Turkey: Citizenship by investment 2024

Citizenship by Investment Turkey Guide

Citizenship by investment in Turkey is a program that allows foreign investors to obtain Turkish citizenship by making a significant economic contribution to the country. Launched in 2017, the program primarily requires an investment in real estate, with a minimum threshold set at $400,000. Alternatively, investors can make a $500,000 deposit in a Turkish bank, or invest in government bonds, venture capital funds, or create jobs for at least 50 Turkish citizens. Once the investment is made, the application process is relatively straightforward, with citizenship granted in as little as 3 to 6 months.

Break Front has a team of legal experts that can guide you in the process.

Country Information

Population: Approximately 85 million (as of 2023).
Economy: Turkey has a diverse and fast-growing economy, with key sectors including agriculture, manufacturing, textiles, automotive, tourism, and energy. It is a significant player in both regional and global trade due to its strategic position, serving as a bridge between Europe and Asia. Turkey is also known for its export-driven industries, including machinery, food products, and electronics.
Government Type: Unitary presidential republic.
Official Language: Turkish.
Geographic Position: Turkey is located at the crossroads of Europe and Asia, bordered by Greece, Bulgaria, Georgia, Armenia, Iran, Iraq, and Syria. It has coastlines along the Mediterranean, Aegean, and Black Seas.
Currency: Turkish Lira (TRY).
Capital: Ankara, although Istanbul is its largest city and key financial center.
Time Zone: Turkey Time (TRT), UTC +3.
Climate: Turkey has a varied climate, ranging from Mediterranean along its southern coast, temperate in the north, to continental in the interior, with cold winters and hot summers.

Life Quality Index

Safety Index: 56.5 (Moderate)
Healthcare Index: 70.0 (High)
Cost of Living Index: 34.0 (Low)
Pollution Index: 64.8 (Moderate to High)
Climate Index: 92.1 (High)
Traffic Index: 43.0 (Moderate)
Property Price to Income Ratio: 7.5 (Moderate)

Benefits of the programme

Visa-free or visa-on-arrival access to over 110 destinations, including Hong Kong, Japan, and Singapore.
Citizenship in a country with a mild Mediterranean climate, stunning landscapes, and a high standard of living.
Full citizenship granted to the applicant and their immediate family members.
Eligibility for an E-2 Investor Visa in the USA after residing in Turkey for three years, with a five-year renewable period.
Access to a transcontinental country bridging Europe and Asia, offering a stable economic, financial, and political hub between Europe, Western Asia, and the Middle East.

Investment options

Turkey's Citizenship by Investment Program offers several investment options for foreign nationals seeking to obtain Turkish citizenship. Below is a detailed overview of the available investment routes:

1. Real Estate Investment

Minimum Investment: $400,000
Details: Investors can purchase residential or commercial properties in Turkey, with the condition that they must hold the property for at least three years. The investment can be spread across multiple properties, and the process includes paying additional fees such as stamp duty and VAT (1-8% depending on the property type). This is the most popular option due to the potential for property value appreciation and rental income.

2. Capital Investment

Minimum Investment: $500,000
Details: This option involves making a fixed capital investment in a Turkish company or setting up a new business. The investment must be verified by the Ministry of Industry and Technology. This route is attractive to those looking to directly contribute to Turkey's economic development.

3. Bank Deposit

Minimum Deposit: $500,000
Details: Investors can deposit at least $500,000 (or equivalent in Turkish Lira) into a Turkish bank account. The funds must remain in the account for a minimum of three years. This option is often chosen by those looking for a relatively low-risk investment.

4. Government Bonds

Minimum Investment: $500,000
Details: Investors can purchase Turkish government bonds with the requirement that they hold these bonds for at least three years. This option is backed by the government, making it a secure investment.

5. Venture Capital or Real Estate Investment Funds

Minimum Investment: $500,000
Details: Investors may choose to invest in Turkish venture capital or real estate investment funds. These funds must be approved by the Capital Markets Board of Turkey and must be held for at least three years.

6. Job Creation

Requirement: Create jobs for at least 50 Turkish citizens
Details: This option involves establishing a business that employs a minimum of 50 people. This must be verified by the Ministry of Family, Labour, and Social Services. It's a good option for entrepreneurs looking to make a significant impact on the local economy.

