ACQUIRING TURKISH CITIZENSHIP BY PURCHASING REAL ESTATE 2 November 2022

ACQUIRING TURKISH CITIZENSHIP BY PURCHASING REAL ESTATE

What is citizenship acquisition through real estate acquisition?

Under the heading "Exceptional cases in the acquisition of Turkish citizenship" regulated by article 12 of the Turkish Citizenship Law, with Article 20 of the Regulation on the Implementation of the Turkish Citizenship Law, additional ways of acquiring Turkish citizenship have been introduced and one of them is the acquisition of citizenship through real estate acquisition. It means that people who fulfill the conditions determined by the legislation acquire citizenship if they buy an immovable that complies with the limits determined by the legislation.

Who can acquire citizenship by real estate acquisition?

Citizens of 183 countries, determined by the Cabinet Decision taken pursuant to Article 35 of the Land Registry Law as amended by Law No. 6302, have the right to own real estate in Turkey. In case of not being a citizen of one of the 183 countries in question, these people will not be able to choose the way of acquiring citizenship through real estate acquisition, since they cannot purchase real estate.

How do the process work in real estate acquisition and Turkish citizenship acquisition?

First of all, it is necessary to obtain a potential tax identification number for the foreigner who will buy the real estate. With the potential tax identification number obtained, an account will be opened in a bank operating in Turkey. After that, $400,000 worth of property or properties will be found and purchased. An application will be made for the acquisition of Turkish citizenship after an annotation is made in the notary public that the purchased real estate cannot be sold for 3 years.

Can the process of real estate acquisition and Turkish citizenship acquisition be carried out by proxy?

The process of real estate acquisition and citizenship can be carried out by appointed attorneys. However, 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.

What should be the value of the real estate to be purchased?

With the Regulation on the Amendment of the Regulation on the Implementation of the Turkish Citizenship Law No. 5554 dated 12 May 2022, the phrase that was $250,000 has been replaced with $400,000, so the value of the real estate or real estate to be purchased on or after 13.05.2022 must be $400,000 or more than $400,000.

Is it possible to apply for citizenship by purchasing more than one real estate?

More than one immovable can be purchased, the total price of which corresponds to a price specified in the Regulation on the Implementation of the Turkish Citizenship Law or above. Applications can be made for immovable properties purchased at different times. However, due to the constant changes in the Regulation on the Implementation of the Turkish Citizenship Law; The value of the immovable/immovables purchased between 12.01.2017-18.09.2018 is at least $ 1,000,000; The value of the immovable/immovables purchased on or after 19.09.2018 must be at least $250,000, and the value of the immovable/immovables purchased on or after 13.05.2022 must be $400,000.

Do the real estates to be purchased by people who want to acquire citizenship have to be residential?

People who want to benefit from this law can acquire not only residences but also real estates of different nature (field, shop, workplace, etc.). These acquisitions provide the right to apply for citizenship as long as the Republic of Turkey allows.

What legal restrictions exist on the acquisition of the real estate by foreigners?

• Foreign real persons will not be able to acquire real estate if they do not have the citizenship of 183 countries determined by the Cabinet Decision taken pursuant to Article 35 of the Land Registry Law as amended by Law No. 6302.
• A foreign natural person can acquire real estate up to a maximum of 30 hectares unless deemed appropriate by the Council of Ministers, pursuant to article 35 of the Land Registry Law.
• Pursuant to Article 9 of the Military Forbidden Zones and Security Zones Law, foreign natural persons cannot acquire or rent real estate in prohibited military zones or military security zones. These people can acquire and rent real estate in special security zones only with the permission of the governorship.
• Foreign real person, pursuant to Article 35 of the Land Registry Law, the total area of the real estate acquired by foreign real persons cannot exceed ten percent of the total provincial area where private ownership is allowed. If the ten percent limit is exceeded, foreigners will not be allowed to acquire real estate.

How to determine the value of the real estate to be purchased for citizenship acquisition?

Foreign real persons who want to acquire the right to Turkish citizenship by purchasing real estate in Turkey must first have professionally determined the current market value and other quantitative aspects of the real estate. In Turkey, this service is carried out by experts holding a Real Estate Appraisal License issued by the Capital Markets Licensing Registry and Training Agency, with the approval of valuation institutions authorized to serve by the CMB and BRSA.

An appraisal report must be prepared in order to determine the current market value of the real estate(s) to be purchased using correct analysis and standards. The valuation report will be obtained from the valuation companies published on the BRSA's website. The date of issue of the valuation report submitted during the acquisition application must be at most three months before the application date. The valuation report in question will be considered valid until the transaction is completed.

When can the purchased real estate be sold?

The property can be sold at any time. The three-year annotation does not constitute an obstacle to the sale. Although the sale of the real estate is possible, the situation is reported to the General Directorate of Population and Citizenship Affairs by the Land Registry Directorate. Thereupon, the situation regarding citizenship is re-evaluated and if the real estate is sold before the end of 3 years, the citizenship of the person who acquires citizenship is canceled. Even if the sale is made without obtaining citizenship, the application process ends.

Which exchange rate will be used to check whether the real estate value is equivalent to $400,000?

As mentioned above, the real estate sales price and the market value determined by the valuation report must be equal to or higher than the value of $400,000 sought in the regulation. In order to determine whether the total value is $400,000 or more, pursuant to the 6th paragraph of Article 20 of the Regulation on the Implementation of the Turkish Citizenship Law, the transaction will be based on the effective selling rate of the Central Bank of the Republic of Turkey and/or the cross-currency rate on the day of sale.

Is it an advantageous way to acquire citizenship through real estate acquisition?

Considering that real estate values are constantly increasing due to the current inflationary environment in the world, real estate acquisition and citizenship can also be considered as an investment. In the case of being a citizen of the countries included in the list of 183 countries determined by the Council of Ministers Decision taken pursuant to Article 35 of the Land Registry Law as amended by Law No. 6302, acquisition of citizenship by real estate acquisition seems to be a very reasonable way.

Considering that a mistake made during the application process may affect the whole process negatively and prevent citizenship acquisition, the most logical way is to work with an expert lawyer.