Last Updated on 12/04/2022
According to the 13th Article of the Capital Movements Circular and the Implementation Instructions on the Sales of Foreign Exchange to the Turkish Central Bank, some amendments were made to the law of Turkish Citizenship by investment program.
The contents of the change are contained in circulars 2022/1 and 2019/5, both of which were released on January 21, 2022.
Obligation of a Foreign Exchange Purchase Certificate
When international buyers are engaged in a transaction, the Central Bank now requires the exchange to foreign currency.
Foreigners must first sell their foreign currency to the Turkish Central Bank through a bank transfer, then present the Foreign Exchange Purchase Certificate issued by the bank to the land registry office, according to the regulation, which is detailed in the circular texts.
This practice became effective on January 24, 2022, and foreign real estate buyers are now obliged to submit a foreign currency purchase document.
Yet, payments made previous to the official circular’s publication will be accepted without the requirement of submitting a foreign currency exchange document. However, the buyer will be required to provide a bank transfer receipt.
The official value of the property will be the exchanged sum specified in the foreign currency purchase document.
Although the foreign currency conversion document will suffice in sales transactions, the bank transfer receipt from the buyer to the seller will be required in the case of citizenship acquisition through a real estate investment program.
All of the concerns that may arise during implementation are detailed in the circular text, which may be found at the following link:
https://www.tkgm.gov.tr/yabanci-gercek-kisi-edinimlerinde-doviz-alim-belgesi-hakkinda-duyuru
MEO consultants director Mounes Alnajjar says “Buying process is still the same and prices will not be affected, for the buyers not allot has changed “
Citizenship by Investment program, an easy path to the Turkish Citizenship
This program began in January 2017 to attract foreign direct investment and increase the real estate business. Under this strategy, the investor has the option of selecting from a number of investment processes.
An initial investment of at least one million dollars was required to profit from this program. The amount was later reduced to 250,000 USD in September 2018.
To be eligible for this program, you need to be a legally mature person over 18 years, and that has not violated any visa conditions in Turkey.
Methods of Turkish Citizenship Acquisition by Investment Program
The Turkish Citizenship by Investment Program consists of three different investment options that acquire Turkish citizenship eligibility.
- Capital transfer
As decided by the Banking Regulation and Supervision Agency, a foreign investor who has invested at least 500,000 USD or equivalent in Turkish banks for three years can be eligible for the Turkish Citizenship by Investment Program.
The bank must be based in Turkey. Besides, the Money put in a deposit account bank cannot be used. The deposit must be made in a convertible foreign currency that has been approved by the Turkish central bank. - Job Creation
Foreign investors who are setting up a business in Turkey have the right to apply for Turkish Citizenship under the condition to hire 50 Turkish people.
Relevant investors must get a conformity certificate from the Ministry of Family, Labor, and Urbanization confirming the creation of at least 50 jobs for Turkish nationals.
To prove this condition while applying for the conformity certificate, they can use employers’ social security or tax documents. - Real estate investment
Foreign investors who spend at least $250,000 to buy any property in Turkey, whether villas, apartments, or lands, will be eligible to apply for Turkish Citizenship.
The total amount could represent the cost of more than one property purchased in different situations. Real estate investment in Turkey Property must be retained in the acquirer’s name for a minimum of three years, as stipulated in the title deed.
To know further details about the Acquisition of Turkish Citizenship by investment program, MEO Consultants offer complete advisory regarding this topic.
