TURKISH CITIZENSHIP INVESTMENT PROGRAM

A. INTRODUCTION – TURKISH CITIZENSHIP INVESTMENT

Although the borders do not have any meaning anymore in the new century, the policies pursued by the states can limit the unlimited world in many ways. This circumstance forces many individuals to make choices financially, intellectually, politically and psychologically and often restricts individuals. Turkish Citizenship Investment Program meets with these needs and built the bridge to the West. For more information about Turkish citizens’ easy access to the west, please read our article titled Post-Modern American Dream: The Turkey CIP.

B. LEGAL BASIS OF TURKISH CITIZENSHIP INVESTMENT PROGRAM

There are two ways to acquire Turkish citizenship: by birth and after birth. We will not address the issue of citizenship gained by birth because it is not relevant. There are two ways to acquire Turkish citizenship after birth for the investors. With (b) prepended to the first paragraph of Article 12 of the Law No. 5901 promulgated on July 28, 2016;

• Those who obtain a residence permit further to (j) of the first paragraph of Article 31 of the Law No. 6458, by investing within the scope and amount determined by the President
• Foreigners holding the Turquoise Card

may acquire Turkish citizenship based on the resolution of the President of the Republic of Turkey. The implementation of the Citizenship Investment Program specified by the law is clarified by the related regulation.

While the Citizenship Investment Programs are more widespread throughout the world, Turkey’s Citizenship Investment Program is increasing its popularity. The program was embodied by the Council of Ministers Decision dated 12/12/2016 and numbered 2016/9601. Before this decision, the rule of acquiring citizenship was intangible and open to interpretation. Therefore, the program could not attract investors other than who lives in Turkey.

In the last three years, investors have become interested in the Turkish Citizenship Investment Program. However, in the last year, a rapid increase was observed in the diagrams. The reason for the rapidly rising interest is the President’s decree dated 18 September 2018. With the decree, the lower limits of Turkey’s Citizenship Investment Program were regulated and the process of acquiring citizenship is facilitated.

C. WHAT HAS CHANGED?

To see what has changed with both of these legal regulations, let us look at the table below.

CLAUSE	INVESTMENT OPTIONS	Minimum Requirement (BEFORE)	Minimum Requirement (NOW)	ACCREDITED INSTITUTION
20/2-a	Fixed Capital Investment	2 M USD	500 K USD or equivalent foreign currency or Turkish Lira	Ministry of Industry and Technology
20/2-b	Purchasing a Real Estate	1 M USD	400 K USD or equivalent foreign currency or Turkish Lira	Ministry of Environment and Urbanization
20/2-c	Creating Jobs	100 Employees	50 Employees	Ministry of Family, Labor and Social Services
20/2-ç	Depositing Money to the Bank	3 M USD	500 K USD or equivalent foreign currency or Turkish Lira	Banking Regulation and Supervision Agency
20/2-d	Buying Government Bonds	3 M USD	500 K USD or equivalent foreign currency or Turkish Lira	Ministry of Treasury and Finance
20/2-e	Buying Real Estate Investment Fund Share or Venture Capital Investment Fund Share	No regulation	500 K USD or equivalent foreign currency or Turkish Lira	Capital Markets Board of Turkey

D. WHAT OPTIONS DO I HAVE?

1. Purchase Real Estate Valued at Least 400,000 USD

Investors may acquire Turkish citizenship by purchasing real estate worth at least USD 250,000. The investor will acquire citizenship provided that he undertakes that he will not sell his property for three years and keeps it in his possession. Following you can find the detailed process of acquiring Turkish citizenship through purchasing real estate. Our expert Real Estate Brokers at FIN Real Estate Turkey can assist you with the overall process.

1. The starting step is purchasing real estate located in Turkey. This property can be a home, commercial, or land.
2. After finishing the property transaction in Title Deed Office, the Investor’s lawyer will affix the annotation of not selling for 3 years to TAPU records.
3. Following, the required documents, the lawyer will apply for the conformity report to TAPU Office.
4. After making the required checks, the Ministry of Environment and Urbanization should issue the conformity report and send it to the bank branch where the money was deposited.
5. As soon as the Investor receives the conformity report, the Investor’s lawyer applies for the investor residence permit.
6. After the approval of the residence permit, the lawyer applies for Turkish citizenship on behalf of the Investor and his dependents.

2. Make a Fixed Capital Investment Valued at 500,000 USD

Investors may acquire Turkish citizenship by purchasing a non-public company entirely or be a shareholder worth at least USD 500,000. The only requirement for the investor is to not transfer his share for three years. Following you can find the detailed process of acquiring Turkish citizenship by making a fixed capital investment. Our expert lawyers at FIN Real Estate Turkey can assist you with the overall process. Please contact us Today!

1. The starting step is purchasing a non-public company entirely or being a shareholder. The company valuation report is requested from authorized institutions regarding the determination of the market value of the purchased/owned company.
2. Investors who are entitled to receive citizenship by investing in fixed capital cannot transfer their shares in the company to another person for at least three years.
3. Following, the required documents, the lawyer applies for the conformity report.
4. After making the required checks, the Ministry of Industry and Technology should issue the conformity report.
5. As soon as the Investor receives the conformity report, the Investor’s lawyer applies for the investor residence permit.
6. After the approval of the residence permit, the lawyer applies for Turkish citizenship on behalf of the Investor and his dependents.

