ACQUISITION OF TURKISH CITIZENSHIP BY INVESTMENT
1-LEGAL PROVISION and GENERAL INFORMATIONS
2- GENERAL STEPS
3- THE MOST PREFERRED INVESTMENT TYPES IN ACQUIRING TURKISH CITIZENSHIP THROUGH INVESTMENT
4-BENEFITS OF TURKISH CITIZENSHIP
1- Legal Provision and General Informations
With the Presidential Decree numbered 106 published in the Official Gazette dated 19.09.2018 and numbered 30540, changes were made regarding the Exceptional Acquisition of Turkish Citizenship.
Based on these regulations, investment amounts were rearranged for the acquisition of Turkish Citizenship and conveniences were provided for foreigners to apply for Turkish Citizenship.
The Main applicant, spouse, children under the age of 18 or dependent children can be eligible to apply for Turkish citizenship.
The most important points related to the process include the content of the power of attorney, foreign exchange purchase documents, payments, and required documents. All of these processes are checked and guided by attorneys.
The main Applicant must convert the investment amount in Turkish Local Banks and get exhange certificate with investment explanation.
Investment Types
-Making a minimum fixed capital investment of USD 500,000 or equivalent foreign
currency, as attested by the Ministry of Industry and Technology,
-Acquiring a property worth a minimum of USD 400,000 or equivalent foreign currency with a title deed restriction on its resale for at least three years, as attested by the Ministry of Environment, Urbanization and Climate Change ,
-Creating jobs for at least 50 people, as attested by the Ministry of Labor and Social Security,
-Depositing a minimum of USD 500,000 or equivalent foreign currency in banks operating in Turkey with the condition that it is not withdrawn for at least three years, as attested by the Banking Regulation and Supervision Agency,
-Buying government bonds worth a minimum of USD 500,000 or equivalent foreign currency with the condition that they are not sold for at least three years, as attested by the Ministry of Treasury and Finance,
-Buying real estate investment fund shares or venture capital investment fund shares worth a minimum of USD 500,000 or equivalent foreign currency with the condition that they are not sold for at least three years, as attested by the Capital Markets Board of Türkiye,
-Depositing a minimum contribution of USD 500,000 or equivalent foreign currency in funds determined by the Insurance and Private Pension Regulation and Supervision Agency with the condition that it remains in the private pension system for at least three years, as attested by the Insurance and Private Pension Regulation and Supervision Agency.
2- General Steps of TCBI Process
- Power of Attorney
- Obtaining Foreign Tax Identification
Number - Making the Invesment
- Residence Permit
- Citizenship Application
- Citizenship Application After Approval
3- The Most Preferred Investment Types in Acquiring Turkish Citizenship Through Investment
1.PROPERTY INVESTMENT
If the main applicant decides to make an investment in property, the investment he/she will make must be more than $400,000 or equivalent in Turkish Lira or foreign currency. Likewise, considering the regulation in question;
issued as follows” purchase a property with a minimum value of $400.000 or equivalent
foreign currency or equivalent amount of Turkish Liras and attached an annotation of no-sale for at least three (3) years at the relevant title registry; or a property which has a property ownership or a construction servitude on it, with a preliminary sale contract executed before a notary public and at least $400,000 or amount of foreign currency or Turkish Liras is paid in advance and such notarized preliminary sale contract shall be recorded at the relevant title registry with the undertaking not to transfer or assign the agreement for a period of three (3) years that is determined by the Ministry of Environment and Urbanization;”
The other condition is to attach an annotation of no-sale for at least three (3) years. For 3 years, the property in question must remain registered on behalf of the main applicant, not be sold or transferred in any form.
The nature of the property in question may be residential, land, workplace and similar.
In addition, the main applicant can buy multiple property.
As an example; “the main applicant can buy 3 apartments from different locations. The sales costs, valuation reports and sales cost payments for the 3 apartments it has purchased must be over $ 400,000.”
Lawyers can carry out all property transfer transactions with a special power of attorney. Bank account opening procedures are completed by lawyers on behalf of the main applicant.
