Introduction
The Regulation on the Implementation of the Law on Turkish Citizenship was amended by Presidential Decision No. 1061 (the "Amended Regulation").
The amendments include reductions and relaxations to applicable investment requirements to acquire Turkish citizenship and allow financial requirements to be satisfied in Turkish Lira and foreign currencies other than the dollar, which was not permitted previously.
Updated investment requirements
The new minimum investment requirements under the Amended Regulation are as follows:
- fixed capital investments of USD500,000 or its equivalent (previously USD2,000,000);
- acquisition of real estate of USD250,000 or its equivalent (previously USD 1,000,000), subject to a 3-year retention condition;
- providing employment to at least 50 employees (previously 100 employees) in the Republic of Turkey;
- cash deposits of USD500,000 or its equivalent (previously USD3,000,000) with Turkish banks, subject to a 3-year retention condition;
- acquisition of Government bonds of USD500,000 or its equivalent (previously USD 3,000,000), subject to a 3-year retention condition;
- investment in real estate trust and/or venture capital investment funds of USD500,000 or its equivalent (previously USD 1,500,000), subject to a 3-year retention condition.
A foreign national satisfying any of the applicable requirements will be eligible to acquire Turkish citizenship, subject to formal certification of the investments by relevant Governmental entities.
"Transitions" between investments
Further to the above, Article 20(8) of the Amended Regulation introduces further relaxations by noting that that individuals may "transition" between different types of eligible investments to satisfy any retention requirements.
While the drafting adopted by the Amended Regulation is not entirely clear, a sensible reading would be, for example, to understand that individuals who have invested in Government bonds as part of their citizenship applications can dispose of those Government bonds prior to the expiry of the 3-year retention period provided they invest a sufficient amount of the proceeds towards another eligible investment such as real estate.
Footnote
1. Published in the Official Gazette numbered 30540 and dated 19 September 2018.
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