Turkey Citizenship by Investment

Brand-new Turkish Economic Citizenship Program and aspects to consider for investing in Turkey

[UPDATE – January 2019: We’ve written a new article about why Turkey may be one of the most appealing Citizenship by Investment programs available and how to obtain Turkish citizenship]

Turkey Citizenship by Investment

Turkey may be one of the most fascinating countries in our world. Its location between continents has made it a constant crossroads of historical cultures, influences, and great civilizations. A confluence of East and West, just one thing that makes it special. But today I do not write to debate on the multicultural influences inherited by the Turkish society, nor on how to cook a kebab. The subject that today occupies us is how to get Turkey Citizenship by Investment.

The amendment of the Citizenship Act of Turkey was published in the TC Resmi Gazette (Official Gazette of Turkey) on 12th January. The new regulation will allow the acquisition of Turkey citizenship by investment. I will talk about it and discuss a few aspects to consider whether to apply for citizenship, residence, visas, and some keys factors to bear in mind to invest or do business in Turkey.

Turkey Citizenship by investment

(Updated October 2018 – Investment requirements have been lowered)

On January 12th, 2017 was published in the T.C. Resmi Gazette (Official Gazette of Turkey), the Regulation for the Amendment of the Regulation on the Application of the Citizenship Act of Turkey. This amendment releases an Economic Citizenship program, that allows the acquisition of Turkey citizenship by investment. Its main objective is to stimulate the Real estate market, with a current oversupply, receive foreign currencies and create jobs. There are five types of investment:

  • Investment of fixed capital of at least USD 500,000 confirmed by the Ministry of Economy.
  • Acquisition of a real estate for a minimum value of USD 250,000, including an annotation in the cadastral records of a commitment to not sell the property within three years from the date of purchase, confirmed by the Ministry of Environment and Urbanism.
  • A foreigner who, through his business, has generated employment for at least 50 Turkish people, confirmed by the Ministry of Labor and Social Security
  • A foreigner who holds a bank deposit of at least USD 500,000 for three years, supervised by the Banking Regulation and Supervision Agency (BDDK).
  • A foreigner who invests in Treasury bonds or any type of government loan instruments worth USD 500,000 and maintains them for three years, under the supervision of the Undersecretariat of the Treasury.

The applicable exchange rate shall be that established by the Central Bank of Turkey (CBTR) at the time of the transaction. The current price of the Turkish Lira, with significant depreciation against the dollar in the last seven months, from USD 1 = TRY 2.90 (07/01/2016) to USD 1 = TRY 3.87 (31/01 / 2017), may be an added investing attraction.

It is important to note that Turkey allows dual citizenship.

The Council of Ministers is the competent authority in charge of deciding the granting of citizenship to a foreigner, therefore, even if the aforementioned requirements have been fulfilled, they reserve the right of approval.

Obtain Turkey Passport by Residence

If you look favorably on obtaining Turkish citizenship, but do not enter into your plans or simply cannot afford an investment with the required amounts, it is possible to obtain the Turkish passport by residence, besides other means:

  • Turkish Citizenship by residence: 5 years of continuous residence. Leaving a maximum of 6 months. Owner of a real estate asset or having established a business or made an investment or for work, or spouse of a Turkish national or any other family ties, or completed university education in Turkey. Other requirements include: medical report as being free of communicable diseases, reports of good behavior, average knowledge of the Turkish language, proof of sufficient resources to maintain, do not pose a threat to national security or order, deprive of their nationality if their country of origin does not admit dual citizenship and have no criminal record or any open administrative cause especially in tax matters.
  • Turkish Citizenship by Special Government Decree: The Council of Ministers and the Executive Government have the power to grant Turkish nationality to any foreigner, in case they believe that it would be a great service for the country in fields such as science, technology, economic, social, sports, culture or arts. A specialized committee will study the application submitted and if they deem appropriate and in compliance with certain required terms, they will send to the Council of Ministers the request for their approval.

Other forms of citizenship acquisition include marriage (with a minimum of 3 years and subject to investigation by the authorities) and for minors adopted by Turkish citizens.

Get Residence Permit in Turkey

To apply for Turkish citizenship by residency it is necessary to have a permit for at least 5 years. Then, I expose the six types of permits contemplated in the Turkish Law on Foreigners and International Protection No. 6458.

