Acquisition of turkish citizenship by investment

Investing in Turkey offers you the opportunity to become a Turkish citizen !

Beautiful vistas, being near the sea, wonderful cuisine, and being surrounded by kind and friendly locals are all part of life in Turkey. When compared to the people of many other nations, the Turkish people live a dynamic and prosperous lifestyle.

Turkey is also a country of tremendous regional and global significance since it is located at the crossroads of Europe and Asia. It is a vast intercontinental country strategically positioned and surrounded by three seas, with a geographic location that allows it to communicate with important markets via well-developed transportation routes, making it a popular tourist destination.

Who wouldn't want to live in a continental country with all of the aforementioned benefits? Not to mention the fact that, thanks to recent citizenship initiatives, entering Turkey is no longer a demanding challenge. Furthermore, the business opportunities for expats in Turkey are pretty huge, and investing in Turkey is definitely advantageous.

Back to 2016, the government of Turkey unveiled a citizenship-by-investment program allowing for the acquisition of Turkish citizenship by investment , and it initiated the program in late January 2017 to encourage foreign direct capital and enhance the country's real estate market.

And when the Turkish citizenship by investment in real estate program was first announced, the government estimated that the admittance fee would be at least $1 million. As a result, few investors were interested. The Turkish government reduced the required investment to $250,000 in mid-2019 after discovering that the amount assigned was a bit too high. Consequently, Turkey is now one of the market's lowest-cost to acquisition of Turkish citizenship by investment programs.

Following the latest legislative amendments, the Turkish Republic has begun to grant citizenship to those who invest in Turkey without requiring a minimum period of residency. The option to acquisition of Turkish citizenship by investment has grown even more appealing since the minimal investment amounts were dropped, as mentioned above, and the entire procedure may now be completed in 2–3 months.

Turkish citizenship and property acquisition

A foreign investor who has purchased a property for sale in Istanbul , Antalya , or Bursa for example, and that property worth at least 250,000 USD in foreign currency or Turkish lira, as determined by the Ministry of Environment and Urbanization, can apply for Turkish citizenship if an annotation is made in the land registry records stating that it will not be sold for three years. Before purchasing real estate, a real estate valuation report indicating the market value of the real estate should be issued by real estate assessment agencies licensed by the Capital Markets Board and the Banking Supervision Board. The date of issuance of this appraisal report, presented as part of the application for the purchase of real estate, must be at least 3 months prior to the application date.

However, if you are a foreigner intending to buy an apartment for sale in Trabzon , Turkey, or any other kind of properties, like commercial properties ; offices, villas , or even a luxury penthouse in any part of Turkey , including Istanbul , Antalya , Ankara, Kocaeli, or Sakarya , you should be aware of the following:

• Foreign investors are not required to get a residence permit in order to purchase real estate in Turkey. Furthermore, under Law No. 6458 on Foreigners and International Protection, foreigners who buy property in Turkey are allowed to renew their short-term resident permits.
• The transfer of property is not conferred by preliminary real estate contracts issued by notaries or signed by natural people in writing. These preliminary agreements solely act as a guarantee for the transfer of ownership; the property in question does not pass through such documents.
• Prior to initiating processes at the appropriate land registry directorate, check for any burdens such as mortgages, liens, and similar sorts of limitations that may exist with reference to the property that would hinder its sale.
• Property inquiries may be made online at parselsorgu.tkgm.gov.tr, where particular information such as the city, district, quarter/village, map section, and plot can be utilized to locate the property. Basic information about the real estate property, including its present status, is therefore available online. However, the owner's personal information is nevertheless unavailable.
• Investors wishing to purchase real estate in Turkey must file a joint application with the property's owner to the General Directorate of Land Registry and Cadastre. They can also phone the 181 Call Center, which is open 24 hours a day, or browse randevu.tkgm.gov.tr to schedule an appointment without having to attend to the directorates' offices in person.
• Property ownership titles can only be authorized when they have been registered with the land registry directories. This is a typical blunder.
• Turkish firms with foreign money must first file an application with the Provincial Directorate of Planning and Coordination (PDPC) at the local governor's office where the real estate is located. Firms should next apply to the Land Registry Directorate if they receive a positive response from PDPC. These firms can apply in person, by correspondence, or by e-mail.

General Information About Turkish Citizenship By Investment : 

When it comes to real estate purchases in Turkey, the term "foreigner" is classified into three subgroups:

• Foreign natural individuals
• Foreign legal individuals ​
• Foreign-capitalized Turkish firms

Acquisition of real estate by foreign natural and legal persons is governed by Article 35 of Law No. 2644 on Land Registry. Article 36 outlines the rules for corporations with foreign ownership.

The Cabinet of Ministers determines which countries' citizens are entitled to buy real estate in Turkey, and may also impose extra requirements for acquisitions if considered essential.

Legislation governing foreign investors' citizenship

The Turkish Citizenship Law No. 5901, the Regulation on the Implementation of the Turkish Citizenship Law, the Foreigners and International Protection Law, and Presidential Decision No. 106 and 418 all contain provisions governing the acquisition of Turkish citizenship by investment for a foreign investor.

Whereas, article 12 of the Turkish Citizenship Law states that:

• Foreigners, as defined below, may be granted Turkish citizenship at the President's decision if there is no threat to national security or public order, including:
• Foreigners who founded industrial activities in Turkey or who have performed or are thought to have done exceptional service in the social or economic fields, or in the domains of science, technology, sports, culture, or arts;
• Foreigners who hold a short-term residency permit under the Foreigners and International Protection Law's Article 31/1(J);
• Foreigners who hold a Turquoise Card, as well as their foreign spouse and underage or dependent foreign children or spouse.

Citizenship requirements for a foreign investor with a short-term residence permit

Article 31/1-j, headed "Foreigners' Short-Term Residence Permit and International Protection Law," states the following: 

“Those who do not work in Turkey but plan to make investments within the scope and quantity set by the President, as well as their foreign spouse, underage or dependent foreign children, or spouse, shall be entitled to apply for a short-term residence permit.”

As shown above, not everyone who invests can acquisition of Turkish citizenship by investment as a result of their investment in a duplex apartment for sale in Istanbul , for example. These investments must meet specific criteria or surpass particular financial thresholds. The investment has to be within the scope and volume designated by the President, according to the Foreigners' and International Protection Law. Presidential Resolution No. 418 established the scope and quantity of the investment required from foreigners to become Turkish citizens and acquisition of Turkish citizenship by investment .

According to Presidential Decision No. 418, foreigners can get Turkish citizenship by investment after filing an application according to the President's decision if they meet any of the following conditions:

• Obtaining citizenship by fixed capital investment

A foreign investor who has made a fixed capital investment of at least 500,000 USD or its equivalent in foreign currency or equivalent in Turkish lira, as decided by the Ministry of Industry and Technology, may obtain Turkish citizenship. Purchasing real estate on its own does not qualify as an investment in this category. An investment in fixed capital should be an investment in the production of commodities and services. As a result, it should include factory-related components. Machinery, gear, buildings, and land are only a few examples.

• Acquiring citizenship through real estate investment

If a pledge is made in the land register records stating that the property will not be sold for three years, a foreign investor who purchases real estate worth at least 250,000 USD (or equivalent in foreign currency or Turkish lira) can apply for Turkish citizenship.

• Citizenship by offering job opportunities

A foreign investor who employs at least 50 people is eligible to obtain Turkish citizenship as determined by the Ministry of Family, Labor, and Social Services.

• Acquisition of Turkish citizenship by investment through Turkish banks by opening a deposit account

A foreign investor who has invested at least 500,000 USD or equivalent in foreign money or Turkish lira in Turkish banks for three years, as decided by the Banking Regulation and Supervision Agency, can obtain Turkish citizenship. The bank where the investment will be made must be based in Turkey. Citizenship cannot be obtained by depositing money into a deposit account opened in a branch, affiliate, or representative office of a bank based in Turkey. The deposit must be in a CBRT-approved convertible foreign currency or precious metal.

