Acquiring Turkish Citizenship Through Investment

Overview

In recent years, citizenship has increasingly become a tool used by countries to attract foreign investment and support their economic and labor market policies. Many countries, including Türkiye, have adopted regulations that allow foreigners to acquire citizenship through various forms of investment.

In Türkiye, this was first introduced in 2016 through an amendment to Article 12 of the Turkish Citizenship Law (Law No. 5901), under exceptional circumstances. The amendment, made via Article 27 of the International Labor Law No. 6735, and supported by Article 31(1)(j) of the Law on Foreigners and International Protection No. 6458, made it possible for foreigners who obtained a residence permit through investment or held a Turquoise Card to apply for Turkish citizenship, along with their spouse and dependent children.

Although the legal foundation was created in 2016, the specific types and amounts of qualifying investments were not clearly defined until a regulation change took effect on January 12, 2017. These rules were later clarified by Presidential Decisions in 2018. One important update came on December 7, 2018, when preliminary property purchase agreements prepared at a notary were allowed as valid grounds for citizenship applications, as long as certain conditions were met.

This comprehensive guide outlines the legal process and requirements to acquire Turkish citizenship through investment, as per current regulations.

Ways to Acquire Turkish Citizenship by Investment

A. General Conditions

Under Presidential Decree No. 106 (September 19, 2018) and No. 418 (December 7, 2018), foreign nationals can acquire Turkish citizenship by fulfilling one of the following investment conditions:

1. Fixed Capital Investment: Investing at least 500,000 USD (previously 2,000,000 USD), as verified by the Ministry of Industry and Technology.

2.     Real Estate Acquisition: Purchasing property worth at least 400,000 USD (previously 1,000,000 USD) with a 3-year no-sale annotation in the title deed, or signing a notarized property purchase promise for a prepayment of at least 400,000 USD for properties with construction servitude or condominium ownership.

3. Employment Creation: Employing at least 50 Turkish citizens (previously 100), confirmed by the Ministry of Labor and Social Security.

4. Bank Deposit: Depositing at least 500,000 USD (previously 3,000,000 USD) in a Turkish bank for a minimum of three years, verified by the Banking Regulation and Supervision Agency (BDDK).

5. Government Bonds: Purchasing at least 500,000 USD (previously 3,000,000 USD) worth of government debt instruments with a 3-year holding period, verified by the Ministry of Treasury and Finance.

6. Venture Capital or Real Estate Investment Funds: Investing at least 500,000 USD (previously 1,500,000 USD) in participation shares of Turkish real estate or venture capital funds for at least three years, verified by the Capital Markets Board (SPK).

For all financial thresholds, the effective selling exchange rate or cross rates announced by the Central Bank of Türkiye (CBRT) on the date of investment will be applied.

B. Step-by-Step Process of Acquiring Citizenship by Investment

There are three main stages in the application process:

1. Obtaining a Certificate of Eligibility: The relevant government body must confirm that the qualifying investment has been made.

2. Obtaining a Short-Term Residence Permit: Issued under Article 31(1)(j) of Law No. 6458.

3. Filing the Citizenship Application: After obtaining the eligibility certificate and residence permit.

Bayraktar Attorneys assists clients at every stage, including remote application management through power of attorney.

II. Acquiring Turkish Citizenship Through Real Estate Investment

A. General Framework for Real Estate Investment

As amended by Presidential Decrees No. 106 and No. 418, foreign nationals can acquire Turkish citizenship by purchasing real estate worth at least 400,000 USD (or equivalent in foreign currency or Turkish Lira), provided that:

·       A no-sale annotation is placed in the title deed for a minimum of three (3) years, or

·       A notarized property purchase promise agreement is signed for properties under construction or with condominium easement, with a minimum of 400,000 USD paid in advance, and

·       The agreement is registered with the Land Registry along with a three-year no-transfer undertaking.

Key Property Title Types:

·       Condominium Easement (Kat İrtifakı): Indicates ownership of a unit in a building still under construction, tied to the land share.

