Investment in real estate or a bank deposit in Turkey

In order to qualify for a Turkish passport, the investor must choose whether to buy a real estate in Turkey or to open a deposit with a Turkish bank. In both cases, the investor and his family can obtain Turkish citizenship in only 3 months. Let’s dig deeper into the two options.

Investment in Turkish real estate – $400’000

The required real estate investment for a foreigner to obtain fast-track Turkish citizenship is $400’000. Below are the main requirements that apply to the investment:

  • the title deed for the purchased property(ies) must be with a forbidding clause for resale for three years;
  • payment for the property must be made in foreign currency (i.e. in USD), which has to be exchanged for Turkish lira with the Central Bank;
  • the payment and all related charges to the purchase of the property must be made by bank transfers only;
  • combining several properties to reach the minimum investment amount of $400’000 is allowed;
  • all properties (i.e. houses, apartments, shops, etc.) are eligible for investment citizenship with the exception of undeveloped land (you definitely won’t need buying undeveloped land anyways);
  • real estate can be bough anywhere in Turkey without restrictions;
  • the purchase must be from a Turkish citizens or a Turkish company;
  • the investment property can be used for the purposes of obtaining citizenship only once.

Why invest in real estate in Turkey?

First of all, Turkey is a beautiful country. Living in cities like Istanbul or the sea coast is a dream for many. At the same time, Turkish properties are reasonably priced, in fact much, much cheaper than real estate elsewhere in Europe. Living costs in Turkey are low and services are affordable, to say the least.

Investment in real estate in Turkey is very safe with enormous upwards potential. The real estate, used to obtain Turkish citizenship, can be resold in 3 years.

Capital investment in Turkey – $500’000

The candidate for Turkish citizenship needs to deposit at least $500’000 in a Turkish bank (there are also other options to invest the amount, such as Turkish bonds, but we currently don’t support these). The main conditions that apply to the bank deposit option are the following:

  • the required deposit can be made with any bank in Turkey under condition that it will be not withdrawn within three years;
  • the deposit must be done in Turkish Lira by selling foreign currency to the Central Bank first;
  • in order to protect the investors from the exchange rate fluctuations, an YUVAM account can be opened;
  • multiple deposits can be done in different Turkish banks;
  • all interest and other capital gains will be passed on to the investors;
  • it is possible to change the investment option from bank account to other capital investment during the three years period.

Why opening bank deposit in Turkey is not a bad idea?

Surprisingly, your bank account in Turkey, may be much more secure than your bank account in USA, Canada, Australia, etc. It is much less likely that your Turkish bank account will be blocked or frozen by a foreign authorities than is your bank account back home. At the same time you will enjoy much higher interest on your money. Obviously, there is also currency exchange rate risk, which may be substantial for the Turkish Lira. Using the YUVAM protection however can help mitigate this risk.