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BUYERS GUIDE

Finance and Banking in Turkey

FINANCE AND BANKING IN TURKEY

Turkish economy is one of the strongest economies in the world. Turkish economy is a free market economy where the rules of competition are applicable. Private sector is in leading position while public sector is in regulating position, and products and services are exchanged among individuals and organizations without any obstacle.

Structural reforms have become important in the Turkish economy in recent years. Thanks to these reforms, an independent economic organization with a strong infrastructure have been established, which has made Turkish economy stronger.

Turkish Lira

The official currency of the Republic of Turkey is “Turkish Lira”. Turkish Lira is available in paper bills and coins. Paper bills are also called banknotes. There are tactile dots on the upper left corner of the front surface of banknotes for the visually impaired.

Banking System

The primary function of banks is to provide loans to individuals and organizations and to profit from this transaction. Banks in Turkey are reliable businesses for getting loans and depositing money.

Deposit accounts and drawing accounts for Turkish Lira, foreign currency or gold may be opened in deposit and participation banks. Up to 100,000 TL of the money you deposit in a bank in Turkey is guarenteed by the state.

Opening an Account

Just as every person in Turkey, you have the right to open a bank account. Even if you do not have a job, you do not have money to deposit in a bank account or you are bankrupt, you can open an account in the banks operating in Turkey. You need to apply to a bank and present the required documents to open a bank account.

Required Documents to Open a Bank Account:

  • Passport, Identity documents
  • Tax ID numbers in Turkey
  • Any invoice (Electricity, Water, Telephone, Gas, Mobile) within 3 months at the latest, which must write your address in your home country.

Opening a bank account allows you to withdraw money, make payments or money transfer or engage in credit operations.

Almost all of these services are available 24/7 through ATM, telephone banking and online banking.

For further information contact with us or you may contact your bank 

Housing Loan (Credit)

You can get a housing loan from a bank while purchasing real estate in Turkey. Each bank has different conditions for granting a housing loan. Obtain information about housing loans from different banks if you plan to use a loan.
Mortgage: A legal agreement where a bank or other creditor lends money at interest in exchange for taking owenrship of the debtor’s property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Required Documents for Housing Loan:

Please deliver the following required documents with your application form:

  • The condominium or deed of easement right in the individual part of the house to be purchased
  • Photocopy of passport or residence permit (including the residence address of the person abroad)
  • Official tax return for the previous year to be obtained from the country of residence of the customer.
  • Most recent quarterly payroll (for employees) or retirement letter (for retired persons) signed by the employer abroad
  • Bank account book or credit card/credit account statement (bank approved) containing the transactions in the relevant account in the last 6 months
  • Reference letter for employees (approved by the employer company abroad)
  • Official document confirming personal assets
  • Credit Registration Bureau (CRB) registration from the country of residence of the client
  • Copy of the invoice (water, electricity, etc.) proving the customer’s address in the country of residence

For further informations please contact us or you may ask any Bank in Alanya

Credit Card

You may apply for a credit card, however banks may reject your credit card application based on the documents that you submit and considering your payment habits and financial background.

Credit cards are subject to two types of limits in Turkey. The first one is the limit allocated to individuals, which the upper limit to be assigned to a person is determined. There is also a credit card limit meaning that each credit card may have a different limit.

Money Transfer

It is necessary to perform bank transfer or EFT to transfer money from a bank account to another. Moving money from an account to another held in the same bank is called transfer, and transferring money from a bank account to another account owned by a different bank is called EFT (electronic funds transfer). Transfers can be performed by visiting a branch of a bank, online or telephone banking, ATMs, mobile applications or kiosks.

Since banks may have different applications for international money transfers, it may be necessary to visit a branch. You can also transfer money to anywhere in the world for a fee through international money transfer procedures.

Use of ATM

ATMs allow the money in a bank account to be used at any time. To be able to use ATMs, one must obtain a debit card or a credit card by applying to the bank holding their account.  Certain transactions that debit card or credit card holders can perform via ATM are as follows:

  • Withdrawing money up to a certain daily limit,
  • Paying power bills, water bills etc.
  • Depositing Turkish Lira units to prepaid telephone accounts,
  • Seeing the bank statement,
  • Depositing money to your own account,
  • Payment of credit card debt,
  • Making money transfers and EFT transactions.

 

Although each bank has its own ATMs, some banks operate ATMs for shared use. Using the ATM of a bank which holds one’s account is free of charge. However, charges may be applied when a shared ATM of another bank is used.

Foreign Exchange Trade

There are a lot of exchange offices in Turkey where you can buy and sell various foreign currencies. Euro, Dollar, and Pound are the most common currencies held by exchange offices. You can also convert money through banks. Foreign exchange rates may differ amongst the banks and the exchange offices.

Since most of the banks and exchange offices are closed at weekends, it is recommended for you to convert your currencies on weekdays.

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