Avi Aporve Khanna
Turkish Citizenship By Investment
Turkish citizenship by investment has been a matter of discussion in Turkey over the years. This article will shed light on gaining Turkish citizenship by the decision of the President in Turkey within the context of Article 20 of the Regulation on the Implementation of the Law on Turkish Citizenship (No:5901). Other types of later acquisition after birth do not fall within the scope of this paper.
2. What Are The Main Types of the Acquisition of Turkish Citizenship by Investment According to the Regulation On the Implementation of the Law on Turkish Citizenship?
In the case of Article 20 of the Regulation on the Implementation of the Law on Turkish Citizenship (No:5901), there are six main ways of obtaining Turkish citizenship through investment.
The Regulation in question is available online here (in Turkish).
a. Through A Capital Investment
Under the said Regulation, foreign capital investors may be eligible for Turkish citizenship in following exceptional states. In this context, making a minimum of fixed capital investment of USD 500.000 or equivalent foreign currency or Turkish lira, as attested by the Ministry of Industry and Technology may provide alien investors with citizenship in Turkey.
b. Through A Property Purchase
In the recent decade, the economic downturn has been a matter of concern facing the international community all over the world. As a response to economic hardships, new amendments are designed for attracting direct foreign investments. Granting citizenship owing to any kind of property purchase is a leading method.
In terms of real estate buyers, four main steps may be taken as follows: making an agreement on a Turkish property worth at least $250.000 or equivalent foreign currency or Turkish lira, the determination and confirmation of the relevant estate’s value, the examination and approval of the relevant national institutions, the proof of a title deed restriction on the resale of property for at least three years.
For more detailed information regarding this matter, see our article on “Turkish Citizenship Through Property Purchase”.
The New Amendment on the Acquisition of Turkish Citizenship By Investment
It should be kept in mind that the Turkish government took a new decision increasing the minimum real estate investment to qualify for citizenship, from the previous USD 250.000 to USD 400.000. The said decision will not enter into force until the Official Gazette publication.
c. Through the Provision of Employment Opportunities
Aliens creating jobs for at least 50 people may be granted Turkish citizenship. It should be attested by the Ministry of Family, Labor and Social Services.
d. Through the Deposit of A Certain Amount of Money
When a foreigner deposits at least USD 500.000 or equivalent foreign currency or Turkish lira in banks operating in Turkey with the condition not to withdraw the same amount for at least three years, an additional condition lays ahead. This investment must be attested by the Banking Regulation and Supervision Agency. Finally, they will be eligible for Turkish citizenship.
e. Through A Certain Amount of Money
Buying at least USD 500.000 or equivalent foreign currency or Turkish lira worth of real estate investment fund share or venture capital investment fund share is another way. The main condition is that they are not sold for at least three years, as attested by the Ministry of Treasury and Finance.
f. Through A Real Investment Fund Share
Buying at least USD 500.000 or equivalent foreign currency or Turkish lira worth of real estate investment fund share or venture capital investment fund share may open Turkish citizenship certificate. Aliens should meet the condition that they are not sold for at least three years. Besides this procedure should be attested by the Capital Markets Board of Turkey.
This article essentially analyzes the question of how the acquisition of Turkish citizenship by investment is possible. Bearing in mind the aforementioned evaluations, it becomes clear that there are six main methods for exceptional Turkish citizenship, as provided in Article 20 of the concerned Regulation. Every single method looks very simple and clear. However, that is not the case. There are very complex proceedings connected to each other. Substantial acts and actions should be carried out by different national authorities. Besides, there may be additional criterias that must be met by foreign investors for each. The initiation of the citizenship process through a certain investment does not guarantee an automatic ownership of citizenship. There will be various additional legal requirements for any genuine achievement. A comprehensive legal guidance and consultation is, therefore, needed for avoiding waste of time and substantial unnecessary expenses.
Pi Legal Consultancy is an international law firm based in Ankara (Turkey) that offers legal consultancy and advocacy. Pacific Legal in collaboration with Pi Legal Consultancy aims to deliver legal services for clients in Turkey and Canada in key legal areas, among others, healthcare, real estate, citizenship, corporate governance, banking and finance, energy and mining, mergers and acquisitions.