Laws pertaining to Money
laws are set out in their entirety. All parts relevant to general
personal monetary movement are in larger font. The parts most pertinent
to foreigners buying Real Estate in Turkey are highlighted.
NO. 32 REGARDING THE PROTECTION OF THE VALUE OF THE TURKISH CURRENCY
I GENERAL PRINCIPLES
Purpose, Subject, Authority and Reserved Provisions
1 - The regulatory and restrictive principles are determined and laid
down by this Decree for the purposes of protection of the value of the
Turkish Currency in connection with the determination of the value of
the Turkish currency against foreign currencies, all the operations
relating to foreign exchange and the instruments representing foreign
exchange (including securities and other capital market instruments),
the use and management of foreign exchange, imports and exports of the
Turkish currency(including securities and other capital market
instruments),transactions related to precious metals, stones and
articles, issue of permits for the imports with waiver by collecting
premium, imports, exports, exports and imports of special nature,
invisible transactions and foreign exchange transactions related to
Violations of this Decree and the Communiqués to be published by the
Ministry for the purposes of implementation of this Decree are
considered as violations of Law No.1567 and its supplements and
provisions taken place in different laws and international agreements
2 - The following terms shall have the meanings given below in the
implementation of this Decree
Ministry: The Ministry which the Undersecretariat of Treasury is
Residents: The real persons and legal entities who reside in Turkey
including the workers, members of independent profession and independent
businessmen and those residing in Turkey for more than 6 months
permanently within one calendar year with the intent of settlement (The
real persons and legal entities among non-residents those open branches
or establish a company or participate to a company in Turkey, through
capital allocation according to Turkish Republic Laws, are pertaining
only to those activities regarded as residing in Turkey),
Non-residents: The real persons and legal entities not considered as
residents of Turkey,
Travelers: The persons holding a valid passport or documents acceptable
in place of a passport and arriving at the gates of entry and exits
designated by the Ministry of Finance and Customs in order to enter into
or depart from Turkey) Turkish Currency: The money in circulation in
Turkey according to the Laws of the Republic of Turkey or even if they
have been removed from circulation, the time allowed for their
replacement has not expired yet,
Instruments enabling payment in Turkish Lira: All instruments and means
enabling payment in Turkish Lira such as commercial and ordinary bills,
letters of credit, credit cards, travelers cheques, remittances and
Foreign currency notes: Currencies of all foreign countries in the form
Foreign Exchange: Foreign currency notes and all other instruments,
accounts and means enabling payment in foreign currency.
Securities: All Turkish and foreign securities traded in capital and
money markets, (in the implementation of this Decree, mutual funds
participating certificates are taken into consideration as securities)
Precious metals: Gold and platinum of all kinds and in all forms.
Unprocessed gold: Gold in the forms of bars or ingots with minimum
purity of 995/1000, the characteristic of which determined by the
Processed gold: Gold with the purity of less than 995/1000, purchased
and sold after either being transformed into ornaments or jewelry by
application of workmanship or being added substances into or not.
Precious stones: Diamond, brilliant, ruby, emerald, topaz, sapphire,
crystallite and pearl,
Precious articles: Articles, made from or containing precious metals or
Central Bank: The Central Bank of the Republic of Turkey and its
Banks: The banks operating in Turkey under the Banks Act,
Authorized Institutions: The joint stock companies authorized to
conclude transactions in foreign exchange and also precious metals,
stones and articles within the framework of the procedures and rules set
out by the Ministry.
Special Finance Institutions: The finance institutions in the form of
Joint Stock Companies allocating funds to the economy by raising funds
within the country and abroad in addition to their capital within the
framework of the procedure and rules set out pursuant to the Decree
supplementing Decree No. 83/7506, dated December 16, 1983,
General Directorate of Turkish Postal Services,
capital market instruments: capital market instruments, other than the
securities (as defined in the subparagraph (i) of this Article), which
are determined by the Capital Market Board,
Undersecretariat: Undersecretariat of Treasury ,
Precious metals intermediary institutions: The banks, the authorized
institutions and the precious metals intermediary companies having
operation permissions issued in accordance with the legislation related
to precious metals exchange.
