Turkish Citizenship by Investment

Citizenship has started to be used by the Turkish government as a tool to encourage foreign investment, to serve the country's labour and economic policies. Hence, the Republic of Turkey aims to attract investors by offering them citizenship. Investors can either qualify by

• purchasing 500,000 USD in government bonds,
• lodging 500,000 USD in a Turkish bank account,
• making a 500,000 USD fixed capital investment, or an investment of any amount which provides at least fifty or more people with employment or
• purchasing a 500,000 USD - share of a real-estate investment fund or a venture capital investment fund.

Contrary to the information provided on many websites, it is not possible to acquire Turkish citizenship by solely making an investment. It is all the more important, therefore, to work with a lawyer throughout the procedure to ensure all legal requirements are met. 

Please note that various governmental bodies are engaged in this procedure. For example, if the foreign investor were to make a fixed capital investment, the investment shall be a fixed capital investment determined by the Ministry of Industry and Technology, meaning that it is required for the investment to be a non-current asset which produces durable goods over the long term. 

The procedures and principles regarding fixed capital investment applications involve matters concerning company partnerships, merger, property purchase, residence permits and contract law. Since all investments must be structured in such a way that the foreign investor cannot transfer the subject investment for at least three years it is of great importance to uphold the rights of the foreign investor within any contract they enter into.

Another example could be given on investment by lodgement of 500,000 USD into a Turkish Bank. Our clients often ask whether it is possible to receive interest from the deposit they make: while a foreign investor is obliged to maintain a capital amount of at least 500,000 USD for three years, however it is possible to receive interest from the bank throughout the three-year period.

As for the option of citizenship by investment by means of providing 50 jobs, the foreign investor is required to recruit the employees within the first 6 months following the citizenship application. One important detail to note is that the Ministry of Family and Social Policies conducts audits on a random basis without notification and examines whether the foreign investor retains those employees. 

The three-year duration sets an importance on the sustainability of the investment, hence in order to fulfil the liabilities while gaining profit out of the investment it is at utmost importance to seek the assistance of an experienced lawyer in this field. 

This post "Turkish Citizenship by Investment" (1/2) has an extension at "Buying Property in Turkey and Residency" (2/2)