• Acquisition of Turkish citizenship by investment in government debt securities

For three years, a foreign investor can get Turkish citizenship if he possesses government debt instruments worth at least 500,000 USD or comparable foreign currency or Turkish lira, as determined by the Ministry of Treasury and Finance.

• Acquisition of Turkish citizenship by investment through the purchase of shares in a real estate investment fund or venture capital investment fund

A foreign investor who has paid at least 500,000 USD or equivalent in foreign currency or equivalent in Turkish lira for a stake in a real estate investment fund or venture capital investment fund can obtain Turkish citizenship as determined by the Capital Markets Board.

These monetary restrictions are calculated using the Central Bank of the Republic of Turkey's effective selling rate and/or cross exchange rate on the calculation date.

The procedure for foreign investors to consider

• Obtaining a "Certificate of Conformity" from the competent entity stating that at least one of the investments indicated in Article 20 of the Regulation on the Implementation of the Turkish Citizenship Law has been fulfilled. This certificate is acquired to confirm that the foreigner's investment is in proper conditions to make the investor eligible to benefit from Turkish citizenship . The sort of investment made or to be made by the foreigner determines how and where the certificate of compliance should be acquired.
• Obtaining a “short-term residency permit" under the Foreigners and International Protection Law's Article 31/1-j is required to get a residence permit for foreigners staying in Turkey for longer than ninety days or the duration given by the visa or visa exemption. According to Turkish legislation, there are a variety of residency permits based on the grounds for one's entry and stay in Turkey. A short-term resident permit is the sort of residence permit that an investor must get in order to achieve citizenship. If a foreigner wishes to apply for a temporary residence permit in Turkey, he or she must first enter the country with a valid visa or visa exemption and then apply for a short-term residence permit online to prolong his or her stay.

A foreign investor can apply for a short-term residency permit without having to enter Turkey. Investors can also use the e-residence system to apply for a short-term residency permit. The appropriate documentation must, however, be presented to the General Directorate of Migration Management in this circumstance.

From outside Turkey, applications for residence permits are submitted to Turkish consulates in the countries where the foreigner is a citizen or lawfully resides.

Foreigners applying for a residence permit must have a passport or passport replacement that is 60 days longer than the residence permit sought. Applications must be completed within 90 days of the application date.

• Submitting a citizenship application: The final step is to apply for Turkish citizenship after receiving a short-term resident permit and a "certificate of conformity" declaring that the investment qualifies for citizenship. In addition, the investor may apply on behalf of family members. This application, however, can only be made for his/her spouse and minor children under the age of 18.

Foreigners' applications for citizenship are assessed by a commission created by the appropriate ministries and presented to the President for approval. The President has the last say on whether or not to grant citizenship.

When applying for a certificate of conformity, a short-term residency permit, or citizenship, a great amount of information and documents must be fully prepared. If any of the needed application papers are missing, your application may be refused, or it may take some time to complete the missing paperwork. 

All procedures for obtaining a short-term residence permit, receiving a residence permit card, obtaining a certificate of conformity, and all necessary steps for a citizenship application can be completed remotely with a special power of attorney, without the foreigner having to visit Turkey in person. damasturk's professional team will take all the required precautions to complete all transactions on your behalf as quickly as possible.

The benefits of the Turkish citizenship-by-investment program

Acquisition of Turkish citizenship by investment program comes with a slew of advantages. The following are some of the intriguing advantages :

• You and your family can live, work, and study in Turkey with a Turkish visa. For example, you may make money from your real estate property by renting it out or selling it. Furthermore, if you want to relocate with your family, you can alleviate your concerns regarding your children's education. Because the visa is valid for the entire family, you and your children will have access to the Turkish educational system and a high-standard lifestyle.
• The fastest way to gain Turkish citizenship is to invest in the country. For example, after investing $250,000 in shops for sale in Turkey , you may obtain a Turkish passport in less than two months after filing your application. Of course, investing in any kind of properties will do it.
• The applicant is permitted to bring his spouse, dependent children (under 21), and dependable parents with him. Furthermore, all members have access to free healthcare services, much like the local Turkish population.
• Citizens of Turkey can apply for a Schengen visa quickly and simply if they have all of the necessary documentation. In addition, numerous other countries have bilateral visa-free travel arrangements with Turkey.  Countries like Hong Kong, Singapore, Japan, Mexico, South Korea, and nearly the whole continent of Latin America are among them.
• If you wish to relocate to the US, you can easily apply for an E-2 investor visa to enter the country. The two countries have a treaty agreement for the USA's E-1 and E-2 Investor Visas.
• Furthermore, if you choose to relocate to the United Kingdom, you have a good bargain. If you desire British citizenship, all you have to do is apply for a business person visa and wait for it to be granted.
• As a Turkish citizen, you can take advantage of the Ankara Agreement, which permits Turkish citizens to work, open a business, and permanently relocate to an EEC (European Economic Community) country. Although a visa is necessary, the application process is more straightforward than in other nations.
• A person does not have to stay in Turkey for a specific amount of time before or after receiving a visa. Furthermore, even if you are unfamiliar with the local Turkish language, you will be OK.
• It is allowed to have two passports in Turkey. If you receive a Turkish passport as an investor, you can preserve your current nationality. Dual citizenship is possible, but only if both countries' nationality regulations allow it, and if your existing place of citizenship does not allow dual citizenship, you must give up your current citizenship before applying for a Turkish passport.

Requirements for acquiring Turkish citizenship by investment

To gain Turkish citizenship as an investor, there are no residence requirements. This implies that you may get a Turkish passport 6 months after making a financial commitment, even if you have never lived in Turkey. However, to be eligible for citizenship, the applicant must meet one of the following investment requirements:

• Buy a property with a minimum value of USD 250,000. It's worth noting that it is possible to acquire numerous properties that total $250,000 or more. However, the properties, in this case, must be in the same neighborhood.
• Contribute a minimum of USD 500,000 in fixed capital.
• Make a deposit of at least USD 500,000 (or the equivalent in foreign currency or Turkish lira) into a Turkish bank account.
• Invest at least USD 500,000 (or comparable foreign cash or Turkish lira) in government bonds.
• Make an investment of USD 500,000 (or comparable foreign cash or Turkish lira) in a real estate investment fund or a venture capital investment fund.
• Create at least 50 jobs, as determined by the Ministry of Family, Labor, and Social Services.

Investing in real estate makes the most sense for overseas investors. It not only requires less money, but its worth is expected to rise in the next few years. And it can also be rented or sold.

New regulations for Turkish citizenship by investment 

The conditions for getting Turkish citizenship by investment have changed significantly as of March 23, 2021. These new regulations have imposed a considerable additional barrier for international investors, as getting Turkish citizenship through real estate investment procedures now demands considerably more due diligence.

The following are the most recent changes:

• It was already illegal to buy real estate from a foreigner prior to these changes. Foreign investors who want to get Turkish citizenship must acquire real estate from Turkish individuals, and this restriction remains in effect. There is now an extra law prohibiting foreigners from purchasing real estate from their spouses and children. According to the actual sense of the new law, a Turkish citizen married to a foreigner will not be able to sell his or her real estate to a foreign investor seeking Turkish citizenship. Furthermore, a foreign investor will now have to verify whether or not the Turkish property owner is married to a foreigner, which sounds uncomfortable for both parties.
• If a foreigner sells a real estate property to a Turkish person, who subsequently sells it to a new foreign investor, it is not an issue for the last investor, and he or she can utilize that real estate to apply for citizenship. Regardless, there is a new and critical constraint on this option currently: If the previous foreign property owner (the one before the Turkish property owner) shares the same nationality as the eventual foreign property owner (the last investor), the last investor will be unable to use the property for citizenship purposes, even if he or she purchased the property from a Turkish person. However, there is one more requirement for this limitation to be effective: the former foreign property owner and the Turkish property owner must have sold after January 12, 2017. If the initial property transfer occurred before that date, there would be no issues for the last investor.
• If a foreign investor purchases real estate from a Turkish firm, no one of the investor's nationality should be among the company's partners. That is, the investor must investigate the partnership structure of the Turkish real estate company from which he or she purchases real estate. Previously, this prohibition applied exclusively to enterprises in which the investor, his or her spouse, or children were partners. The restriction's reach has now been enlarged.
• The real estate that has previously been utilized as an acceptable investment for a citizenship application cannot be used for a subsequent citizenship application. However, if only a portion of that real estate is utilized for citizenship purposes, that portion will no longer be eligible, but other portions will.
• If the real estate utilized for the citizenship application is transferred to the original owner again after the three-year blocking period expires, the Turkish Citizenship Office may launch an investigation to determine if the transaction was prepared fraudulently between the parties. If Turkish officials determine that the transaction was planned and dishonest, they have the authority to retrospectively cancel the citizenship.
• Preliminary real estate sale agreements, as is well known, are considered viable investments for Turkish citizen applications. These agreements are formed for real estate developments that are still under construction and cannot be sold yet. If the preliminary real estate sale contract was utilized for citizenship purposes and the real estate project is not finished before the three-year blocking period expires, the investor may sell (transfer) his or her contract to a third party (another investor). This usually has no negative impact on the foreign investor's citizenship procedures. The new limits, however, transformed the situation. If such a sale takes place, the Turkish Citizenship Office can launch an investigation into the transaction to see if it was a pre-arranged fraudulent transfer between the parties. If Turkish authorities determine that the transfer of the preliminary real estate sale contract was prepared and dishonest, citizenship may be revoked retrospectively.
• During the sale of real estate, the foreign investor must confirm that no erroneous or forged documents have been filed, and if there are, he or she will be held entirely responsible. In fact, even without such a declaration, the Turkish authorities had the legal authority to revoke a foreigner's Turkish citizenship if he or she submitted an inaccurate or fraudulent certificate. The Turkish authorities, however, generate the evidence by imposing such a declaration.

Procedures and timeframes for the Turkish citizenship by investment program

The following information will assist you in understanding the procedures for applying for Turkish citizenship.

After the applicant has decided how he wants to invest in Turkey, he must submit an application for a residency permit. It normally takes 3 to 4 months to complete the procedure. The greatest feature is that you don't have to be physically present in the country to conduct an interview or obtain documents.

The next step is a little more time-consuming. You will be asked to complete a significant amount of documentation. Notary certifications, official translation (if required), and so on; the process will undoubtedly consume a substantial amount of your time.

Furthermore, whether you choose real estate, job development, or capital investment, the process is quite similar. Here are the measures to take concerning the real estate investment method.

• First and foremost, you must get a new Turkish Tax ID number. The legal system will not allow you to proceed with a property acquisition unless you have a tax ID. Open a bank account in the country once you obtain your tax number.
• Second, choose the property you wish to purchase. At this point, you'll start filling out all of the paperwork.
• Then, you must get a certificate of eligibility, which will be granted only after you have qualified for the Turkish citizenship by investment program. The applicant must apply to the General Directorate of Land Registry and Cadaster of the Ministry of Environment and Urbanization.
• To begin the application process, a person must be a legal resident. As a result, obtain your residence permit as soon as you buy Turkish real estate. It will be sent to you on the same day you submit your application.
• Finally, once all of the documentation has been completed and verified by an expert, you will proceed to the last step of submitting your paperwork (all papers and application forms) to the Provincial Directorate of Census and Citizenship.

At the end, you have to know that each of these tasks may be completed in less than 24 hours, and you do not need to be physically present in the country. However, if you are available in Turkey when you drop off the documents and return home with the title deed, you will receive your ten-year passport within three to four months of filing your application. Imagine how fascinating that would be!

 

Sources: invest.gov.tr / turkiye.gov.tr / goc.gov.tr 

Editor: damasturk