The Turkish Citizenship by Investment program is an attractive tool for those wishing to obtain a second passport with the creation of a “backup airfield”.
The Turkish program officially started in January 2017. Initially, the entry threshold was an impressive $1 million. This made the program unattractive for most potential investors. The situation changed in 2018, when the authorities lowered the minimum investment amount to $250,000. The decision led to an explosive increase in the popularity of the program.
In 2022, the minimum investment amount was increased to $400,000 (for real estate) and $500,000 (for other instruments). However, even under such conditions, the program remains competitive and attractive to citizens of Russia, Iran, Afghanistan, China, the United States, Canada, the United Kingdom and other countries.
The legal framework of the program is based on Law “On Turkish Citizenship” No. 5901 dated May 29, 2009. The conditions for obtaining a “Golden Passport” are also regulated by the Regulation on the Application of the Law on Turkish Citizenship and Decree No. 9601 of 2016.
Advantages of Turkish citizenship
The benefits of obtaining Turkey’s “Golden Passport” attract investors from all over the world. These include:
- Visa-free access to 126 countries. Passport holders receive Schengen visas for 5 years and American tourist visas for 10 years. An E-2 visa to the United States is available for businessmen with investments starting from $100,000 in local businesses.
- Inclusion of family members without increasing the amount of investments. A spouse and children under the age of 18 receive citizenship automatically.
- 5 investment options with a return in 3 years.
- The right to live with closed borders.
- There are no requirements for language proficiency, length of stay and declaration of foreign assets.
- Tax benefits. VAT exemption for the purchase of real estate. Income outside Turkey is not subject to declaration.
- Access to EU markets through free trade agreements with 38 countries.
- Liquidity of assets.
Investment options for obtaining citizenship
The Turkish Citizenship program for investors offers 5 investment options. Each of them allows you to obtain a Turkish passport without having to stay in the country or take exams. The minimum amount starts from $400,000, and a refund of the invested funds is possible 3 years after receiving the status. Most investors choose real estate, but other tools are also available.
Real estate investments
The minimum amount is $400,000 when buying a residential or commercial property. The requirements are set out in Resolution No. 9601 of 2016. 95% of the program participants choose this particular investment method. It is important that the object has a TAPU (ownership) certificate, as shared ownership is excluded in 2023. Investors are exempt from VAT (18%) and can sell their property after 36 months without losing their citizenship. The average return on the asset is 15-25% per annum.
Government bonds
The method involves investing from $500,000 in securities issued by the Turkish Ministry of Finance. The investment period is 3 years, after which a refund is possible. The yield ranges from 8-12% per annum. This is below the market indicators for real estate, but it guarantees stability.
Bank deposit
Placement of $500,000 in a Turkish bank for a three-year period. A prerequisite is conversion to lira. However, the government compensates for currency risks for the first 24 months. The average interest rate is 9-10%. Registration takes up to 5 months.
Business investment and job creation
The minimum threshold is $500,000 when investing in an existing company or creating 50 new jobs for Turkish citizens. This option is suitable for entrepreneurs who are willing to participate in the management of the enterprise. However, according to statistics, 68% of such applications are rejected due to non-fulfillment of labor quotas or insufficient profitability of projects.
Investment and venture funds
Purchase of $500,000 shares in government-accredited funds. The profitability varies from 12% to 30%, depending on the chosen strategy. Assets can be sold in 3 years. At the same time, withdrawal of funds before the expiration date will result in the revocation of citizenship.
Minimum investment volume and preservation conditions
The minimum investment amount for obtaining Turkish citizenship is set at $400,000. This is the threshold for the purchase of real estate, which is valid from 2022. For alternative options (bank deposit, government bonds, investment or venture fund units), the minimum amount is $500,000. In the case of starting a business, either an investment of $500,000 or the organization of 50 jobs is required.
The main condition is to keep investments for at least 3 years. During this period, it is prohibited to sell real estate, withdraw deposits, sell bonds or shares. Violation of the requirement entails automatic cancellation of citizenship and revocation of passport (even if it has already been received).
All transactions must go through Turkish financial institutions with official confirmation of the legality of the funds. Infusions are allowed in any currency, but conversion to Turkish lira is required at the stage of depositing funds.
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Additional expenses and taxes
It is important for every potential investor to understand that buying a Turkish passport involves not only direct investment, but also a number of mandatory fees, taxes and additional payments. The amount of expenses depends on the chosen instrument. With additional costs, the final budget can easily grow by 7-10% of the minimum threshold, and in some cases more.
The main one–time payment for the purchase of real estate is the tax on the transfer of ownership (Tapu Vergisi) in the amount of 4% of the cadastral value of the property. For example, for an object for $400,000, the fee will be $16,000. Buyers of new buildings are exempt from VAT. When purchasing a second home, the VAT rate reaches 1-18%.
Annual payments include the municipal tax (Emlak Vergisi) – 0.1-0.6% of the cadastral value. Objects more expensive than $340,000 are subject to a luxury tax of 0.3-1%. Utility costs – $800-850/year, earthquake insurance (DASK) – $30-50/year.
Purchase of government bonds. There is no management fee. Capital gains tax for individuals is 15-40%, for legal entities – 23%. Starting from 2025, the income tax on the purchase of shares is 15%. The management fee is 1-3% of the amount.