·       Condominium Ownership (Kat Mülkiyeti): Granted after the building is completed and occupancy approval (iskân) is issued.

Important Note: Purchasing a property with only condominium easement involves higher legal risks. After completion, if the construction deviates from approved municipal plans, buyers may face potential demolition orders or issues in securing a habitation certificate. Additionally, such properties are typically not eligible for mortgage loans.

Bayraktar Attorneys highly recommends conducting legal due diligence on the title deed, zoning compliance, and construction permits prior to purchase.

B. Legal Rules and Requirements for Real Estate Citizenship Applications

1. Legal Basis

·  Properties purchased between January 12, 2017, and September 18, 2018 must have a value of at least 1,000,000 USD.

·  For properties purchased after September 19, 2018, and for purchase promises signed after December 7, 2018, the threshold is 250,000 USD.

·  As of 2022, the minimum investment amount for real estate-based Turkish citizenship has been increased to 400,000 USD.

2. Foreign Ownership Restrictions

While reciprocity requirements have been removed, foreign buyers must comply with the following:

·       May not exceed 10% of privately owned land in a given district.

·       Total area owned cannot exceed 30 hectares nationally (approx. 74 acres).

·       Properties must not be in military or security zones.

·       Foreign nationals must submit development plans for vacant land (e.g., farmland) within two years of acquisition.

·       Sales promise agreements can only be made for properties with condominium ownership or easement.

·       Properties must not be registered to the buyer or their close family members after January 12, 2017.

·       Properties must not be registered to companies where the buyer is a shareholder or director.

3. Number of Properties

There is no limit on the number of properties. However, the total combined value must meet or exceed 400,000 USD, and each property must include a 3-year no-sale annotation.

4. Property Valuation Requirements

To qualify:

·       The sale price, valuation report, and bank transfer receipts must each independently show a value of at least 400,000 USD (250,000 USD or 1,000,000 USD for earlier purchases).

·       A valuation report must be issued by a real estate appraiser licensed by the Capital Markets Board (SPK), dated no more than 3 months prior to the application.

5. Payment via Bank Transfer

·       From October 15, 2018 onward, all payments must be made via bank transfer, and payment receipts must be certified by the bank.

·       International transfers must include confirmation from the originating bank.

·       For notarized sales promises, payment must be made before or on the date of the notarial agreement.

6. Currency Exchange Rates

·       CBRT effective selling rate on the day before each payment, sale, or valuation date is used for USD conversion.

·       Multiple transfers or valuation dates must all satisfy the USD value threshold individually.

7. Mortgages and Seizures

·       Property under mortgage or seizure may still qualify.

·       If purchased via mortgage, the amount of the mortgage is deducted from the total value.

8. Installment Payments

·       Permitted only if all installments were paid after September 19, 2018.

·       Installments must be converted to USD using the CBRT rate on each payment date.

9. 3-Year No-Sale Annotation Requirement

The following must be annotated in the title deed:

“Subject to Article 20 of the Regulation on the Implementation of Turkish Citizenship Law, this property shall not be sold or transferred for 3 years from the date of annotation.”

C. Required Documents for Certificate of Eligibility (Real Estate)

To obtain the Certificate of Eligibility for real estate investment:

·       Valid passport and notarized Turkish translation

·       Four (4) biometric photos

·       Official title deed or notarized preliminary sale agreement

·       Property valuation report (SPK licensed)

·       Bank receipt showing payment from buyer to seller

·       Title deed registry annotation confirming a 3-year no-sale period

Applications are evaluated by the General Directorate of Land Registry and Cadastre and processed within 7 business days if complete.

