Turkish Citizenship by Investment: Conditions, Process, and Advantages (2024 Update)

Introduction

Turkey, with its dynamic economy, strategic geographical location, and high living standards, has always been an attractive hub for international investors. The Turkish government, aiming to encourage capital inflow into the country and attract global talent, offers foreigners who make specific economic contributions the opportunity to exceptionally acquire Turkish citizenship. This program is regulated by Article 12 of the Turkish Citizenship Law No. 5901 and Article 20 of the Regulation on its implementation. Especially with recent updates (including Presidential Decrees No. 5072 dated January 6, 2022, No. 5554 dated May 13, 2022, and No. 7938 dated December 12, 2023), the citizenship by investment program opens the door for foreign investors who meet certain conditions, and their families, to become Turkish citizens. In this article, SKF Vision Law will, as of 2024, discuss in detail the conditions for acquiring Turkish citizenship by investment, the application process, and the significant advantages it offers to investors.

What are the Current Conditions for Turkish Citizenship by Investment?

Foreigners who fulfill at least one of the investment options detailed below, as specified in the second paragraph of Article 20 of the Regulation on the Implementation of the Turkish Citizenship Law, can exceptionally acquire Turkish citizenship by a Presidential decision, provided they do not pose a threat to national security and public order:

1. Fixed Capital Investment:
   • Condition: To make a fixed capital investment of at least USD 500,000 or its equivalent in foreign currency or Turkish Lira, as attested by the Ministry of Industry and Technology.
   • Explanation: This investment can include establishing a factory, modernizing an existing facility, or purchasing new machinery and equipment in the real sector. The nature and suitability of the investment are evaluated by the Ministry of Industry and Technology.
2. Real Estate Investment:
   • Condition: As attested by the Ministry of Environment, Urbanization and Climate Change, and with an annotation in the land registry that it will not be sold for three years;
     • To purchase an immovable property with condominium or construction servitude established, or an unbuilt land with an existing structure, worth at least USD 400,000 or its equivalent in foreign currency or Turkish Lira, OR
     • To document a notarized contract promising the sale of an immovable property with condominium or construction servitude established, for which at least USD 400,000 or its equivalent in foreign currency or Turkish Lira has been paid in advance, with an annotation in the land registry that it will not be transferred or abandoned for three years. (The phrase "unbuilt land with an existing structure" was made applicable to promise-to-sell contracts and harmonized with the property qualification in purchase transactions by PD No. 7938 dated December 12, 2023.)
   • Explanation: This is one of the most popular investment options. An annotation restricting the sale for three years is placed on the title deed of the purchased residence, workplace, land, etc., and this annotation can be removed at the end of this period. The value of the real estate is determined by an appraisal report.
3. Employment Creation:
   • Condition: To create employment for at least 50 individuals, as attested by the Ministry of Labour and Social Security.
   • Explanation: The investor must provide continuous employment for at least 50 Turkish citizens in a business established or co-owned by the investor in Turkey, and the continuity of this employment must be documented.
4. Deposit Investment (Depositing Money into a Bank Account):
   • Condition: To deposit at least USD 500,000 or its equivalent in foreign currency or Turkish Lira in banks operating in Turkey, with the condition of not withdrawing it for three years, as attested by the Banking Regulation and Supervision Agency (BRSA).
   • Explanation: The deposited amount is blocked in the bank for three years. At the end of this period, it can be withdrawn along with the principal and interest.
5. Government Debt Instruments (GDI) Investment:
   • Condition: To purchase Government debt instruments (e.g., Government bonds, Treasury bills) worth at least USD 500,000 or its equivalent in foreign currency or Turkish Lira, with the condition of holding them for three years, as attested by the Ministry of Treasury and Finance.
   • Explanation: These instruments also cannot be sold or transferred for three years.
6. Acquisition of Real Estate Investment Fund (REIF) or Venture Capital Investment Fund (VCIF) Participation Shares:
   • Condition: To purchase real estate investment fund participation shares or venture capital investment fund participation shares worth at least USD 500,000 or its equivalent in foreign currency or Turkish Lira, with the condition of holding them for at least three years, as attested by the Capital Markets Board (CMB).
   • Explanation: Investments in these funds can be made through portfolio management companies licensed by the CMB.
7. Private Pension System (PPS) Contribution Investment:
   • Condition: To deposit a contribution of at least USD 500,000 or its equivalent in foreign currency into the private pension system, with the condition of keeping it in funds whose scope is determined by the Insurance and Private Pension Regulation and Supervision Agency (SEDDK) and remaining in the system for three years. (Added by PD No. 5554 dated May 13, 2022.)
   • Explanation: This option offers the opportunity to obtain citizenship while making long-term savings and retirement planning.

