What is a Currency Purchase Document?

What is a Currency Purchase Document?
The foreign currency purchase document shows that the foreign currency was sold to a bank operating in Turkey to be sold to the central bank before the foreign national buyer made the sale transaction to the land registry office.

It should be noted that, according to Article 20 of the Regulation on the Implementation of the Turkish Citizenship Law, “At least 250.000 US Dollars or equivalent foreign currency has been purchased, or a condominium or condominium servitude has been established, with the condition that it is not sold for three years in the title deed records of the immovable property worth at least 250.000 USD or equivalent in foreign currency. With a contract drawn up in a notary public, provided that the amount of which is deposited in advance and the undertaking that it will not be transferred or canceled for three years in the land registry
determined by the Ministry of Environment, Urbanization and Climate Change, where the sale of the real estate is promised.
Foreign persons can acquire Turkish citizenship by the decision of the President.

Why is Currency Purchase Document Necessary?

 Within the scope of the Article 13 of the Circular titled Capital Movements of the Central Bank of the Republic of Turkey and the Regulation on the Implementation of the Turkish Citizenship Law, the Central Bank has been obliged to exchange foreign currency for transactions in which foreigners are buyers regarding the sale of foreign currency to the Central Bank of the Republic of Turkey.

According to the regulation detailed in the text of the Circular that entered into force on 24.01.2022, foreign nationals must first sell their existing foreign currency through banks to the Central Bank for real estate purchase transactions and then submit the Foreign Exchange Purchase Certificate issued by the relevant bank to the Land Registry Directorate. As a result of the relevant regulation, no additional currency calculation will be made regarding the value of the sales promise contract prepared in the official sales deed to be drawn up at the land registry directorate or in the notary public, and the “Currency Purchase Certificate” will be taken as the basis for the valuation.

For the foreign exchange sales to be made to banks, the foreigner can sell himself/herself, or a foreign currency purchase document can be obtained by making a power of attorney given to a lawyer registered with the Bar Association. This sale is based on the US dollar (USD) announced simultaneously as the foreign exchange rate subject to the transaction.

Transactions made before the publication of the relevant Circular will be accepted, and there will be no need to submit a foreign currency purchase document. However, for the transactions made before the publication date of the relevant Circular, the bank receipt regarding the money transfer from the buyer to the seller must be submitted.

How is Currency Purchase Document Arranged?

In the foreign currency purchase document, the name, surname, passport, or foreigner’s identity number of the real foreigner person for whom the foreign currency is exchanged and the US dollar equivalent of the foreign currency purchased must be stated. The foreign currency purchase document must be obtained from the bank where the foreign currency was exchanged on behalf of the Central Bank. The foreign currency equivalent value exchanged for the foreign currency purchase document should be reflected as the principal value in the official year. While the foreign currency exchange document is sufficient in sales transactions, it is also required to submit the bank receipt regarding the transfer made from the buyer to the seller regarding the unique way of obtaining citizenship through the purchase of the real estate.

Footnote

As can be seen, since the publication of the circular dated 24.01.2022, it has become obligatory to submit a “Currency Purchase Certificate” in real estate purchase and sale transactions for foreign nationals. It has become essential to get help and follow-up services from a lawyer working in the field of Foreigners Law to complete the transactions related to the subject completely and quickly. In our Law Office, we provide you with professional assistance and follow-up services in the field of Foreigners Law.