Is it possible to buy a property in Turkey with foreign currency?

When looking at Turkey as a destination for real estate investment, many Arab investors ask the following question: Is it possible to buy a property in Turkey in foreign currency? Turkey is witnessing an increasing demand by foreign investors, and the answer to this question is important for understanding the real estate laws in Turkey and the purchase processes. In this article, we will learn about the details of these laws and the procedures necessary to buy a property in Turkey, including the legal and financial steps and the required documentation and we will also highlight some important tips to consider when investing in Turkish real estate in the local currency.

What about buying a property in Turkey in foreign currency?

Turkey allows foreigners the right to own real estate in all its cities and regions, with the exception of military or security areas and foreigners are allowed to buy residential, commercial, industrial or agricultural real estate, and there is no specific number of real estate that they can own, but it is stipulated that their ownership does not exceed 10% of the area of ​​the municipality in which they own real estate.

Previously, foreigners were allowed to buy real estate in Turkey and pay for it in Turkish lira, US dollars, European euros, or any other foreign currency.

However, a new republican decree was issued at the beginning of this year, signed by Turkish President Recep Tayyip Erdogan, and the decision included the following points:

1. Foreign currency (regardless of its type) must be sold to the Central Bank of Turkey and exchanged for the local currency.
2. The process of selling foreign currency takes place through a banking intermediary from accredited banks in the country, whether governmental or private.
3. The foreign currency sale receipt to the Central Bank of Turkey requires an explanation of the reason behind the sale, such as real estate investment in Turkey, housing, or obtaining Turkish citizenship.
4. The value of the property in Turkish lira is transferred exclusively from the buyer's account to the seller's account through the same banking intermediary at which the foreign currency sale was made to the Central Bank of Turkey.

Advantages of buying a property in Turkey

1. Turkey provides clear and open real estate ownership laws for foreigners, which facilitates and encourages the process of buying real estate.
2. It offers a wide variety of properties, ranging from apartments and villas to agricultural and commercial lands, allowing buyers to choose from a variety of options.
3. Real estate in Turkey is attractive in terms of value for money, as prices in Turkey are reasonable compared to some other countries.
4. Turkey is witnessing strong economic growth, which enhances the opportunity to obtain a high return on investment by renting real estate for housing or commercial leasing.
5. Turkey enjoys a strategic geographical location, as it is a point of intersection between Europe and Asia, and this enhances the demand for real estate in the country.
6. Buying a property in Turkey allows the buyer to obtain residence permits, allowing them to benefit from public services and other benefits in the country.
7. Turkey is an attractive investment destination for foreigners, and this enhances foreign real estate investment in the country.
8. Citizenship programs are offered through real estate investment, which attracts investors who want to obtain Turkish citizenship.
9. Turkey has a rich cultural history and ancient civilizational heritage, which makes it an ideal destination to live and enjoy a diverse and enjoyable life experience.
10. Turkey is interested in developing a friendly investment environment for foreigners, and provides support and facilities for foreign investors wishing to buy real estate in the country.

The necessary documents to buy a property in Turkey 

1. The title deed of the property containing the detailed address of the property must be submitted.
2. Bring the passport and translate it into Turkish.
3. The average real estate values ​​report in the area is issued by the municipality and must be submitted.
4. You must obtain an appraisal report for the property in Turkey
5. Submitting a real estate insurance document against earthquakes in Turkey 
6. A personal photo of the seller and two photos of the buyer must be provided.
7. If one of the parties is not fluent in the Turkish language, a sworn translator must be provided.
8. If the process is mediated by an agency concluded outside Turkey, a certified translation of the agency must be submitted by a sworn translator, attached to the original copy of the agency.
9. If the buyer is a foreigner, a sealed bank proof of the exchange of the value of the property from the foreign currency into the Turkish lira must be submitted within the official Turkish banks.

Steps to buy a property in Turkey 

1. Before proceeding with the purchase process, you must determine the requirements for the desired property and determine the available budget.
2. Do extensive research to find the right property and you can use local media, online real estate websites, and local real estate agents to help with your search.
3. Visit and inspect selected properties in person and ensure that the property matches your requirements and meets expectations.
4. You can contract with a local real estate company to help with the purchase procedures and negotiate with the seller.
5. Do the necessary research to verify the legal documents of the property and ensure that there are no legal problems or mortgages on it.
6. After reaching an agreement between the two parties, a sale and purchase contract will be signed and you must pay the first payment and set a schedule for the remaining payments.
7. An appointment must be booked at the Land Registry Directorate to complete the procedures for transferring ownership and registering the property in the name of the buyer.
8. Pay the remaining amount and applicable taxes in Turkey.
9. Once you complete all the procedures and pay the remaining amounts, you will get the official title documents for the property.
10. After obtaining ownership, the property must be registered with the local municipality and public services such as water, electricity and gas must be arranged.

Common questions

Can I buy a property in Turkey with foreign currency?

Previously, foreigners were allowed to buy real estate in Turkey in foreign currency, but new amendments have been implemented that require foreign currency to be exchanged for Turkish lira before completing the purchase.

What is the purpose of the amendments to real estate laws in Turkey?

The amendments aim to enhance Turkey's financial independence and strengthen the local economy by promoting the use of the Turkish lira and reducing dependence on foreign currencies.

Does this amendment apply to Arab investors only?

No, the amendment applies to all foreign investors who want to buy a property in Turkey, regardless of their nationality.

The idea of ​​buying real estate in Turkeyhas become popular among those interested in obtaining an ideal opportunity for housing or investment and take advantage of the appropriate real estate investment options in Istanbul to obtain a high return by communicating with our real estate consultants.

Do not forget that investing in real estate in Turkeyis only a way to gain Turkish citizenshipor real estate residencepermit that allows you to stay in the country legally and then acquire many of the privileges that a Turkish citizen gets.

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