ACQUISITION OF TURKISH CITIZENSHIP THROUGH DEPOSIT PLACEMENT 25 October 2022

ACQUISITION OF TURKISH CITIZENSHIP THROUGH DEPOSIT PLACEMENT

Who can apply for Turkish citizenship by deposit?

Persons who deposit $500,000 or $500,000 in foreign currency or Turkish Lira to banks operating in the Republic of Turkey provided that there is no obstacle in terms of national security and/or public order and that the conditions specified in the relevant legislation are met can apply for citizenship.

In the case of citizenship acquisition through deposit, will the spouse and children of the person who acquired citizenship are entitled to acquire citizenship?

Spouses, infant, and disabled children (even if they are over the age of 18) of persons who acquire citizenship through a deposit will be able to obtain citizenship.

How does the process of acquiring Turkish citizenship through deposit work?

1. First of all, a deposit account should be opened in a bank operating in Turkey on behalf of the person who wants to acquire citizenship through deposit, and $ 500,000 or this amount in foreign currency or Turkish Lira should be deposited into the relevant deposit account. In addition, the document of an undertaking that the deposit will remain in the relevant bank account for three years, blocking instruction, the document of consent, and other relevant documents should have signed. 
2. After opening the deposit account and transferring $500,000 or $500,000 in foreign currency or Turkish Lira to the opened bank account, the Banking Regulation and Supervision Agency (‘’BRSA’’) will be required to determine compliance with regard to the amount deposited by the bank in which the account was opened.
3. The BRSA will notify the General Directorate of Population and Citizenship Affairs and the General Directorate of Migration Management in writing, of the conformity report it has prepared for the application that meets the conditions specified in the legislation.
4. After the letter of conformity is prepared by the BRSA, a short-term residence permit application will be made to the Immigration Administration and a "Residence Permit Application Document" will be given to the person applying for a residence permit. Following the receipt of the short-term residence permit, an application for citizenship will be made to the Population and Citizenship Affairs Office.

Can the process of acquiring Turkish citizenship through a deposit be carried out with a proxy?

The citizenship acquisition process by deposit can be carried out by appointed attorneys. Since the evaluation of whether the necessary conditions are met for the acquisition of Turkish citizenship and the preparation of the said information and documents are of great importance for the positive result of the citizenship application, support from a professional team should be sought absolutely from the moment the investment decision is taken.

Can the application for the acquisition of Turkish citizenship through a deposit be rejected?

Even if the conditions specified in the relevant provisions of the legislation are met, the application may be rejected in case  any situation constitutes an obstacle in terms of national security and/or public order.

What is the legal process that can be followed against the the rejection of the citizenship application?

It is very important that the application is made by lawyers who are experts in the field in order to prevent possible rejection reasons. The reason for the rejection of the application: 

• Failure to meet the conditions set out in the legislation,
• It may be based on the discretion of the Administration, as well as the application with missing or incorrect documents.

In these cases, persons whose citizenship application has been rejected, following the said rejection decision:

• Can file an action for annulment directly in the administrative jurisdiction within 60 days from the notification of the rejection decision, or
• Before filing an action for annulment, an administrative application can be made within 60 days for the annulment of the refusal decision. This application will stop the administrative litigation period that has started to process. If the administrative application is rejected, it will be possible to file an action for annulment.

What if the deposit falls below $500,000 due to currency fluctuations?

The important point in obtaining Turkish citizenship by deposit is that the amount deposited at the time of depositing is at least $ 500,000 or $ 500,000 equivalent of a foreign currency or Turkish Lira. The effective selling rate and/or cross-exchange rate of the Central Bank of the Republic of Turkey on the date of determination shall be taken as a basis for the determination of the above-mentioned monetary values. Therefore, if the deposit amount falls below $500,000 due to currency fluctuations, the citizenship acquisition process will not be affected.

Is it possible to withdraw the amount to be deposited in the bank?

It is possible to withdraw some or all of the deposits deposited in the bank, but if the deposit in the bank account falls below the specified amount, the bank will notify the BRSA and the BRSA of the relevant institutions. As a result, if the application process of the person who wants to acquire Turkish Citizenship by depositing is still in progress, his application will be rejected, and if the citizenship has been acquired but the three-year period continues, his citizenship will be canceled.

Is it mandatory to have $500,000 or equivalent foreign currency or Turkish Lira in a single account? Is it possible to apply for citizenship over the total value in different accounts?

It is possible to apply by combining different accounts, provided that the amount determined by the legislation is provided and a statement of blocking is made for the purpose of citizenship application.

In which banks can an account be opened for the acquisition of Turkish citizenship by depositing?

It is possible to open a deposit account to be opened in order to acquire Turkish Citizenship by depositing in all banks operating in Turkey. On the other hand, the fact that the risk management procedures of private banks are quite comprehensive in practice and that a long review is carried out by the compliance units are the issues that slow down the process compared to public banks. In this respect, we are of the opinion that professional assistance should be sought in this regard, as the choice of the bank to open a deposit account affects the rest of the process.

Is it possible to earn interest income from the money to be deposited in the bank? Can the money be received in kind after the three-year blocking period?

On May 16, 2022, the Implementation Instruction for Foreign Exchange Sales to the Central Bank of the Republic of Turkey ('Implementation Instruction') was published within the scope of the Regulation on the Implementation of the Turkish Citizenship Law. 

In accordance with Article 4 of the Implementation Instruction, the deposit deposited in the bank account is purchased by the bank to be sold to the Central Bank at the relevant transaction rate and then transferred to the Central Bank. The foreign currency transferred by the Bank to the Central Bank's account is purchased by the Central Bank at the transaction rate.

In accordance with Article 6 of the Implementation Instruction, the Turkish Lira amounts obtained as a result of the foreign exchange sales transaction for the acquisition of Turkish citizenship by depositing are kept in Turkish Lira deposits for a period of three years. For this reason, the deposited amount can only be received in Turkish Lira after three years over the annual interest to be applied to the deposit accounts. The issue in question brings with it the risk that the deposited amount of at least $500,000 or its equivalent in a foreign currency would remain well below its value after three years, despite the fact that the annual deposit interest will be applied to the Turkish Lira.

Is it an advantageous way to acquire citizenship with bank deposits?

Acquiring Turkish Citizenship by deposit is a way to get quick results if managed by a professional team. On the other hand, as explained above, the situation in which the foreign currency deposit in the bank account for citizenship is converted into Turkish Lira, and the inflationary environment in Turkey is evaluated together, there is a risk as the deposited amount would remain well below its value after three years despite the fact that the deposited amount is remunerated by the annual deposit interest rate as Turkish Lira.

When all these issues are evaluated together, a detailed evaluation should be made for the acquisition of Turkish Citizenship by Deposit, other citizenship acquisition ways should be examined and the process should be carried out by a professional team.