Foreign Exchange Sale Obligation and Important Considerations

According to paragraph 10 of Article 20 of the Regulation, the foreign currency amounts stipulated for the investment types of real estate acquisition (Article 20/2-b), deposit (Article 20/2-ç), Government debt instruments (Article 20/2-d), REIF/VCIF (Article 20/2-e), and PPS contribution (Article 20/2-f) must be sold to a bank operating in Turkey and by that bank to the Central Bank before the transaction. The Turkish Lira amounts obtained as a result of the sale are then kept in the relevant investment instrument for three years. It is critical for investors to pay attention to this rule for the smooth progression of their applications.

Step-by-Step Citizenship by Investment Application Process

Acquiring Turkish citizenship by investment requires careful planning and compliance with legal procedures. Broadly, the process consists of the following steps:

1. Making the Investment: The applicant chooses one of the investment types listed and explained above and makes the investment at the specified minimum amount and under the stipulated conditions. At this stage, all relevant legal and financial transactions are completed according to the type of investment (e.g., title deed procedures for real estate acquisition, bank account opening and blocking procedures for deposit investment, etc.).
2. Obtaining the Certificate of Conformity: A "Certificate of Conformity" for the Turkish citizenship application is obtained from the relevant official institution (Ministry of Industry and Technology, Ministry of Environment, Urbanization and Climate Change, Ministry of Labour and Social Security, BRSA, Ministry of Treasury and Finance, CMB, SEDDK) depending on the type of investment made. This document officially confirms that the investment was made in accordance with the legislation and meets the necessary requirements for a citizenship application.
3. Short-Term Residence Permit Application: A "short-term residence permit" application is made pursuant to subparagraph (j) of Article 31 of the Law on Foreigners and International Protection No. 6458 for the investor and family members to be included in the citizenship application (spouse and minor children under 18 or dependent unmarried children). This is a mandatory step to legally reside in Turkey during the citizenship application process.
4. Citizenship Application: The Turkish citizenship application is officially made to the General Directorate of Population and Citizenship Affairs (or authorized governorships) with the Certificate of Conformity, valid residence permit, and all other necessary personal and investment documents (passport, birth certificate, marital status certificate, investment proofs, etc.).
5. Archive Research and Evaluation: The application file is sent to relevant security units such as the National Intelligence Organization Directorate and the General Directorate of Security for a comprehensive archive research and security investigation regarding the applicant and their family. At this stage, it is meticulously assessed whether the applicant poses any threat to national security and public order.
6. Presidential Decision and Notification: Following the security investigation and other examinations, the final decision regarding the acquisition of Turkish citizenship by foreigners whose situation is found suitable is made by the President. The positive decision is officially notified to the applicant or their legal representative by the General Directorate of Population and Citizenship Affairs.
7. ID Card and Passport Procedures: After the notification of the citizenship decision and its publication in the Official Gazette, the new Turkish citizen and their family can apply to the relevant civil registration office to obtain their Republic of Turkey ID cards and passports.

What are the Advantages of Turkish Citizenship by Investment?

