Turkish Citizenship After the Election

Elections in the Republic of Turkey ended with the victory of the incumbent president Erdogan. Experts have long speculated about reforms awaited in the citizenship by investment program. What these reforms will be exactly, no one knows for sure, but today they operate under the previous conditions.

Our specialists at GARANT.IN have analyzed the market, made several forecasts, and offered various options to investors depending on their plans.

Turkey and its opportunities for investors

What status can a resident of another country obtain in Turkey:

• Official status without naturalization. By renting an apartment, one can apply for a tourist residence permit.
• While residing in this status, it is important to note that this period does not count towards the total period required to obtain citizenship.
• With a tourist residence permit, one can legally reside in Turkey, leave the country, rent real estate, and open bank accounts.
• Official status with the right to naturalization. By purchasing real estate worth $50,000 in small cities and $75,000 in larger ones, one can obtain a residence permit card and after 5 years apply for citizenship. It is important to meet certain conditions during this time.
• Obtaining citizenship. By purchasing real estate worth $400,000 (cadastre value), an investor can apply for Turkish citizenship. The property can be used for personal purposes or rental.
• Selling the property while retaining the new status is allowed after 3 years.

It is still unclear how exactly the citizenship by investment program will change. The most likely assumption is an increase in the minimum investment threshold to $700,000.

Since it is not obligatory to reside in the purchased property, many investors acquire it not only to obtain citizenship but also for passive income. Real estate can solve two tasks at once. Let's consider the specifics of each.

Citizenship and Investments

If your goal is to purchase property for income, you need to pay attention to characteristics, infrastructure, location, and surrounding facilities. All this will allow you to analyze how much the purchased property will increase in value over time: yield, rental income, and profit from future resale.

By buying property during the construction phase, you can get a profit of 30% to 200%. Long-term rental income can reach 7%, and short-term rental income up to 14%.

Where to look for promising investment options:

• Istanbul – the largest Turkish city ideal for earning. It is important not to make a mistake with the location. Advantage: the cadastral value of local properties is closest to the real one, unlike coastal areas, where the difference can reach 50%.
• Gecturk. A district is popular among locals. The territory of the district is allocated for renovation, buyers do not need to pay a 2% tax for TAPU registration. The approximate rental income of real estate is 6%.
• Maltepe. A district in the Asian part of the city, famous for its luxurious long waterfront, parks, and bike paths. The approximate rental income of real estate is 4%.
• Anasehir. A rapidly developing district in the Asian part of the metropolis, almost a satellite city. The opening of the International Financial Center is planned, leading to predictable demand for housing. The approximate rental income of real estate is 6%.
• Izmir. A major Turkish city (the third largest by population) with the second largest port. Many new residential complexes are being built in the city and are popular among buyers. The approximate rental income of real estate is 4% per year.

Turkish Citizenship and Residence

Each buyer chooses real estate for further residence based on their own preferences. Some people like noisy tourist places, some need the coast, and for others, the priority is the privacy of the area and the proximity of a good private school.

64% of applicants choose regions with developed infrastructure, and the ability to register and conduct business. In this case, Istanbul becomes the ideal location - a metropolis with a wide selection of educational institutions, a rich cultural life, and employment opportunities.

The districts of Maslak, Mivent, and Sisli are suitable for those who love the dynamic rhythm of a big city, while Katya, Uskudar, and Beylikduzu are ideal for a quiet family life. Uskudar is the most green district of Istanbul, where many closed-type residential complexes are being built. By choosing this district, you can be sure that peaceful, respectable neighbors – politicians, businessmen, athletes – will live nearby.

If you are considering buying property in Turkey to change your status or generate additional income, then it is time to hurry - while the old conditions are still in effect, the situation can change unpredictably at any time. Selecting a property, obtaining a visa, applying for a residence permit card, drafting and notarizing any contracts - all these tasks will be gladly taken care of by the lawyers of GARANT.IN agency.