Restrictions To Foreigners in Property Purchase
Citizens of foreign countries are subject to certain restrictions regulated within the relevant legislation in the process of acquiring property in Turkey.
In the purchase of property by foreign citizens in Turkey, first of all, the amount of land area of property is limited. According to this regulation, the purchase of 30 hectares (and no more than 60 hectares by the decision of the Council of Ministers) of property is allowed.
In addition, military prohibition and security zones are also closely monitored. It is controlled whether the area where a foreign citizen requests to acquire a property is in military or security zones or not.
In particular, we should note that all citizens of 183 countries approved by the presidency can acquire property in Turkey.
There is no published complete list of countries that can acquire property.
However, upon your intention to acquire property, we may make inquiries from the relevant Land Registry Directorates.
Selection Of Property
Property selection is one of the most important steps in the process. So much so that many locations in Turkey are evaluated in this process. The most important issue in property selection is the rental income of the property.
In particular, we would like to note that the main applicant may find the property agent, project and property with his/her own research, as well as recommendation can be made by lawyers.
Examination Of Property
After the main applicant has determined the property that he/she want to invest in, the current title deed must be shared with the lawyer. The title is then examined by lawyers and the title deed is investigated whether there is a lien or any other restriction on the title. In addition, it is checked whether the property/immovables have construction servitude and condominium at the title deed.
Propertys with lien or restrictions are not eligible for Turkish Citizenship.
In particular, if we specify; property with mortgages, seizures and similar restrictions on it is not eligible to apply for Turkish citizenship.
However, contracts that need to be signed are examined and all legal rights of the main applicant are protected.
Valuation Report
A property valuation institution approved by the Capital Market Board must determine the value of the property, and a valuation report must be prepared.
In all transactions for the sale of property to foreigners, the valuation report prepared by the property valuation institution must be submitted to the Land Registry Office prior to the sale transaction.
Property Valuation Institution is organized by lawyers and a Valuation Report is prepared. In this process, lawyers need contact number and title deed information.
Property Payment
The most important issue in the payment of the purchase price of property is that all payments must be made from the buyer’s bank account to the seller’s bank account.
In addition, land registry information should be written in the receipt statement when paying the sale price of the property.
Also, the other important point is exchange certificate. Exchange certificate is showing that the payment for the property has been converted from dollar to Turkish lira. The Main Applicant should keep the property payment in foreign currencies in Turkish banks, then convert it to Turkish lira.
As a result, the names of the buyer and seller and the information about the paid property should be clearly visible in the receipt stating that the sale price of the property has been paid.
Ministry of Environment and Urban Planning requests that all details about the property, buyer and seller be in the receipt in compliance audits and exchange certificate.
Installment Sales
Installment sales are accepted during the citizenship application process.
But it should be noted that the amount paid in installments or in cash must be $ 400,000. For example: Considering a sale in 8 installments, each installment amounting to $50,000;
With the payment of the 8th installment, the amount of $400.000 is met. Thus, application for Citizenship can be made at the end of the 8th month.
Property Preliminary Sales Contract
It is possible to make application for citizenship with the Property Preliminary Sales Contract to be signed.
This Agreement must be signed in the presence of a notary public. Construction servitude or condominium of the property must be established.
$400.000 must be paid.
Annotation regarding the contract must be added in the Land Registry.
Investment Conformity Certificate
In order to make an investment eligible to Turkish citizenship; the sale price of the title deed, the amount contained in the Valuation Report and the amount paid must be above $400,000.
Along with the fulfillment of the investment requirement of $400,000, the necessary documents are collected and application is made to the Ministry of Environment and Urbanization with a request for Investment Conformity Certificate.
After the Investment Conformity Certificate.is received, the procedures for the Turkish Citizenship Application process can be started.
2. BANK INVESTMENT
The main applicant can make all the transactions from the bank account after bank account opening.
By activating internet banking, he/she can manage all transactions in his/her account.
