Turkey has reduced required limits for foreigners to acquire Turkish citizenship to encourage investment, according to new regulations published in the country’s Official Gazette
The lower limit of fixed capital investments to acquire Turkish citizenship for foreigners is reduced to $500,000 from $2 million.
Foreigners who own real estate in Turkey worth a minimum $250,000, instead of $1 million, can avail Turkish citizenship.
The deposit requirement of minimum $3 million in Turkish banks is also lowered to $500,000.
The regulation also covers foreigners who deposit a minimum of $3 million in Turkish banks. A similar regulation applies to those foreign investors who hold government-issued bonds worth at least $500 million which are not diversified for three years.
Foreigners who generate jobs for minimum 50 people, — previous requirement was 100 people — also will be able to take Turkish citizenship, the gazette said
What will the government’s approach with this regulation gain to us in terms of foreign real estate sales?
Foreign citizens who purchase property in Turkey are mainly middle income group. The average purchase price of the properties registered in 2015 is 180.000 USD. This new regulation goals a different target group. There is a big difference between 180,000 USD and 1 million USD.
Will wealthy foreign investors be attracted to purchase property in Turkey after this regulation?
Examples in other countries?
Real estate is very major export item. It is relatively less dependent on outsourcing, has a high labor cost effect and both the foreign exchange and the product remain inside.
Currently, the same regulation applied in Europe is Southern Cyprus. Permanent residence permit with new property investment of 300,000 EUR and direct EU citizenship with real estate investment of 2 million EUR is being granted.
Spain, Portugal and Greece offer temporary residence permits (we do not have a lower limit for residence permits) in different amounts of 250,000 – 500,000 EUR, but they grant permanent residence rights and citizenship on condition of living 6 to 10 years.
Only Portugal is more flexible in this regard. Even if the investor doesn’t reside in the country, he can apply for citizenship after 6 years.
If we evaluate at these examples, 1 million USD seems to be a fair regulation. Even if we are not a member of the European Union, Turkey is a country that is much more attractive to GCC citizens especially in terms of nature, culture and opportunities for comfortable living. Considering the attitude towards foreigners in Europe over the last years, there will be a great demand especially from the Gulf countries.