Turkey Completely Abandons Cash in Real Estate Transactions
The Government of Turkey is implementing a radical reform aimed at ensuring security and transparency in the real estate market. Starting from July 1, 2026, cash payments for property transactions in the country will be strictly prohibited, and all operations will be mandatorily transferred to the "escrow" system (special secured bank accounts).
According to the new regulation, when a contract is signed, the buyer will transfer the money to a special blocked account in an authorized bank. These funds will remain frozen until the transfer of ownership rights is fully registered, and will be released to the seller only after the successful completion of the transaction. If the deal falls through, the money will be fully refunded to the buyer.
According to experts, this reform serves several key purposes:
- Preventing Fraud: Completely eliminating fraudulent mechanisms, which particularly trap foreign investors.
- Combating the Shadow Economy: Putting an end to the practice of concealing the actual value of properties and understating prices in official documents.
- Increasing International Trust: Stabilizing the inflow of foreign capital into Turkey's real estate market by ensuring the absolute transparency of settlements.
Currently, leading up to July 1, 2026, this system operates on a pilot and voluntary basis. After that date, the rule will become compulsory for all individuals, regardless of their position or citizenship.