For bank investment;
“deposit a minimum of $500.000 or equivalent foreign currency or equivalent amount convert to Turkish Lira to banks that operate in Turkey with the condition to keep such deposit in the relevant bank for at least three (3) years that is determined by the Banking Regulation and Supervision Agency;”
Is regulated.
Based on the regulation, the main applicant who keeps 500,000 USD or equivalent foreign currency convert to Turkish Lira in his bank account for 3 years can be a Turkish citizen.
The main applicant can get interest or participation share during the 3 years that the mentioned investment is in the bank account.
Bank Account Opening
Lawyers can carry out all bank account opening procedures with a power of attorney. In particular, we would like to state that; there is no authorization to withdraw money in this power of attorney. There are only authorizations for the necessary transactions for opening a bank account and bank investment.
Bank account opening procedures are initiated with passport, power of attorney, address proof document and Potential Tax Identification Number.
Then, the necessary documents are signed for the account opening and the bank account opening process is completed. After opening the bank account, all the information necessary for internet banking, such as account information and customer number, is shared with the main applicant.
Investment Conformity Certificate
As a result of the audits conducted by the Banking Regulatory and Supervisory Authority by examining the bank account, to whom the account belongs, the investment amount and power of Attorney, investment conformity certificate is issued if the main applicant’s investment is found to be appropriate.
It does not matter from which account the investment amount is transferred to the bank account of the Main Applicant. It is not controlled by the Banking Regulation and Supervision Agency by whom $500,000 or equivalent foreign currency to convert Turkish lira, is sent to the main applicant’s bank account in Turkey, from which country it is sent, and from what account it comes from. The main issue here is whether the amount in question is in the account of the Main Applicant on the date of the request for determination. The other important point is the exchange certificate which shows investment amount convert to Turkish Lira in Turkish local banks.
The main issue that the Banking Regulatory and Supervisory Authority controls is that the investment amount is complete in the account located in Turkish banks opened on behalf of the main applicant at the time of the request for an Investment Conformity Certificate.
RESIDENCE PERMIT
An application for a residence permit is made in accordance with paragraph 31/J of the law on Foreigners and International Protection number 6458.
The residence permit we have mentioned is a type of residence permit special to the application process for Turkish Citizenship.
CITIZENSHIP APPLICATION
After obtaining the Investment Eligibility Certificate and residence permit approval for the main applicant and spouse , an application for Turkish citizenship is submitted.
The main applicant and his/her family choose Turkish first and last names for their Republic of Turkey identities and passports. There are certain limitations in the choice of name and surname determined by the State and the relevant legislation.
Name and surname should be chosen from Turkish language names and surnames or the main applicant and his/her family can apply by using their names on the passport (only by using Turkish letters/characters) they use in the Turkish citizenship application process in the same way as their Turkish identity and passports.
BENEFITS OF TURKISH CITIZENSHIP
SOCIAL BENEFITS
✓ Free education services,
✓ Free health services, Advanced medical technologies, Mega city hospitals,
✓ High quality retirement system,
✓ Visa free travel for more than 110 countries,
✓ Easy visa for EU, USA, Canada etc.
✓ Simple application process for USA E-2 Visa,
✓ Dual Citizenship,
✓ No residency requirement,
✓ No compulsory language,
✓ Affordable life, low cost living,
✓ Destinations for summer and winter tourism,
✓ Diversity of Turkish Cuisine,
✓ Historical heritage and touristic attractions,
✓ Online/electronic government system and fast completion administrative procedures,
✓ 24/7 service sector,
COMMERCIAL BENEFITS
✓ Exclusive Green Passport Opportunity for Company
Officials Generating Annual Exports of 500 Thousand
Dollars,
✓ Potential of high profit when real estate is acquired,
✓ Being one of the parties to Double Taxation Prevention
Agreements,
✓ Ankara Agreement,
✓ Customs Union Agreement,
✓ Membership in G20 and NATO,
✓ State support and incentives for entrepreneurs and
investors,
✓ No need to declare assets,
✓ Serving as a bridge between Asia and Europe and having
logistic advantages in terms of trade,
✓ Easy transportation through air, land, and sea,
Related Informative Notes:
