Turkish Citizenship for Investment - Benefits, Ways to Obtain, Program Success and Reviews

Turkey, ranked fifth among the most attractive RCBI (Residence and Citizenship by Investment) markets in 2020 according to the Investment Migration Market Eligibility Index, is a 2-to-1 investment migration market: it is not only one of the world's largest countries of origin for investor migrants but also home to a program that, since its launch in 2017, has become the world's most popular citizenship-by-investment program by a significant margin. In March, April, and May of this year—during the peak of the pandemic—Turkey’s Ministry of Interior approved an average of over 1,300 primary applicants per month, generating approximately USD 17 million per day.

In the two years since the program lowered its minimum investment requirements to USD 250,000, about 35,000 people have been naturalized under the CIP program. Numbers of this scale are unprecedented in the history of CBI.

What explains Turkey's remarkable success in CBI?

Various explanations have been proposed for the sudden success of Turkey’s CIP, none of which are tied to Schengen visa-free travel, unlike the offerings of Caribbean competitors. Hypotheses about what has driven this stellar performance range from the naively patriotic (Turkey is simply an attractive destination) to the more cynical (much weaker due diligence compared to other programs).

The truth likely lies somewhere between these extremes and is more nuanced. Many of the largest applicant groups for Turkish CIP hold citizenships that automatically exclude—or at least complicate—their participation in many Caribbean and European CIP programs. Turkey also benefits from geographic, cultural, and religious proximity to the vast Middle Eastern RCBI market, arguably the part of the world where investment migration has progressed the furthest in terms of mass adoption.

Unlike its Caribbean counterparts, Turkey’s CIP allows the purchase of real estate on the open market, effectively eliminating CBI price premiums on property. Historically cheap lira, combined with ongoing COVID-related travel restrictions, makes large-scale real estate deals possible. Some of the pull factors that make Turkey so popular among Pakistani, Iraqi, and Iranian investor migrants, however, are push factors for Turkish citizens themselves.

The steep decline in the lira and the country's recent shift away from secular liberal traditions are examples of this phenomenon. Just as Turkish citizenship might be an upgrade for an Afghan investor, UK or EU residency represents a step up for Turkish applicants themselves.

Over the past five years, Turkey’s outbound investment migration market has doubled annually.

Through immigration benefits guaranteed by the 1969 Ankara Agreement, Turkish citizens can take advantage of the UK Turkish Businessperson Visa (TBpV), essentially a self-employment visa exclusively for Turks, which requires no minimum investment other than the flexible definition of “sufficient funds to establish a business.” Between 2015 and 2019, participation in the program grew tenfold. Last year, approximately 3,000 primary applicants and a similar number of dependents obtained UK residency through the TBpV. Around a thousand Turkish families moved to the U.S. under E2 visas during the same period, while 518 applications were approved for Greece’s Golden Visa, the third most popular program among Turks. Overall, Turkey’s outbound RCBI traffic has grown at a compound annual growth rate (CAGR) of 74% over the past five years, doubling the market size each year.

Approximately 160,000 Turks qualify as millionaires. New World Wealth estimates that around 18,000 Turkish HNWIs (High-Net-Worth Individuals) have left the country over the past four years. Entrepot Istanbul acts as a private client service hub for HNWIs throughout the region, much like Dubai does on the Arabian Peninsula.

Turkey’s economy has grown at an impressive average rate of 7% per year over the past five years, with the IMF predicting that growth will continue for the next five years—at least, these forecasts were valid before the pandemic. Turkey stands out among the top 10 RCBI markets in the 2020 report due to its relative affordability: cosmopolitan Istanbul offers ease of doing business, an economic freedom index, and a skillset level on par with most continental European countries. This means that starting a business, finding skilled workers, and paying taxes in Istanbul are no more difficult than, say, in Athens.

The high demand for both inbound and outbound RCBI in Turkey, combined with its affordability, has also made the Turkish market more competitive. However, while the introduction of CIP in 2017 spurred rapid growth in the domestic CBI advisory services market, most Turkish providers offering such services focus exclusively on the inbound market. Several of the largest international IM specialists (Arton Capital, Bayat Group, Discus Holdings, NTL, and others) have entered Turkey in recent years, and this trend is expected to continue.

Turkish Citizenship by Investment

Today, Turkey is not just a popular tourist destination. It is primarily a country with a rapidly developing, multi-sectoral economy that attracts foreign investors with its prospects. However, until recently, the desire to obtain citizenship in this country, or to move there permanently, was hindered by the required investment amount of at least USD 1 million. This changed in the fall of 2018, when amendments to the Citizenship Law were introduced, making the citizenship-by-investment option more attractive to wealthy individuals.

