Opening a bank account in Türkiye
Having a local bank account will significantly facilitate your life as an expat in Türkiye. Not only might you need it to pay your bills or receive your wage if you are an employee, but it will also allow you to make your daily purchases without constantly paying the fees probably charged by your foreign bank for international transactions.
Who can open a bank account in Türkiye?
Residents in Türkiye, both Turkish citizens and foreigners with residency status, can open a bank account relatively easily. For residents, the process typically requires presenting your national ID as well as a residence permit. Proof of address in Türkiye, which can be a utility bill or a rental agreement, is also commonly requested.
This ensures that the individual is indeed living in Türkiye and intends to use the account for daily financial activities. Some banks will also require you to present a minimum deposit of a specific amount.
Non-residents (tourists and those planning short-term stays) are also eligible to open bank accounts in Türkiye. However, this is typically at the discretion of the specific bank branch you are talking to. As a non-resident, you will also be asked to present a more extensive list of documents, which will definitely include your passport and a Turkish tax identification number. Obtaining this tax number is a straightforward process and can be done at local tax offices. Non-resident accounts might have some limitations compared to those of residents, particularly in terms of the range of available services and products.
Some banks might require proof of income or employment, such as a salary slip, an employment contract, or a letter from your employer. If you are a student, you may need to present your student visa, university admission letter, or student ID.
Good to know:
Türkiye's somewhat volatile currency prompts most expats to keep a secondary account in foreign currency to hold possible savings. Most banks in Türkiye let you open accounts in foreign currency (typically USD and EUR) alongside your account in Turkish Lira. You can transfer money between your accounts according to the current exchange rate.
How to obtain the TIN
Below are the steps for the TIN application:
- Go to the nearest tax office (Vergi Dairesi) in your area. It's advisable to have your passport and a copy of it with you.
- Inform the staff that you wish to obtain a tax number. They will provide you with an application form to fill out. The form is typically in Turkish, so it might be helpful to have someone who speaks Turkish if you're not fluent.
- Submit the completed form along with your passport. The officials will verify your details and issue the tax number on the same day.
Remember to keep this number safe, as it will be useful for various purposes throughout your stay in Türkiye, including opening utility accounts, signing rental agreements, and more.
How to open a bank account in Türkiye
To open a bank account in most banks in Türkiye, you will need to stop by your preferred bank branch in person with all the required documents (as mentioned above, these typically include a valid passport, residency permit, tax ID, and proof of address in Türkiye). Currently, banks in the country don't provide options for opening an account online for expats – so you will need to do this in person. Most banks don't require an appointment - you can visit your preferred bank branch during working hours, get a queue ticket, and wait until your number is called. The process of opening an account generally takes up to 30 minutes, and you will need to wait from five to seven days for your debit card to be ready.
Good to know:
Note that a bank can refuse to open an account to a foreign resident for a variety of reasons. As some expats note, however, the specific conditions often differ from one branch to another. If you are unable to work an account in one location, it is generally advised to try your luck in a different district or even city.
Extra tips for a smooth process
If any of your documents are not in Turkish or English, you might need to get them officially translated.
Make sure all copies of documents are certified as true copies if the originals are not being submitted.
Before going to the bank, it's a good idea to check their website or contact them directly to confirm the required documents, as requirements can change.
If the process seems daunting, especially regarding legal or language barriers, consider seeking assistance from a local legal advisor or a service that specializes in helping expats.
How to choose the right bank in Türkiye
Choosing the right bank is a crucial decision when setting up your financial profile in Türkiye. The country's banking sector is robust and offers a range of options, each catering to different needs and preferences. For expatriates, certain banks stand out due to their customer service, range of services, and expat-friendly features.
Below are the most popular banks in Türkiye:
Garanti BBVA
One of the largest private banks in Türkiye, Garanti BBVA is known for its wide range of services, including online banking, credit cards, and loan options. It has a strong reputation among expatriates for its user-friendly online banking platform and English-language customer service. Garanti BBVA's extensive network of ATMs and branches makes it a convenient choice for everyday banking needs.
