank to the Central Bank, explicitly stating the reason (property purchase) before title deed transactions.
- The payment to the seller is then made in Turkish Lira.
The Essential Document: Foreign Exchange Purchase Certificate (Döviz Alım Belgesi)
To finalize your property transaction, you must provide a ‘Foreign Exchange Purchase Document’ (Döviz Alım Belgesi) to the Land Registry Office. This document serves as proof that the foreign currency equivalent of the property’s sales price has been converted to Turkish Lira through an authorized Turkish bank.
Key Details Required on Your Foreign Exchange Purchase Certificate:
- Personal Information: The full name, passport number, or Foreigner Identity Number of the individual who exchanged the foreign currency.
- Currency Details: The amount of foreign currency bought in US Dollars, Euros, or British Pounds. If the original foreign currency was different, it would be converted into one of these three and then exchanged.
- Purpose of Transaction: A clear statement indicating that this transaction is for real estate acquisition under the relevant article (Article 13 of the Capital Movements Circular).
Who can exchange the currency? The foreign currency can be sold to a Turkish bank by the buyer, the seller of the real estate, or their officially authorized proxies or representatives.
The Process: Step-by-Step for Foreign Property Buyers in 2026
- Determine Property Value: Agree on the sales price with the seller, typically in foreign currency (e.g., USD).
- Visit a Turkish Bank: Go to any Turkish bank with your foreign currency (USD, EUR, GBP are directly accepted; other currencies will be converted to one of these).
- Initiate Exchange: Request to exchange your foreign currency for Turkish Lira specifically for a real estate purchase, indicating the property details if possible.
- Bank Transfers to Central Bank: The bank will then sell the foreign currency to the Central Bank of the Republic of Turkey.
- Receive Turkish Lira and Document: You will receive the Turkish Lira equivalent and, crucially, the ‘Foreign Exchange Purchase Document’ (Döviz Alım Belgesi). This document will show the Turkish Lira amount as the official sales price.
- Submit to Land Registry: Present this document to the Land Registry Office during the title deed transfer process.
- Finalize Purchase: Complete the property purchase using the Turkish Lira received.
Impact on Turkish Citizenship by Investment (CBI) in 2026
For individuals pursuing Turkish Citizenship by Investment through real estate, the currency exchange regulation is paramount. The minimum investment threshold for CBI through property purchase remains $400,000 USD (or its equivalent in other foreign currencies), provided the property is held for a minimum of three years. The entire investment amount must be converted to Turkish Lira via the mandatory exchange process, and the Foreign Exchange Purchase Document must clearly reflect this value.
Other Important Costs and Fees for Foreign Investors in Turkey (2026 Updates)
Beyond the property price itself, foreign investors should budget for several additional costs in 2026:
- Property Transfer Tax: 4% of the declared property value, typically split between buyer and seller (2% each), or paid entirely by one party as per agreement.
- Land Registry Fees: Minor administrative fees for title deed registration.
- Valuation Report Fee: Mandatory for all foreign property purchases, usually around 8,000 – 10,000 TL, issued by an officially approved valuation expert.
- Lawyer Fees: Highly recommended to ensure legal due diligence and smooth process. Fees vary but generally range from 1,500 – 3,000 USD for a property purchase.
- DASK (Natural Disaster Insurance): Mandatory earthquake insurance, annual cost varies based on property size and location.
- Real Estate Agent Commission: If applicable, typically 2% + VAT for both buyer and seller.
Benefits of Investing in Turkish Real Estate in 2026
Despite the procedural requirements, investing in Turkish real estate offers significant advantages:
- Path to Residence: Property ownership often simplifies the process of obtaining a Turkish Residence Permit.
- Citizenship Opportunity: Meeting the investment threshold can lead to Turkish Citizenship, offering visa-free access to many countries.
- Investment Potential: Turkey’s dynamic economy and growing tourism sector present opportunities for property value appreciation and rental income.
- Quality of Life: Enjoy Turkey’s rich culture, beautiful landscapes, and strategic geographical location.
Conclusion: Seek Expert Guidance
The mandatory currency exchange is a non-negotiable step for foreigners purchasing property in Turkey. Adhering to these regulations is crucial for a successful and legally compliant transaction, especially for those aiming for a residence permit or Turkish citizenship. Given the complexities involved, it is always advisable to consult with an experienced legal professional or real estate expert specializing in Turkish immigration and investment to ensure a seamless process in 2026.
