This has indeed been a hot topic of debate these past few weeks and everyone is talking about it. During September 2018 the Turkish government announced the price for citizenship for foreigners would be reduced from the current $1 million to just $250,000 for those who invested in a Turkish property. It was an amazing announcement, yes, it was expected to drop but not by that much and it’s taken the property world by surprise as Turkey is now the country to invest in. Now, Turkey holds the number one spot for offering the lowest amount for citizenship via buying property for just $250,000 and this will without doubt attract more nationalities to clamber to invest in Turkish property.
Please view the following information/criteria:
1. A minimum investment of $250,000 in real estate – it can be one property or more.
2. The property ideally will have the Tapu (Title Deeds) ready to transfer to the buyer or be close for transferral.
3. You will need to use a lawyer (by recommendation) when you apply for citizenship by investment.
4. A surveyor will be sent by the Government to value the property/properties and they will assess the money paid and what the Tapu (Title Deeds) state.
5. Your application will be accepted and they will place a charge on your Tapu (Title Deeds) so you cannot sell the property/properties for 3 years (this is the minimum time you must keep your property/properties for). At the end of 3 years the charge is removed and the property/properties are freed up and you can sell if you so wish.
6. The wholes application process can take from 3 – 6 months.
7. Citizenship is then given to you, your wife/husband and any children who are under the age of 18.
What sort of property should you buy?
It is recommended that you invest in fairly new or new builds where the value of the property/properties has been matched by the surveyor. If you decide you want to rent your property out for the 3 years term (as you are unable to sell it) choose areas with high rental potential. Istanbul makes a superb investment opportunity as you will receive a higher rental yield plus you are making a suitable investment in a city which is positively thriving. What is being seen across the board is investors wanting a new life in Turkey and buying two properties for $250,000 one to live in and one to rent out.
This announcement has been well received by the Turkish industry moguls and in particular the estate agents/real estate sector who have been pressing the government to make changes for some time. Turkey is once again garnering favour with a surge of new investors wanting to buy a second home or live full time in Turkey. British, European and Russians tend to buy on the Mediterranean or the Aegean coasts, mainly in the popular resorts. Investors from the Middle East opt for Istanbul and the North East coast of Turkey and prefer more sedate areas that culturally match with their own religious values.
Where is the best place to buy a property in Turkey?
Specifically, for this type of investment Istanbul without a doubt is recommended as the best place to invest for Turkish citizenship, it is currently a hot spot with investors flocking in their droves. What is hot now is branded hotel residences which offer a wide range of perks with a fantastic lifestyle that will lure wealthy clients and long-term tenants who will gladly pay inflated rental premiums. Due to the brand of these hotel residences and the fact that they are in the most sought after locations, the demand is extremely high for these ideal properties, meaning a high return on your investment and an added bonus of assured exit strategy when you’re ready to sell. If you so desire, you could also enjoy these benefits if you decide to move full time to Istanbul and indulge in this enriched lifestyle.
An example of this type of property in a brand hotel is a truly magnificent building in Kucukcekmece in Istanbul.
These wonderful luxurious homes are located just 9 kilometres from Ataturk Airport, 100 metres from the metro station, 1 kilometre from the TEM highway, 500 metres from “The Mall of Istanbul” and 24 kilometres from the centre of Istanbul, (Taksim).
This project has been designed by possibly the most famous French designer, Philippe Starck and they are situated within the highest tower in the basin Ekspres area.
This lifestyle complex consists of two grand towers, the first tower is a hotel and the second tower is a residence. In the hotel tower from 21st to 35th floors are also residential apartments, offering one and two bedroom options, ranging in size from 61 to 110 square metres. The project is built on 17,800 square metres of land, offering 721 units and 50% of this area is reserved for green areas and social facilities.
Indoor facilities include a wellness centre, sauna, gym, spa, hobby room, indoor swimming pool, children’s playroom, cinema and a garage for parking. Outdoor facilities, a large swimming pool, sports field, guest parking and there is 24-hour on-site security as well as a reception.
This project offers 7% rental income, and capital growth is expected to reach 10% annually. These luxury apartments have hotel facilities with built-in property management, which appeal to investors looking for a low maintenance and lucrative investment.
What are the advantages of investing for Turkish citizenship?
Mainly it is the legal right to work, you can vote and you don’t need to keep applying for your resident permit yearly or every two years. It not only saves you time, you save money too. If you wish you can contribute to the social security system which includes health and pension benefits. It goes without saying once you have Turkish citizenship; if you work you pay into this scheme automatically. You will not have to keep renewing visas, residency or work permits and one of the major benefits is Turkey allows dual citizenship so you can retain your own nationality which is something most prefer to do. Nevertheless, please check within your own home country if you need to apply for dual citizenship in advance with the necessary authorities.
Who benefits from Turkish citizenship?
Turkey will benefit from this lower property investment opportunity too, firstly it will increase property sales and in doing so will help the falling Lira. Investors will spend more than they initially wanted on a Turkish property, however they are seeing it is worth the extra investment to be granted citizenship for themselves and their family. Will there be a property boom? Time will tell but already enquires are up and the lure to buy a Turkish property is increasing. The economy in Turkey is both stable and growing and this gives the investor peace of mind and the incentive to buy there. There is another factor which will see employment rise within the building sector and real estate market and it can only be seen as a win, win for everybody.
Which is the safest option to apply for Turkish citizenship?
By far it is recommended to apply for citizenship via purchasing freehold property with existing title deeds. It is key ready property which is completed: a new build or resale properties. It is also important to remember that investors can buy several properties to make up the $250,000 minimum investment. If the property/properties already have the Tapu (Title Deeds) in place, the application is an easy process, as the government can place the 3 year restriction on the Tapu straightaway. Don’t forget this is the amount of time buyers are required to hold onto a property after obtaining citizenship.
What nationalities are investing in Turkish citizenship? Investors from most walks of life are investing including buyers from the UK, Europe, US, Canada, South Africa, Russia and the Middle East are amongst recent investors. For $250,000 you too can have Turkish citizenship which gives you future options for yourself and your family – think about it!