  • Short-term Residence Permit: 2 years maximum, renewable. For any foreign citizen who establishes a business or business relationship, work (requires the subsequent application for work permit), carries out scientific research or owns real estate or investment. Also for education and tourism, among other purposes.
  • Family Residence Permit: 3 years maximum, renewable. For any foreign citizen with Turkish spouse, or foreign children of a Turkish.
  • Student Residence Permit: 1 year maximum, renewable. For foreign students of primary or secondary or students of high education.
  • Long-term Residence Permit: Indefinite. Foreigners legally resident in Turkey for 8 consecutive years (on student permits computes half of their duration). Required to show sufficient income to support themselves and their family, have not received social assistance in the last three years, have medical insurance and are not a threat to security and public order. Long-term residences will also be issued to refugees. The permit will be denied to those who have been for more than a continuous year outside Turkish territory during their residence.
  • Other residence permits include humanitarian and those of victims of human trafficking.

How much does the Residence Permit in Turkey cost?

The residence in Turkey requires the payment of a monthly fee that varies depending on the citizenship of the interested party. Between USD 5-25 for the first month and USD 0.5-5 for the following months. Fee for the residence approval is TRY 205.30 (≈USD 50).

What is the cost of living in Turkey?

Currently, with the Lira on the bottom, Turkey is considerably much cheaper than largest EU countries. You can read this article to have an idea of how much you need to live in Turkey.

Turkey Visa Requirements

Visa policy in Turkey is considerably flexible. Although at the outset any foreigner wishing to enter Turkey for the purpose of tourism or business must apply for a visa, there are a large number of exemptions. In more than 40 countries there is the eVisa available.

There are certain Turkey foreign-nationals that are exempt from visas and are allowed a stay of 90 days in 180 days, if no other duration is specified, in Turkey for tourism or commercial reasons:

Andorra, Argentina, Azerbaijan (30 days), Belarus (30 days), Belize, Bolivia, Bosnia and Herzegovina, Brazil, Brunei, Bulgaria, Chile, Colombia, Costa Rica (30 days), Czech Republic, Denmark, Ecuador, El Salvador, Finland, France*, Georgia*, Germany*, Greece*, Guatemala, Honduras, Hong Kong, Hungary, Iceland, Iran, Israel, Italy*, Japan, Kazakhstan (30 days), Latvia (30 days), Liechtenstein*, Lithuania, Luxembourg*, Macedonia, Malaysia, Monaco, Mongolia (30 days), Montenegro, Morocco, Moldova, New Zealand, Nicaragua, Panama, Paraguay, Peru, Russia (60 days), Saint Kitts and Nevis, San Marino, Seychelles, Singapore, South Korea, Sweden, Switzerland*, Tajikistan (30 days), Thailand (30 days), Trinidad and Tobago, Tunisia, Ukraine, Uruguay, Vatican City, Venezuela.

* Nationals of these countries may enter the country with an ID Card instead of the passport.

Exempt from visa only for tourism reasons (90 days in 180 days):

Albania, Jordan, Kosovo, Kyrgyzstan, Lebanon, Qatar, Romania, Serbia, Slovakia, Slovenia

Nationals from the following countries will be able to obtain multiple e-Visa online entries that will allow them a stay of 90 days in 180 days if no other duration is specified:

Antigua and Barbuda, Armenia (30 days), Australia, Austria, Bahamas, Bahrain, Barbados, Belgium*, Canada, China (30 days), Croatia, Dominica, Dominican Republic, Cyprus Greek Cypriot Administration, East Timor (30 days), Fiji (30 days), Grenada, Haiti, United Kingdom Hong Kong, Indonesia (30 days), Ireland, Jamaica, Kuwait, Maldives, Malta*, Mauritius (30 days), Mexico (30 days), Netherlands*, Norway, Oman, Poland, Portugal*, Saint Lucia, Saint Vincent and the Grenadines, Saudi Arabia, South Africa, Spain*, Suriname (30 days), Taiwan (30 days), United Arab Emirates, United Kingdom, United States.

* Nationals of these countries may enter the country with an ID Card instead of the passport.

Under certain conditions, citizens of certain countries not listed above may apply for the eVisa, such as holders of Schengen, U.S., U.K. or Ireland visas, fly with national Turkish companies as Turkish Airlines and have a hotel reservation.

How much does Turkey Visa cost?

Visa fees vary depending on the nationality of the applicant, and whether the application has been made online, at embassies or consulates or at the airport upon arrival. The most affordable is USD 15 and USD 80 the most expensive.

Turkey Passport Visa-Free countries

According to the 2016 Visa Restrictions Index of Henley & Partners, a global ranking of countries drawn from the freedom of travel enjoyed by its citizens, the Turkish passport ranks 51st of 104. Turkish citizens have access without a visa or visa upon arrival in more than 102 countries and territories, including most countries in Latin America and Southeast Asia. The European countries, U.S., Canada, Russia, China, and India require the issuance of a visa prior to arrival in the country.

