In recent years, Turkey has witnessed numerous sharp turns on the economic level, which would have transformed many of Turkey's game rules, especially in terms of foreign investments.
As a result of all the dramatic shifts that took place recently, whether at the internal political or global economic scale, many laws were amended, and Turkish President Recep Tayyip Erdogan developed a renewed economic and strategic plan to protect the local Turkish currency from fluctuation and oscillation and control the flow of hot money to the country, which led to a reduction in the Turkish lira's value against foreign currencies.
Moreover, the new economic plan aims to expand the foreign currency reserves in the Turkish Central Bank.
Adjusting the Turkish Citizenship Law for Foreign Investors:
The Turkish citizenship by buying real estate:
Among the most critical recent amendments that have taken place to support the Turkish lira is the amendment of the law on granting Turkish citizenship to foreign investors by boosting the value of real estate investment from $250,000 to $400,000.
The law granting Turkish citizenship to foreign investors has been modified, especially regarding the partial value of real estate ownership, raised in value. Still, concerning the attached laws, no amendment has been made.
If we highlight the legal aspect, we do not find any change; within the amendment draft, the investor must pledge not to resell the property for three years from the date of purchase. Through this step, the expected benefit of both parties, the Turkish government and the foreign investor, is achieved.
The Turkish Citizenship by Bank Deposit:
About the modification of the decision to obtain Turkish citizenship by bank deposit, the previous investment value, which was half a million dollars, was not extended, provided that the total amount won't be withdrawn before the lapse of 3 years from the date of deposit.
But it is worth remarking on the possibility of benefiting from the money deposited in one of the Turkish banks by taking interest or operating and profiting.
One of the most significant changes that occurred in the bank deposit decision is that the Turkish lira is deposited, which corresponds to half a million dollars in the value of the Turkish lira, at the exchange rate on the day of the bank deposit.
One of the major routes that allow the foreign investors to obtain Turkish citizenship is by establishing a commercial registry (commercial company) and securing through the company more than 50 job opportunities for Turkish citizens, also depositing at least half a million US dollars in the bank account of the company's commercial registry.
The crucial thing is that the value of commercial investment and the number of job opportunities that are supposed to be secured for Turkish citizens have not been doubled or modified within the new draft modification to the Turkish citizenship decision for foreign investors.
Instead, the previous value of the old draft published by Turkish President Recep Tayyip Erdogan and the Council of Ministers in the summer of 2018 was preserved.
Still, one of the essential legal provisions that must be taken into account is the need to deposit the value of the investment in any of the Turkish banks in the local currency, including Equivalent to half a million US dollars.
It is worth mentioning here the explanation of the reason for this change, according to the statements of Turkish President Erdogan and Minister of Finance Nebati, who declared that the value of the investment retained for three years would be traded in the Turkish Central Bank. Thus, the Turkish government will benefit on the economic level to ensure the stability of the exchange rate of the Turkish lira against foreign currencies in the coming period.
Eventually, it is necessary to emphasize that the decision of the current amendment to the Turkish Nationality Law has not yet entered into force.
According to the amendment draft, which is determined that the new citizenship decision will be implemented starting from the sixteenth of June 2022.
Until then, the old law is still in effect and is being implemented based on the old value of real estate investment of 250,000 $. Meanwhile, we at Turkey Advisors are ready to respond to all your legal questions or inquiries regarding the real estate market in Turkey; contact us to serve you in the way you deserve.