III. Acquiring Turkish Citizenship by Bank Deposit, Employment, and Other Investments

A. Creating Employment for at Least 50 Turkish Citizens

Certificate of Eligibility – Required Documents

Foreign nationals who create employment for at least 50 Turkish citizens may apply for citizenship by submitting the following to the Ministry of Labor and Social Security (Directorate General of International Labor):

·       A notarized signature declaration of the applicant

·       Employment Information Form

·       Valid passport and its notarized Turkish translation

·       Four (4) biometric passport-size photos

·       Trade Registry Gazette and current Certificate of Registration showing company partnership and capital structure

·       Social Security Institution (SGK) records listing all insured employees

·       Official letter from the Revenue Administration showing no tax debt

·       Official letter from SGK showing no social security premium debt

·       Declaration regarding any administrative fines imposed on the company within the last 6 months (if applicable, attach relevant documents)

Applications are reviewed and finalized within 7 business days if complete. Incomplete applications must be completed within 30 days or they will be rejected. Approved applications are forwarded to the Ministry of Interior and shared with the applicant.

B. Depositing Funds in a Turkish Bank

Process Overview

Foreign nationals can acquire Turkish citizenship by depositing at least 500,000 USD (or equivalent) in one or more accounts with banks operating in Türkiye, provided the funds remain in the bank for a minimum of 3 years. The Banking Regulation and Supervision Agency (BDDK) oversees this process.

Key points:

·       The deposited amount must be in convertible foreign currency, Turkish Lira, or precious metals such as gold.

·       The deposit can be spread across multiple Turkish banks and multiple accounts, as long as the total value meets the threshold.

·       Deposits must be made in Türkiye, not in a foreign branch or affiliate of a Turkish bank.

·       If the account is jointly held (e.g., with a spouse), the co-holder must submit a notarized letter consenting not to withdraw funds for 3 years.

·       Investors may switch between currencies or convert to another eligible investment vehicle during the 3 years, provided this does not interrupt the 3-year holding requirement.

·       Investors can still earn interest, dividends, or participation returns during the holding period, as long as the principal remains untouched.

·       If the deposit drops below 500,000 USD (due to withdrawal, lien, seizure, etc.), the BDDK will immediately notify the Ministry of Interior, and the citizenship process will be terminated or revoked.

·       Currency fluctuations during the 3-year period are not considered—only the original USD-equivalent at the time of deposit matters.

C. Investing in Government Debt Instruments

Eligible Instruments

There are nine types of debt instruments recognized under the Turkish capital markets, including:

1.     Treasury Bonds and Bills

2.     Central Bank Liquidity Notes

3.     Revenue Sharing Certificates

4.     Revenue-Indexed Bonds

5.     Corporate Bonds

6.     Commercial Papers

7.     Bank Bonds

8.     Asset-Backed Securities

9.     Mortgage-Backed Securities

Citizenship Eligibility via Government Bonds

Though no specific circular has been issued by the Ministry of Treasury and Finance, Article 20 of the Regulation permits foreign investors to acquire Turkish citizenship by purchasing at least 500,000 USD in government debt instruments, provided they are held for 3 years without interruption.

D. Investing in Real Estate or Venture Capital Investment Funds

Foreign investors can also obtain Turkish citizenship by purchasing participation shares in:

·       Real Estate Investment Funds (GYF)

·       Venture Capital Investment Funds (GSYF)

…with a minimum value of 500,000 USD (or equivalent), and holding them for at least 3 years.

Guidelines by the Capital Markets Board (SPK):

·       The investment amount is calculated based on the CBRT USD rate on the date the shares are purchased.

·       The shares must remain uninterruptedly held by the investor for the full 3-year period.

·       Any involuntary reductions (e.g., fund restructuring or liquidation) do not invalidate the application.

·       If shares are sold, pledged, seized, or encumbered within 3 years, the application is deemed ineligible.

·       The Central Securities Depository (MKK) monitors share ownership and notifies the SPK within 3 business days of any disqualifying action.

·       The SPK then notifies the Directorate General of Migration Management, the Directorate General of Civil Registration and Citizenship, and the applicant.

Required Documents:

·       Valid passport and notarized Turkish translation

·       Copy of a valid short-term residence permit

·       MKK registration number and official letter showing investment details

·       Within 2 business days of receiving the complete file, SPK contacts MKK to verify compliance

·       If compliant, the SPK issues a Certificate of Eligibility within 2 additional business days

IV. Residence Permit and Final Citizenship Application Process

A. Obtaining a Short-Term Residence Permit under Article 31/1(j)

Foreign nationals applying for Turkish citizenship through investment must first obtain a short-term residence permit under Article 31(1)(j) of the Law No. 6458 on Foreigners and International Protection.