Turkish Passport Visa-Free/Visa on arrival/eVisa Map:

Turkish Passport Visa-Free Visa on arrival eVisa Map
Take a look at passports.io/turkey for further information.

Invest in Turkey

After having discussed the options for getting Turkish citizenship either by investment or residence, we must assess whether it is really a good idea carry out an investment or establish a business.

Turkey political and economic situation

2016 has been a particularly convulsive year for Turkey. Terrorist attacks, the failed July coup, state of emergency and the subsequent confiscation of more than USD 10m in assets of companies considered to be unfair. In addition to a collapse of foreign investment, historical lows of the Turkish Lira, a public debt rated as Junk Bond by several international agencies and the recent questioning of its trade relationship with the EU. Turkey does not seem to be the Eden’s Garden of prosperity.

A country plunged into political instability, with a referendum scheduled this spring to give more power to the president, an economy that in the third quarter of 2016 entered a recession, security, internal conflicts with ethnic minorities and their proximity to conflict zones. But, there are optimistic voices that continue to trust the country’s great economic potential. It was one of the fastest recovering economies after the global financial crisis, and despite the political turmoil, FocusEconomics forecasted last January 10th,  that the Turkish economy will grow at a rate of 2.7% per annum in 2017 and 3.1% in 2018.

Investment Opportunities in Turkey

One of the quick ways to get the citizenship is to establish a business that employs more than 100 Turks or invest in fixed capital. In addition, by citizenship by residence, establish a business and meet the above requirements, will allow us to obtain the Turkish passport in 5 years. Now, the million-dollar question is, what opportunities does the country offer us to start our business project. Keep reading.

Despite the collapse last year, Turkey has been in recent times one of the main recipients of foreign direct investment of all East Asian countries, surpassing UAE in 2015. An evidence of the potential of its economy. Its internal market is more than 70 million people, with a growing consumer middle class, public investment plans, developed infrastructures. It is a gateway and distribution hub to the European market, Middle East, Central Asia, and North Africa. It has signed free trade agreements with EFTA and with 32 other countries. The picture starts to look better.

The industry is one of the sectors with the most investment opportunities, being one of the most competitive European countries in the manufacturing, textile and agri-food sectors. Automotive is another of its key sectors, especially in the vehicle materials supply market. Other important developing sectors are energy, construction, telecommunications, the chemical industry, and health. In addition, it presents important opportunities in the mineral sector, its richness in natural resources such as boron, coal, iron, chromium, copper or silver, which are still underutilized.

Turkey tourism sector was one of those with great opportunities, but by 2016 it fell by around 30% compared to 2015, due to the perception of insecurity (terrorism, political instability) by foreigners. In the current climate of uncertainty, the next events will mark the sector’s medium-term future.

As discussed earlier, thanks to its strategic position, it also offers good opportunities in the logistics, transportation and insurance sectors.

The Turkish workforce is formed and flexible at a relatively low cost compared to most European Union countries. The average gross monthly salary in January 2016 was TRY 4,020 (≈USD 1,000). The current gross minimum wage Is TRY 1,777 (≈USD 460).

Invest in Real Estate in Turkey

Turkey real estate sector has been largely responsible for the economic growth of the country in the last five years, as well as being the prime sector of foreign direct investment. In 2012, the law was changed, allowing foreigners to buy properties based on reciprocity. After three years, the number of homes was increased by 4 million. In 2015 alone, more than 22,000 houses were sold to non-Turks with a value of almost USD 4M (at the exchange rate of early 2016), is one of the best real estate markets performance of the world. The price increase a 26% (not adjusted to inflation) in Istanbul and 12% (not adjusted to inflation) in Ankara.

In the first two quarters of 2016, price increases slowed. The average growth was 13.98% (4.76% inflation-adjusted), due to political and economic uncertainty in the country and the foreign direct investment collapse. In order to overcome it, the Government has launched programs to attract foreign capital, such as economic citizenship, which, along with the low value of the Turkish lira, can encourage foreign investment.

Currently, the average square meter price in Turkey is approximately TRY 13,000 (≈USD 3,200). The average gross rental yield is 3.79%, one of the lowest in Europe, proof that the price increase is not has been offset by an increase in the rental price.

