Turkey occupies a unique position between Europe and Asia, serving as a major corridor for trade, investment, and financial flows. This geographic advantage also shapes the country’s approach to cross-border payments — a system that combines regulatory oversight, flexible banking infrastructure, and emerging digital tools. Understanding how international transfers work in Turkey is essential for companies operating in export, import, tourism, and technology sectors.
The Central Bank of the Republic of Turkey (CBRT) regulates all foreign currency operations under the Decree No. 32 on the Protection of the Value of Turkish Currency. This framework defines how Turkish residents and companies can send, receive, or hold foreign currency. Although Turkey does not maintain strict capital controls like some developing economies, the CBRT closely monitors international transfers to maintain stability in the Turkish lira (TRY) and control speculative capital movement.
For businesses, the key principle is transparency. All cross-border transactions must pass through authorized banks or licensed payment institutions. These intermediaries collect supporting documents such as invoices, contracts, and customs declarations to verify the purpose of the payment. The transaction type determines the paperwork required — for instance, trade-related payments need export or import declarations, while service payments require contracts or invoices showing the service rendered.
When sending funds abroad, Turkish companies must report the transaction to their bank, which in turn informs the Central Bank through the Electronic Data Delivery System (EDDS). This ensures that every cross-border flow is registered and traceable. For incoming payments, banks are required to convert foreign currency into Turkish lira unless the recipient has a foreign currency account. Exporters, however, may retain part of their earnings in foreign currency for international operations.
Exchange rate management is a defining element of Turkey’s payment system. The CBRT uses both direct interventions and market instruments to manage the lira’s value. Businesses often experience rate fluctuations between the official rate and the market rate, which can affect the final settlement amount. To manage these risks, many companies use forward contracts or natural hedging — matching foreign income with expenses in the same currency.
Turkey’s banking sector is well integrated with the global financial system through the SWIFT network, enabling fast international transfers in major currencies such as USD, EUR, and GBP. Transfers usually take one to three business days, depending on the intermediary banks involved. However, the sender must ensure that all compliance details — including the purpose code and tax identification — are accurate, as incomplete data can cause delays.
In recent years, Turkey has encouraged the development of digital payment and fintech services. Licensed providers under the Payment and Electronic Money Institutions Regulation can facilitate international transfers and multicurrency operations. Platforms like Wise and TransferGo operate in Turkey through local partners, allowing residents to receive payments more efficiently and at lower fees than traditional banks.
For freelancers and digital service exporters, receiving payments from abroad has become easier due to fintech integration. Yet, even these transactions must comply with CBRT reporting requirements. Banks automatically report the incoming funds to the Central Bank and tax authorities, ensuring alignment between declared income and actual foreign inflows.
Tax compliance is another important aspect. For outbound transfers, especially for service imports or consultancy fees, companies may be required to withhold a portion of the payment as income tax or withholding tax. The rate depends on the type of service and the existence of a double taxation agreement between Turkey and the recipient’s country.
For companies conducting regular international payments, a few best practices improve reliability and compliance:
– Use authorized banks familiar with CBRT reporting protocols.
– Keep accurate and accessible records of contracts, invoices, and delivery documents.
– Track daily CBRT exchange rates before executing transfers.
– Use hedging instruments to reduce currency volatility risk.
– Verify tax obligations on both inbound and outbound payments.
Turkey’s cross-border payment structure is built on control and modernization. The government actively supervises foreign currency flows but also supports innovation and competition in the financial technology sector. This dual approach creates a balance — companies can operate with regulatory confidence while benefiting from new digital tools that reduce transfer costs and processing time.
In 2025, Turkey’s payment landscape continues to evolve toward greater digitalization and integration with Europe and the Middle East. Businesses that understand both the legal framework and technological options can manage their international payments efficiently, avoid compliance risks, and take full advantage of Turkey’s strategic position as a bridge between continents.