A bank deposit involves placing a deposit for a 3-year period. The account opening fee is $3,000 (refunded after 6 months).
The administrative costs of investing in a business include:
- Business plan verification – up to $10,000;
- Annual audit of job preservation – $2,000-5,000;
- The company’s income tax is 25%.
Tax consequences of obtaining citizenship
Turkish citizenship by investment does not automatically lead to obtaining tax residency. To obtain this status, you must actually stay in the country for more than 183 days. The condition is determined by the Law No. 193 “On Income Tax”. Tax residents declare income worldwide, while non-residents report only on income earned in Turkey.
Individuals pay income tax on a progressive scale:
- Up to 70,000₺ – 15%;
- 70,001–150,000₺ – 20%;
- Over 1,900,000₺ – 40%.
According to Law No. 5520, legal entities are subject to a corporate tax of 23%. Companies in free economic zones are exempt from income tax.
If investments are made in real estate, the investor must take into account the following tax requirements:
- Municipal tax (Emlak Vergisi) – 0.1-0.6% of the cadastral value;
- Luxury tax – 0.3-1% for objects more expensive than $340,000;
- Capital gains tax is 15-40% for the sale of real estate before 5 years of ownership.
Requirements for the applicant and family members
The program provides clear criteria for the main investor and his family. According to Law No. 5901, the applicant must meet 4 basic conditions:
- Age from 18 years;
- A legal source of income;
- No outstanding criminal records or dangerous infectious diseases.
The inclusion of family members is limited to the spouse and children under the age of 18. Parents, adult children or other relatives cannot be added to the application without a separate investment contribution. Additionally, there is a ban on participation for persons who were previously deported from Turkey or violated EU migration laws.
An official marriage registered in the country of origin is required for the spouses. Civil partners or same-sex unions are not recognized. Children from previous marriages are included with the notarized consent of the second parent.
Dual citizenship
Turkey officially recognizes multiple citizenship without restrictions. According to article 5 of the Law No. 5901 on Turkish Citizenship, obtaining a foreign passport does not automatically entail the loss of Turkish status. This norm is confirmed by statistics. Almost 100% of the participants in the investment program retain their original citizenship. However, there is no obligation to notify the authorities. The law does not require informing government agencies about the availability of a second passport. However, it is necessary to use Turkish documents when making transactions.
The procedure for obtaining citizenship
The path to the Turkish “Golden Passport” is standardized and looks like this:
- Preliminary check. At the start, a risk analysis is carried out through Due Diligence. Experts check the investor’s trustworthiness using the Interpol and FATF databases, excluding links to terrorism or financial violations.
- Preparation of documents. The investor collects a package of personal documentation. The documents are translated into Turkish and certified with an apostille.
- Investment action. After prior approval, the required amount is paid or a transaction is executed (95% of participants choose real estate).
- Submitting an application. The investor personally visits the migration service to submit biometrics. The spouse is required to be present, but the children are not.
- Due Diligence. The Immigration Department verifies the authenticity of documents and transaction history. Since 2023, even transfers through systems alternative to SWIFT (including the Russian Mir) have been analyzed.
- Obtaining a passport. After approval, the investor picks up the document at the embassy or the migration service. The ID card is issued additionally 2-3 weeks in advance.
Application processing time
The average period for obtaining a Turkish passport under the investment program is 6-8 months from the date of submission of documents. However, the actual time depends on the chosen investment instrument and the correctness of the paperwork.
Required documents
- Passport of the main applicant and family members with a validity period of at least 18 months;
- The original and apostilled translation of the birth certificate of the applicant and all relatives included in the application;
- Marriage/divorce certificate;
- 50×60 mm biometric photographs for all applicants;
- Confirmation of investment;
- Bank statements for the last 3 years confirming the legality of the funds;
- Receipt of payment of state duty ($574 per person);
- A document confirming the absence of a criminal record, issued no earlier than 3 months before filing;
- Medical report on the absence of dangerous infectious diseases (HIV, tuberculosis).
Rejection and refund of investments
According to statistics, about 12% of applications are rejected at the Due Diligence stage. The main reasons for failures:
- Forgery of documents (concealment of criminal records, fictitious marriages, forged contracts of sale of real estate);
- Violation of investment conditions (acquisition of shared ownership, non-compliance of the cadastral value of the object with the requirements);
- Problems with security (links to terrorism, financial irregularities, deportation from EU countries in the past).
In case of refusal, the applicant has the right to file an administrative complaint with the Department of Population and Citizenship Affairs of Turkey within 30 days. A second application can be submitted after the reasons for the refusal have been eliminated.
Early sale of assets (up to 3 years) entails the revocation of citizenship. After a three-year period, the investor has the right to sell real estate, bonds or close the deposit without consequences.
Recent changes in the program
On January 2, 2024, key amendments aimed at increasing the transparency of the program came into force. The personal presence of the investor and spouse has become mandatory when submitting documents. Previously, registration through trusted persons was allowed. To submit biometrics and passport photos, you now need to visit the Turkish Migration Service. An exception is made only for minor children.
The ban on shared ownership has been strengthened since 2023. Now the property must be fully owned by the investor. Co-owners are excluded even if the threshold of $400,000 is exceeded. The cadastral value of the property is checked through the TAKBIS system, and transactions with an underestimation of 15% or more lead to automatic rejection.
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