Ziraat Bankası
As one of the oldest and largest banks in Türkiye, Ziraat Bankası holds a special place in the Turkish banking sector. It is a state-owned bank that offers a comprehensive range of financial services, including savings accounts, credit and debit cards, loans, and investment products. Ziraat also has a user-friendly online banking app available in English.
İş Bankası (İşbank)
As one of Türkiye's most established banks, İşbank offers a comprehensive range of financial products and services. İşbank is favored for its stability and reliability. The bank's online banking services are robust, and it has a widespread network of branches and ATMs across the country.
Akbank
Known for its innovative banking solutions, Akbank is another popular choice among expats. It provides a wide array of financial services, including competitive savings and investment options. Akbank has been recognized for its excellence in customer service and digital banking platforms.
Yapı Kredi
Yapı Kredi is one of the first national banks of Türkiye and is highly regarded for its customer-focused approach. The bank offers a full range of banking services and is known for its efficient online banking system. It is also one of the more proactive banks in embracing digital transformation, making it a good choice for tech-savvy customers.
Types of bank accounts an expat can open in Türkiye
Expats residing in Türkiye have quite a few options when it comes to opening bank accounts.
Checking or current accounts
Checking and current accounts (Vadesiz Mevduat Hesabı) are the most common type of bank account in Türkiye, ideal for daily financial transactions. They provide easy access to funds through checks, ATMs, and online banking. Current accounts are typically used for receiving salaries, paying bills, and making routine purchases. They generally offer no interest on the deposited amount.
Savings accounts
Savings accounts (Birikim Hesabı) are meant for those who want to save money and earn interest on their savings. These accounts are ideal for expats looking to set aside a portion of their income. The interest rates can vary depending on the bank and the amount of money deposited.
Important:
Note that savings accounts with interest rates are mostly available in Turkish Lira. In this case, it's essential that you evaluate how the interest rate you will get on your savings will compare to the ongoing devaluation of the Turkish currency.
Foreign currency accounts
For expats who frequently deal with foreign currencies, Turkish banks offer foreign currency accounts. These accounts can be maintained in various currencies, such as USD, EUR, and GBP, among others. They are particularly useful for expats who receive their income in foreign currency and, as we've mentioned above, wish to mitigate the risk of currency fluctuations.
Time deposit accounts
Time deposit accounts (Vadeli Mevduat Hesabı) are suitable for expats looking to deposit a significant amount of money for a fixed period. These accounts typically offer higher interest rates than regular savings accounts, with the rate depending on the term of the deposit. The longer the deposit period, the higher the interest rate.
Credit and debit cards in Türkiye
If you have just arrived in Türkiye or plan to stay for the short term, you can easily get away with using a foreign debit or credit card. Most ATMs across the country accept foreign cards, and you should also have no trouble using your card to pay for most goods and services. However, there are two things to be aware of when using a foreign-issued bank card in Türkiye:
First, make sure you are fully aware of all the withdrawal and card usage fees your bank is charging you abroad. In many cases, the bank fees for withdrawing money abroad are rather high.
Second, watch out for ATMs offering you to pay for a service or purchase in your home country. It may seem like a helpful feature, as you will see exactly how much you are spending in a currency you understand well, which sounds convenient and transparent. However, this convenience is misleading and could end up costing you more than you expect. This practice, known as Dynamic Currency Conversion (DCC), allows the foreign bank or ATM operator to set their own exchange rate for your transaction. More often than not, this rate is far from favorable to you.
If you are planning to stay in Türkiye for a while, you should definitely open a bank account and get a local debit card. As we've mentioned earlier, if you have a valid residence permit, getting a debit card is a pretty straightforward process.
Residents can also technically apply for a credit card in Türkiye. However, whether or not you can actually do it will be up to the bank you are working with. You should be aware that as a foreign resident, you will be asked to provide a lot of additional documents to obtain a credit card, such as proof of income, payment guarantees, and more.
Applying for bank loans in Türkiye as an expat
Expatriates can indeed apply for a bank loan or mortgage in Türkiye, but there are specific requirements and conditions that must be met. The availability of credit to foreign nationals in Türkiye has increased over the years, making it possible for expats to finance the purchase of property or secure personal loans.
