Turkish Citizenship for Only 250.000 USD Real Estate Investment
A historical decision for investors in Turkey
Turkish Official Gazette published on Wednesday the decision
to amend the executive regulations on the application of the
Nationality Law, in several ways.
The amendment's decision included conditions for which any
person who fulfills any of them will be entitled to apply for Turkish
citizenship. The conditions are as follows:
- Buying
a property worth 250 thousand US dollars at least instead of one million
dollars in the previous
decision and not sell it for three years.
- Fixed
investment of not less than 500 thousand US dollars.
- Providing
job opportunities for at least 50 Turkish citizens instead of 100
citizens.
- Reducing
the deposit requirement in Turkish banks from 3 million US dollars to 500
thousand US dollars.
Information on the previous law to grant real estate
citizenship
The Turkish government announced last year a law that allows
foreign investors to apply for Turkish citizenship with different terms.
The law granting Turkish citizenship to foreign investors in
return for buying a property in Turkey was issued last year and was published
in the Official Gazette on 12 January 2017.
Turkey relies heavily on the real estate sector as one of
the most important pillars of economic growth, which is linked to dozens of
sectors directly or indirectly, and the government supports this sector to the
maximum extent possible.
Turkey encourages investment in the real estate sector and
offers many advantages and facilities to those who invest or buy real estate in
Turkey after the property market has experienced considerable growth,
especially following the change in the Foreign Ownership Act of 2012, which
allowed foreigners to own property.
The law issued in this regard, which gives the right to
obtain Turkish citizenship in return for buying a property is the most
important advantages that show the great importance attached by Turkey to the
real estate sector.
Tidings on the real estate citizenship law amendment in
Turkey
There were reports last March that the Turkish government
was preparing a study on the possibility of expanding the scope of
beneficiaries of the citizenship application to investors to include a
buyer of a property worth 300 thousand US dollars instead of one
million dollars, While the decision was issued today to be a good news for
investors and those wishing to own real estate in Turkey starting
from 250 thousand US dollars only, In return, he gets the dream
house in Turkey and the nationality of this country.
Special offices to receive applications for Turkish citizenship
According to the new amendments, which came into effect and published in the official gazette, every foreigner who meets the required conditions can apply for Turkish citizenship.
A committee of representatives from the Ministries of Interior, Treasury, Finance, Environment, Urban Development, Labor, Social and Family Services, Industry and Technology will be formed later to monitor and follow up on applicants for Turkish citizenship.
In addition, special offices will be opened to receive applications for Turkish citizenship and conduct their affairs. These offices will be subject to the supervision of the committee of these ministries.
Special offices to receive applications for Turkish citizenship
According to the new amendments, which came into effect and published in the official gazette, every foreigner who meets the required conditions can apply for Turkish citizenship.
A committee of representatives from the Ministries of Interior, Treasury, Finance, Environment, Urban Development, Labor, Social and Family Services, Industry and Technology will be formed later to monitor and follow up on applicants for Turkish citizenship.
In addition, special offices will be opened to receive applications for Turkish citizenship and conduct their affairs. These offices will be subject to the supervision of the committee of these ministries.
After seeing a decline in 2016, housing sales to foreigners
in Turkey recorded a 22.2 percent increase, reaching 22,234 and generating $4.6
billion in 2017, the value of house sales
to foreigners in 2017 was recorded at $4.6 billion, registering a 19.4 percent
increase compared to the previous year, according to a report, titled
"Current Sectorial Development." Prepared by Turkey's İş Bank, the
report revealed that house purchases by
foreigners in 2017 saw increases each month as the interest of foreign citizens
in the Turkish real
estate sector grows. According to the report, the number of houses
sold to foreigners in 2017 saw a 22.2 increase compared to 2016 and reached
22,234. On a city-by-city basis, Istanbul led
the way with 8,183 houses in 2017 and Turkey's largest metropolis was followed
by the resort city of Antalya.
The third city, which saw the highest number of housing
sales to foreigners, was the southern Marmara city of Bursa with 1,474 units and another
Marmara city Yalova came
fourth with 1,079 housing units. Located on the Black
Sea coast, Trabzon ranked
fifth with 978 sales to foreigners. The Aegean city Aydın, the capital Ankara
and industrial city Sakarya followed
suit with 826,817 and 770 housing sales to foreigners in 2017, respectively. In
another holiday resort Muğla, which harbors the world-renown Bodrum, a total of
634 houses were sold to foreigners last year and Mersin saw foreigners’
purchases 600 housing units in 2017.
Looking at the annual distribution of housing sales, figures
show the increase continued from 2013 to 2015 but saw a decline in
2016.
In 2013, a total of 12,181 houses sold to foreigners and the
number increased to 18,959 in 2014. The year 2015 saw the highest number of
housing sales to foreigners with 22,830. In 2016, however, the housing sales to
foreigners dropped to 18,189.
On a national basis, Iraqis who bought 3,805 houses in
Turkey last year led the way in housing sales to foreigners in the country. The
data revealed that Saudis ranked second with 3,345 housing
purchases and they are followed by Kuwaitis who purchased 1,691 houses last
year. Russians came fourth on the list with 1,331 houses and Afghans who
purchased 1,078 houses came fifth.
Azeri citizens and British citizens bought 942 and 794
houses in Turkey last year, respectively. German citizens followed them with
772 housing units and Iranians were recorded to have purchased 792 houses in
the country last year.
Faruk Akbal, chairman of Nevita International, which was
established by Fuzul Group for real
estate sales to foreigners, said the increase in house sales to foreigners
will continue in 2018 as well.
According to a report by İş Bank, the figure foreigners paid
for houses in Turkey last year soared by 19.4 percent to $4.6 billion.
"The citizenship incentive
by the government as well as the value-added-tax
[VAT]
exemption had an impact on the revenue increase of 20 percent we
experienced last year. However, the important thing is that Turkey is
increasingly becoming a shining center between Europe and Asia. Those who
projected this are maintaining their investments despite all the adverse
economic conditions," said Akbal.
Akbal also emphasized that while they had a turnover of TL
6.5 million ($1.7 million) in 2014, they increased this figure to TL 34 million
last year. In 2017, Akbal added, they aimed to carry out sales of TL 120
million, but they actually made sales of TL 150 million. He also said
they sell
a house for TL 650,000 on average.
In 2017, foreigners acquired 4,000 houses more than they did
the previous year.
"This is the potential I am talking about. Despite all
the negativity around us, the interest of foreigners in Turkey is gradually
increasing," he said.
Recalling that 12,000 houses were sold in 2013 when the
reciprocity law was enacted, Akbal said the number has almost doubled following
this law.
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