Turkey Citizenship- By-Investment Program
Do you know why affluent individuals from across the globe are having increased interest in Turkish property investment?
It’s the citizenship benefit they derive from the investment program prescribed under the Turkish Citizenship-By-investment Program (CIP).
Invest in Turkey and get citizenship as an additional perk!!
However certain prerequisites are applicable to this knack which are listed below.
WHY TURKEY INTERESTS PROPERTY INVESTORS?
The Republic of Turkey interests’ investors because it connects the two continents of Europe and Asia that facilitate foreign nationals to immerse in rich cultural heritage, explore historical background, and enjoy the diversity of nature in one country. Turkey’s constant economic growth, stability, and attractive tourist destinations invite property investors, and consistent infrastructural development offers an opportunity for great Return on investment (ROI).
Also, Turkey is a member of the UN, NATO, the IMF, the World Bank, the G-20, and member of the European Customs Union since 1995 that lures investors for Turkey investment immigration and getting a second passport for this country as the best investment opportunity. Enjoy the triple benefit of increasing your global mobility, business and tax exemptions, and connectivity with key markets owning property here.
UNDERSTANDING THE TURKISH CITIZENSHIP-BY-INVESTMENT PROGRAM
Launched in January 2017, investor citizenship program i.e., Turkey CPI, was an attempt by the Turkish government to invite foreign direct investment to boost the country’s real estate sector.
Under the Turkey Citizenship-By-Investment Program, anyone who invests at least USD 250,000 in Turkish real estate can acquire Turkish citizenship automatically.
Curios about how to obtain Turkish citizenship through other investment program?
Here are the other gateways to Turkey’s investors golden visa and citizenship: –
- Fixed-asset investment listed by the Ministry of Industry and Technology
- $500,000 deposit for a minimum 3 years in a Turkish bank.
- Investment for 3 years in Government bonds with the potential to receive interest as income.
- Setting up a business in Turkey and creating jobs opportunity for at least 50 Turkish employees, confirmed by the Ministry of Labour and Social Security.
However, property investment seems like the safest and the easiest bet.
BENEFITS OF THE TURKEY CITIZENSHIP PROGRAM
Want to know which Europe country gives citizenship easily?
As one of the fastest routes to Turkey citizenship, investing in Turkey real estate help getting a second passport within three months. However, Turkey citizenship is granted after 3-6 months; only after the applicant’s investment process is completed. Also, the applicant must hold the investment for a minimum of 3 years.
There is no declaration obligation of the investor’s assets or income that they own in other countries as the citizenship acquisition application process is quite straightforward in Turkey. Additionally, there is no need for physical presence of investor in Turkey for the property acquisition.
Suppose you have made up your mind to purchase property in Turkey as your second residence alternative or as an investment option with a high ROI perspective; in that case, there are a lot of modern apartments and luxurious seafront villa options available at highly competitive prices. Not only can you earn handsome passive rental income but also, after 3 years, you can re-sell the property at higher rates.
This Turkish citizenship through property investment program is one of the simplified routes for relocating to both the UK and the US under respective visa categories offered by the nations for Turkish nationals.
To relocate to the UK, initiate your journey to British Citizenship through the Turkish Businessperson Visa. To reside in the US, you may choose an E-2 investor visa program once you have Turkish citizenship (the US E-2 Treaty Program enables citizens from signatory countries like Turkey to reside there).
OTHER BENEFITS OF TURKEY CIP
1) Fast citizenship application processing whereby the passport is expected within 90 days of applying.
2) Option of buying one or several properties with the minimum total value of $250,000. An investor can purchase residential or commercial property as they have the right to acquire several properties here.
3) Entire family is eligible for citizenship with the investment in the property, including spouses, children below 18 years, and disabled children of any age.
4) There is no need for residing at the property before or after acquiring the citizenship as the whole process can be remotely managed.
5) Turkey citizenship through investment comes with the benefit of visa-free travel or visa arrival access to 110 countries globally, including Singapore, Japan, Qatar, and South Korea.
6) Turkey offers a very safe and secure personal environment for investors with over 700,000 ex-pats and 60,000 international companies operating in the nation.
7) The citizenship acquired through investment is valid for a lifetime and is transferable to descendants.