The Immigration Center “Garant.in” helps to navigate the options, prospects, and stages of obtaining a Turkish passport through real estate investment.

Ways to Obtain Citizenship by Investment

The undeniable advantage of the Turkish citizenship-by-investment program is the speed of processing. If the investor meets all the conditions, a passport can be granted within 180 days. Moreover, knowledge of the Turkish language is not required, significantly simplifying the process.

As mentioned earlier, the participation threshold for the investment program has been significantly lowered—by four times! So, what are the current paths to obtaining Turkish citizenship?

• Purchase of real estate valued at USD 250,000 or more. The attractiveness of this option lies in the possibility of buying one or more properties, earning rental income, and selling the property after three years (with an average sale time of 2-3 months).
• Investment of USD 500,000 or more in non-revolving capital, a bank deposit, or the purchase of government bonds with the possibility of earning passive income.
• Establishing a business that creates at least 50 jobs for Turkish residents.

Important! Once the investment is made and the conditions are met, the applicant receives residency status in Turkey and can immediately apply for citizenship. The application is typically processed within 3-4 months.

Advantages of a Turkish Passport

It is no secret that the Turkish passport ranks among the top 40 passports worldwide, thanks to its flexibility and numerous privileges:

• No requirement to reside in Turkey permanently (even the citizenship application process can be done remotely);
• No need to pass any exams when obtaining Turkish citizenship;
• Throughout the process, only one visit to the country is required—for biometric submission. All other procedures can be completed remotely with the help of lawyers;
• The passport cannot be revoked and is inheritable;
• No need to declare income if you reside outside the country for more than 180 days per year;
• You are not required to renounce your current citizenship, as Turkey allows dual citizenship;
• Citizenship is granted not only to the investor but also to their family (spouse and children under 18);
• Inheritable citizenship: your children and grandchildren can be Turkish citizens;
• Visa-free access to over 110 countries, including Japan, Singapore, and most Latin American nations;
• Due to signed international agreements, as a Turkish citizen, you can open a business in the U.S. under the E-2 visa, which is not available to Russian citizens, for example.

Key Stages of the Turkish Citizenship Process

First, consult a specialist to receive professional advice, investment options, and proper document preparation. Lawyers at our migration center will help avoid the difficulties you may face when acting on your own.

• Investing in the chosen route. Depending on the investment choice, the required document package may vary.
• Collecting documents necessary for obtaining the passport.
• Submitting the application to the main/provincial citizenship registration office or a foreign representative of the Republic of Turkey.

Conclusion

It is already clear that after the amendments to the law, the influx of foreign investments and applicants seeking Turkish citizenship through investment has multiplied. Once the visa-free agreement with the Schengen Area is signed, the Turkish citizenship-by-investment program will be among the top programs, although it is already in high demand. In the coming years, Turkey is likely to pose serious competition to European countries that have traditionally and successfully sold their passports.

Garant.in Reviews on Turkish Citizenship

Turkey can be considered a newcomer to the group of countries that have adopted special programs for selling their citizenship in exchange for investments. Turkey launched its program in 2017, and its popularity continues to grow, with many seeking Turkish citizenship through real estate purchases. Even the early steps have shown that this program will soon compete with the leading players in the market. What justifies this assumption? Learn more from the analytical article by GARANT IN licensed agency specialists.

A Few Words About Turkey and Its Program

The Republic of Turkey is a fairly large and powerful state in Asia Minor. Today, just as thousands of years ago, these lands serve as a bridge connecting Europe and Asia. This geographical position has a significant positive impact on the country’s economy. Turkey exerts influence on the Middle East and Central Asia while remaining an integral part of Europe, not to mention its membership in NATO!

The Republic’s economy is growing at a strong pace, with enormous potential. Therefore, when the government launched its investment program three years ago, it came as no surprise. A crucial factor was Turkey’s bid to join the European Union. Although negotiations have been ongoing for many years, the ever-changing international situation continues to delay the decision.

Initially, the program required a relatively high minimum investment level. However, it quickly became apparent that investors were unwilling to meet the initial conditions, so the Turkish government introduced reforms in the fall of 2018, lowering the threshold to USD 250,000 for real estate investors and USD 500,000 for those wishing to invest in businesses or government bonds.

Why Choose Turkey for Investment Citizenship?

Turkey is renowned for its real estate market, attracting investors from various countries. However, most choose Turkey not only to invest but also to move permanently and obtain a passport. Moreover, it is a paradise for those seeking a residence in a country with a warm climate, sea views, and a friendly population!

From an investment standpoint, Turkey has proven its attractiveness due to its stable economy and strategic geographical position. The country plays a pivotal role as a link between Europe and the Middle East, and its position as a global tourist and business hub strengthens its economic influence.