Additional Requirements:

Holding Period: For all options, the investment must be maintained for at least three years.
No Residency Requirement: Investors are not required to live in Turkey during or after the investment process to maintain their citizenship.

Each option has its own set of benefits depending on the investor's financial goals and preferences. It's advisable to work with a legal expert to navigate the application process and ensure compliance with all requirements.

Required documents

When applying for Turkish citizenship through the Citizenship by Investment Program, applicants must submit a comprehensive set of documents. These documents are necessary to verify the identity, legal status, and investment of the applicant. Below is a detailed list of the required documents, along with some additional notes for each category:

1. Personal Identification Documents

Passport Copies: Valid passport copies of all applicants (including the main applicant and dependents).
Birth Certificates: Certified copies of birth certificates for all applicants.
Photographs: Biometric passport-sized photos of all applicants, typically in color and taken within the last six months.

2. Marital and Family Status Documents

Marriage Certificate: If applicable, a certified copy of the marriage certificate.
Divorce Certificate: If applicable, a certified copy of the divorce decree.
Death Certificate of Spouse: If applicable, a certified copy of the spouse's death certificate.
Proof of Relationship: Documents proving the relationship between the main applicant and dependents, such as birth certificates for children.

3. Criminal Background Checks

Police Clearance Certificate: A police clearance certificate from the country of current residence and any country where the applicant has lived for more than six months in the last ten years. This document must demonstrate that the applicant has no criminal record.

4. Proof of Investment

Real Estate Investment Documents: If the investment is in real estate, this includes the Title Deed (Tapu) and the Valuation Report approved by the Turkish Capital Markets Board. Additionally, the purchase agreement or contract should be provided.
Bank Deposit Proof: A certificate from the bank confirming the deposit of at least $500,000, with a commitment to retain the funds for three years.
Government Bond or Fund Investment: Proof of purchase of government bonds or venture capital fund shares worth at least $500,000, with a commitment to retain them for three years.
Business Investment: Documentation proving the creation of jobs for at least 50 Turkish citizens, verified by the Ministry of Family, Labour, and Social Services.

5. Residence and Tax Documents

Residence Address Proof: A recent utility bill or other official documents proving the applicant’s residential address.
Turkish Tax Identification Number: Required for any financial transactions and can be obtained from a local tax office in Turkey.

6. Healthcare Coverage

Health Insurance: Proof of health insurance coverage that is valid in Turkey, which may be required for the residency permit application.

7. Other Required Documents

Power of Attorney: If the applicant is using a legal representative to submit the application, a notarized power of attorney is required.
Application Forms: Completed and signed application forms as provided by the relevant Turkish authorities.

Additional Notes:

Translation and Notarization: All foreign documents must be translated into Turkish and notarized. The translated documents should also be apostilled or authenticated depending on the country of origin.
Due Diligence and Compliance: The Turkish government may request additional documents or information during the due diligence process. It is recommended to work with a local legal advisor to ensure all requirements are met.

These documents must be meticulously prepared and submitted to the relevant Turkish authorities as part of the citizenship application process. It is advisable to consult with a legal expert or citizenship advisor to ensure all documentation is in order and to avoid any delays in the application process.

Step-by-step

Several key steps in successfully obtaining your new passport are:

Gather documentation

Make the investment

Submit the application

Receive passport

Gather Documentation: Collect all the required documents, including passports, birth certificates, police clearance certificates, proof of investment, and other necessary paperwork.

Make the Investment: Proceed with your chosen investment option, such as purchasing real estate, making a bank deposit, or investing in government bonds or a business.

Submit the Application: Submit your application for Turkish citizenship, along with all the gathered documents and proof of investment, to the relevant authorities.

Receive Passport: Upon approval, you will receive your Turkish passport, granting you citizenship and access to the benefits it offers.

This process typically takes a few months from the initial application to receiving the passport.

