Whether a foreign national may hold a bank account in Türkiye depends on applying to a branch with the documents required by the bank concerned. Once the account is opened, the person is able to carry out banking transactions in Türkiye.
The most striking feature of this field is that practice varies from bank to bank. Institutions request different information and documents; in line with their own commercial strategies, some facilitate matters for the nationals of certain countries while others decline to open accounts at all in respect of others.
Below we address the account opening process for natural persons and for foreign companies under the headings of preconditions, the documents required, the possibility of acting under a power of attorney, the differences between banks, and the role of the account in citizenship by investment.
How Account Opening Works
Foreign nationals apply by submitting the information and documents determined by the bank at which they wish to open an account. As this matter is not directly regulated by legislation, each bank may lay down its own conditions and criteria.
There are certain preparations that must be completed before attending a branch:
- A potential tax number must be obtained. This number is obtained by an application to the tax office; the procedure may also be carried out electronically through the interactive tax office.
- A passport must be held and must be presented when attending the branch.
- A foreign identity number is required. This number is issued to foreign nationals who have resided in Türkiye for at least 6 months. Foreign nationals under temporary protection, Syrians for example, do not additionally require this number, as they hold a temporary protection identity card. Although some banks will open an account without a foreign identity number, they request additional documents in that case.
- It is advisable to have an address for service. An account may be opened without an address; an address for service, however, both facilitates communication and prevents difficulties where a bank card or credit card must subsequently be sent.
- A telephone number usable in Türkiye is requested by most banks.
- Some banks additionally request a document evidencing the foreign national’s address of residence in Türkiye. This may be a certificate of residence, or an invoice relating to an address-linked subscription such as water, electricity or internet.
Once these preparations are complete, the account is opened by applying to the nearest branch. The documents to be submitted are set out separately below.
Although this is the general framework, in practice the nationals of certain countries are seen to encounter serious difficulty. Banks either do not open accounts at all for nationals of Afghanistan, Iran and other countries in which terrorist organisations are heavily active, or make the opening considerably more difficult. In addition, it has become harder for Russian nationals to open accounts since the outbreak of the war in Ukraine.
Given that the foreign identity number may feature among the documents required for account opening, the nature of that number and how it is obtained are of particular importance. The matter is examined in detail in our note on obtaining a foreign identity number.
Foreign Nationals Without a Residence Permit
As a rule, banks do not open accounts for foreign nationals who do not hold a residence permit. In practice, however, Ziraat Bankası does allow accounts to be opened in the names of such persons by requiring security in a specified amount.
Documents Required from Natural Persons
The following documents are generally requested from the foreign national on account opening:
- The foreign national’s passport,
- The residence permit document,
- A document showing the tax number,
- A document establishing the address for service — for some banks, documents evidencing the address of residence, such as an invoice, may also be accepted,
- Telephone contact details; this information is not requested by every bank.
Those listed are the minimum documents required by banks generally. Institutions may also request further documents. Moreover, as a matter of their commercial strategies, a simpler procedure may be applied to certain nationalities while no account is opened at all in respect of others. It is therefore appropriate to plan the process with a specialist from the outset.
Account Opening in the Name of Foreign Companies
An account for a foreign company is opened upon the application of the company’s authorised representative with the necessary documents. Who the representative is to be is determined according to the law of the country to which the company is subject; under the relevant law, that person may be a shareholder, a member of the board of directors or the general manager.
It is not required, for the purposes of account opening, that the company be incorporated in Türkiye or carry on business there. That said, the process is markedly easier for foreign companies that are actually operating in Türkiye. In every case the company must obtain a tax number from a tax office in Türkiye.
Documents Required from Companies
The documents that foreign companies must submit are as follows:
- The company’s articles of association,
- The company’s trade registry record in the country in which it is located,
- The company’s certificate of incorporation and activity,
- The chamber of commerce registration,
- A document showing the company’s tax number,
- The company’s licences — this document is requested only by some banks.
The articles of association, trade registry record, certificate of incorporation and activity and chamber of commerce registration listed above must be translated and bear notarial or consular certification.
Can an Account Be Opened by Power of Attorney Without Coming to Türkiye?
It is legally possible for an account to be opened by power of attorney, without the foreign national needing to come to Türkiye. In practice, however, the great majority of banks require the account holder to attend the branch in person and do not accept opening by power of attorney.