1. Application Process

·       The applicant must enter Türkiye legally, using either a valid visa or through visa exemption.

·       After entry, the short-term residence permit application must be submitted online.

·       In popular cities like Istanbul, Ankara, or İzmir, standard residence permit appointment dates may take 8 to 24 weeks to schedule.

·       However, for investment-based residence permits, applications are prioritized and typically concluded within 1 to 10 business days.

·       Applications are managed by Private Citizenship Offices located in Istanbul and Ankara.

·       With a properly executed special power of attorney, Bayraktar Attorneys can complete nearly the entire application process remotely. However, the applicant is required to be physically present in Türkiye for approximately 2 days in total, primarily for biometric registration and collection of ID/passport documents.

Residence permits under Article 31(1)(j) are typically granted for one year, but may be issued for up to five years, depending on passport validity and insurance coverage.

2. Required Documents for Short-Term Residence Permit

·       Valid visa or still-valid visa exemption at the time of application

·       Passport (valid for the requested residence duration) and its notarized Turkish translation

·       Four (4) biometric passport photos

·       Private health insurance valid in Türkiye, covering the requested permit period

Cost: 250–500 EUR (varies by applicant’s age and health)

·       Valid address in Türkiye: Hotel declaration or notarized lease agreement

·       Certificate of Eligibility for the chosen investment type

·       Payment receipts for application and residence card fees (fees vary based on nationality)

·       Optional: Special Power of Attorney to authorize Bayraktar Attorneys to manage the process

After approval, the residence permit card is mailed to the applicant’s registered address within 2–4 weeks.

B. Final Citizenship Application

Once the Certificate of Eligibility and short-term residence permit have been obtained, the final citizenship application can be submitted.

1. Where to Apply

·       Citizenship applications are submitted at Private Citizenship Offices of the Provincial Directorate of Migration Management, located in Istanbul and Ankara.

·       The foreign investor may include their spouse and minor children (under 18) in the same application.

·       The family members do not need to make a separate investment or obtain individual residence permits.

Bayraktar Attorneys can also carry out this process remotely using a special power of attorney.

2. Required Documents for Citizenship Application

·       Completed Citizenship Application Form (Form VAT-4)

·       Valid passport and notarized Turkish translation

·       Two (2) biometric passport-size photos

·       Birth certificate and civil status certificate, apostilled or consular-certified, and translated into Turkish

·       Marriage certificate and family registry showing spouse and children (if applicable)

·       Divorce certificate (if applicable) or death certificate of spouse (if widowed)

·       Consent letter from the other parent (if only one parent applies on behalf of a child), with apostille or consular approval and Turkish translation

·       Bank receipt for citizenship service fee

The official fee in 2019 was 15 TL per person (subject to change)

Applicants may also choose to adopt a new Turkish name and surname, which will be printed on their Turkish ID and passport. This is optional.

C. Finalization and Approval Process

·       The application is reviewed by a commission consisting of relevant government agencies and then sent to the President of Türkiye for final approval.

·       The process is typically finalized within 3 to 6 months.

·       The foreign investor and eligible family members must personally visit the nearest civil registry office in Türkiye to:

o   Provide fingerprints

o   Collect their Turkish ID cards and passports

All preliminary steps (investment, residence permit, application) can be completed remotely. However, the final step must be done in person.

V. Important Notes and Legal Guidance

While Türkiye has streamlined the citizenship-by-investment process, accurate legal guidance and complete documentation are crucial. Any errors or omissions may lead to rejection or significant delays.

At Bayraktar Attorneys, we provide comprehensive legal and procedural support to ensure your citizenship journey is smooth, secure, and successful. Our multilingual team of attorneys specializes in Turkish immigration, real estate, corporate, and investment law, guiding clients from over 40 countries through every step of the process.

If you are considering applying for Turkish citizenship by investment, contact us today to schedule a consultation.