What is Citizenship by Investment?
This issue is regulated in Article 20 of the Regulation on Acquisition of Turkish Citizenship, which stipulates the acquisition of Turkish citizenship by foreigners who make the investments specified in the regulation, their spouses, the minor foreign children or dependent foreign children of the investor and his/her spouse.
What are the Conditions for Acquiring Turkish Citizenship through Investment?
The conditions for acquiring Turkish citizenship by investment are explained in the Law No. 6458 on Foreigners and International Protection. The foreigner in question who wants to become a citizen must carry out activities, obtain a residence permit and submit his application. After the point of submission of the application, there is a three-stage process here. This process is the evaluation of the Migration Management, the Ministry of Interior and the Presidency, respectively. Let’s examine the terms in order:
- Realization of the Investment Specified in the Regulation and Certificate of Conformity
The first way to acquire Turkish citizenship through investment is to realize the investments specified in the regulation and obtain a certificate of conformity from the relevant institutions. Foreigners who implement one of the investment paths set out below under the heading “Ways of Acquiring Turkish Citizenship through Investment” are issued a certificate of conformity by the institution responsible for supervising this investment. The certificate of conformity issued here constitutes the first step of the application phase. The Regulation on the Acquisition of Turkish Citizenship provides for seven different investment routes, the amounts and conditions of which are determined by the President of the Republic. You can review the investment paths in the next topic.
Obtaining a Short-Term Residence Permit
Pursuant to Article 31/1(j) of the Law No. 6458 on Foreigners and International Protection, a short-term residence permit is required to obtain Turkish citizenship through investment. At this point, the issue of what conditions must be met in order to obtain a short-term residence permit comes to the fore. This issue is regulated in Article 32 of the same law. According to this article:
– Making a request by claiming one or more of the grounds listed in Article 31/1 and submitting information and documents related to this request,
– Not to be among the foreigners who will not be allowed to enter Turkey,
– To have housing conditions in accordance with general health and safety standards,
– If requested, to submit a document showing his/her criminal record issued by the competent authorities of the country where he/she is a citizen or legally resides,
– Providing the address where he/she will stay in Turkey,
It is necessary to fulfill the conditions. If you want to have more information about short-term residence permit, you can review our article titled “What is a Short-Term Residence Permit”.
- Application to the Relevant Institution for Citizenship
Investors wishing to apply by obtaining an investment eligibility certificate and a short-term residence permit should apply to the Immigration Administration offices in Istanbul and Ankara with the necessary documents. In line with the guidance of the Ministry of Interior, the application authorities prepare a file with the necessary documents for foreigners applying for citizenship. The completed file is forwarded to the Ministry of Interior for a decision. The Ministry notifies the President of the Republic of the Republic of those persons whom it determines to have no obstacles in terms of national security and public order, and citizenship is acquired upon the approval of the President of the Republic. It is important to emphasize that if the investor acquires citizenship, his/her spouse and minor or dependent foreign children may also apply for Turkish citizenship. In order for family members to acquire citizenship, it is sufficient for the investment to be made by only one person, but it is also necessary to apply on behalf of family members
Ways to Acquire Turkish Citizenship by Investment
In Article 20 of the Regulation on the Acquisition of Turkish Citizenship, it is stipulated in which ways Turkish citizenship can be acquired when investing is made. Seven different ways of acquiring citizenship are arranged here. These are as follows:
- Fixed Capital Investment
- Real Estate Sales Promise Agreement
- Job Creation
- Replenishment of money to a deposit account
- Investment in Government Debt Instruments
- Investing in Real Estate or Venture Capital Fund
- Investment in the Private Pension System
- Fixed Capital Investment
There are investment details determined by the Ministry of Industry and Technology for those who are offered the opportunity to acquire Turkish citizenship by making a fixed capital investment of at least 500,000 USD or equivalent foreign currency. In this context, fixed capital investment may include the acquisition of an entire non-public company or a certain percentage of the company. However, the minimum amount required for the partnership share to be owned by the investor must be at least USD 500,000 or its foreign currency equivalent. However, the investor’s investments in real estate that are not directly related to the business activity are not included in the fixed capital investment amount. Persons who obtain citizenship by investing fixed capital cannot transfer their shares in the company to another person for at least three years following the issuance of the certificate of eligibility.