Fees to consider

The fees associated with obtaining Turkish citizenship through the Citizenship by Investment Program vary depending on the chosen investment route and additional services required during the application process. Below is a detailed breakdown of the typical costs involved:

1. Investment-Related Fees

Real Estate Purchase:
- Property Investment: Minimum of $400,000
- Land Registry Fee: 4% of the property value (split between buyer and seller, but often covered entirely by the buyer in the resale market).
- Valuation Report: Approximately $200 to $300, required for confirming the property's value.
- Legal Fees: Typically around 1% of the property purchase price, plus 18% VAT on legal services.
- Stamp Duty: Included in the land registry fee (4%).
- VAT: Ranges from 1% to 18%, depending on the property type and whether it’s a new or resale property. Foreign investors may apply for VAT exemption.
Bank Deposit:
- Deposit Amount: Minimum of $500,000 (held for three years).
- Bank Charges: Fees for account setup and maintenance may vary by bank.
Government Bonds or Venture Capital Fund Investment:
- Investment Amount: Minimum of $500,000 (held for three years).

2. Application and Administrative Fees

Notary and Translation Fees: Approximately $1,000 for a single applicant; additional $250 per dependent.
Application Fee: $400 per application.
Due Diligence Fee: None for Turkey, but consulting fees may apply if using a legal advisor or firm.
Turkish Passport Fee: Approximately $500 per passport issued.

3. Miscellaneous Fees

Health Insurance: Ranges from $700 to $1,000 depending on the provider and coverage selected, required for the residence permit.
Power of Attorney: Notarization and translation of the Power of Attorney can cost around $200 to $300.

4. Additional Costs

Tax Identification Number: No direct fee, but it may require assistance from a lawyer or tax advisor, which could incur charges.
Property Maintenance and Management: If purchasing real estate, ongoing maintenance fees or management costs may apply, especially for rental properties.

Tax system

When obtaining Turkish citizenship through the Citizenship by Investment Program, it's important to understand the tax implications that come with being a Turkish citizen. Below is an overview of the key tax considerations:

Income Tax

Residents: If you reside in Turkey for more than six months in a calendar year, you are considered a tax resident. As a tax resident, your worldwide income is subject to Turkish income tax, which ranges from 15% to 40%, depending on your income bracket.
Non-Residents: Non-residents are only taxed on their income derived from Turkish sources. This includes income from rental properties, employment, or business activities in Turkey.

Capital Gain Tax

Real Estate: If you sell a property in Turkey within five years of purchase, capital gains tax applies. The rate depends on the profit made and ranges from 15% to 35%. If you hold the property for more than five years, the capital gains tax is exempt.
Other Investments: Capital gains from the sale of stocks, bonds, and other investments may be subject to tax, depending on the nature of the investment and holding period.

Value Added Tax (VAT)

Real Estate Purchases: VAT on real estate can range from 1% to 18%, depending on the type and size of the property. However, foreign investors purchasing real estate for the first time in Turkey might be eligible for a VAT exemption if they meet certain conditions.

Inheritance and Gift Tax

Rates: Inheritance and gift tax in Turkey ranges from 1% to 30%, depending on the value of the inheritance or gift and the relationship between the giver and recipient.
Worldwide Assets: Turkish citizens are subject to inheritance tax on their worldwide assets, so it's crucial to plan accordingly, especially if you have significant assets abroad.

Property Tax

Annual Property Tax: Property owners in Turkey are required to pay an annual property tax, which is typically between 0.1% and 0.6% of the property's assessed value, depending on its location and type.

Corporate Tax

Rate: The corporate tax rate in Turkey is 20%, though there can be incentives and reductions for certain types of investments or in special economic zones.

Tax Treaties

Double Taxation Treaties: Turkey has double taxation agreements with more than 80 countries. These treaties can help you avoid being taxed twice on the same income, making it crucial to understand how these agreements apply to your specific situation.

Why choose Break Front?

Global expertise with local insight: A team of seasoned local case executives, immigration lawyers, and investment specialists.

Independent service: We are not affiliated with any marketing agencies or specific projects. You’ll have access to all eligible Golden Visa options, allowing you to choose the best path for your needs, supported by the legal due diligence services of a reputable law firm.

High approval rate: We pride ourselves on our high approval rates while having successfully assisted hundreds of clients from over 25 countries.

Comprehensive support: Our dedicated onboarding and immigration teams guide you through the entire process, providing a seamless experience with a single point of contact.

Transparency: Our fees are clearly outlined and comprehensive, with no hidden costs involved in the entire process.

Privacy: Your personal information is securely stored in a GDPR-compliant database.