türkİye Citizenship By Investment

 The Türkiye Citizenship by Investment program (CBI) was launched in 2016 and is one of the more recent programs to roll out world wide. 

Located partly in Europe and partly in Asia, Türkiye is a transcontinental country renowned for its ethnic history and beautiful harmony of Eastern and Western cultures.

Surrounded by the Black Sea, the Mediterranean Sea, and the Aegean Sea, Türkiye has a favorable coastal climate, with dry, hot summers and mildly cool winters.

Ankara is the capital city of Türkiye, but its largest city, Istanbul, is more popular due to its pivotal role as a major business, finance and tourist hub.

 Türkiye, officially known as the Republic of  Türkiye, is a vibrant country brimming with diverse culture. Its unique location lies at the crossroads of Europe and Asia, making it a key player in geostrategic affairs.

With an estimated population of 86 million people,  Türkiye boasts a thriving economy that focuses on agriculture, industry, and trade. Bound by the Mediterranean Sea in the south and the Black Sea in the north,  Türkiye offers not only enviable weather conditions but also breathtaking natural beauty.

 Occupying both European and Asian territories, Türkiye holds a truly transcontinental identity. Its strategic position allows Türkiye to serve as a vital bridge between the East and West. The climate varies significantly across different regions within the country.

Along the southern Mediterranean coastline, visitors experience warm and sunny weather, while central Türkiye consists of more temperate continental conditions. The northern region, adjacent to the Black Sea, experiences a moderate climate with increased rainfall.

 One of the most significant aspects of Türkiye’s allure is its rich, cultural heritage. As the heart of several ancient empires – such as the Romans, Byzantines, and Ottomans – Türkiye is home to numerous historical landmarks and architectural marvels. The official language spoken throughout the country is Türkçe; however, various minority languages are also present due to the nation’s cultural diversity. Daily life in Türkiye  is greatly influenced by traditional customs and practices, providing a fascinating mix of time-honored traditions and modern urban living. Religion plays an essential role in the lives of Turkish people. Turks are predominantly Islamic, which shapes their social norms and communal gatherings.

Türkiye’s robust and diverse economy encompasses agricultural production, industrial manufacturing, and international trade. Some of the leading industries include textiles, food processing, and electronics, which contributes to this nation’s strong global export ties. In agriculture, Türkiye is renowned for its production of hazelnuts, figs, and apricots. 

With a steadily growing Gross Domestic Product (GDP) and increasing Foreign Direct Investments (FDIs), Türkiye continues to develop economically and maintain its significant global position. Its well-established transportation system – including highways, railways, and airports – bolsters both domestic and international trade, further demonstrating Türkiye’s economic prowess.  

To become eligible for the Türkiye CBI Program, the main applicant must fulfill one or more of the following minimum investment requirements:

1. Acquire real estate property worth at least USD$400,000.
2. Invest a minimum of USD$500,000 as fixed capital contribution.
3. Deposit at least USD$500,000 or its equivalent in foreign currency or Turkish lira into a Turkish bank account.
4. Commit to a minimum of USD$500,000 or its equivalent in foreign currency or Turkish lira into government bonds.
5. Invest at least USD$500,000 or its equivalent in foreign currency or Turkish lira into a real estate investment fund or venture capital investment fund.
6. Allocate at least USD$500,000 or its equivalent in foreign currency or Turkish lira into a private pension system with a minimum holding period of three years.
7. Create employment opportunities for at least 50 people, as certified by the Ministry of Family, Labour, and Social Services.

The main applicant can include their spouse, dependent family members and children (below the age of 18), and disabled family members in their application.

Applying for the Türkiye  CBI Program involves several steps. The entire process typically takes around 120 days from the submission of the application to obtaining approval.

1. Choose your preferred investment option.
2. Apply for a residency permit on behalf of your family.
3. Open a bank account in Turkey to facilitate the investment.
4. Compile and prepare all required documentation, including certifications and translations if needed.
5. Complete the investment process and submit the documents to the Turkish government for review.
6. Attend an interview with the government officials if requested.
7. Upon approval of your application within 120 days, obtain your citizenship documents.
8. Finally, submit your passport application.

It’s important to note that Türkiye  gift and inheritance taxes apply to worldwide assets held by Türkiye citizens. Seeking professional advice on investment options in this matter is highly recommended. With proper guidance and by meeting the eligibility criteria, investors can successfully navigate the Türkiye CBI Program and enjoy the numerous benefits it offers.