3. Employment of 50 Workers

The Investor who creates new jobs has the opportunity to extend their business and get Turkish citizenship at the same time. Therefore, you can benefit from the blessings of obtaining a Turkish citizen in the business world while adding manpower to your company. Below we have explained the process of acquiring Turkish citizenship by creating jobs. Our expert lawyers at FIN Real Estate Turkey can assist you with the overall process. Please contact us Today!

1. The Investor shall be the sole shareholder or partner of a company that is established in Turkey.
2. The company should hire at least 50 workers.
3. The Investor’s lawyer will request a conformity report on the grounds that the Investor has created employment for 50 people.
4. Ministry of Family, Labor, and Social Services evaluates the submitted documents. In the absence of any deficiencies, the Ministry issues the conformity report within 7 days. If the Ministry requests for supporting documents, the investor is given 30 days to submit them.
5. As soon as the Investor receives the conformity report, the Investor’s lawyer applies for the investor residence permit.
6. After the approval of the residence permit, the lawyer applies for Turkish citizenship on behalf of the Investor and his dependents.

4. Deposit at least 500,000 USD to Bank

Banking Regulation and Supervision Agency which is abbreviated as BDDK carries out the audit of the process. Besides after getting citizenship, the institution checks if the value of the money in the bank account is USD 500,000 or not. Following you can find the detailed process of acquiring Turkish citizenship by depositing money into the bank. Our expert lawyers at FIN Real Estate Turkey can assist you with the overall process. Please contact us Today!

1. The starting step is opening a bank account that the bank Investor prefers. The bank should be active in Turkey.
2. The Investor shall deposit 500,000 USD or equivalent foreign currency or Turkish Lira to the bank account. The amount deposited in the bank should be blocked for 3 years.
3. Following, the required documents, the investor’s lawyer will apply for the conformity report to BDDK.
4. After making the required checks, the BDDK should issue the conformity report and send it to the bank branch where the money was deposited.
5. As soon as the Investor receives the conformity report, the Investor’s lawyer applies for the investor residence permit.
6. After the approval of the residence permit, the lawyer applies for Turkish citizenship on behalf of the Investor and his dependents.

5. Investing in Government Bonds valued at least 500,000 USD

Government bonds are one of the methods of government borrowing instruments. These securities are issued by the Turkish Treasury in the domestic market. The government produces these bonds in exchange for their borrowing. The government pays its debt to the bearer of the government bond with interest on coupon payment days and at the end of maturity. In the process that starts with borrowing and ends with payment, real and legal persons trade the bond in secondary markets.

Since the state is included in the circulation of money, this investment route is one of the types where risk is minimized. Therefore, buying bonds still remains attractive. Besides, it is possible to gain Turkish citizenship with government bonds, which are preferred by investors who do not like high risk. The process of acquiring Turkish citizenship through investing in government bonds is explained below. Our expert lawyers at FIN Real Estate Turkey can assist you with the overall Turkish Citizenship Investment process. Please contact us Today!

1. The starting step is buying a government bond from a bank. The bank should be active in Turkey and the security should be the Turkish Government’s bonds.
2. The bond’s value should be 500,000 USD, equivalent foreign currency, or Turkish Lira. The Investor shall commit that he will not sell the bonds for 3 years.
3. Following, With the required documents, the Investor’s lawyer will apply for the conformity report to the Ministry of Treasury and Finance.
4. After making the required checks, the Ministry should issue the conformity report.
5. As soon as the Investor receives the conformity report, the Investor’s lawyer applies for the investor residence permit.
6. After the approval of the residence permit, the lawyer applies for Turkish citizenship on behalf of the Investor and his dependents.

6. Buy Real Estate Investment Fund Share or Venture Capital Investment Fund Share valued at least 500,000 USD

The last type of Turkish Citizenship Investment Program is Real Estate Investment Fund and Venture Capital Investment Fund consists of money collected from qualified investors in return for participation shares. It is a non-legal entity established by portfolio management companies in accordance with the principles of fiduciary property in the account of shareholders. The purpose of these companies is to operate a portfolio of assets and transactions determined by the Capital Markets Board. The investor should not sell the investment made by purchasing shares for 3 years. Otherwise, the authority will cancel the citizenship decision. The process of acquiring Turkish citizenship through buying real estate investment fund shares or venture capital investment fund shares is explained below. Our expert lawyers at FIN Real Estate Turkey can assist you with the overall process. Please contact us Today!

1. The starting step is buying an investment fund share. The company which provides the portfolio should be working under the supervision of the Capital Markets Board of Turkey.
2. The share’s value should be 500,000 USD, equivalent foreign currency, or Turkish Lira. Investors who are entitled to receive citizenship by investing in fund shares cannot transfer their shares in the company to another person for at least three years.
3. Following, the required documents, the Investor’s lawyer will apply for the conformity report to the Capital Markets Board of Turkey.
4. After making the required checks, the Ministry should issue the conformity report.
5. As soon as the Investor receives the conformity report, the Investor’s lawyer applies for the investor residence permit.
6. After the approval of the residence permit, the lawyer applies for Turkish citizenship on behalf of the Investor and his dependents.