Erdal Nuhbasa – Law and Consulting Firm – Legal Services

ERDAL NUHBASA 

LAW AND CONSULTING FIRM

apartment-houses

1. Is it possible to Gain Turkish Citizenship by Buying Apartment?

        The very short answer is “Yes, it is possible for a foreigner to gain Turkish Citizenship by buying apartment in Turkiye (Turkey)”. You can become a Turkish citizen If you fulfill the legal requirements in the relevant laws and regulations. 

         With the amendment to the Regulation on the Implementation of the Turkish Citizenship Law, the rules for obtaining Turkish citizenship have changed as of 18.09.2018. Accordingly, persons who make the investments included in the regulation are exceptionally entitled to apply for Turkish Citizenship for their spouses and children under the age of 18.

       The process of acquiring Turkish citizenship through investment proceeds through the following 3 stages. 

  1. Fulfillment of at least one of the investment conditions and obtaining a Certificate of Conformity from the relevant institution. 
  2. Obtaining a Short-Term Residence Permit in Turkey in accordance with Article 31, first paragraph, subparagraph J of Law No. 6458. 
  3. Applying for Turkish citizenship through investment
 
     The possibility that you are able to gain Turkish citizenship depends heavily on these the specifics. Your application can be denied, for instance, if the apartment is not truly worth $400.000 that you were originally offered for the house.
  
        To minimize or completely eliminate risks, it is usually a good idea to talk with a lawyer before beginning any big investment project. But aside, there are a few things I would like to bring up in case you decide to handle everything on your own. 

2. What is process for being Turkish Citizenship?

      Foreign nationals can become citizens of Turkey by buying real estate valued at least $400,000. This can be done in Turkish Lira or in foreign currency equivalent to the USD amount. You must take the following actions in order to resolve this.. 

  •  Get a Tax Registry Number

        The tax registration number can be obtained from any tax office and an original passport and photograph are required.

  • Find the Appropraite Property

    – Total value of USD 400.000 or its foreign currency equivalent in Turkish Lira 
    – One or more completed or near-completed properties, 
    – License for occupancy has been obtained, 
    – Ready title deed with condominium easement or condominium ownership, 
    – Valuation report obtained from municipality

  • Get the Valuation Report of the Property

      It is received via Webtapu. an appraisal examination is made by opening a record. The date of issue of the valuation report submitted during the acquisition application must be no more than 3 months prior to the application date. The said valuation report will be considered valid until the transaction is completed.

  • Take the Foreign Currency Purchase Certificate

     It is a document showing that the foreign currency has been sold to a bank operating in Turkey to be sold to the Central Bank before the sale proceed is done. So, basically the procedure is; foreigners firstly must sell their foreign currency to the Central Bank through a bank in Turkey by stating the reason and get the Foreign Currency Purchase Certificate from the bank to submit to the land registry office.

    The price of the property is paid in Turkish Lira to the owner of the property. But it is not possible to use the foreign currency exchanged at exchange offices or by cash while buying the property in case you want to apply for citizenship. 

  • Buy the Property 

    Payment is made via bank transfer, it is not possible to use the foreign currency exchanged at exchange offices or by cash. The price of the property is paid in Turkish Lira to the owner of the property. And a title deed and/or notarized sales contract/sales promise contract is obtained with the statement that it will not be sold for 3 years.

  • Get the Certificate of Conformity

     Certificate of Conformity is the letter of the Regional Land Registry Directorate stating that the real estate purchased by the foreigner is suitable for the right of residence and citizenship.

    After receiving the commitment not to sell the immovable for 3 years, the Land Registry Directorate forwards this operation to the competent authority that will issue a certificate of conformity. When the “Certificate of Conformity” is issued, it is sent to the General Directorate of Migration Management and the General Directorate of Population and Citizenship Affairs for information and to the relevant person via e-mail.

