In Turkish law, the term foreign can be used for natural persons, legal entities (e.g. companies) or Turkish companies with foreign capital. Foreign investors can acquire Turkish citizenship, through an exceptional way as mentioned in the Turkish Citizenship Law No. 5901, by investing in Turkey. However, citizenship applications must be made under certain conditions, by preparing the necessary documents, following a certain procedure, and within certain time limits and to the competent authorities. Amendments are regularly made in Turkish law with regard to these conditions and therefore up-to-date monitoring and implementation of these amendments are very effective for getting positive results out of applications.
Legal regulations in Turkish law regarding the acquisition of Turkish citizenship by foreigners through investment are namely; Turkish Citizenship Law No. 5901, Regulation on the Implementation of Turkish Citizenship Law, Foreigners and International Protection Law, Presidential Decision No. 106 dated September 2018, Presidential Decision No. 418 dated December 2018 and Presidential Decision No. 5072 dated January 2022. First of all, in 2018, very important and labour-saving changes were made in obtaining citizenship through investment.
- Firstly, the fixed capital investment amount, which was 2,000,000 USD before, was reduced to 500,000 USD or its equivalent in foreign currency or Turkish Lira.
- Secondly, the amount of investment required by foreigners to acquire Turkish citizenship was reduced from 1,000,000 USD to 250,000 USD or its equivalent in foreign currency or Turkish Lira. Real estate to be purchased must not be sold for 3 years and an annotation must be placed on the title deed. In addition, it is possible to make a preliminary real estate sales contract for buildings where property ownership or construction servitude has been established. Further, it must be added as well to the preliminary sales contract to be made at the notary public that transfer of the real estate cannot be made for 3 years.
- As another amendment, while a foreigner in Turkey must have employed 100 people, the number of people was reduced to 50.
- Another amendment is that while foreigners who deposited at least 3,000,000 USD in banks in Turkey with the condition of holding their deposits for 3 years, were entitled to Turkish Citizenship, the deposit amount was reduced to 500,000 US Dollars or its equivalent in foreign currency or Turkish Lira. Similarly, while it was required to purchase government bonds amounting to 3,000,000 USD on the condition of holding it for 3 years, this amount was changed to 500,000 USD or its equivalent in foreign currency or Turkish Lira.
- Finally, instead of 1,500,000 USD obligation, it has been decided that the person determined by the Capital Markets Board, who has purchased real estate investment fund share or venture capital investment fund share amounting to 500.000 USD or its equivalent in foreign currency or Turkish lira, on the condition of holding it for 3 years, will also be entitled to acquire Turkish citizenship.
With the Presidential Decision No. 5072 dated January 2022, which is still very new, the issue of citizenship through investment has taken its final form. According to the latest amendments, the Turkish Lira equivalent of the foreign currency investment to be made has been removed. In other words, foreigners are now required to make their investments in Turkey only in foreign currency. In its final form, the amendments are as follows;
- Those determined by the Ministry of Industry and Technology to have made a fixed capital investment of at least 500,000 USD or its equivalent in foreign currency,
- Those determined by the Ministry of Environment, Urbanization and Climate Change to have purchased real estate worth at least 250.000 USD or its equivalent in foreign currency with condition that an annotation is put in the title deed records stating the real estate not to be sold for three (3) years or those determined by the Ministry of Environment, Urbanization and Climate Change to have promised sale of real estate by a contract drawn up in the notary public on conditions that property ownership or construction servitude has been established, at least 250,000 USD or its equivalent in foreign currency deposit is paid in advance and undertaking not to be transferred or cancelled for a period of three (3) years is annotated to the title deed,
- Those determined by the Ministry of Labor and Social Security to have created employment for at least 50 people,
- Those determined by the Banking Regulation and Supervision Agency to have deposited at least 500,000 USD or its equivalent in foreign currency deposits, on condition that to be held for three (3) years in banks operating in Turkey,
- Those determined by the Ministry of Treasury and Finance to have purchased government bonds of at least 500,000 USD or its equivalent in foreign currency, on condition that to be held for at least three (3) years,
- Those determined by the Capital Markets Board to have purchased real estate investment fund shares or venture capital investment fund shares of at least 500,000 USD or its equivalent in foreign currency, on condition that to be held for at least three (3) years.
As can be seen, before the latest update, it was regulated that investments to be made could be in USD or its equivalent in foreign currency or Turkish Lira. However, with January 2022 amendment, the expression ‘Turkish Lira’ has been removed. Moreover, it has been determined that the foreigners who will make the above investments shall sell their foreign currency amounts to a bank operating in Turkey before the transaction and this bank will sell them to the Central Bank. The Turkish Lira amounts obtained as a result of the sale will be held in a Turkish Lira deposit account for transactions made with the condition of holding a deposit, and in government bonds for transactions made through government bonds for a period of three years. In addition, the procedures and principles regarding this issue will be determined by the Central Bank of the Republic of Turkey.
After fulfilling the investment conditions stated above, a certificate of conformity must be obtained from the relevant institution. The certificate of conformity is document issued by the relevant institutions, in order to determine that the minimum investment requirement is met. It is also necessary to obtain a short-term residence permit in accordance with subparagraph (j) of the first paragraph of Article 31 of the Law No. 6458. After obtaining the certificate of conformity and short-term residence permit, an application must be made to the Provincial Directorate of Population and Citizenship. Obtaining the certificate of conformity, receiving the short-term residence permit card and submitting the necessary information and documents for the citizenship application can be concluded remotely, without the need for the foreigner to enter the country, with a special power of attorney stating clearly this authorisation.