Even at banks that permit transactions by power of attorney, opening is at times declined on the ground that the power of attorney is deficient. It is therefore of great importance that the power of attorney be drawn up with care and so as to cover all the required elements.
Use of Mobile and Internet Banking
Once the account has been opened, there is no obstacle to foreign nationals making use of the mobile banking application. From that point onwards the person may conduct banking transactions by mobile telephone. In this respect there is nothing that distinguishes the position from the use of online banking by Turkish citizens.
Banks That Open Accounts for Foreign Nationals
In practice, some banks are observed to create fewer difficulties for foreign customers, and account opening proceeds more comfortably at those institutions. Banks that open accounts for foreign nationals include Türkiye İş Bankası, Vakıflar Bankası, Halk Bankası, Garanti BBVA, Yapıkredi, Denizbank, QNB Finansbank, TEB Bankası, HSBC and Kuveyt Türk.
Other banks not appearing on the list may also open accounts. The point that chiefly requires attention is that the choice of bank should be made having regard to the foreign national’s nationality. Denizbank, for example, facilitates matters for Russian nationals, whereas Kuveyt Türk is more flexible for foreign nationals of Arab origin. At institutions of an international character such as QNB Finansbank and TEB, the opening process may likewise proceed relatively comfortably.
Differences in Practice Between Banks
Account opening practices vary from institution to institution. Some banks request additional information or documents in line with their own commercial strategies; on the same ground, they apply a simplified procedure to the nationals of certain countries while opening no account at all for others.
Since each institution may have conditions of its own, a foreign national wishing to open an account, or that person’s representative, should speak to the customer representative of the bank concerned before the transaction and confirm the documents that will be required. In that discussion it should be asked, in particular for those without a residence permit, whether opening is possible at all and, if so, on what conditions and with what documents it will be carried out.
The nationalities that stand out among those encountering difficulty in practice are nationals of Russia, Iran and Afghanistan.
How Long Does the Process Take?
Account opening is completed within an average of 1 week. Where there is a deficiency in the steps the foreign national must complete, this period may be extended.
The Role of the Bank Account in Citizenship by Investment
Opening a bank account is a mandatory step in the acquisition of Turkish citizenship by investment. Turkish citizenship may be granted to a foreign national who deposits at least USD 500,000, or the equivalent in foreign currency or Turkish lira, into investment accounts at Turkish banks on condition that it is not withdrawn for at least 3 years. An account must also be opened where citizenship is acquired through the acquisition of real estate.
All the details of this route are addressed in our note on Turkish citizenship by investment.
The Position of Russian Nationals Following the War
Because of the war between Russia and Ukraine, Russian nationals are subject to restrictions and strict scrutiny in many countries. The effects of this picture are also seen in the banking sector in Türkiye. Institutions that are more active internationally in particular are observed either not to open accounts for Russian nationals or to require conditions different from those applied to other nationalities. Even so, where the process is properly structured, it is possible for an account to be opened.
Conclusion
The account opening process for foreign nationals differs in various respects from the procedure applied to Turkish citizens. Each bank is seen to require different information and documents, and certain nationalities are afforded easier treatment as regards opening. All of these matters must therefore be assessed together before the application and the process planned accordingly.
Independent Legal Assessment
The source of the difficulties encountered in foreign nationals’ account opening requests is most often not a legal impediment but a wrong choice of bank. Applying to different institutions with the same documents can produce entirely divergent outcomes. The first step in the process should therefore not be to collect documents but to identify the institution that matches the foreign national’s nationality and status.
In planning, we recommend that the following matters be observed:
- Obtaining the potential tax number through the interactive tax office before attending a branch
- Confirming whether the 6-month residence requirement for a foreign identity number has been met
- Investigating in advance, for persons without a residence permit, the possibility of opening an account against security
- Where the transaction is to be carried out by power of attorney, drawing up the power of attorney so as to include expressly all the authorities the bank requires
- Preparing from the outset, in company files, notarised or consular-certified translations of documents in a foreign language
- Speaking to a customer representative before the application in order to verify the institution’s current list of documents
Independent Legal provides advisory services throughout the banking transactions of foreign natural persons and foreign-capital companies in Türkiye, from the preparation of powers of attorney to the drawing up of company documents.