Turkish Citizenship by Investment: All Six Routes and Their Differences

The Turkish citizenship by investment program started in 2017 and has since been the most concrete regulation changing the perspective of foreign investors towards Turkey. Real estate is the most well-known leg of the program; however, the law recognizes six separate routes, some of which make much more sense than real estate for certain profiles.

Below we discuss the six routes one by one. What is common to all of them is that the investment must be held for at least three years and this commitment must be officially registered.

1. Purchasing real estate — 400,000 USD

This is the route with the lowest threshold. A single property can be purchased, or multiple properties whose total value exceeds the threshold can be bought. The decisive factor is not the price written on the title deed (tapu), but the amount in the valuation report issued by a CMB (SPK) licensed institution.

• An annotation (şerh) is placed on the title deed stating that it will not be sold for three years; transfer cannot be made before the annotation is removed.
• The price must be transferred from the bank in the name of the buyer to the seller — cash payments are not accepted.
• Foreign currency is sold to the Central Bank prior to the purchase, and a foreign exchange purchase certificate is obtained.
• It is required that the property has not previously granted citizenship to another foreigner.

The appeal of this route is not just the low threshold: the investment generates rental income for three years and can be sold at the end of the period. In most other routes, the money remains tied up for three years and its return is limited.

2. Fixed capital contribution — 500,000 USD

The amount placed as fixed capital in a company established in Turkey. A natural choice for an investor who already plans to do business in Turkey or will become a partner in an existing enterprise; it is rarely chosen solely for citizenship.

3. Deposit in a Turkish bank — 500,000 USD

Deposits placed in a Turkish bank with the condition of holding for three years. The simplest and fastest route to set up; on the other hand, the money being tied up for three years and its status against inflation is a serious cost. The path for the hurried investor with high liquidity.

4. Government debt instruments — 500,000 USD

Purchase of government bonds or treasury bills, again with a three-year holding commitment. Similar to a deposit, but its return is generally more predictable. Currency risk remains with the investor in both routes.

5. Real estate or venture capital investment fund share — 500,000 USD

Instead of buying a property directly, acquiring shares in a professionally managed fund. Suitable for an investor who wants exposure to real estate without the hassle of choosing a property, finding a tenant, and managing it. On the other hand, you have no say in the performance of the fund.

6. Creating employment — at least 50 people

Providing employment for at least fifty people in Turkey. The number is confirmed by the Ministry of Labor. For company owners already making production or service investments in Turkey, this is the only route without a monetary threshold.

Which route suits whom?

• Those who want their money to work: real estate — both the lowest threshold and rental income.
• Those who want to complete the transaction the fastest and with the least paperwork: deposit.
• Those already doing business in Turkey: fixed capital or employment.
• Those who do not want to manage property but want to stay in real estate: fund shares.

Family members included

Legally married spouses and children under the age of eighteen are included in the application. Disabled children regardless of their age are also covered. A separate evaluation is required for healthy children who have reached the age of eighteen; this makes timing important in family planning.

If your child is approaching the age of eighteen, delaying the application may mean leaving them out of the file.

Do not overlook the tax side

Becoming a Turkish citizen means that your worldwide assets fall within the scope of Turkish inheritance and transfer tax. For high-net-worth applicants, this can be a much larger item than the cost of the program. Before applying, the tax treaty between your current country and Turkey must be evaluated together.

The Turkish passport offers visa-free or visa-on-arrival entry to over a hundred countries. However, choosing a program solely based on passport power is an incomplete decision; the return on the investment itself and the ease of exit at the end of three years are at least as important.

Program conditions have changed over time — the threshold amount was previously increased from 250,000 dollars to 400,000 dollars. It is mandatory to confirm current legislation before applying. This article is for general informational purposes only; it does not constitute legal opinion.