Savings & Capital Markets in Turkey

The market value of the top 20 companies traded in Borsa Istanbul (BIST), Turkey’s stock market, shot up almost TL 42.6b in 2016 against all odds. At December 30, 2016, the total market value of the companies was TL 616b, TL 61b more than just the previous year. The coup, the Brexit, the US presidential elections, and the Fed policy led to fluctuations and uncertainty in the market. Following the coup attempt, the market fell by a week in almost TL 78b, but it rebounded quickly against all odds.

Currently, S&P rates Turkey Bond at BB with a negative outlook, while, Fitch rates it at BB + with a negative outlook. In the second half of 2016, the 10-year Turkey Bond Interest rate shot up, with an annual low of less than 9% from July 2016 to 11.8% at the beginning of 2017. As of January 31, 2017, interest on the 10-year Treasury Bond was at 10.69%.

Turkey Interest rates applied to bank deposits are relatively high. Depending on the bank, currency, and amounts invested, yield returns range from 4.50% to 9.90% for both short and long-term deposits.

Set up a company in Turkey

In Turkey, a foreigner can own a Turkish company in its entirety. The LLC (Limited Liability Company) is the most common for small and medium-sized companies and JSC (Joint Stock Company) for large corporations.

  • Limited Liability Company: the most common among foreign investors for the ease and simplicity of the incorporation process. Administered by a Board of Directors, it requires at least one shareholder and a minimum capital of TRY 10,000 (≈USD 2,600).
  • Join-Stock Company: Large corporations, managed by a board of directors and supervisory board. The minimum capital required is TRY 50,000 (≈USD 13,000).

Other options available are the Collective Company or Commandite Company, which do not require minimum capital, or the establishment of a branch, the easiest, quickest and least expensive way to incorporate.

The process of registering an LLC, the most common business form in Turkey, usually takes about 7 days on average. The minimum paid-in capital required is TRY 2,500 (≈ USD 650). Costs will vary depending on the size of the company but would be around TRY 4,000 (≈ USD 1,000).

Taxes in Turkey

Corporate Income Tax

Tax law states that is subject to Turkey Corporate Income tax; the worldwide income of resident entities (those whose head office is in Turkey or the central business office is in Turkey) and  Income from activities in Turkey of non-resident companies. The current rate is 20%.

Distribution of dividends between resident companies is tax exempted. Dividends received from a non-resident entity are considered business income and subject to Corporate Income Tax. However, a participation exemption may apply, if payer is a corporation or an LLC, shareholder has owned at least 10% of the paid-in capital of the distributor for at least 1 year, the profits were subject to a foreign income tax of at least 15% (20% may apply for financial services) and the dividends are remitted to Turkey by the date the corporate tax return is due. 

Dividends and Capital Gains received by an International Holding Corporation may be tax exempted, as long as 75% of its assets are foreign participation held for at least 1 year (2 years for capital gains), holds at least 10% of each foreign entity, and those subsidiaries are corporations or LLCs.

Capital Gains are usually treated as ordinary income and taxed at corporate income tax rates. There may be a 75% exemption on capital gains from the disposal of domestic participation if it has been held for at least two years, the gains are kept in a special fund account under shareholders’ equity for the next five years after the sale, among other requirements.

Regarding withholding taxes, payments to non-residents are taxed at standard rates of 15% on dividends, 10% on interests, 20% on royalties, 20% service fees and 15% on branch profits remittance. You can check here the tax treaties signed by Turkey that may reduce or eliminate withholding taxes.

Turkey has enacted thin capitalization, transfer pricing and controlled foreign companies (CFC) rules.

Personal Income Tax

The law defines as a Turkey tax resident, any person who has his domicile in Turkey, or lives in Turkey more than six months per year (there are certain exemptions). The worldwide income of a resident person will be subject to Turkey personal income tax. Non-residents are only required to pay a tax on their income derived from Turkish source.

Capital gains derived from the sale of real estate, held for more than 5 years, are exempt from income tax.

In Turkey, applies a progressive personal income tax:

Income from employment

Annual Income (TRY) Tax Rate (%)
1 – 12,000 (≈USD 0.25 – 3,100) 15
12,001 – 30,000 (≈USD 3,100 – 7,750) 20
30,001 – 110,000 (≈USD 7,750 – 28,400) 27
110,0001 – over (≈USD 28,400 – over) 35

Other Income

Annual Income (TRY) Tax Rate (%)
1 – 12,000 (≈USD 0.25 – 3,100) 15
12,001 – 30,000 (≈USD 3,100 – 7,750) 20
30,001 – 69,000 (≈USD 7,750 – 17,830) 27
69,001 – over (≈USD 17,830 – over) 35

Tax Treaties

Turkey has signed tax treaties with a large amount of jurisdictions. Check incorporations.io/turkey for further information.

