The Turkish economy is going through continuous progress of evolving and polishing; since 2001, the economy of Turkey has become more open to international standards.
The Turkish market has taken several significant measures to strengthen the supervisory associations to adopt the free-market regulations and embrace the global banking industry's policies.
And due to the tremendous economic shift that Turkey has witnessed in the last 20 years, a significant figure of local Turkish banks has been established with more than 51 local banks, divided between governmental, private, and joint-stock banks, and 800 billion dollars as a net market value.
Due to the robust economy of Turkey, resilience has been maintained in the financial markets, generated the growth has become more sophisticated as the demand expanded, so multiple international banks have founded and transferred their business in Turkey.
This article informs you about Turkey's banking system, how to safely transfer money to Turkey as a foreign investor, the taxation system, and terms and legalization.
Banking System in Turkey:
Due to the focal location of Turkey between Europe and Asia, Turkey adopted free-market policies to attract international investors. Still, such a thing cannot be applied without having solid-ground fundamentals, such as various banks, that would facilitate foreign affairs and business in Turkey, which global firms do. Turkey possesses more than 51 local banks, most of which accept a foreign application without any restriction or extra obligation; here is the list of most favorable banks which speak English and accept foreigner invertor’s applications:
1- Ziraat Bankası (Governmental premier bank)
2- Türkiye İş Bankası ) The oldest republican bank affiliated with the joint sector( affording their services in the English and Turkish language with global branches in Europe and the world.
3- Each of Garanti Bankası, Akbank, Finansbank, Halkbank, Vakıfbank, and Yapı Kredi Bankası (affiliated to the private sector), affords their services in the English and Turkish language with global branches around the world.
4- Each of Kuveyt Türk, Albaraka Bank, and QNB Bank are foreign banks affiliated with Arabia countries, affording their services in Arabic and English with global branches in the Middle East and the world.
In Turkey, there are also many European banks, such as:
Deutsche Bank, HSBC Bank, Citibank, and J.P. Morgan Chase. They have branches in the three biggest cities of Turkey: İstanbul, Ankara, and İzmir, and for sure serve clients in multi-languages, but under several restrictions and legalizations.
How to open a bank account as a foreigner in Turkey:
(the procedure and laws):
1- First, a registered tax number will be required to open a bank account in Turkey as a foreigner. Most banks will also need a residency permit to open a bank account in Turkish Lira.
Still, there're some exceptions for significant investment value, but it is worth noting it's applied to all the Turkish banks. So, a residency permit in Turkey is preferable to be extracted to avoid delay or potential bummers.
2- Foreign currency such as Euro, British pounds, or US dollar accounts can be considered an exception to opening a bank account without needing a residency permit in Turkey.
3- The vailed passport is a most, In the case of not obtaining a residence permit in Turkey
After all the required documents are accumulated, you can go to any selected Turkish or foreign banks and create a bank account in your name.
How to transfer money to Turkey:
According to the purpose of Transfer money to Turkey, the transfer application will be determined; for instance: buying property In Turkey to obtaining the Turkish citizenship as a foreign investor, you must follow a specific method, which is:
1- Find a suitable real estate property in Turkey that match the Turkish citizenship’s application for a foreign investor under the value of 400.000 $
2- Sign the (Contract of Promise to Sell ) or )Contract of Sale, Transfer of Ownership) with a specific Turkish construction company to obtain a copy of the contract and illustrate it to your bank in your country.
3- According to the signed contract, the money would be easily transferred to Turkey without restrictions or limitations.
4- The money will be transferred to the construction company’s IBAN, and the transfer process will be done.
About the extra fees, it totally depends on the bank you’re dealing with; however, the fees for 400.000 $ won’t exceed the 500 $ MAX, so we highly recommend you connect with your bank and get informed about any additional fees or taxes.
Additional Methods of Transferring Money to Turkey:
1- The power of attorney: in case you’re purchasing a property in Turkey online, without being physically in Tukey, still you can finish the process of transferring money to turkey online by hiring a trusted attorney, do a power of attorney through Turkey's embassy, and by doing so, the attorney in Turkey will be able to finish the process on your behalf.
2- Create a bank account in the international bank: by creating a bank account in an international bank that already functions in Turkey, you can easily open a bank account in your country and transfer the money quickly within your bank account.
For example: open a bank account in the HSBC Bank in your country, you would quickly transfer between the two branches, which are in your country, and the one in Turkey, without paying any fees or extra taxes upon the transfer process.
Mistakes must be avoided in transferring money to Turkey:
- One of the frequently asked questions about transferring money to Turkey is the legal eligibility to get the money through the airport in Turkey and if there are any extra fees or taxes?
Due to the adopted free-market policies, there are no legal restrictions on entering money through Turkish airports or a specific amount of money. Still, the potential problem you will face in your country during trying to get money out's process through the airport legally.
For instance: most Middle Eastern countries impose a maximum limit on their citizens to take out liquid cash through airports, which often does not exceed 10 thousand dollars, with the need to pay a tax and obtain a permit from the customs department at the airport, Therefore, we highly stress the importance of transferring cash to Turkey in a legal manner.
Turkey Advisors team involves a dedicated law department to take care of the after-sale issues, such as transferring money to Turkey and establishing a bank account in Turkey. So all you have to do is connect with us today, and our professional team will make sure to serve you deserve; whether to find the suitable real estate property in Turkey for your family or obtain Turkish citizenship for you as a foreign investor, give us a call, and leave the rest on us.