- Real Estate Sales Promise Agreement
A person who buys an immovable property worth at least 400,000 US dollars or equivalent foreign currency, provided that an annotation is placed on the title deed so that it will not be sold for three years, may be entitled to Turkish citizenship. However, it is not obligatory to purchase the entire immovable property in order to obtain Turkish citizenship. Making a contract of promise to sell real estate is also sufficient for citizenship. However, in this case, there must be a condominium or condominium easement in the real estate. In addition, at least USD 400,000 or equivalent foreign currency must be paid in advance and a commitment that there will be no transfer or abandonment for three years must be annotated.
- Job Creation
One of the methods of acquiring Turkish citizenship through investment is to create employment for at least 50 people in Turkey. The employment in question does not have to be only for Turkish citizens, employees can also be foreigners. If it is determined by the Ministry of Labor and Social Security that the specified condition is met, it is possible to acquire citizenship.
- Replenishment of money to a deposit account
It is possible to obtain Turkish citizenship by depositing in banks. For this, the money must be deposited in a bank operating in Turkey. The deposit must be at least $500,000 or equivalent in foreign currency. It is imperative that the money deposited in the bank is kept in the bank for at least 3 years. Finally, it must be determined by the Banking Regulation and Supervision Agency that the money has been deposited in the bank.
- Investment in Government Debt Instruments
Individuals who hold government debt instruments of at least USD 500,000 or equivalent in foreign currency for three years can apply for Turkish citizenship. There are nine different government debt instruments that can be preferred for this investment. These:
- Government Domestic Debt Securities,
- Central Bank of the Republic of Turkey Liquidity Bonds,
- Financing Bonds,
- Bank Bills,
- Asset and Mortgage Backed Securities,
- Asset- and Mortgage-Backed Securities,
- Income-Indexed Notes,
- Revenue Partnership Bonds,
- They are private sector bonds.
Individuals who invest in these vehicles and hold them for three years can apply for Turkish citizenship.
- Investing in Real Estate or Venture Capital Fund
An individual who buys a share of participation in a real estate investment fund or venture capital investment fund in the amount of at least 500,000 US dollars or equivalent foreign currency can apply for citizenship, provided that he holds it for three years. The details of the investment to be made have been determined by the Capital Markets Board. In this context, in order to acquire citizenship, it is necessary to have the relevant investment for three years without interruption from the date the minimum investment amount is provided. Participation shares should not be reduced by transactions such as sales or transfers at the will of the investor. In addition, if the value of the participation shares falls below USD 500,000 as a result of exchange rate changes, it does not affect the application or acquisition of citizenship. In the event of a decrease in the value of participation shares or the number of participation certificates beyond the control of the investor, the minimum investment requirement is not considered lost. However, if there is any restriction on the participation shares that limit the right of ownership, the condition of holding for three years without interruption is not deemed to be satisfied.
- Investment in the Private Pension System
Another type of investment is investing in the private pension system. Accordingly, those who deposit at least 500,000 USD or equivalent foreign currency into the private pension system and keep this money in the system for three years will be able to apply for citizenship. The details of the investment will be determined by the Insurance and Private Pension Regulation and Supervision Agency.
What are the Documents Required to Obtain a Certificate of Eligibility for Turkish Citizenship by Investment?
There are documents required for the application for Turkish citizenship by investment, and if there is a deficiency in these documents, the application will result in a negative result. Therefore, attention should be paid to this aspect. These documents are as follows:
- Application form stating the request to become a Turkish citizen,
- Passport or document showing the country of citizenship of the applicant, if stateless, a document showing this,
- Document showing the marital status of the foreigner, (marriage/divorce certificate, death certificate of the spouse if widowed.)
- A copy of the birth certificate.
- Birth certificate,
- 2 biometric photographs of the foreign person,
- If the foreigner has one or second degree relatives who are Turkish citizens, a copy of the population registration of these persons,
- Receipt showing that the service fee has been deposited in the finance cashier,
- Documents showing that the special conditions stipulated for which of the types of acquiring Turkish citizenship by investment are applied. (For example, land registry, bank receipt, documents showing capital or employment status.)
If there are deficiencies in the documents, the application is rejected or the completion of the missing documents is requested. This may prolong the process of obtaining citizenship. In order to avoid such deficiencies and to carry out the application process on the right legal basis from the beginning, it is useful to get support from a foreigners’ lawyer.
Where to Apply for Acquisition of Turkish Citizenship by Investment?
Those who want to obtain Turkish citizenship by investment should apply to the Ankara or Istanbul branches of the Migration Management.
