In an increasingly globalized world, countries are embracing citizenship by investment programs to attract foreign investors, foster economic growth, and promote cultural exchange. Turkey, with its strategic location, historical significance, and thriving economy, has introduced the Turkish Citizenship by Investment Program.
The Turkish Citizenship by Investment Program is one of the world's most popular, having naturalized nearly 19,000 people since its launch in 2017. The program has been dubbed the fastest-growing Citizenship by Investment Program in the world, and it is set to continue breaking records.
The program is simple and straightforward, offering investors the chance to obtain Turkish citizenship through a wide array of different investment options throughout an open market which incidentally is one of the best in the world, especially for foreign investors who are looking to make a shrewd, profitable investment and gain citizenship in one simple stroke.
Overview of Turkey
Turkey, officially known as the Republic of Turkey, is a transcontinental country located mainly on the Anatolian Peninsula in Western Asia, with a smaller portion on the Balkan Peninsula in Southeast Europe. It is bordered by eight countries and surrounded by three different seas: the Mediterranean Sea to the south, the Aegean Sea to the west, and the Black Sea to the north. Istanbul, the country's largest city, serves as a major cultural and economic hub, spanning both Europe and Asia.
Covering an area of approximately 783,356 square kilometers, Turkey is strategically positioned between Europe and Asia, serving as a bridge connecting the two continents. Its diverse geography encompasses mountains, fertile plains, and coastal regions, providing a rich natural landscape. With a population of around 84 million people, Turkey is one of the most populous countries in the region, characterized by cultural and ethnic diversity.
One of the reasons the country is so popular globally is that Turkey boasts a rich historical and cultural heritage that spans thousands of years. It has been the cradle of ancient civilizations such as the Hittites, Greeks, Romans, Byzantines, and Ottomans. These influences have shaped Turkey's unique blend of Eastern and Western cultures and traditions, evident in its architecture, cuisine, music, and customs.
Economy
In terms of economic prowess, Turkey is classified as an emerging market economy with a diverse and rapidly growing industrial sector. Over the past few decades, the country has experienced significant economic reforms, resulting in robust economic growth and increased foreign direct investment. Key sectors driving the Turkish economy include manufacturing, tourism, agriculture, textiles, automotive, and information technology.
Tourism
The country's economy is diverse, but tourism plays a significant role alongside the services and industrial sectors, as Turkey is renowned for its breathtaking landscapes, historic sites, and vibrant cultural offerings, attracting millions of tourists each year. From the iconic ancient city of Troy to the surreal landscapes of Cappadocia and the stunning beaches along the Mediterranean and Aegean coasts, the country offers a wealth of attractions for travelers seeking history, adventure, and natural beauty.
Culture
Turkish culture is a vibrant fusion of traditions from various civilizations that have inhabited the region. The country embraces both its Islamic heritage and its commitment to secularism, fostering a diverse and tolerant society. Turkish cuisine is renowned worldwide, with dishes such as kebabs, baklava, and Turkish tea gaining international recognition.
Education
Turkey has placed great importance on education, with a well-developed education system and numerous universities offering a wide range of programs. The country has made significant strides in research and development, particularly in the fields of science, technology, and engineering, positioning itself as a center for innovation in the region.
Location
Turkey's strategic location at the crossroads of Europe, Asia, and the Middle East offers significant advantages for international trade and connectivity. It serves as a vital transit route for energy pipelines, trade routes, and transportation networks, contributing to its economic significance and geopolitical influence.
Overview of the Turkish Citizenship by Investment Program
The Turkish Citizenship by Investment Program (sometimes dubbed the Turkey Golden Visa) was established in 2017; the program aims to attract foreign direct investment and bolster the nation's economy while providing tangible global mobility benefits to foreign investors. It provides a streamlined process for eligible investors to obtain Turkish citizenship in exchange for specified investments.
The program operates under the Turkish Citizenship Law and associated regulations, ensuring transparency, fairness, and adherence to legal procedures.
The Turkish Citizenship by Investment Program's premise is very simple, an international investor who has a clean criminal background and makes a qualifying investment can obtain citizenship and a Turkish passport and become a full fledged Turk within a few months of applying.
When the program was launched in 2017, its pricing was set at US$ 1 million in real estate, so the demand was quite low compared to other citizenship by investment programs. But one year later, the government decided to revise the pricing model and decreased it by 75% to set the minimum qualifying real estate investment at US$ 250,000, while financial asset investments were set at US$ 500,000.
