How can foreign investors sell their investments in dollars to Turkey's central bank to meet the new CBI condition and not take a loss at the end of the three-year investment period?

Answers

• 

  Ibrahim Aslan

  Aslan Attorney

  January 27, 2022

  You can sell your dollars to the any Turkish bank with the specific document called ''Foreign exchange certificate (Döviz Alım Belgesi)''. The foreign exchange certificate must include specific details such as the name of the applicant, passport no, purpose of exchange. The new regulation has been issued to protect the lira's value. If you buy property for the purpose of obtaining citizenship then you cannot sell it for three years, but during these three years your property can be rented out and also it'll also get capital appreciation. For investment in a bank deposit program, the government also provides protection program for savings account for the losses due to the exchange fluctuations.

• 

  Orhan Yavuz Mavioğlu

  ADMD Mavioglu & Alkan Law Office

  January 31, 2022

  According to the regulation on the implementation of the Turkish citizenship law, the foreign currency amounts specified in the legislation are sold to a bank operating in Turkey and then to the central bank by this bank. In other words, the sale to the central bank is made by private banks. It is considered that deposits to be kept for three years to obtain citizenship cannot be kept in currency-protected accounts since the currency-protected deposits against possible risks do not cover foreigners. Therefore, the risk belongs to the foreigner. However, Turkish lira accounts are permitted to generate interest in the meantime. The released amount will be in Turkish lira which can later be converted to the U.S. dollar. The Turkish lira accounts are permitted to generate interest, such interest may cover some or all of the currency risk.