What Is the Currency Exchange Document (DAP) Required When Selling Property to Foreigners in Turkey? A Complete Explanation

Introduction

Several governmental procedures must be accurately completed when purchasing or selling property in Turkey by foreigners. Among the most important in recent years is what is known as the Currency Exchange Certificate, which has become a mandatory requirement in real estate transactions involving foreigners.

This document is part of a financial regulatory policy introduced by the state to ensure that the value of the property is converted into Turkish lira through the banking system, verifying the source of funds and complying with real estate ownership transfer regulations. While foreign investors face clear requirements regarding this matter, Turkish citizens are not subject to the same obligation.

This article fully explains what the “DAP” document is—officially known as the Currency Exchange Information to Turkish Lira or the Certificate of Proof of Delivering the Property Value in USD to the Central Bank—what it includes, why it became mandatory, who issues it, its relation to Turkish citizenship files or the resale of a property previously purchased for citizenship purposes, in addition to a practical explanation of the steps to obtain it, the full requirements, and important points to consider before buying or selling.

Definition of the “DAP” Currency Exchange Certificate

The DAP Certificate is an official proof issued by the Central Bank confirming that the value of a property paid by a foreigner has been converted into Turkish lira through a bank. The bank documents the process and issues an official paper proving that the funds entered the Turkish financial system, were converted, and recorded.

Legally, it is called “The Certificate Proving the Exchange of Foreign Currency into Turkish Lira.” It is a fundamental requirement for every real estate purchase transaction by a foreigner inside Turkey or for the resale of a property previously purchased by a foreigner.

The purpose of the document is not to determine the price or evaluate the property, but to ensure that the property value entered Turkey legally through the banking system and was converted under the supervision of the Central Bank, rather than being delivered in cash or directly between parties.

Why Did the Currency Exchange Certificate Become Mandatory for Foreigners?

Turkey implemented this system to achieve several economic and regulatory objectives, most notably:

• Supporting the value of the Turkish lira by requiring foreigners to purchase local currency in exchange for foreign cash.
• Ensuring financial transaction traceability and preventing undocumented or uncontrolled sales.
• Protecting the real estate sector from unofficial speculative transactions and preventing tax evasion.
• Enforcing full financial transparency in property ownership and sales through the banking system.

It is not mandatory for Turkish citizens or foreigners who have obtained Turkish citizenship and wish to purchase property after acquiring citizenship.

This procedure also helps Turkish banks monitor financial inflows and outflows and allows the state to track the source of funds and verify their legality.

Is the Document Mandatory for All Investors?

The precise answer:

• Mandatory for all foreigners who do not hold Turkish citizenship when purchasing real estate.
• Also mandatory when reselling a property previously purchased by a foreigner.
• Not mandatory for Turkish citizens when buying or selling within Turkey.

A foreigner is obliged to submit proof of financial transfer when transferring ownership at the Land Registry (Tapu), while a Turkish citizen is exempt because they already deal in Turkish lira and are not subject to the same financial auditing requirements.

The Most Important Cases That Require Issuing the Currency Exchange Certificate

This document is required in three main cases that must be clearly understood:

• The purchase of property by a foreigner for the first time inside Turkey.
• The sale of property from one foreigner to another.
• The resale of a property that was previously purchased by a foreigner for the purpose of obtaining citizenship.

In the third case specifically, the investor is required to provide a certificate proving that the new buyer (whether foreign or Turkish) has transferred the funds through the official banking system.

What Is the Relationship Between the DAP Certificate and Properties Purchased for Turkish Citizenship?

Within property-based citizenship applications, this document is a central requirement because it:

• Prevents the submission of citizenship files based on sales contracts that did not pass through the Central Bank.
• Confirms that the investment value legally entered Turkey.
• Becomes part of the documents submitted with the citizenship file.

Failure to obtain the certificate may lead to file rejection or delay.

How Is the Currency Exchange Certificate Issued and What Documents Are Required?

The procedure is carried out exclusively through the bank handling the transfer.
The main steps are as follows:

1. Opening a bank account in the name of the buyer.
2. Transferring the property value in USD, EUR, or any foreign currency to the account.
3. Requesting the bank to convert the amount into Turkish lira under the category of property purchase.
4. The bank executes the exchange transaction and sends transfer data to the Central Bank.
5. After registering the process, the bank issues an official stamped DAP Certificate.

The document includes the following essential information:

• Buyer’s name, nationality, and passport number
• Transfer value, seller’s name, and details
• Exchange rate used and date of transfer
• A reference number issued by the Central Bank
• Proof that funds entered and were exchanged within the system

Who Is Responsible for Issuing the Exchange Certificate?

The direct responsible authority is the bank conducting the transfer. However, in most cases, the investor does not handle the process personally; instead, the real estate office, authorized lawyer, or real estate investment company completes it to avoid any data mistakes.

In resale cases, the buyer is usually responsible for obtaining the certificate to ensure the legality of the purchase, while the seller must ensure the process is fully completed before signing the title deed transfer.

Why Does the Exchange Certificate Not Apply to Turkish Citizens?

Because Turkish citizens primarily operate in local currency and do not need to introduce foreign currency. The state does not impose this type of control over real estate transactions between Turkish citizens.

The certificate is not related to the property itself but rather to the conversion of foreign currency into Turkish lira within the banking system.

If the buyer is Turkish, or if the transaction is entirely local, the requirement automatically does not apply. However, if any party in the sale is a foreigner, the system becomes mandatory.

Common Mistakes Investors Make Due to Misunderstanding the Certificate

Several recurring issues have appeared in the Turkish real estate market, such as:

• Paying the property price in cash, then discovering that ownership cannot be transferred without the exchange certificate.
• Transferring money through an external intermediary instead of an official bank, leading to rejection.
• Purchasing property for citizenship purposes without registering the official transfer, resulting in complete rejection of the application.
• Failing to obtain the certificate during resale, causing the process to stall for weeks.

Therefore, property purchase, sale, or citizenship application must not proceed before ensuring the certificate is issued and correctly recorded.

The Role of Al-Hafez Real Estate in Issuing and Following Up the Exchange Certificate

Due to the legal sensitivity of this matter and its direct relationship with the right of ownership and title transfer, Al-Hafez Real Estate gives this process full attention within its investor services, especially with its legal team, including lawyers specialized in foreign ownership regulations in Turkey.

The company’s services in this field include:

• Issuing the DAP Certificate for all clients without requiring their presence.
• Opening bank accounts and arranging financial transfers in compliance with legal frameworks.
• Following up the registration of the transfer with the Central Bank and issuing the official certificate.
• Matching the property value with recorded figures to avoid any discrepancies.
• Providing legal consultations in citizenship property resale cases.

With Al-Hafez Real Estate, investors remain protected from financial and procedural errors and receive officially documented transactions ensuring smooth ownership transfer.

Conclusion

The Currency Exchange Certificate is not a formal routine; it is a crucial legal requirement that cannot be bypassed when foreigners purchase or resell property in Turkey.

It serves as a safeguard for the state to regulate currency flow and for the investor to protect their purchase and prove the legitimacy of funds. It is also a legal foundation for accepting real estate citizenship files.

Turkish citizens, however, are exempt as they do not operate in foreign currency; therefore, the difference between foreigners and Turkish citizens lies in the financial source, not the property itself.

Those who understand and comply with this certificate proceed confidently in the Turkish real estate market. Those who ignore it may face delays, complications, and significant financial and time losses.

Al-Hafez Real Estate provides investors with this legal safety shield through a specialized team that follows every financial and technical detail until ownership transfer and value conversion are completed according to official regulations.