II PROVISIONS CONCERNING TURKISH CURRENCY, FOREIGN
EXCHANGE, PRECIOUS METALS, STONES AND ARTICLES
3-a) The import of the Turkish currency and the means enabling payments
in Turkish lira is free. The export of the same is free within the
framework of principles in the following:
Residents and non-residents may freely send Turkish Lira abroad through
banks and special financial institutions.
Travelers may freely take abroad Turkish Lira banknotes whose value is
not exceeding US$ 5.000,- .
The export of the means enabling payment in Turkish Lira is free.
Non-residents may freely pay, receive and make deposits in Turkish Lira
Banks and special finance institutions inform authorities, determined by
the Ministry, about transfers abroad exceeding Turkish Lira
equivalent to US$ 50.000 , excluding payments for import and
invisible transactions as well as capital export within 30 days from the
date of transfer.
Import of foreign exchange to Turkey is free.
Turkish residents may freely hold foreign exchange with them, purchase
foreign exchange from authorized institutions, special finance
institutions, PT and precious metals intermediary companies; keep
foreign exchange in foreign exchange accounts they open in banks, use as
bank notes, make use of them within the country and abroad through banks
and special finance institutions.
Acceptance of foreign exchange by the residents from the non-residents
in return for the transactions they will conclude in Turkey is free.
Non-residents may freely purchase foreign currency from the banks,
authorized institutions, special finance institutions, PT and precious
metals intermediary companies.
Residents and non-residents may freely transfer foreign exchange abroad
through banks and special finance institutions.
and special finance institutions inform authorities, determined by the
Ministry, about transfers abroad exceeding US$ 50.000 or its
equivalent of foreign currency notes (including transfers from foreign
exchange deposits), excluding payments for import and invisible
transactions as well as capital export within 30 days from the date of
Travelers may take up to US$ 5.000 or its equivalent of foreign currency
notes out of the country.
Non-residents and although considered as residents, those Turkish
citizens working abroad-provided that they have declared it on their
arrival- and residents those present a document that they purchase
foreign exchange from the banks and special finance institutions within
the framework of the regulations on invisible transactions, may freely
take abroad foreign currency notes whose value is exceeding US$ 5.000,-
5- The value of foreign currencies against the Turkish Currency are
determined within the framework of the procedures established by the
Purchase and sale of foreign exchange are realized at daily exchange
rates on the date of the transaction. The provisions of Article 6 and 8
of this Decree are reserved.
time of documentation relating to the purchase and sale of foreign
exchange for setoffs, bid rates on the date of the transaction are
Transactions Related to Foreign Exchange
6- Transactions related to foreign exchange are conducted by the Central
Bank, banks, authorized institutions, special finance institutions and
precious metals intermediary companies in convertible foreign currencies
determined by the Central Bank, and the purchases of foreign exchange
brought into the country according to the foreign capital legislation is
realized by the banks. The procedure and principles to be observed in
the purchase and sale of non-convertible foreign currencies are
determined and published by the Central Bank. Banks and precious metals
intermediary institutions may execute forward foreign exchange
transactions. Central Bank is authorized to issue regulations related to
forward purchase and sale of foreign exchange.
execute foreign exchange transactions within the framework of principles
approved by the Ministry.
authorized institutions special finance institutions, PT and precious
metals intermediary companies transfer their foreign exchange holdings
to the Central Bank within the framework of the principles and the
ratios to be set out by the Ministry.
above mentioned organizations (except PT) which have completely
fulfilled their foreign exchange obligations towards the Central Bank
may carry out, within the framework of the rules set out by the Central
Bank, all kinds of transactions in foreign exchange by participating in
the Foreign Exchange and Foreign Currency Note Market established in the
Central Bank provided that they have complied with all the other
conditions set out by the Central Bank.
authorized institutions, special finance institutions, PT and precious
metals intermediary companies may, according to banking customs and
practices, freely use their foreign exchange holdings preferably in
meeting the countrys requirements provided that they comply with this
Decree and the principles to be determined by the Central Bank.
Precious metals, stones and Articles
7- a) Imports to Turkey and exports from Turkey of precious metals,
stones and articles are free within the rules of foreign trade regime.