This reduced pricing led to massive demand, especially from the Eastern Hemisphere, as real estate investments by foreigners skyrocketed under the program, although real estate property investments were already high compared to other countries.
A few years later (in 2022), the government decided that it had to re-price the program once again to match growing inflation and compensate for the Turkish Lira's constant fluctuation. The government only increased the real estate property investment to US$ 400,000, still much lower than the initial pricing of US$ 1 million in 2017, while the financial asset categories' minimum investment amounts remained stable at US$ 500,000.
The increase in real estate was not only meant to compensate for currency drops and inflation but also mirrored the massive demand for housing in Turkey (especially by foreigners), as the price of real estate grew and US$ 250,000 suddenly was less than what was needed to obtain prime real estate in Istanbul.
Program Eligibility and Requirements
The Turkey citizenship by investment program has very simple requirements that investors have to meet to qualify for Turkish citizenship, as they only need to:
· Be over 18 years of age
· Have sufficient funds to make an investment
· Have a clean criminal record
· Make a qualifying investment
· Submit a full application
· Maintain their investment for three years after they receive Turkish citizenship
The requirements are extremely simple, and the process takes between 3-6 months. The speedy procedure, coupled with the minimal documentation requirements (such as all the applicants passports and applicant marriage certificate among others), has made the program one of the most popular in the world.
Applicants do not need to reside or hold a short term residence permit before applying to the program, and the vast majority of the process can be done remotely.
Investment Options
The Turkey citizenship by investment program offers diverse investment routes, including real estate, capital investment, bank deposits, job creation, REITs or venture capitalism, and government bonds. This flexibility allows investors to choose options that align with their preferences, risk appetite, and financial capabilities.
The approved investment options are:
· Purchase real estate worth US$ 400,000, applicants must maintain real estate ownership for three years
· Invest a minimum capital investment of US$ 500,000 in fixed capital
· Bank deposit of at least 500,000 into a Turkish bank account and hold them for three years
· Purchase government bonds for at least US$ 500,000
· Commit at least US$ 500,000 into a real estate investment fund share or venture capital investment fund share
· Create jobs for at least 50 people through enterprise establishment
All investments must be maintained for at least three years after purchase, and all of the investments must be made in Turkish Lira. The pricing in equivalent foreign currency of USD is the benchmark, but the actual investment is made in Turkish Lira.
Considering the fluctuating nature of the Turkish Lira, it is understandable that the most popular investment has been the real estate option as properties are usually priced in USD in Turkey, making sure that not only do applicants not lose money in case the Turkish Lira takes a dive, but they actually make a profit as the real estate market is traditionally tethered to USD pricing.
Real Estate Investment
The acquisition of property in Turkey is the most popular investment choice under the Turkish citizenship by investment program. Investors can purchase residential, commercial, or land assets, provided they meet the minimum investment requirement.
Investors are free to choose any real estate property they like on the condition it has not been used to obtain Turkish citizenship by someone else in the past.
Capital Investment
Investors may opt to make a fixed capital investment in Turkish businesses, such as companies, start-ups, or venture capital funds. This investment stimulates the local economy and encourages entrepreneurial growth.
Job Creation
Creating employment opportunities for Turkish citizens through business initiatives is another pathway to Turkish citizenship. This option promotes sustainable economic development and social progress.
Government Bonds
Investment in Turkish government bonds supports national development projects, offering investors an avenue to contribute while becoming eligible for citizenship. They are a very safe option that provides investors with peace of mind knowing that their investment is with the government.
Bank deposit
Applicants can choose any certified Turkish based bank accredited under Turkish banking regulation and open a Turkish bank account to make the deposit. The deposit must be made in Turkish Lira and held for three years, but this is another popular option as the investors' money remains with them in their Turkish bank account in case a dire situation arises.
REITs
Real estate investment funds are another option that provides investors with a good option for diversification and profitability. They are totally passive and are highly regulated, ensuring the safety of the investment.
Overview of investing in Turkish real estate
The benefits of investing in the Turkish real estate market and how it can contribute to a well-rounded investment strategy are numerous, and Turkey has always garnered interest from global investors, especially those looking for prime real estate in a rapidly growing economy.
