Regulations Facilitating the Acquisition of Turkish Citizenship

Regulations Facilitating the Acquisition of Turkish Citizenship

Regulations facilitating the acquisition of Turkish citizenship were published in the Official Gazette on September 18, 2018. Foreigners meeting any of the following conditions will be eligible for citizenship under the new regulations:

• A fixed capital investment of at least $500,000 or its equivalent in foreign currency, determined by the Ministry of Industry and Technology.

• Purchase of real estate worth at least $400,000 or its equivalent in foreign currency, with a restriction placed on the land registry to prevent sale for three years, or purchasing property with an established condominium or site property with at least $400,000 or its equivalent in foreign currency paid upfront, and a notarized commitment with a restriction on transfer and abandonment for three years, as determined by the Ministry of Environment, Urbanization, and Climate Change.

• Creation of employment for at least 50 people, as determined by the Ministry of Family, Labor, and Social Services.

• Depositing at least $500,000 or its equivalent in foreign currency into Turkish banks for three years, as determined by the Banking Regulation and Supervision Agency.

• Purchase of state borrowing instruments worth at least $500,000 or its equivalent in foreign currency, with a commitment to hold them for three years, as determined by the Ministry of Treasury and Finance.

• Purchase of mutual fund shares in real estate investment or venture capital investment funds worth at least $500,000 or its equivalent in foreign currency, to be held for at least three years, as determined by the Capital Markets Board.

Exchange Rate:

The exchange rate refers to the most recently announced rate for converting foreign currency to Turkish lira at the hours of 10:00, 11:00, 12:00, 13:00, 14:00, and 15:00 by the Central Bank, and applies to transactions under Articles 20(2)(b), (c), (d), and (e) of the Regulation on the Implementation of the Turkish Citizenship Law.

Acquisition of Real Estate

Under Article 20(2)(b) of the Regulation on the Implementation of the Turkish Citizenship Law: Foreigners may obtain Turkish citizenship by purchasing real estate worth at least $400,000 or its equivalent in foreign currency, with a restriction on the land registry preventing its sale for three years, or by purchasing real estate with a condominium or site property established with a minimum upfront payment of $400,000 or its equivalent in foreign currency, and a notarized commitment with a restriction on transfer and abandonment for three years, as determined by the Ministry of Environment, Urbanization, and Climate Change.

• Real estate purchased between 01.12.2017 and 18.09.2018 must be valued at $1,000,000.

• Real estate purchased or to be purchased after 18.09.2018 must be valued at $400,000.

• Real estate with a sales promise agreement executed after 07.12.2018 must be valued at $400,000.

• With the change in January 2022, the term "equivalent in Turkish Lira" has been removed from the regulation; instead, it is now required that the real estate value be sold to the Central Bank through a bank.

• Real estate with a sales promise agreement executed after 13.05.2022 must also be valued at $400,000.

Real estate purchased before 12.01.2017 or subject to a sales promise agreement before 07.12.2018 will not be considered under this scope.

Process for Deposit and BDDK

The amount determined under the Regulation on the Implementation of the Turkish Citizenship Law (500,000 USD or equivalent) must be deposited by the foreign individual into a bank in Turkey. After the bank account opening process, the required documents include:

• Commitment Letter

• Blockage Instruction

• Consent Statement

After signing, these documents will be forwarded to the BDDK (Banking Regulation and Supervision Agency) by the bank. The BDDK will notify the General Directorate of Population and Citizenship Affairs and the General Directorate of Migration Management and send an example of this notification to the bank online. The bank will share the relevant letter with the customer. The customer can then apply to the General Directorate of Population and Citizenship Affairs and the General Directorate of Migration Management personally or through an authorized representative.

Currency Types for Transactions:

Transactions under this application are limited to the currency types subject to buying and selling by the Central Bank. Currencies sold to the Central Bank by banks include USD, Euro, and British Pound. Transactions in other currencies will be converted to USD, Euro, or British Pound based on the cross-currency rates determined by the Central Bank one day before the transaction date.