8) Turkey allows holding dual citizenship; this means you don’t have to surrender citizenship of your homeland country to get second citizenship of Turkey.
PROPERTY MARKET OVERVIEW
Now that you know the benefits of Turkish citizenship by property investment, let’s overview the current Turkey real estate realm.
Turkey is travellers’ favorite destination facilitating easy transportation and ample entertainment opportunities for every genre of visitors. Istanbul, a renowned city and real estate investment haven of the country, invites global investors’ attention as it yields massive real estate investment profits and higher interest on investments.
Increased foreign investment in the residential real estate market of Turkey
house sales to foreigners’ data have shown a year-on-year increment due to legislative amendments in the country that facilitate citizenship through investment in a property program.
Additionally, real estate developers and banks launched campaigns that lead to an annual increase in property investment by 78.4%, way back in 2018.
The year 2019 witnessed another 7% year-on-year increase in the residential property sales to the foreigners in the country, especially in Istanbul, the most populous city of Turkey.
Compared with 2014 to 2019, the total number of house sales to foreigners increased from 18,959 to 36,197 for the respective years.
House sales to foreigners’ figures became 111,241, increased by another 2.4% in March 2021 compared to the previous years’ same month data.
Istanbul is the preferred investment hub of Turkey, followed by Ankara (the country’s capital city), Izmir, Ardahan, Hakkari, and Tunceli.
In 2021 March alone, 4248 houses were sold, which is a 39.9% increase compared to the same month of the previous year.
When compared quarterly, house prices in Turkey increased 5.6% in 2020 Q1.
HOME SALES IN TURKEY ACCORDING TO THE COUNTRY NATIONALITIES
Foreign buyers are largely inclined in Turkish property investment, and the majority belongs to the Gulf nation. Due to the fallen lira, Arab visitors are attracted to Turkey and Istanbul, leading to a sudden upsurge in the opening of shops and restaurants catering to Gulf taste clienteles.
In March 2021, Irani nationals topped the chart of homebuyers in Turkey, buying 663 homes, followed by country nationals from Iraq, Russia, Afghanistan, Kazakhstan, Germany, Yemen, Azerbaijan, China, Egypt, United Kingdom, Palestine, Ukraine, United States of America, Jordan, Pakistan, Lebanon, Sudan, Libya and at last Saudi Arabia.
Robust tourism has been the strongest reason for foreign investors in Turkish property in recent years, coupled with the Turkish lira’s fallen value against the US dollar that helped promote real estate investment in Turkey even during the pandemic.
CAN THE SAME PROPERTY BE USED TWICE FOR CALCULATING THE PROPERTY INVESTMENT FIGURE UNDER TURKEY CIP?
To prevent self-serving developers from recycling/recounting Turkish properties, the Turkish authority has made it mandatory that the same property be used only once to qualify for Turkish citizenship.
This new guideline is introduced in March 2021 as an amendment in applying the Turkish Citizenship Law.
Under section G of the new guidelines, new conditions are levied for both the property and the investor/purchaser if it involves citizenship application.
The property must not be registered in the land registry on behalf of foreign real persons, including the investor’s spouse or children.
The property should not be categorized under the properties transferred to the Turkish citizen/company after 12-1-2017 by the foreign investor willing to acquire citizenship, his/her spouse and children, or a foreign person investor of the same nationality.
But if the property is registered in the name of the foreign investor is transferred to the Turkish citizen/company after the date 12/1/2017, the foreign investor of a different nationality is eligible to acquire citizenship with the property mentioned above.
The property that would be acquired by a foreign investor subject to the sale or preliminary sales agreement should not be registered: –
In the name of a company where the foreign investor himself or herself or his or her spouse and children is a partner or manager.
On behalf of the company, subject to article 36 of the Land Registry Law (with foreign/international capital) where the same nationality investor is a partner.
Once a property is used to acquire Turkish citizenship through a title deed transfer or a preliminary sales contract, the same property or any share of the property is not eligible to be used for acquiring another citizenship.
FREQUENTLY ASKED QUESTIONS (FAQs)
1) What is the minimum budget required for property purchase in Istanbul?
1) Investment of at least $250,000 is needed.
2) Are the real estate investor’s family members eligible for Turkish citizenship?
2) Yes, the investor, spouse, and children under the age of 18 and disabled children of any age are eligible for Turkish citizenship under the Turkey CIP.
