FOREIGNERS HAVE TO EXCHANGE THE CURRENCY AT THE BANK WHILE BUYING A $250,000 HOUSE.

                                        T.C.
MINISTRY OF ENVIRONMENT, URBANIZATION AND CLIMATE CHANGE 

        General Directorate of Land Registry and Cadastre

21.01.2022 TARIBLI  CIRCULAR 2022/1

     Currency Purchase Certificate for Foreign Natural Person Acquisitions

 

Requests of real persons of foreign nationality regarding immovable property savings in our country are finalized as stated in the circular no (a).

This time on the Protection of the Value of the Turkish Currency, published in the Official Gazette dated 28/2/2008 and numbered 26801, with the Decision No. 32 on the Protection of the Value of the Turkish Currency, which was put into effect with the Council of Ministers Decision dated 7/8/1989 and numbered 89/14391. Based on Article 16 of the Communiqué on Decision No. 32 (Communiqué No: 2008-32/34), T.C. Article 13 titled “Real Estates” of the Circular on (b) Capital Movements prepared by the Central Bank;
“(1) It is free for banks to transfer the net amount of real estate and real rights related to real estate purchased or owned by non-residents in Turkey, and the net amount of revenues and sales prices after deducting taxes and similar liabilities abroad.
(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 are 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 land registry office as the sales price by the relevant parties.
(4) Within the scope of the second paragraph, it is possible to sell foreign currency to banks only by the buyer, seller of the relevant real estate, their proxies or representatives.
(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 Identity Number of the person who has exchanged foreign currency, the foreign currency bought in US dollars and a statement stating that this transaction is carried out within the scope of this article. must be added”

The provisions of the Capital Movements Circular dated 2/5/2018, which was prepared based on the first paragraph of the 20th article of the Decision No. 32 on the Protection of the Value of the Turkish Currency, and the second paragraph of the 13th article of the Circular (c) “Capital Movements In the 4th article titled “Principles of the Transaction” of the Implementation Instruction on the Sales of Foreign Exchange to the Central Bank of the Republic of Turkey within the Scope of Article 13;

“(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 the foreign exchange sales to be made to the banks, at least, the name, surname, passport number or Foreigner Identity Number of the foreigner whose name is exchanged, the US dollar equivalent of the foreign currency purchased and the scope of this transaction within the scope of Article 13 of the Capital Movements Circular. It is mandatory to include a statement stating that it has been performed.

(5) In the calculation of the US dollar equivalent of the foreign currency to be specified in the foreign currency purchase documents to be issued by the banks within the scope of this Implementation Instruction, the US dollar exchange rate announced at the same time as the foreign exchange rate subject to the transaction is taken as basis.”

It is 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 a “Currency Purchase Certificate” to be issued by the bank. must be submitted to the Land Registry Directorate before the sale process.

In the “Currency Purchase Document; at least, the name, surname, passport number or foreign identification number of the person on whose behalf the foreign currency was exchanged, the US Dollar equivalent of the foreign currency purchased (in any case in TL equivalents.) and the “Capital Movements Circular” of this transaction. There should be a statement stating that it was carried out within the scope of “Article 13 of the Law”.

In the third paragraph of the 13th article of the circular of interest (b), “Relevant persons are obliged to submit the foreign currency purchase document proving that the foreign currency with the sales price has been sold to a bank in the application for title deed transactions. declared.” Since it is said that the official document is issued on the basis of the TL value shown in the “Currency Purchase Document,

Therefore, there is no payment item (commission, expense, etc.) other than the real estate sales / promise to sell, contract price, in the foreign currency sales amount based on the declared value,

Since the value declared in the official promissory note (for sale) will be made to the bank within the scope of these regulations, special attention should be paid to the foreign currency sales amount;

Required.

As a result of this regulation, no foreign exchange calculation will be made regarding the value of the sales promise contract prepared in the sales official deed to be prepared at the land registry office or the notary public, and the “Currency Purchase Certificate” will be taken as the basis for the valuation.

On the other hand, in accordance with the foreign exchange legislation, real estate sales contracts to which foreign real persons are parties as buyers can be drawn up in foreign currency or indexed to foreign currency.

In this context, the real estate sales promise contract should be considered as a real estate sales contract in terms of foreign currency or foreign currency indexed contracts; In real estate sales or promise-to-sale contracts where foreign real persons are the sellers (the buyer is a Turkish citizen or a Turkish company), the price must be determined in Turkish Lira.

In this respect, the Turkish Lira value in the “Foreign Currency Purchase Certificate” shall be taken as the basis for foreign real persons’ sales promise transactions in USD or other foreign currency.

However, in cases where the sales price is deposited into the account of the buyer before the publication date of this circular, it will not be possible to exchange foreign currency in return for the price, and if this is documented with an approved bank receipt, there is no need to request a foreign currency purchase document.

In this case, the sales value to be stated in the official promissory note should not be lower than the value deposited in the buyer’s account, and in cases where a payment is made in foreign currency to the buyer’s account, the Turkish Lira value to be found over the previous Central Bank’s effective selling rate on the date of issue of the receipt. (For example, if the sale price of the real estate is deposited with receipts of 1.000.000 ₺ dated 11.11.2021 and 500.000 ₺ dated 15.12.2021, the official bill price will be 1.500.000 ₺, whereas for the deposited with 100.000 USD dated 11.11.2021 and 50,000 USD dated 15.12.2021 receipts, 100,000 x 9 ,8135 (MB Rate dated 10.11.2021) = 981.350 + 50,000 x 14.2213 (MB Rate dated 14.12.2021) = 711.065 ₺ which will be 1.692.415 ₺ in total)

On the other hand, only for the cases where the transfer was made before the publication of this circular and the foreign exchange purchase document could not be issued; If an amount more than the amount deposited in the buyer’s account is shown as the selling value, a foreign currency purchase document stating that the foreign currency has been exchanged to be sold to the Central Bank equal to the difference will be required.