Turkey's robust economic growth, favorable demographics, and strategic location make it an appealing investment destination. With a population of over 84 million, Turkey has a large and growing consumer base, providing a strong domestic demand for real estate. The country's economy has shown remarkable resilience, recording an average annual GDP growth rate of 5.5% between 2003 and 2019.
Key advantages of investing in Turkish real estate
One of the key advantages of investing in the Turkish real estate market is its affordability and attractive growth potential. Compared to many other global real estate markets, property prices in Turkey are relatively low. According to the Turkish Statistical Institute, the residential property price index increased by 10.2% in 2020, indicating a positive trend in the market.
Furthermore, strong economic growth, rapid urbanization, and government initiatives contribute to the appreciation potential of Turkish real estate investments. The Turkish government has been investing heavily in infrastructure development, including transportation networks, healthcare facilities, and education institutions, driving demand for commercial and residential properties.
The Turkish real estate market offers favorable rental yield potential, providing an attractive income generation opportunity for investors. According to Global Property Guide, rental yields in Istanbul, the country's largest city, averaged around 6% in 2020. This indicates a healthy return on investment compared to many other global cities.
The demand for rental properties is driven by various factors, including urbanization, a growing population, and an increasing number of students and young professionals. Istanbul, in particular, benefits from a vibrant rental market, with a large influx of international students and expatriates seeking housing accommodations.
Turkey's booming tourism industry further contributes to the attractiveness of its real estate market. The country is a popular tourist destination, attracting millions of visitors each year. This demand for short-term accommodation creates lucrative opportunities for real estate investors to generate rental income.
Popular regions among tourists for holiday homes
Coastal regions such as Antalya, Bodrum, and Fethiye are particularly popular among tourists, offering pristine beaches, historical sites, and a vibrant cultural experience. Investing in holiday homes or rental properties in these areas can provide a steady stream of income through short-term rentals during peak tourist seasons.
Favorable tax environment
Turkey's tax environment is favorable for real estate investors. The country offers various tax incentives, including exemptions on foreign-sourced income for Turkish citizens and reduced tax rates on certain real estate property investments. These tax benefits can enhance the financial returns for investors and contribute to long-term profitability. The best way to utilize any tax incentives is by working with a local Turkish tax specialist for professional advice, especially when it comes to property tax.
Investing in the Turkish real estate market provides global investors with an array of benefits, including strong economic fundamentals, affordability, growth potential, rental yield, income generation, and access to the Turkey Citizenship by Investment Program. The country's strategic location, robust tourism industry, and favorable tax environment further enhance the appeal of the Turkish real estate market.
The process of the Turkey Citizenship by Investment Program
The process to obtain Turkish nationality through investment is quite a simple one that relies on just a few steps:
· Sign a contract with NTL Trust as your advisor and representative.
· Choose the investment option that correlates to one's objectives, preferences, and budget.
· Open a Turkish bank account (optional) in order to make the investment from that bank account to minimize the required documentation and simplify the due diligence process.
· Make the required investment (the money transfer must be done from an investor's bank account and sent directly to the Turkish bank account of the party that handles the investment)
· Obtain a certificate of conformity, ensuring that the investment conforms with the government requirements under the Turkey citizenship by investment program. The party who issues this letter differs depending on the investment option; for the real estate route, for example, it is obtained through the Turkish Land Registry and the Turkish Ministry of Finance.
· Submit a full permanent residence permits application and citizenship.
· An in-person interview may be required, but in most cases, an investor's representative can attend in their place if an adequate power of attorney delegation is signed.
· Once the investor obtains their permanent residence card, they can apply for citizenship.
· Obtain Turkish citizenship for the investor and the family members added to the application.
Applicants can add their family members consisting of their spouse and dependent children below 18 to their application, but the spouse must also undergo due diligence and have a clean criminal record.
Benefits of Turkish Citizenship
The Turkey citizenship by investment program comes with a multitude of benefits; the top ones are:
Visa-Free Travel
Turkish citizens enjoy visa free travel or visa-on-arrival access to 111 destinations worldwide with their Turkish passport. This includes visa free travel to Japan, South Korea, the vast majority of Latin America, and others, facilitating seamless travel and business opportunities.
The Turkish passport offers visa free access to a highly different set of countries than those accessible through a Caribbean passport, meaning a person who manages to obtain Turkish citizenship by investment and then does the same in the Caribbean and become dual citizenship holders will have visa free travel to most of the world's countries.