Post-Sale Transactions:

According to Article 20(10) of the Regulation on the Implementation of the Turkish Citizenship Law, the Turkish Lira amounts obtained from foreign currency sales must be held in Turkish Lira deposits or government debt instruments for three years. The bank where the foreign currency is sold and the Turkish Lira deposit must be the same.

Frequently Asked Questions

1. Does the real estate worth $400,000 need to be a single independent unit? Can multiple properties purchased from different places be evaluated?

   • Multiple independent units can be considered if other conditions are met.

2. Does the real estate need to be in the individual's name for citizenship? Can real estate purchased by companies in which the individual is a partner be considered?

   • The share of the real estate worth at least $400,000 must be in the personal ownership of the company partner.

3. Can Syrian nationals benefit from exceptional citizenship through real estate purchases?

   • The 2012 Decision No. 724 restricting Syrian nationals from acquiring real estate is still in effect. Therefore, Syrians cannot obtain exceptional citizenship through real estate purchases.

4. Can customers apply for citizenship by purchasing Sukuk/lease certificates issued by banks instead of making a deposit?

   • Sukuk/lease certificates issued by banks are not accepted for citizenship applications.

5. What are the processes foreigners need to follow for exceptional citizenship applications through deposit investments?

   • The required amount (500,000 USD participation fund) must be deposited into banks in Turkey. The foreign individual or their authorized representative can request the bank to make a determination with a petition/statement. BDDK will then notify the General Directorate of Population and Citizenship Affairs and the General Directorate of Migration Management.

6. Must the amount be in US Dollars?

   • No, the required amount (500,000 USD) can be in convertible currencies determined by the Central Bank of Turkey. The amount must be convertible and equivalent to 500,000 USD.

7. Can I benefit from the interest and other returns on the deposited amount?

   • Yes, you can benefit from all returns as long as the amount does not fall below 500,000 USD according to the agreement and account type with the bank.

8. Can I use deposits in a bank in Turkey before the regulation for citizenship applications?

   • Deposits before and after the regulation can be used, but the period before the application is not considered. The regulation requires BDDK determination and notification to the Ministry of Interior from the date of determination.

9. Can I apply for citizenship using a joint account opened with my spouse?

   • Joint accounts are acceptable if there is a clear consent from the account partner regarding the restriction on withdrawal for three years.

10. Should the deposit be in a single account, or can it be in different accounts?

    • The total amount can be deposited in different accounts as long as it meets the requirements and a blockage statement is provided.

11. Is there a requirement to exchange foreign currency for foreign buyers in sales transactions?

    • Foreign buyers must exchange foreign currency at a bank in Turkey, as specified by the Central Bank’s regulations.

12. Where should the foreign currency be exchanged?

    • Currency must be exchanged at a bank in Turkey, not at exchange offices or through cash transactions.

13. How much foreign currency should be exchanged?

    • According to the Central Bank’s guidelines, the entire sales amount must be exchanged.

14. What is a Foreign Currency Purchase Document?

    • It is a document showing that foreign currency was sold to a bank in Turkey for conversion to the Central Bank.

15. What information must the Foreign Currency Purchase Document contain?

    • It must include the name, passport number or foreign ID number of the person, the foreign currency amount in USD equivalent, and a statement that the transaction is under Article 13 of the Capital Movements Circular.

16. Does the foreigner buying the currency need to be the one exchanging it at the bank?

    • The exchange can be done by the buyer, seller, their representatives, or agents.

17. Can the currency be exchanged after the sale transactions?

    • Currency must be exchanged before the sale transactions and the Foreign Currency Purchase Document must be submitted to the land registry office before the sale.

18. Is currency exchange mandatory for citizenship processing?

    • Yes, currency exchange is required for citizenship applications whether through real estate acquisition or other purchases.

19. Are any additional documents required for citizenship (Eligibility Certificate) processing besides the Foreign Currency Purchase Document?

    • Yes, a certified bank receipt showing that the exchanged amount was sent to the seller’s account is required.

20. Can currency be exchanged after it has been deposited into the seller’s account?

    • Currency should be exchanged before the sale transactions and the Foreign Currency Purchase Document must be presented before the sale.

21. How are receipts before the implementation date treated and how is the declared value calculated?

    • For payments made before the implementation date, bank receipts are accepted, and a Foreign Currency