Smart investors are moving in to take advantage of the depreciating Turkish lira to invest in Turkish property with their increased purchasing power, and obtain Turkish citizenship for the entire family in the process.
Turkey is a large economy with an established property market, strong banking system and an important geopolitical position. There are so many upsides to investing in Turkish property – high standard of living, a welcoming culture, international cuisine, advanced medical facilities, world-class education and sun-soaked golden beaches to name a few.
The declines in the Turkish currency means fixed property costs such as maintenance, utilities and taxes are also much lower for foreign investors in Turkey’s real estate market, who also have the option of renting out their property in Turkey to make their capital work hard and maximise return on their investment.
Turkish citizenship by buying Turkish property
Soaring demand for Turkish property has made Turkey one of the most popular citizenship by investment programs (CIPs) in the world.. Up until 2020, the Turkish CIP naturalized a staggering 9,011 investors and a little over 25,000 of their dependents.
Property purchases by foreign investors in Turkey rose by 25 percent in January 2022 over a year ago amid continuing demand for a Turkish passport from migrant investors. This represents the highest monthly January increase ever.
The latest data from the Turkish Statistics Institution showed foreign investors bought 4,186 properties in Turkey in January, almost half of them in the commercial capital Istanbul. Iranians, Iraqis and Russian nationals led the purchases.
Demand for second citizenship in Turkey from migrant investors has continued unabated since the Turkish government announced changes to program requirements on January 6 2022 in a move designed to support the Turkish lira.
The easiest way to get a second passport in Turkey
The Turkish CIP program is simple, quick, and potentially highly profitable. Those looking to obtain Turkish citizenship through investment can do so by pursuing one of six options:
- Purchasing immovable property (or properties) for 250,000 USD
- Investing a minimum of USD 500,000 in fixed capital
- Deposit at least USD 500,000 into a Turkish bank account and hold for three years
- Purchase government bonds for at least USD 500,000
- Commit at least USD 500,000 into real estate investment fund share or venture capital investment fund share
- Create jobs for at least 50 people through enterprise establishment
Why is Turkish citizenship by investment so popular?
There is no requirement to:
- Reside in Turkey for a minimum duration
- Speak Turkish
- Be present in Turkey during the citizenship by investment application process
- Donate any specific funds for the application
- Wait for the 3 year investment period before making the citizenship by investment application
The wide range of property freely available in Turkey’s long-established free-market economy, where applicants are free to choose their investment within an open market unlike many other CIPs which require investors to select projects from restricted, government-approved lists, has made Turkey a favorable destination for those looking to enhance their global mobility alongside their asset portfolio.
Turkey as a regional hub between Europe and Asia is popular, especially among applicants from the MENA region and Europe. High living standards and advanced medical facilities in Turkey’s major cities have also bolstered the program’s illustrious brand, helping it garner interest from all around the globe.
The program, which grants successful applicants and their eligible family members citizenship within 3-6 months, shows no signs of slowing down, and the Turkish government seems pleased with its performance as it has been a direct funnel for bringing in foreign investment since its launch in 2017.
The new changes announced by the Turkish government do not affect the program’s minimum investment thresholds or options, but rather how they are made.
From now on, any investor wishing to apply for the CIP must make their investment in Turkish Lira (TL) rather than any other foreign currency, as was the process before the change. However, the minimum investment requirements of the investment options will remain constant at their current USD value.
While the government did not officially share its reasoning for introducing this change, it appears to be a move designed to bolster the Turkish Central Bank’s foreign currency reserves at a time when the Turkish lira has been suffering from steep declines.
Under this new law, Turkish commercial banks will buy investors’ foreign currency before selling it to the central bank.
What is the attraction of buying property in Turkey to obtain a second passport?
The citizenship is granted to the dependent family members of the applicant as well, without the requirement for separate investments by family members.
Turkish citizenship by investment program provides the following opportunities to holders:
- Permanent right of residence
- Permanent right of work and investment opportunity in Turkey without any limitations
- Visa-free travel to many countries
- Simple assessment process for visa applications to many countries
- All international incentives granted to Turkish citizens with bilateral or multilateral agreements
The good news for investors looking to apply for the CIP is that the most popular and affordable option which is property investment remains unchanged.
Turkish CIP applicants are attracted to the security, profitability, and simplicity of purchasing real estate in one of the hottest housing markets in the world. This is enticing enough on its own, with the added benefit of Turkish citizenship, and there are few deals as good anywhere else in the world.
Those purchasing real estate to qualify for the Turkish CIP, who make up the vast majority of applicants, will not be affected by the latest change, as investors dealing with developers or real estate agents would convert their investments to Turkish lira right before completing the purchase.
The unyielding demand for real estate in Turkey also indicates that investing in property remains a safe venture. In 2020, for example, Turkish home sales went up by 11.2 percent while house prices in major cities such as Istanbul, Ankara and Izmir increased by 20.8 percent, 28.3 percent and 40 percent respectively.
What Differentiates Beyond Immigration in Turkish Citizenship by Investment Process?
With our more than 15 years of experience on global mobility and immigration, we undertake the citizenship by investment application process from start to end and provide all the associated consultancy and assistance around citizenship. We offer:
- Professional relationship with the authorities
- From start to end assistance in every step for the application:
- Application for the approval document for investment registration
- (Submission of approval for title deed, approval from Banking Regulation and Supervision Agency, etc.)
- Having documents apostilled and legalized
- Obtaining a Tax ID number for the applicants
- Opening a bank account in Turkey
- Reviewing the assessment report of the real estate
- Drafting and execution of the real estate sale agreement
- Legal consultancy in contractual arrangements for the related investment
- Application to the land registry for the real estate sale transaction
- Carrying out all land registry procedures for the real estate sale transaction
- Preparation and submission of Residence Permit Application
- Accompany in the interview
- Submission and follow up of citizenship by investment application both for the investor and for all family members
- Assistance with application for Turkish passport
- Transparent and compliant process management
- Beyond Immigration global assistance in procedures that must be completed in the home country of the applicant
- Beyond Immigration network assistance for immigration to other countries as Turkish citizens
To find out more about the Turkish citizenship by investment program, be sure to visit our dedicated page for the program!
Please contact us today to find out how you can become a Turkish citizen by investment.
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