FINANCE AND BANKING IN TURKEY

The Turkish economy stands as one of the most robust economies globally, operating as a free-market economy with applicable competition rules. The private sector holds a prominent position, playing a leading role, while the public sector functions in a regulatory capacity. Products and services are exchanged freely among individuals and organizations without hindrance.

Recent years have witnessed significant structural reforms in the Turkish economy. These reforms have led to the establishment of an independent economic community with a robust infrastructure, thereby fortifying the Turkish economy.

Turkish Lira 

The official currency of the Republic of Turkey is the Turkish Lira (TL). The TL exists in the form of paper bills (banknotes) and coins. For the visually impaired, tactile dots are incorporated on the upper left corner of the front surface of banknotes.

Banking System 

The main role of banks is to accept deposits, provide loans and advances to individuals and organizations, and generate profit through these transactions.

Deposit and participation banks offer the opportunity to open deposit accounts and draw accounts in Turkish Lira, foreign currency, or gold. The state guarantees up to 100,000 TL of the money deposited in a bank in Turkey.

Opening an Account

Like every individual in Turkey, you have the right to open a bank account. Regardless of your employment status, financial resources, or bankruptcy, you can open an account with banks operating in Turkey. To open a bank account, you must apply to the bank and submit the following required documents:

• Passport or proof of identity.
• Tax ID number in Turkey
• Any invoice (electricity, water, telephone, gas, or mobile) that contains your address in your home country. The invoice must be current and, at most, three months old.

Opening a bank account enables you to withdraw money, make payments or money transfers, and engage in credit operations.

These services are accessible 24/7 through ATMs, telephone, and online banking.

For further information on finance and banking in Turkey, contact us, or you may contact your bank.  

Housing Loan (Credit)

You can secure a housing loan from a bank when purchasing real estate in Turkey. Each bank has different conditions for approving a housing loan. It is essential to gather information about housing loans from various banks if you plan to use credit.

Mortgage: A legal agreement in which a bank or another creditor lends money at interest in exchange for taking ownership of the debtor’s property. The condition is that the conveyance of title becomes void upon the payment of the debt.

Required Documents for Housing Loan: 

• The title deed of your property (Tapu).
• Customers notarised Passport copies or residency permits, including the customer’s address abroad. 
• Official tax return for the previous year from the customer’s country of residence.
• Most recent quarterly payroll (for employees). 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 six months.
• Reference letter for employees (approved by the employer company abroad).
• Official document confirming personal assets.
• Credit Registration Bureau (CRB) registration from the client’s country of residence.
• Copy of invoice (water, electricity, etc.) proving the customer’s address in the country of residence.

For further information, please get in touch with us, or you may ask any Bank in Alanya.

Credit Card    

You can apply for a credit card; however, banks may reject your application based on your submitted documents and your credit history.

Credit cards in Turkey are subject to two types of limits. The first is the limit allocated to individuals, determined by their earnings, which establishes the upper limit. Additionally, there is a credit card limit, meaning each credit card may have a different limit. Almost all governmental and private entities accept credit cards.

Money Transfers

You can execute a bank transfer or EFT (electronic funds transfer) to move money from one bank account to another. The process of moving money between accounts held in the same bank is termed a transfer, while transferring funds from one bank account to another in a different bank is referred to as EFT.

Transfers can be initiated through various channels, including visiting a bank branch, online or telephone banking, ATMs, and mobile applications.

For international money transfers, since banks may have different procedures, it might be necessary to visit a branch. International money transfers to any part of the world can also be facilitated for a fee through specific international money transfer procedures.

Use of ATM’s

ATMs provide access to the money in bank accounts at any time. To use ATMs, individuals must acquire a debit or credit card by applying to the bank where they hold their account. Various transactions that debit or credit card holders can execute via an ATM include:

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

While each bank has its own ATMs, some are operated for shared use. Utilizing the ATM of the bank where one holds an account is typically free of charge. However, fees may be applied when using another bank’s shared ATM.

Foreign Exchange Conversion

In Turkey, numerous exchange offices facilitate the buying and selling of various foreign currencies. The Euro, Dollar, and Pound are among the most commonly traded currencies in these exchange offices. Banks also provide services for currency conversion. It’s important to note that foreign exchange rates may vary between banks and exchange offices.

As many banks and exchange offices are typically closed on weekends, we recommend converting currencies on weekdays for convenience.