Objection to the Rejection of the Turkish Citizenship by Investment Application and Cancellation Case
An application for Turkish citizenship may be rejected if the investment applied for does not meet the legal requirements. In addition, the application may be rejected if the applicant is considered a risky person in terms of national security and public order, or if the necessary documents are missing during the application process. If the application is rejected, an application can be made against this decision by way of appeal and annulment proceedings. If administrative appeals do not yield results, an annulment action can be filed with the administrative court. However, the applicant may also choose to file an annulment case directly.
- Appeal to the Administration
If the application for Turkish citizenship is rejected, an appeal can be made to the General Directorate of Population and Citizenship Affairs within 60 days following the notification of the rejection decision. Through this appeal, it is requested that the erroneous administrative act be removed, reversed, modified or corrected. The administration must respond to this appeal within 30 days. If no response is given within this period, the application is deemed to be rejected. If the appeal to the administration is rejected or the administrative authorities do not provide any response to the applicant for 30 days, the appeal remedy is considered exhausted. After this stage, there is no other legal remedy than to file an annulment lawsuit with the administrative court.
- Revocation Case
The period for filing an annulment lawsuit for foreigners whose citizenship application is rejected starts within 60 days following the notification of the rejection decision. During this period, foreigners have two options: First, they can file a lawsuit for annulment directly against the rejection decision. Alternatively, when the application is rejected, they can first appeal to the administration and if they do not get a result, they can file an annulment lawsuit. An appeal to the administration suspends the period of the annulment proceedings. Once the appeal process is complete, the remaining time will continue to run. For example, if 23 days pass after the application is submitted to the administration and this application is rejected or there is no response for 30 days, an annulment action can be filed within the following 37 days. An appeal can be filed against the decision of the annulment case. This application must be filed within 30 days of the service of the court decision. The appellate authority that will examine the case is the regional administrative court. In the process of objection and annulment proceedings against the rejection of the citizenship application, it is important that the evidence is collected completely and that no mistakes are made in the procedural procedures. Otherwise, the rejection decision becomes final and valid.
The Effect of Subsequent Acquisition of Turkish Citizenship on Spouse and Children
The subsequent acquisition of Turkish citizenship does not have any effect on the spouse and the minor child. However, it may have an effect on the underage child. An underage child can obtain Turkish citizenship if the other parent consents. However, if the other parent does not consent, this can be taken to court. The judge will make the decision taking into account the interests of the child. Although the status of acquiring Turkish citizenship does not offer the opportunity to become a Turkish citizen directly to the spouse of the person, it can facilitate this process. In this case, the foreign spouse may have an advantageous position in the process of applying for a residence permit or Turkish citizenship. However, the acquisition of Turkish citizenship by investment represents a special case. In this case, the spouse of the person who acquires citizenship and the minor child of himself or his spouse will also acquire Turkish citizenship.
- Frequently Asked Questions
- Can I keep my citizenship in other countries after acquiring Turkish citizenship by investment?
Whether you can keep your citizenship in other countries after acquiring Turkish citizenship depends on the laws of that country regarding dual citizenship. Some countries accept dual citizenship, while others may impose limitations. In this regard, it is important to check the legal regulations of the respective country.
- Do I have to reside in Turkey after acquiring Turkish citizenship by investment?
After acquiring Turkish citizenship by investment, there may be an obligation to reside in Turkey for a certain period of time. These periods and conditions may vary depending on the type of investment.
- How long does it take to apply for Turkish citizenship by investment?
The processing time for the application for Turkish citizenship by investment may vary depending on the workload of the institution where the application is made, the details of the application, and other variables. Generally, the process varies between 3 months and 1 year.
- Is there a specific age limit for applying for Turkish citizenship by investment?
There is no specific age limit to apply for Turkish citizenship by investment. However, the application of minors may need to be acted upon by a parent or guardian.
- Is there a requirement to reside in Turkey in advance to apply for Turkish citizenship by investment?
In order to apply for Turkish citizenship by investment, there is generally no requirement to reside in Turkey beforehand.
- Do I have tax liability in Turkey after acquiring Turkish citizenship by investment?
Acquiring citizenship by investing in Turkey can have an impact on tax residency. Depending on the type of investment, returns, and other factors, tax liabilities may vary.
- Is it mandatory to obtain a work permit in Turkey after acquiring Turkish citizenship by investment?
It is not mandatory to obtain a work permit in Turkey after acquiring Turkish citizenship by investment. Turkish citizens can work freely in Turkey.
