Turkish Citizenship by Investment

Due to a number of factors and circumstances, Turkish real estate experts are expected to make a decision that the Turkish government will increase the amount used to purchase real estate of Turkish citizens from $250,000 to $400,000.

20,000 foreigners benefited from Turkey's previous citizenship system, including 16,968 who acquired Turkish citizenship between September 2018 and June 2021.

Iranians, Afghans, Iraqis, Yemenis, Chinese and Palestinians were the first among Turkish owners to receive citizenship.

In terms of Palestinian citizenship, landlocked Arabs have been among the most powerful Turkish nationals over the past five years, and are among the top 10 most popular property ethnic groups in Turkey overall.

Before we delve into the motivations of Turkish authorities to increase the value of Turkish passports, it is necessary to review the conditions for obtaining Turkish citizenship in exchange for real estate investment.

What Are the Conditions for Obtaining Turkish Citizenship in Exchange for Property?

Turkish legal requirements for Turkish citizenship:

• Purchasing a property or real estate group for $400,000 under a new legal text to be gazetted to make it effective.
• Property cannot be sold due to nationality within 3 years.
• These properties are valid for Turkish citizenship application without legal issues or mortgages etc.
• The requirements for Turkish citizenship are very simple compared to some naturalization programs around the world, which has led to thousands of people applying in recent years.
• Motivation to increase the value of Turkish citizenship to $400,000

Several factors have worked together recently, all of which have prompted Turkish authorities to increase the value of real estate that foreigners can apply for Turkish citizenship, including:

• Post-pandemic high prices for building materials and costs have prompted construction companies and property developers to raise property prices while asking the Turkish government to approve plans to increase Turkish citizenship.
• The negative impact of the devaluation of the Turkish lira on real estate prices, with most projects denominated in local currency, makes the value of apartments for sale very low compared to foreign currency exchange rates.
• Turkey's 2023 vision is drawing ever closer and Turkey is moving towards a new era, especially in the field of international trade, by liberating it from the Lausanne Treaty, which Turkish authorities say is ill-fated.
• The impact of the Russian invasion of Ukraine on the Turkish economy and the high prices of many products and daily necessities have resulted in a high cost of living and increased rents and sales of real estate.

Will the Repeal Decision Affect Turkey's Real Estate Market?

The new value of Turkish citizenship to properties is expected to slightly reduce Turkish citizenship applications, as not all investors can benefit from the program as easily as the September 2018 amendment, which required only $250,000.

However, the increased decision does not mean less demand for Turkish real estate, for example, as we move back to 2021, Turkey has registered almost 59,000 foreign real estate buyers on its territory, including 12,000 properties that have been transferred through Their owners acquire Turkish citizenship, and there is clear evidence that residential and investment objectives also play a large role in paying foreigners to own property in Turkey.

In turn, the cancellation decision could be a new sign that Turkey's citizenship program may be scrapped in exchange for buying or raising property in Turkey, where $400,000 could be seen as another window of opportunity for those who are about to marry in Turkey possible.

What Laws Apply to Foreigners Buying Before Making a Decision?

As known in Turkish legislation, the right to apply the new law falls under the above-mentioned provisions, as the new decision does not apply to landlords who purchase property before the decision is published in the Turkish Official Gazette.

For property purchases with half citizenship before the law applies, in order to complete the remaining amount at a later date, they will need to pay the remaining amount and receive a transfer link by the new amendment date.