3) How long does it take to get the nationality through Turkey CIP?
3) The time of 3 to 6 months is involved in getting Turkey citizenship through Turkey CIP. However, your profile and properties must be ready to carry forward the transaction.
4) What are the options of getting Turkey citizenship by investment?
4) a) By purchasing a property worth $250000 in Turkey
- b) By purchasing a property with a capital of less than $250,000 can make the investor, his/her spouse, and children under the age of 18 years eligible for residency; but not citizenship. However, they have to stay in Turkey for at least 4 years out of a mandatory 5-year span to become permanent residents and citizens of Turkey.
5) What is the working process for the application of Turkish citizenship by investment in real estate?
5) After purchasing the property worth at least $250,000 in Turkey, you have to apply to the General Directorate of the Land Registry and Cadastre during the deed transfer process so that your citizenship application could proceed. You can follow the procedure after the title deed application at a single place at the citizenship offices in Istanbul and Ankara. It takes around 3 to 4 months from the date of title transfer to complete the application process.
6) Is it possible to extend the residence taken after the purchase of property?
6) Yes, the residence permit can be extended for buying a property.
7) Is there a difference between the property deed purchased by a foreign investor and that of a Turkish citizen?
7) No terms of documents and legal matters are similar in the property deed purchased by foreign investors and Turkish citizens.
8) Is there a facility of interest-free instalment on a property purchase in Turkey?
8) Yes, if you purchase property on instalments as a foreign investor in Turkey, instalments are interest-free.
9) Why do foreigners prefer Turkish citizenship?
9) With Turkish citizenship and passport, you enjoy benefits like: –
- Visa-free travel to 117 countries across the globe
- No need to dwell in Turkey
- Enjoy the privilege of having one of the top 30 passports in the world
- The validity of a Turkish passport is for ten years, and the citizenship is for a lifetime.
10) What are the mandatory military services to be served by children of Turkey citizens?
10) If you buy a passport as an investor, spouse, and children under the age of 18 by purchasing a property of more than $250,000 and your children are below the age of 18, the male child is obligated to join the military services in Turkey. If the investor buys a property for more than $250,000 for their children above 18 and obtains citizenship, the child need not join military services.
11) What is the property valuation method used in Turkey?
11) The Turkish government approved the property valuation who assesses the value of the real estate. The valuation report is attached to your property deed file.
12) Can I buy property in cash in Turkey?
12) No, you cannot purchase property in cash in Turkey as the payment has to be made by wire transfer from your bank account to the seller’s bank account. You would have to produce bank receipts documented by the Sender bank and Future bank.
13) Is the property sale direct for me as a foreign investor after I have received Turkey citizenship?
13) No, you would be required to write a pledge on the title deed, which deters you from selling the property for three years.
14) Is there any restriction on the number of people who can share a title dead?
14) No, there is no limit to the number of people who can share the same title dead.
15) Can Turkey citizenship be acquired remotely?
15) Yes, investors need not be present in Turkey for acquiring citizenship.
16) Which kind of property is taxed lower – Residential or commercial?
16) Although citizenship can be acquired by investing in any property type, residential properties are taxed lower than commercial and are easier to sell.
17) Does buying a property in Turkey make you a landowner there?
17) Yes, buying a property in Turkey makes you a Turkish citizen, and you share ownership of the land both in the field and publicly.
18) Do I need to waive my existing citizenship to acquire Turkish citizenship?
18) No, you are eligible for dual citizenship under Turkey CIP. However, laws and procedures in your state may differ, which you should check.
19) How can I get Turkish citizenship by investment in real estate for my disabled child over the age of 18?
19) Your child suffering from a disability issue is eligible for Turkish citizenship. However, you would have to submit the documents indicating that he/she needs care. Other documents requested by the authorities would also have to be submitted for their citizenship grant.
20) I purchased the property in Turkey earlier. May I apply for citizenship now?
20) For Turkish citizenship by investment, you must have purchased the property after 9/18/2018.
21) Can I purchase the property covered by insurance in Turkey?
21) Your purchased property must be covered by Accident and earthquake insurance. DASK insurance is compulsory insurance that can be acquired by paying a small amount of 200 to 300 lira when registering the document in the buyer’s name in the document office.