In the exportation and importation of unprocessed gold, however, the
provisions of Import and Export Regimes and Regulations are not applied
provided that a declaration must be submitted to the Customs
Administrations. Importation of unprocessed gold are made by the Central
Bank and precious metals intermediary institutions which are the members
of the Precious Metals Exchange. However the members of the Precious
Metals Exchange must surrender the unprocessed gold imported by
themselves to Istanbul Gold Exchange within three days.
b)Purchase and sale of precious metals, stones and articles in the
country are free.
Travelers may bring into and take out of the country with them, articles
made from precious metals and stones being of the characteristics of
ornamental articles, the value of them not exceeding US$ 15.000
and having no commercial purpose. Taking out of the country of the
ornamental articles above the said value is dependent upon their
declaration on arrival or authenticating that they have been purchased
Central Bank and precious metals intermediary institutions shall execute
purchase and sale in Turkey of unprocessed gold that they imported, only
in Istanbul Gold Exchange.
III FOREIGN TRADE
8- a) It is obligatory for the exporters to bring into the country and
sell foreign exchange receipts of the goods exported for commercial
purposes or document it, in case the receipts are in Turkish currency,
to the banks or special finance institutions, within 180 days of the
date of shipment excluding delays due to the special events foreseen in
this Decree and the events of force majeure approved by the Ministry.
the event that at least 70 percent of the export proceeds in foreign
exchange is brought and sold to banks or special finance institutions
within 90 days as of the date of shipment, the residual part
corresponding to 30 percent may be left to the free disposal of the
export transactions involving the export of the spare parts and material
within the scope of the services provided by the residents based on the
technical service contract they have made with non-residents (including
repair, maintenance, installation services and similar services) and
being included in the cost of the service specified in the contract are
subject to the provisions of the Export Regime in force.
is not mandatory to bring the export proceeds of unprocessed gold into
Ministry is authorized to lay down;
principles governing period, extension and exchange rate to be applied
in the justified events and the events of force majeure preventing the
bringing into the country in time of the export value.
procedure and principles governing the period of bringing into the
country the value of exports of special nature,
course of actions to be taken when the value of exports is not brought
into the country in time,
principles and procedures concerned with closing export accounts in
factoring, leasing and forfeiting operations,
Principles and procedures related to the terms of export payment.
the cases when the export proceeds in foreign exchange are brought into
the country, which is compulsory, after the periods provided for in this
Article, the favorable difference which occurs between the rate
effective on the last day of the period and the rate effective on the
day on which the foreign exchange is sold, is not paid to the parties
concerned but to the Support and Price Stabilization Fund, even in the
cases when it happens within the extensions.
proceeds in foreign exchange brought into the country with delays due to
the events of force majeure approved by the Ministry are bought at the
current exchange rate.
who export goods through the customs gates undeclared by quantity,
quality or value, or by smuggling from other borders and coasts are
obliged to repatriate the foreign exchange representing the value of
such goods and sell them to a bank within 90 days starting from the date
notified by the exchange auditing authorities. However, repatriation of
foreign exchange does not abolish the criminal liabilities under Law No.
1567 and its supplements and amendments.
9- According to banking customs and practices and the agreements between
the buyer and the seller, banks and special finance institutions that
are intermediating the imports pay either in Turkish Lira or foreign
exchange the value of imports from their own sources and within the
procedures to be set out by the Ministry, from the foreign exchange
accounts of importers.
Ministry determines the principles governing;
course of actions to be taken during the period starting from the
transfer of import payments to the closing of import accounts,
Imports without allocation of foreign exchange (covering both commercial
and non-commercial types),
Imports of special nature and exceptional imports,
forms of import payments,
vehicles, goods and articles temporarily imported or imported under
exemption according to this Decree and legislation are taken out from
the country or abandoned to the customs on the expiry of their allowed
periods. Transfer or sale of these vehicles, goods and articles to
others in any manner or acquisition of them by the real persons and
legal entities, permanent import of them and transfer of their value
when necessary, are subject to the permission of the Ministry.
IV INVISIBLE TRANSACTIONS
Transactions requiring payments in foreign exchange
10- The transfer of Turkish Currency and the allocation and transfer of
foreign exchange and the sale of foreign currency notes in relation with
the international transports, banking, insurance and services rendered
abroad and other invisible transactions are performed by the banks and
the special finance institutions within the framework of the procedures,
rules and limits to be determined by the Central Bank.
