With the presidential decree issued on
Wednesday 19 September 2018, it became very easy for foreign investors to
acquire Turkish citizenship. It can be argued that the reason behind the
decision was to grant Turkish nationality to foreign and Arab investors,
whether residing in Turkey or those who wish to move into Turkey.
Foreign investments in turkey was one of
the most points that we stopped us focused on them during our talks with the
Turkish government and Turkish officials, to make this decision.
But, what does the new regulations include
and how will it be implemented?
Foreign investors will be able to obtain
Turkish citizenship in accordance with clause (B) of the first paragraph, article
12 of the issued law, after fulfilling any of the following conditions:
- An investment of $ 500,000 or the
equivalent of foreign exchange or Turkish lira, and will be confirmed by the
Turkish Ministry of Industry and Technology.
- Purchasing a property with a minimum value of
$ 250,000 or the equivalent of foreign exchange or Turkish lira, with selling
it for 3 years, and will be confirmed by the Ministry of Environment and Urban Planning
- Providing an employment opportunity for at
least 50 Turkish citizens, which will be confirmed by the Turkish ministry of
Family and Social Policies.
- Depositing of $ 500,000 or the equivalent
of foreign currencies or the Turkish lira in any Turkish bank within the Turkish
territory, and maintained for a period of 3 years, and will be confirmed by the
Turkish Banking Regulation and Supervision Agency.
- Purchase of $ 500,000 government bonds or
the equivalent of foreign exchange or the Turkish lira, and will be confirmed
by the Turkish Ministry of Finance and Treasury.
In other words, more applications for Turkish citizenship can be expected in the coming time, particularly through real estate investments. While previously the Turkish citizenship acquisition
required purchasing of properties worth $ 1M which has been decreased to $ 250.000,
providing that the property was purchased after the decision date 19.09.2018
and not be sold for 3 years.
However, there are some legal and technical
points to be noticed by investors wishing to acquire Turkish citizenship
through the purchase of real estate. These conditions are not derived from the nationality
law, but from other laws.
I would like to point to an important point
between all the above conditions, namely that it is not necessary to purchase
only one property of $ 250,000, rather, the value can be for more than one
Deciding the value of the property, at what
exchange rate will be calculated?
Although this topic contains a lot of
technical details, we can generally say as a rule that the property value will
be calculated on the dollar exchange rate on the title deed reception day, not
at the property purchased date or notary purchase contract date
According to the new decree, investors who run
a company or factory and provide employment opportunities for 50 Turkish
citizens are entitled to acquire Turkish citizenship, having previously been
required to employ 100 citizens.
The new regulations give another option to investors
are not willing to purchase or run a company that provides employment for 50
Turkish citizens and wishing to acquire Turkish citizenship by depositing at
least $ 500,000 in a Turkish bank for a minimum time of 3 years.
Foreigners with a fixed investment of at
least US $ 500,000 are also entitled to acquire the Turkish citizenship.
The facilities offered to foreign investors
will not only be granted Turkish citizenship, but will also include a number of
other advantages in the near future.
the Turkish Ministry of Interior will provide special and fast services under the name of "VIP" through Istanbul's immigration services and other large cities to facilitate the investors' applications.
Lawyer: Khalil Arslan - Legal Counsel of Prestige Istanbul Real Estate.