Obtaining Turkish citizenship by investment offers many significant advantages to investors and their families:

• Right to Citizenship for Family Members: The investor can also apply for Turkish citizenship for their spouse and children under 18 (or, in special cases, dependent unmarried children). This allows the entire family to benefit from the opportunities offered by Turkey.
• Visa-Free Travel: The Turkish passport offers the possibility of visa-free or visa-on-arrival travel to many countries worldwide. This is a significant advantage in terms of international business and travel freedom.
• Indefinite Right to Live, Work, and Study in Turkey: Turkish citizens have the right to live, work, establish their own businesses, study in public and private schools, and fully benefit from healthcare services in Turkey indefinitely, without being subject to any permit.
• Possibility of Dual Citizenship: Turkey permits dual citizenship. This means investors can become Turkish citizens without renouncing their current citizenship (however, it is important to also check their home country's laws on dual citizenship).
• Real Estate Acquisition and Inheritance Rights: Turkish citizens are exempt from some restrictions applied to foreigners regarding property acquisition in Turkey and fully benefit from inheritance law under the Turkish Civil Code.
• Social Security and Retirement: Turkish citizens can be included in Turkey's social security system, pay premiums, and benefit from various social security rights, including retirement.
• Cultural and Geographical Richness: It offers the opportunity to live in Turkey, with its historical and cultural riches, unique natural beauty, and hospitable people, and to integrate into this rich culture.
• Business and Investment Opportunities: With its growing economy and strategic location, Turkey offers significant business and investment opportunities, providing access to European, Asian, and Middle Eastern markets.

Key Points to Consider During the Application Process

The citizenship by investment application process requires careful and informed steps:

• Accurate and Up-to-Date Information Sources: As investment types, minimum investment amounts, and legal procedures can be updated from time to time, it is crucial to always access the most current and accurate official information.
• Professional Legal Consultancy: The citizenship by investment process involves many legal details and complex procedures. Therefore, obtaining consultancy from a law firm specialized in the field, such as SKF Vision Law, will help the process proceed 오류-free, quickly, and smoothly, minimize potential risks, and prevent loss of rights.
• Complete and Correct Document Preparation: The complete, accurate, and legally compliant preparation of all documents requested for the application (passport, birth certificate, marital status certificate, investment proofs, certificate of conformity, health report, criminal record, etc.), and the proper execution of translation and attestation procedures, are vital for a positive outcome of the application.
• Legal Security of the Investment: Especially in real estate purchases, detailed examination of title deed records, review of the legality of promise-to-sell contracts, and taking all necessary legal measures to secure the investment are required.
• Money Transfers and Banking Transactions: Full compliance with national and international legal regulations, especially anti-money laundering legislation, is mandatory during the transfer of the investment amount to Turkey and banking transactions.

Our Support as SKF Vision Law in the Citizenship by Investment Process

At SKF Vision Law, we provide comprehensive legal consultancy and support services to our clients who wish to obtain Turkish citizenship by investment, being by their side at every stage of the process. With our expert team, we:

• Provide detailed analysis and consultancy on determining the most suitable investment option for our client's investment goals and personal situation.
• Manage the processes of preparing all necessary personal and investment documents completely and correctly, and ensuring they meet legal requirements (translation, notarization, apostille, etc.).
• Handle the due submission of applications for the certificate of conformity, short-term residence permit, and final citizenship to official authorities and meticulously follow up on them.
• Help ensure effective communication and coordination with all relevant official institutions (ministries, BRSA, CMB, immigration office, etc.).
• Manage all necessary review and contract processes to ensure the legal security of the investment to be made (real estate, company establishment, fund purchase, etc.).
• Keep our clients informed at every step of the process and develop proactive solutions for potential problems.

Conclusion

The Turkish citizenship by investment program offers foreign investors and their families the opportunity to establish a new life in a strategically important country like Turkey, which has high cultural richness and economic potential, and to benefit from countless opportunities. However, this process is detailed and sensitive, requiring careful planning, correct investment decisions, and full compliance with legal procedures. Therefore, obtaining expert legal guidance is the most solid and correct step to ensure that your investment and your dream of citizenship safely and smoothly become a reality.

SKF Vision Law: Your Reliable Legal Partner in Citizenship by Investment

You can contact SKF Vision Law for more detailed information about the current conditions of the Turkish citizenship by investment program, the application process, and its specific advantages for you, to benefit from our legal consultancy services, and to confidently start your application. Our expert lawyers are ready to answer all your questions and to provide you with professional support at every step of the process. We would be pleased to guide you in achieving your investment and citizenship goals in Turkey. You can reach us via our website skfvisionlaw.com or +90 533 039 77 89 (WhatsApp)