Foreign exchange earning transactions
11- The residents may freely dispose of the foreign exchange earned in
return for all services (including contracting services) rendered within
the country or abroad for the non-residents or on behalf of them and the
foreign exchange pertaining to the expenses incurred on behalf of and
for the account of non-residents.
V CAPITAL MOVEMENTS
Capital inflow to Turkey
12- It is free for the non-residents to establish a company, participate
in a new or existing company, to make an investment by opening a branch
and to engage in all activities aiming at production of all kind of
goods and services and opening liaison office provided that the
necessary permission is obtained pursuant to the Law of Encouragement of
Foreign Capital No.6224 and operations are carried out within the
framework of the permission granted and the required capital is brought
into the country.
conclusion by the residents with the non-residents of agreements
concerning license, know-how, technical assistance and management is
free, provided that the necessary permission is obtained according to
in commercial activities and establishing ordinary partnership
(excluding the ordinary partnership formed for international tenders) in
Turkey by the non-residents other than their incorporated companies and
branch and liaison offices opened in Turkey pursuant to the foreign
capital legislation and petroleum law, and concluding license and
representation agreements by the residents with the credit card
companies residing abroad, are subject to the permission of the
Ministry. The rules for such matters as well as transfer of profit,
proceeds of sales and liquidation, the amounts to be paid in accordance
with license and representation agreements are laid down by the
Capital outflow from Turkey
13- The residents may freely transfer capital, in order to establish
companies for the purpose of realizing investments or commercial
activities or to participate in an enterprise or to open branches abroad
or in the free zones in Turkey, in the form of cash up to US dollar 5
million or the equivalent in other foreign currencies through banks and
special finance institutions, and in kind, according to the provisions
set forth in the customs legislation. The transfer of capital, in kind
or in cash, amounting to more than US$ 5 million or its equivalent is
permitted by the Ministry.
residents are free to establish representative, liaison and similar
offices abroad and to transfer establishment expenses and operational
costs through banks and special finance institutions.
banks, special finance institutions and customs administrations inform
the Undersecretariat, about the residents transferring capital abroad or
to free zones in Turkey for investment or commercial purposes, within 30
days from the date of each transaction.
residents transferring capital abroad or to free zones in Turkey, will
provide the information to the Undersecretariat related to the branches,
companies or partnerships they have established abroad within one year
from the date of transfer, by submitting the documents pertaining to the
permissions obtained from local official entities, articles of
incorporation, commencement date and address of the activities, annual
report, profits transferred into the country, capital formation and/or
changes in the amount of the capital and the termination date of the
and special finance institutions will inform the Undersecretariat about
the transfers they make regarding representations, liaison and similar
offices abroad by quarterly reports, until the end of the month
following each quarterly period.
residents establishing representative, liaison and similar offices
abroad, will inform the Undersecretariat, within 90 days from the date
of establishment, submitting the documents pertaining to the permissions
obtained from local official entities, commencement date, address and
the termination of the activities of the established institution.
Transfer of wealth
14- Import requests by immigrants and refugees falling outside the scope
of Article 31 of the Settlement Law, Decree of Imports with Waiver and
Customs Legislation are concluded by the Ministry.
Principles for transfers of wealth in and outside the country excluding
the special permissions given under the Customs Law are determined by
15- a) The physical movement of the securities and other capital market
instruments into and out of the country is free.
b) It is
free for the residents to issue, introduce and sell securities and other
capital market instruments abroad.
Issue, public introduction and sale of the securities and other capital
market instruments by non-residents are realized within the framework of
the provisions of the Capital Market Legislation.
It is free for non-residents (including mutual funds and investment
companies abroad) to buy and sell all securities and other capital
market instruments through intermediary companies and banks authorized
according to the Capital Market Legislation and to transfer the income
and the sales proceeds from such instruments and other capital market
securities, through banks and special finance institutions.
is free for residents to purchase and sell securities traded on foreign
financial markets abroad through banks, special finance institutions and
intermediary companies authorized according to the Capital Market
Legislation and to have their purchase value transferred abroad through
banks and special finance institutions.
and intermediary companies submit to the Undersecretariat quarterly
reports on such transactions.
Real Estate and Property
16- It is free to transfer, through banks and special finance
institutions, the revenues and sales proceeds of real estate and real
rights appertaining to these assets owned or bought by non-residents .