As an expat who has acquired Türkiye citizenship, it is important to understand the tax system in Türkiye . Being aware of your tax obligations will help you stay compliant with the local laws and avoid any unexpected liabilities. This guide will provide you with an overview of the taxes applicable to expats living in Türkiye , as well as some tips on how to navigate the Türkiye taxation system. 

Income tax in Türkiye can come from various sources, including employment income, rental income, dividends, and capital gains. Your tax liability will depend on your status as a tax resident or non-resident. Tax residents are individuals who reside in Türkiye for more than six months in a calendar year, while non-residents only pay tax on their income derived from activities within Türkiye. Türkiye uses a progressive income tax system, with rates ranging from 15% to 35%. If you are a tax resident, you will be taxed on your worldwide income, whereas non-residents will only be taxed on Turkish-sourced income. It is essential to declare your income correctly and file an annual tax return, usually due by the end of March of the following year.

Owning property in Türkiye could lead to different tax implications. You may be liable for annual property tax, which ranges between 0.1% and 0.6% of the property’s value, depending on its location and type. This tax should be paid in two installments, one in May and the other in November. Additionally, if you rent out your property in Türkiye, you must declare the rental income in your annual tax filing. Rental income tax rates range from 15% to 35%, depending on the amount earned. Ensure that you keep accurate records of your rental income and the necessary expenses to claim deductions when calculating your taxable income.

Capital gains arising from the sale of assets – such as property, real estate, or shares – are subject to taxation in Türkiye. For Türkiye citizens, including those who have acquired CBI, the capital gains tax rates range between 15% and 35%. However, certain exemptions apply. For instance, holding a property for more than five years before selling can exempt you from paying any capital gains tax on the profit.

Inheritance tax might apply if you inherit assets as a Türkiye citizen. This tax is levied on both domestic and worldwide assets. The inheritance tax rate in Türkiye ranges between 1% and 30%, depending on the relationship between the deceased and the heir and the value of the inheritance. It is essential to seek professional advice to understand your inheritance tax liabilities better and plan accordingly.

To ensure that you remain compliant with Turkish tax laws, it is highly recommended that you consult with a local tax expert. They will be able to guide you through the complexities of the Türkiye tax system, help you avoid potential pitfalls, and capitalize on any available exemptions or benefits. So, as an expat with Türkiye or dual citizenship here, understanding your tax obligations in your new country is crucial. Familiarize yourself with the various taxes applicable to you, plan your finances accordingly, and consult qualified professionals to help you navigate the Türkiye tax system. 

While the Turkey CBI program allows you to obtain Turkish citizenship within approximately 120 days of submitting your application, you can also apply for Turkish CBI through naturalization. If you have legally and continuously resided in Turkey for at least five years, with a minimum of 180 days per year, you may be eligible to apply for the Turkey CBI through the naturalization process.

Yes, foreign citizens can become Turkish citizens. Turkey offers a CBI Program that allows foreign investors to obtain Turkish citizenship by making a qualifying investment, such as purchasing real estate worth at least USD$400,000 or investing USD$500,000 in fixed capital contributions. Please note that dual citizenship is allowed in Turkey, but you should check with your home country to see if it also permits dual Turkish CBI.

To obtain Turkish citizenship through the CBI program, you must fulfill one of the following minimum and investment citizenship and requirement requirements:

– Acquire real estate property, property investment or a real estate, valued at a minimum of USD$400,000

– Invest a first minimum fixed capital investment and minimum investment threshold of USD$500,000 fixed capital contribution

– Deposit at least USD$500,000 in a Turkish bank account or equivalent foreign currency or Turkish lira

– Commit at least USD$500,000 into government bonds, approved real estate investment funds, real estate investment fund, a venture capital investment fund, or a private pension system

– Create jobs for at least 50 people, as attested by the Ministry of Family, Labor, and Social Services

The required documents for Turkish citizenship by the capital investment include the following:

1. Birth certificates of all applicants
2. Passports of each applicant
3. Residence Proof (Recent utility statement)
4. Biometric, colored passport photos of each applicant
5. Marriage certificate (if applicable)
6. Death or divorce certificate of spouse (if applicable)
7. Proof that all applicants have a clean criminal record
8. Proof of Health Insurance (valid in Turkey)
9. Proof of investment of at least USD$400,000 into a Turkish bank account, real estate investment office or lawyer’s client account (depending on the chosen investment option)
10. Turkish Tax ID Number

Please note that some documents may require official translations and certifications.