New Rules for the Turkish Citizenship by Investment

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New Rules for the  Turkish Citizenship by Investment

Some important changes have been made to Turkish Citizenship by Investment regulations.

As of March 23, 2021, some important changes have been made to Turkish Citizenship by Investment regulations. The vast majority of changes are related to real estate investment, so foreigners who are planning to invest in Turkish real estate to obtain Turkish Citizenship by Investment should be more careful after these changes. Unfortunately, the process of applying for citizenship is now much more complicated, as it places some significant restrictions on the real estate investment eligibility for citizenship. That's why international investors need to work with legal professionals more than ever to ensure smooth investing and citizenship.

The Recent Changes are

Before the change, foreigners were not allowed to buy real estate. Foreign investors who invest to obtain Turkish citizenship must purchase real estate from Turkish citizens, and this rule remains in effect. However, there is currently an additional rule that the purchase of real estate from a foreign spouse or child is not allowed. Turkish people who are truly married to foreigners under this new rule cannot sell their assets to foreign investors who are seeking Turkish Citizenship by Investment. In addition, foreign investors need to ensure that Turkish asset owners are married to foreigners. This seems unpleasant to both parties.

With this understanding, this rule is so strict for citizens born in Turkey that I think Parliament has something to do with the new rule. However, this is still not clear, so we must admit that this new sentence is confusing. This will be clarified soon.

Turkish Citizenship by Investment

When a foreigner sells Turkish Citizenship by Investment and the Turk sells it to a new foreign investor. It doesn't matter to another investor. He/she can use the property to obtain citizenship. (People who precede Turkish property owners) Finally, they have the same nationality as foreign property owners. (The last investor) cannot use the property to obtain citizenship, even if the last investor has already bought the property from a Turkish. However, there are additional conditions under which this limitation applies. The sale between the former foreign owner and the Turkish property owner after the first transfer of the property must take place before January 12, 2017. There is no problem for the last investor

For example:

There was an Egyptian (Ahmed) who owned the property in Istanbul. He sold it to a Turkish individual/company on January 15, 2017. Then, in June 2021, another Egyptian (Rashad) decided to purchase the property from the current Turkish property owner. In this case, you cannot apply for guidance. If Rashad is not Egyptian, you can obtain citizenship through this property. But if the first sale was made in Morocco on January 11, 2017 instead of January 15, 2017, Rashad will be able to use this property for citizenship purposes.

Real Estate Investment in Turkey

If a foreign investor buys real estate from a Turkish company, none of the company's partners should hold the citizenship of the investor. In short, investors need to review the latest partnership structure of Real Estate Investment in Turkey. The restrictions were extended to only investors, spouses or partners of the site with children.

For example:

Ahmed (Egypt) purchased an apartment from https://kingclap.com. in Istanbul. XXX Ltd. The company has two partners, Selim (Turkey) and Rashad (Egypt). Ahmed will no longer be able to obtain citizenship using this property. Because Rashad is at home as a partner

Perhaps the most significant change is that real estate that was previously eligible for Turkish Citizenship by Investment will not be able to apply for another citizenship. However, if only part of the property is used for citizenship purposes. This stake is excluded, but other stocks are excluded.

There is another sensitive and ambiguous rule that can pose a risk to foreign investors. The property used to obtain citizenship is resold to the original owner after the three-year siege period ends. Turkish Citizenship by Buying Property Office You can start a sales inquiry to understand whether there is a fraudulent pre-sale between the parties if the Turkish authorities conclude that the sale is a pre-sale and fraud. They can reverse citizenship.

Personally, I am critical of this new rule. First, the right to sell real estate investment in Turkey after three years is legally issued to foreign investors. So it does not matter whether the property was sold to the previous owner or to someone else. Second, the rules don't provide any other details. I don't know how this investigation will be done. By what criteria will the authorities end fraudulent sales? The drafting of the current rules hopes that this limitation will become clearer in the future. At this time, the safest option for foreign investors who have obtained Turkish Citizenship by Investment and passed a period of three years is not to sell their property to the original owners.