Undersecretariat of Treasury is informed as of quarterly periods about
transactions related to acquisition and sale of real rights appertaining
to the real estate and property of non-residents by the General
Directorate of Deeds and Land Survey, banks and special finance
institutions within 30 days following the preceding period.
17- a) Residents may freely obtain credits in kind or in cash from
abroad provided that they utilize such credits through banks or special
finance institutions. However, the terms of refinancing credits may not
exceed one year.
obligatory to submit a copy of the credit agreement to the Ministry
within 30 days after the entering into force of the agreement for the
credits with the maturity of more than one year in order to be entered
and registered in the "Debt Log" kept in the Ministry.
rules for the follow up of the credit with the maturity of less than one
year are determined by the Central Bank.
of interests and other charges on the said foreign credits as well as
the principal payments are transferred by the banks out of their own
Ministry is authorized to follow up credits obtained from abroad on real
person and legal entity basis, to impose, if necessary, prohibition,
limitation, to stop repayment of the credits not registered in the "Debt
Log" despite they were required to.
residents may extend foreign exchange credits as follows:
Commodity credits to be extended by banks according to the Import and
Foreign exchange credits with one year term to be extended by banks for
financing export, sales and deliveries to be considered as exports and
for activities earning foreign exchange,
Foreign exchange credits to be extended by banks for financing
investment goods and to the residents who are entitled to obtain foreign
credit within the scope of investment incentive certificate,
Foreign exchange credits to be extended to Turkish entrepreneurs working
abroad and to residents who have been awarded international tenders in
Turkey or who have undertaken defense industry projects approved by the
Undersecretariat of Defense Industry,
Foreign exchange credits to be extended by banks to the residents in
accordance with the rules to be set out by the Ministry,
Foreign exchange credits in cash that the banks will extend abroad up to
the total amount of the foreign exchange credits and the foreign
exchange deposits they have obtained.
Credits in Turkish Lira to be extended abroad by banks within the
framework of the banking customs and practices.
Interests and other charges on the credits mentioned in this article are
freely determined between the parties concerned. Exchange rate risk
arising from credit transactions is carried by the parties concerned.
procedure of implementation related to the credits are laid down by the
Central Bank according to the principles set out by the Ministry.
take the necessary measures to bring into the country in time, the
proceeds of the extended credits such as the principal, interest and
other charge payments as well as follow up this matter and inform the
Undersecretariat of Treasury of the adverse cases.
Non-pecuniary credits, guarantees and sureties
18- Residents may freely obtain non-pecuniary credits, guarantees and
sureties from abroad. They may freely issue guarantees and sureties in
favor of residents and non-residents.
may freely issue guarantees and sureties in foreign exchange, in favor
of residents on behalf of non-residents, and both in favor of as well as
on behalf of residents regarding international tenders in Turkey.
free to establish ship mortgages in foreign exchange pertaining to the
credits obtained for purchase of ships from abroad within the coverage
of the Law No.2581 on Development of Maritime Merchant Fleet and
Encouragement of Shipping Construction Facilities dated Jan.14,1982, as
well as the decrees and regulations attached to this Law.
and special finance institutions will inform the Undersecretariat about
the amounts claimed for payment and transferred abroad under the
liquidated guarantees and sureties within 30 days from the date of
transfer, and residents other than banks and special finance
institutions will inform the Undersecretariat about guarantees and
sureties issued in favor of non-residents within 30 days from the date
Foreign Exchange and Gold Deposit Accounts
19-The Central Bank and banks may open foreign exchange and gold deposit
accounts for the benefit of the residents and non-residents. Account
holders may freely use such accounts. The interest payable on such
accounts is freely determined between the bank and the account holder.
Transfers of the principal and the interest as well as return of the
gold are made by the banks out of their reserves.
Exchange rate risk arises from these accounts are carried by the parties
VI PROCEDURE AND JOINT PROVISIONS
20- The Ministry is authorized to take all measures it may deem
necessary to enable the enforcement of this Decree and to protect the
value of the Turkish currency, to examine and conclude the special cases
other than the events specified in the Decree, to authorize import with
waiver exceptionally by collecting additional premium to Public Housing
Fund up to % 100 of CIF value of the goods to be imported, to extend the
time allowed for bringing the foreign exchange into the country in the
justified cases and events of force majors and to lift partly or
entirely the obligation of bringing foreign exchange into the country
and to change the amounts called for in Articles 3,4,7 and 13 of this
Applications for the execution of the decisions taken by courts or
administrative authorities which entail imports of goods into the
country in order to collect a claim or for other reasons, are concluded
by the Ministry within the framework of the provisions of this Decree.