Mortgages
To apply for a mortgage in Turkey as an expat, you generally need to provide:
- Proof of income, which can include salary slips, tax returns, or any other official document proving your earnings;
- Valid residence permit;
- Information about the property you intend to purchase, including the sales contract or a deed;
- Proof of a bank account with the lending institution;
- Credit report from your home country or any country where you have a financial history (may be requested by some banks).
Important:
The terms of mortgages, such as the down payment required, interest rates, and the maximum repayment period, can vary significantly between banks and depend on your nationality, financial standing, and the property's location.
Personal loans
Applying for personal loans may also be possible for expatriates living and working in Türkiye. Along with some of the requirements mentioned above, you might need to prove your employment status in Turkey and have a work permit, depending on the bank's policies.
Here are some things you should consider:
- Interest rates for expats might be higher than those for Turkish citizens.
- Some banks might require life insurance and property insurance as part of the mortgage agreement.
- Given the complexities involved, seeking legal advice or assistance from a financial advisor familiar with the Turkish banking system can be beneficial.
- Policies can vary widely between banks, so it's advisable to shop around and negotiate the best terms.
Overall, while obtaining a bank loan or mortgage as an expat in Turkey is possible, thorough research and preparation are key to navigating the process successfully.
Things to consider when choosing a bank in Türkiye
There are several things you may want to take into account when choosing your bank in Türkiye (pun intended):
Online banking services
Efficient online banking is essential for most expats in Türkiye. A good banking app will help you save lots of time in day-to-day transactions. Look for banks that offer intuitive and secure online banking platforms available in English. Features such as online bill payments, money transfers, account management, and customer support are key for a hassle-free life in Türkiye.
English language support
As an expat, finding a bank that offers services in English can significantly ease the banking process. Many Turkish banks have English-speaking staff and provide online banking in English. This is particularly important for understanding complex financial products or resolving any issues that may arise.
Branch and ATM availability
Consider the bank's presence both in your locality and nationally. A bank with a widespread network of branches and ATMs will offer greater convenience, especially if you travel frequently within Türkiye.
Customer service quality
Good customer service is crucial, especially when you're navigating the banking system in a new country. Look for banks that have a reputation for responsive and helpful customer service. Reading reviews and experiences from other expats can be insightful.
Expatriate-friendly services
Some banks offer services tailored to the needs of expatriates, such as international money transfer services, foreign currency accounts, or financial advisory services for newcomers.
Fees and charges
Be aware of any fees and charges associated with the bank account. This includes account maintenance fees, transaction fees, and charges for international transfers. Comparing these costs across different banks can help you save money in the long run.
Special considerations for expats when managing money in Türkiye
Managing finances as an expat living in Türkiye often involves additional complexities compared to local residents. Understanding these unique challenges and preparing for them can make the experience smoother and more efficient.
International money transfers
One of the most common financial transactions for expats is sending money to and from their home country. When it comes to international money transfers, several factors need to be considered:
Different banks and financial institutions offer varying fee structures and exchange rates for international transfers. It's important to compare these across different services to find the most cost-effective option.
In addition to traditional bank transfers, online services like Wise, PayPal, or Revolut can offer more competitive rates and faster services. These platforms are often user-friendly and transparent about fees and exchange rates.
Multi-currency accounts
As we've mentioned earlier, most expats in Türkiye would benefit from having multi-currency accounts. As the Turkish Lira is a highly volatile currency, keeping your money in Lira is neither safe nor sustainable in the long term.
Multi-currency accounts allow you to hold money in several currencies and convert between them at competitive rates. With a multi-currency account, you can convert currencies when rates are favorable, potentially saving money. It's worth researching which banks provide the best terms for these accounts.
Dealing with exchange rates
Currency exchange rates can significantly impact expats, especially in a country like Türkiye, where the local currency experiences constant fluctuations.
Keeping an eye on currency exchange rates can help you make informed decisions about when to transfer or convert money. Some financial tools and strategies can help mitigate the risks associated with currency fluctuations. This might include using forward contracts or options, though these are generally more suitable for those with a deep understanding of financial markets. For expats with substantial financial commitments or investments in multiple currencies, it may be beneficial to seek advice from a financial advisor who understands both the local and international financial landscape.
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