Full Citizenship Rights
To obtain Turkish citizenship through the program grants investors and their families full citizenship rights, encompassing the right to live, work, and study in Turkey. They also benefit from public services, healthcare, and education facilities. Once applicants obtain their Turkish citizenship and Turkish passport, they can also vote in local elections, allowing them to influence the political system of their new home by practicing their democratic rights.
Turkey allows dual citizenship and has no restrictions on those wishing to obtain Turkish citizenship by investment to become dual citizenship holders no matter where they are from.
Economic Advantages
Turkey boasts a dynamic and diverse economy, offering a wide array of investment opportunities. Sectors such as real estate, infrastructure, tourism, manufacturing, and technology provide investors with attractive prospects, capitalizing on the country's strategic location and growing markets.
Tax Benefits
Turkish citizens benefit from a favorable tax regime, including exemptions on foreign income and reduced tax rates on specific investments. This advantageous tax structure enhances the financial gains of obtaining Turkish citizenship.
Access to European and Middle Eastern Markets
Positioned at the crossroads of Europe, Asia, and the Middle East, Turkey offers investors unparalleled access to regional European and Asian markets. Its strategic location serves as a gateway to over 1.7 billion potential consumers, facilitating trade and business expansion.
Cultural and Social Benefits
Turkey's rich historical legacy, diverse cultural influences, and vibrant contemporary art scene provide investors and their families with an immersive cultural experience. They can explore ancient sites, partake in local festivals, and savor the country's culinary heritage.
Social Integration and Networking Opportunities
To acquire Turkish citizenship means opening doors to a diverse network of fellow investors, entrepreneurs, and professionals. This network presents valuable opportunities for collaboration, partnership building, and access to a thriving community of like-minded individuals.
Adding family members
The Turkey citizenship by investment program allows investors to include their family members, such as their spouse and dependent children below the age of 18, in their application. It's worth noting that the investment requirements remain the same, making the program particularly cost-effective for larger families with young dependent children.
By including family members in the application, investors secure the benefits of Turkish citizenship for their entire lineage. This means that all future generations, including children and grandchildren, will have access to the advantages associated with holding a Turkish passport. These benefits can range from enhanced visa free travel opportunities to other privileges that come with being a Turkish citizen.
A strong Plan B
The Turkey citizenship by investment program offers investors more than just a valuable Turkish passport with extensive visa free travel benefits; it also provides them with the opportunity to establish a new home if the need arises.
Turkey, as a nation, boasts a vast territory and offers a high standard of living. Individuals who wish to secure a Plan B in case their home country experiences political or economic uncertainty should seriously consider the Turkey citizenship by investment program. Turkey serves as an ideal destination for those seeking a temporary or permanent second home, providing a safe and comfortable environment to settle in.
Investors can safeguard their family members by providing them with a Turkish passport that can be utilized in a time of need, hedging against political or economic turmoil in their country of origin.
Immigration springboarding
Turkish citizens have the advantage of having a lot of immigration channels specific to them. In the EU, for example, the Netherlands and Germany have specific requirements for Turkish citizens who wish to migrate that are much leaner than other nationalities.
Turkish citizens can also apply for the US E2 visa, although those who obtain Turkish citizenship by investment will have to reside in Turkey for three years if they wish to apply for the E2 as Turkish citizens.
The Turkish passport also makes getting visas, such as the Schengen visa, much easier for some nationalities on global sanction lists.
A simple process
The Turkish citizenship by investment program stands out with its streamlined process, requiring minimal documentation compared to other citizenship by investment programs. Additionally, it boasts an impressive track record of efficient processing times without significant backlogs and quick issuing of Turkish passport.
On average, the program takes approximately 3-6 months to complete, offering investors a relatively quick pathway to Turkish citizenship. Throughout this period, investors will find the process to be remarkably simple, requiring minimal involvement on their part.
Moreover, even after obtaining approval and becoming Turkish citizens, the process of renewing a Turkish passport is hassle-free. It can be easily accomplished through any Turkish embassy located worldwide. The widespread presence of Turkish embassies ensures that finding the nearest one will never pose a challenge and renewing a Turkish passport is easily done globally. This convenience adds to the overall efficiency and accessibility of the Turkish citizenship by investment program.
