Last Updated on 11/03/2023
The Turkish Citizenship Law underwent a new amendment that will enter into force as of January 1, 2023. The adjustment was brought by the significant revisions made in Circular No. 2019/5, which falls under the purview of the Turkish Citizenship Law’s Implementation Regulation.
What Turkish Citizenship Law updates will be effective on February 2023?
The obligation of a single Sale Promise Agreement
As of January 1, 2023, a single contract must be signed in order to create the immovable based on the promise of sale. Therefore, a person can not apply for Turkish citizenship in this situation even if the total amount of the preliminary sales contracts for more than one real estate reaches 400.000 USD. In other words, all properties must figure under a single preliminary sales contract.
This is to conclude, immovables with a preliminary sales contract cannot serve for application at a cost of USD 400,000 when purchased with another piece of real estate.
Prohibition of share sale for Turkish Citizenship Application
It won’t be possible anymore to apply for Turkish citizenship by real estate investment through a share sale even if each owner’s share exceeds the minimum required amount. . For instance, even if two foreigners each spend 450,000 USD for a property they would still be unable to fulfill the Turkish citizenship new conditions. Only one foreign person may be the owner of each piece of real estate, and only the foreign owner may apply for Turkish citizenship for him and his family.
Update relative to the exchange Purchase document
The foreign exchange purchase document must the sale promise contract at least for the portion that follows it.
Additional important updates
According to the circular, it is now feasible to voluntarily use secure payment methods provided by banks when transferring or paying for real estate. Similarly, this refers to conclude that paying with a blocked check is possible in this situation.
Moreover, in the case of second-hand property, it mustn’t be the object of a sale or a preliminary sales agreement from a foreign person to a Turkish citizen or company during the last 3 years
Yet, acquisitions made as a result of work contracts are an exemption from this rule.
The Turkish Citizenship law amendment in June 2022
It was previously resolved to amend Turkish citizenship law on April 12, 2022, following the presidential cabinet meeting. Nevertheless, the regulation’s implementation started after its official publication in the Turkish Gazette.
The Turkish presidency published regulation number 5554 on the evening of 12/05/2022, amending Article 46 of the Turkish Citizenship Law No. 5901. The decree included the official decision to raise the investment requirement for Turkish citizenship by real estate from 250,000 to 400,000 dollars.
Additionally, it states that the reform would take effect a month after that. To be clear, the rule’s execution began on June 12, 2022. At that time, Turkish housing sales increased remarkably in the period between the regulation announcement and its execution.
In addition, it is important to note that in September 2018, the minimum investment amount decreased from $1,000,000 to $250,000.
If you want further information regarding this new amendment to the Turkish Citizenship Law, MEO Consultants can provide a comprehensive advisory. If you’re looking to invest in Turkish real estate, our qualified team offers full-service consultancy upon request through a risk-free initial consultation.
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