Other taxes

Social Security Contributions
The employer and employee contribution to social security is 20% and 14%, respectively.

Turkey Property Taxes
There is a municipal tax on real estate, which varies depending on the type of property: residential premises and land 0.1%, buildings 0.2%, land for construction 0.3%. There is a real estate transfer tax of 4% of the transfer value.

Value-added Tax
The general rate of Turkey VAT is 18%, there is a reduced rate of 8% and a super reduced rate of 1% for certain basic products.



In terms of mobility, the Turkish passport has visa-free access to South America, Russia, Southeast Asia and certain Middle-East countries, which can be somewhat valuable. But is clearly behind other second passports through an investment of its neighbors Bulgaria or Cyprus, or the Caribbean countries, with visa-free access through all Schengen area. Although Turkey is considered an EU candidate and qualified to join the Union, recent political events are not going in this direction, and I personally have my doubts that it will occur in short/medium-term.

However, despite the considerably amounts to invest, unlike other citizenship by investment programs through donations or lost funds, for those looking a fast-track passport, especially for Middle-eastern, it may be more attractive and profitable than others. Considering the currently high yields for both deposits and government bonds or certain investments in real estate, with the lira at historic lows, may be an interesting medium/long-term option. For those willing to do business in Turkey, despite the political-economic uncertainty, the country has interesting investment opportunities, and a 2nd passport may be an added incentive, whether acquiring capital fixed assets or employing at least 100 nationals.

Contact us or check how we can help you to create and execute your internationalization action plan to diversify and secure yourself, your business and your finances. 


How to get Turkey Citizenship-by-investment?
There are several ways: Investment of USD 2M in Fixed Capital Assets, buy real state of at least USD 1M, run a business creating 100 jobs, make a bank deposit of USD 3M or investor invest USD 3M in treasury bonds.

How to obtain Turkey Citizenship by Residence?
Yes, marrying a Turkish or holding a residence permit for 5 years. There is also a fast path to get turkey passport through a government decree.

Does Turkey allow dual citizenship?
Absolutely Yes.

How to apply for an indefinite residence permit in Turkey?
Once you have held a residence permit for 8 years, under certain requirements you can apply for an indefinite residence permit.

What Visa do I need for travel to Turkey?
You will probably don’t need any Visa or just apply for an eVisa, Turkey has an open visa policy, facilitating the entry of citizens of more than 100 countries.

Which countries can I travel with Turkey passport?
Turkish citizens can travel to more than 100 countries without a visa, with visa on arrival or eVisa, but most economic powers as the EU, US, Canada, India, Russia or China requires the issuance of a visa.

Why should I invest in Turkey (or not)?
Although Turkey is going through a delicate political, socioeconomic and security situation, it has great economic potential with very promising developing sectors and trade agreements with EFTA and 32 other countries.

Which are the investment opportunities in Turkey?
Manufactures, textile, agri-food, automotive, energy, construction, chemical, health, telecommunications, mineral extraction, logistics, transportation, and insurance.

Should I invest in Real Estate?
Well, there is currently a housing bubble in Turkey, especially in Istanbul, prices are rising at a dizzying speed. It may be a good business opportunity, but always considering a bubble puncture risk and the Turkish Lira’s fluctuation, to properly evaluate the best type of property investment project and its deadlines.

Should I deposit my savings in Turkey?
Interest rates are high, both for bank deposits and Government Bonds, although these have a very bad rating, it seems improbable a bankruptcy of the government, political situation and the behavior of the real estate market and how it will affect to bank stability, will be key events that will shed more light on the subject.

How do I set up a company in Turkey?
The set-up process should not be complicated, lasts an average of 7 days, and the minimum capital required is relatively low.

How much set up a company costs in Turkey?
Rates depend on several factors but are around USD 1,000.

Is Turkey a high-tax country?
Depends on what you compare it with, taxes in Turkey are lower than most EU-15 countries, but we can find more relaxed tax regimes nearby. Corporate Income is subject to a flat tax rate of 20% and Personal Income is subject to a progressive tax rate that ranges between 15-35%. 

Have any other question? Are you planning to immigrate and/or incorporate in Turkey? Feel free to contact us.

This article should not be construed as legal, tax or investment advice. Flag Theory has access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances.  Contact us for further information.

NOTICE:The contents of this article are not to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc does not hold itself out as a legal or tax advisor. If you wish to receive a legal opinion or tax advice on the matter(s) in this article please contact our offices and we will refer you to an appropriate legal practitioner. Use of our website FlagTheory.com is subject to our terms and conditions.

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