  • Apply Short-Term Residency

      As a final step you must apply to the Directorate General of Migration Management for a short-term residence permit under subparagraph J. The foreigner must attend the appointment after the application in person and provide an eye retinal scan and fingerprint.

3. What is the Foreign Currency Purchase Certificate?

         The Foreign Currency Purchase Certificate (DAB) in Türkiye is a document that verifies the purchase of foreign currency. It is issued by banks or authorized financial institutions when a customer buys foreign currency. The certificate includes details such as the amount of foreign currency purchased, the exchange rate applied, and the date of the transactions.

     The Foreign Currency Purchase Certificate must include at least the name and surname of the person on whose behalf the foreign currency is exchanged, his/her passport number or foreign identity number, the US Dollar and TL equivalent of the foreign currency purchased. In addition, a statement indicating that this transaction is carried out within the scope of “Article 13 of the Capital Movements Circular” should also be included. 

      The foreign currency can be sold to a bank, first by the buyer to the seller’s account and then by the seller to the central bank for exchange. The most important point here is that the foreign currency purchase document must be executed before the transaction. The sale of foreign currency can be made by the buyer, seller, their proxies or lawyers.

4. Which properties are ineligible for Turkish citizenship by investment?

         If you want to buy a property for 400.000 dollars and obtain Turkish citizenship, you need to pay attention to every detail. Because not every property is suitable for this program. If you do not buy an apartment with the criteria mentioned above, you will not be able to obtain a certificate of conformity and therefore it will not be possible to apply for citizenship. 

      The points to be considered are generally as follows:

  1. The property cannot be registered in the land registry in the name of a foreign person. In another words; you can not apply Turkish Citizenship program by buying a property from a foreigner. 
  2. The property cannot be registered in the name of the legal entity of the company in which the foreigner is a partner or manager of himself/herself, his/her spouse and children, or in the name of the legal entity of the company with foreign capital in which the foreigners of the same nationality are partners.
  3. After acquiring Turkish citizenship through sale or promise of sale, the same property cannot be subject to citizenship acquisition again.
  4. The certificate of conformity for properties located in areas declared as safe zones by the competent Governorate within the border where the property is located, areas where the sale of properties to foreigners is prohibited, tourism zones, agricultural lands, military areas is valid only with the approval of the Governorate.

 

5. Things To Keep In Mind

  • In case the real estate is purchased with a mortgage loan or is subject to mortgage, the mortgage value will be deducted from the total value of the real estate given in the valuation report and the remaining amount will be valid.
  • The value of the real estate(s) will be determined through an official assessment by the valuation companies announced by the Banking Regulation and Supervision Agency (BRSA).
  • The foreign currency must be exchanged before the title deed transactions and the foreign currency purchase certificate must be submitted to the title deed directorate before the sale
  • The sales price of the real estate(s) will be paid to the seller via bank transfer.
  • You can sell your property after you are granted as Turkish citizenship and 3 years.
  • The building of the real estate must be completed or close to completion.
  • Habitation license must be granted for the real estate.
  • In accordance with Article (13) of the Capital Movements Circular of the Central Bank of the Republic of Turkey, foreign currency must be exchanged for the full amount of the sale price. 

6. What are the other opportunities for Turkish Citizenship through Investment?

  • Depositing 500.000 USD or equivalent foreign currency into the deposit account of banks operating in Turkey, provided that they do not withdraw it for 3 years,
  • Employing 50 or more workers,
  • Making 500.000 USD or its equivalent in foreign currency a fixed capital investment.
  • Purchasing USD 500.000 or its equivalent in foreign currency government debt instruments on condition that they are held for 3 years,
  • USD 500.000 or equivalent foreign currency amount of real estate investment fund units or venture capital investment fund units, provided that they are held for at least 3 years.
 
     Getting Turkish citizenship via buying real estate is easy but there are lots of details that you must follow to get it. If you want me to do all procedure for you or further questions contact me.
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