I'm distributing my Turkish residence for 18m lira: What's the most effective approach to transmit the currency to the UK?

Products featured in this article are independently selected by This is Money’s specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.

I am in the process of selling a holiday home in Turkey that I have owned for 20 years. 

I have a Turkish bank account but do not have residency as it’s only ever been used for holidays.

The transaction must be completed in Turkish lira and I’m wondering the best way to convert this into pounds and then transfer to the UK. 

The bank in Turkey has high charges to do this. The amount of money will be approximately 18million lira.

I have a Wise account and was wondering if this would be an option?

The sale is due to complete at the end of October and I want to go to Turkey with everything in place. F.C., via email

Sam Bromley, of This is Money, replies: A currency converter suggests 18million Turkish lira is worth around £275,000. 

Exchange rates constantly shift, but it should still work out as a large sum – so you’re understandably keen to minimise fees.

You told me that you’ve spoken to Wise, a specialist in international money transfers, and have done a small test exchange but wanted to get an expert view on all your options.

When I looked at Wise, total fees were 0.42 per cent, which includes a discount for sending a large amount. However there is a limit on the amount of Turkish lira you can send in one go.

You also said you have looked at a currency exchange service but weren’t able to send Turkish lira to a UK account.

The fact that exchange rates fluctuate also introduces risk to the transaction. If you get the timing wrong, you could lose out on thousands.

There are tax implications in both countries you must consider. You’re right to be looking for an expert opinion. 

I contacted an adviser who helps clients with international and multi-jurisdictional needs.

Nathan Prior, partner and head of international at Partners Wealth Management, replies: Whenever moving funds between bank accounts with different currencies, you should be aware that the cost of converting another currency (such as the Turkish lira) into pounds is often higher than many people realise when using a standard bank transfer.

Those costs are not always presented as a simple transfer fee or commission. In many cases, the largest cost can be hidden within the exchange rate itself. 

Banks may offer a rate that is less favourable than the prevailing market rate, and the difference between the two is known as the exchange rate margin. 

On a transaction of around 18million Turkish lira, even a relatively small margin can result in a significant cost.

Nathan Prior says that specialist support can help manage exchange rate risk

For larger transfers like this, I would suggest speaking to a specialist foreign exchange provider, rather than relying solely on your Turkish or UK bank. 

Companies that specialise in international currency exchange often offer more competitive exchange rates, net of costs. 

Try to compare the actual pounds that you will receive at the end of the exchange rather than the quoted fees, as that will give you a better picture of the net result. 

Even with small marginal cost differences, on a larger sum like this the savings can be meaningful and very much worth checking a couple of options.

In addition to potentially providing a better net exchange rate, many specialist currency firms can offer guidance on the timing of the conversion. 

Depending on your circumstances and appetite for exchange rate risk, they may discuss whether it makes sense to convert the full amount at once or transfer it in stages over a period of time. 

While no one can predict currency movements with certainty, having access to specialist support can help you make a more informed decision.

Regarding Wise specifically, it is certainly worth investigating. Wise is often competitive compared with traditional banks and is generally transparent about its fees and exchange rates. 

However, when dealing with a transfer of this size, it would be sensible to compare Wise’s overall costs against those offered by a few specialist foreign exchange providers before deciding.

Again the best option is not always the one with the lowest advertised fee, so comparing the final sterling amount you would receive is usually the best approach.

Separate from the currency transfer itself, I would strongly encourage you to consider the tax implications of the property sale. 

There may be capital gains tax, reporting requirements, or other obligations in Turkey, and there could also be UK tax considerations depending on your personal circumstances, residency status and any reliefs available.

Given the value involved, obtaining advice from a tax professional would be advisable. 

This can help ensure any declarations are made correctly, reliefs are claimed where available, and there are no unexpected issues once the sale proceeds have been transferred to the UK.

Overall, before travelling to Turkey for completion, I would suggest:

Obtaining quotes from several foreign exchange specialistsComparing them with Wise and your Turkish bankSeeking tax advice on the sale

Doing so should help you maximise the amount you receive in pounds while ensuring any tax obligations are dealt with correctly.

> How to find a local financial adviser with Unbiased*