21- During the controls realized by the personnel authorized to execute
exchange controls and/or the Exchange Control Offices (both are called
Exchange Auditing Authorities), when operations of the persons who are
entitled to carry out those operations foreseen in this Decree are
discovered as contrary to the provisions of the Decree, Articles of the
Criminal Courts Procedure Law concerning the Reporting and Search are
applied against them.
governmental department and institutions as well as the real persons and
legal entities in Turkey (excluding those deemed exempt under special
laws and agreements) are obliged to provide the information requested in
writing by the exchange auditing authorities and show them the records
and books for the inspection of the transactions covered by this Decree.
The Ministry is authorized to terminate partly or entirely and
temporarily or indefinitely the operations of such persons or make their
further operations dependent on establishing a guarantee and if
necessary, forfeit such guarantees to the Treasury in part or in full or
cancel the obligation of establishing a guarantee in the case of the
existence of a justified excuse or event of force majors.
banks, authorized institutions, special finance institutions, precious
metals intermediary companies and all other related institutions are
obliged to provide all statistical information to be requested by the
Central Bank on the foreign exchange transactions covering a certain
period of time. The Central Bank is authorized to conduct investigations
concerning these matters at the banks and the said institutions.
authority of the banks, special finance institutions, authorized
institutions, PT and precious metals intermediary companies which fail
to fulfill their obligations hereunder to act as an intermediary in the
exchange transactions may be withdrawn partially or entirely by the
22- The day on which the transaction is concluded, is not taken into
account in the calculation of the periods specified in this Decree and
the Decrees to be published as supplements thereto and the related
Communiqués which give rise to a right and result in loss of a right and
the failure to comply with which shall constitute a violation.
However, should the last day of the periods to be calculated overlap
with an official holiday, the periods shall expire at the end of the
working hours of the next business day.
Foreign exchange purchase and sale receipts and certificates of transfer
23- The banks, special finance institutions, authorized institutions PT
and precious metals intermediary companies have to issue purchase and
sale receipts for foreign currencies and transfer certificates for
Turkish liras in the operations related to this Decree and the method
and principles concerning these receipts and certificates are determined
by the Central Bank.
VII MISCELLANEOUS PROVISIONS
24- The provisions of Law No. 6183 regarding Collection of the
Receivables of the State, shall be applied as regards to the receivable
required to be collected under this Decree and the Decrees and
Communiqués currently in force regarding the protection of the value of
the Turkish currency and the legislation related to the liquidation of
the foreign credits.
25- Decree No. 30 regarding the Protection of the Value of the Turkish
Currency and its supplementary Decrees have been repealed.
However, the Decree numbered 7/18015 and the Decree numbered
8/911(including its supplementary Decrees and Communiqués) both of which
are supplementing Decree No. 17 regarding the Protection of the Value of
the Turkish Currency are in force.
Provisional Article 1- The transactions commenced pursuant to the
provisions of the repealed Decrees are subject to the provisions of the
relevant Decrees. Unless otherwise provided, the provisions of this
Decree in favor of the concerned parties shall apply.
prosecutions initiated because of the acts contrary to the Decrees and
Communiqués published according to Law No. 1567 prior to the date of
entry into force of this Decree, but are not contrary to this Decree are
terminated and withdrawn.
issues that may arise in connection with the legislation repealed are
settled by the Ministry.
Provisional Article 2- Until the Istanbul Gold Exchange begins to
operate, banks, authorized institutions, special finance institutions
and precious metals intermediary companies those fulfilled the foreign
exchange obligations to the Central bank in addition to other conditions
imposed by the Central Bank, may purchase and sell gold with foreign
exchange and Turkish lira in the foreign exchange and foreign currency
note markets established in the Central Bank, according to the
principles set forth by the Central Bank.
26- This Decree shall come into force on the date of its publication.
27- This Decree shall be executed by the Minister which the
Undersecretariat of Treasury is attached to.