In recent years, residency of a country has become a tool to encourage foreign investment by Governments, to serve the labour and economic policies of their States.
1. The basic rules
Hence, the Republic of Turkey aims to attract investors by offering them citizenship. Investors can either qualify by purchasing a property of a minimum value of 250,000 USD or by investing 500,000 USD capital with four different options which have been explained in our article on Turkish Citizenship by Investment.
This short article will briefly explain the process of acquiring residency by property purchase -the so called Buying Property in Turkey and Residency- which is an additional option to the four methods described in the previous article. Not as simple as it seems, see details of investment.
A property purchase worth a minimum of 250,000 USD or equivalent foreign currency or Turkish lira with a title deed restriction on its resale for at least three years (attested by the Ministry of Environment and Urbanization) allows an application for Turkish citizenship.
However it is not possible to acquire Turkish residency by solely buying a property. Therefore, it would be of benefit to work with a lawyer throughout the procedure to ensure all legal requirements are met. It should be understood that various governmental bodies are engaged in this procedure, making it technically complex to undertake.
2. Difficulties to be aware of
Contrary to the information provided on many websites, it is not possible to buy a property anywhere in Turkey. Under the legal restrictions, persons with foreign nationality can acquire real estate in Turkey up to 30 hectares and up to 10% of any districts area, which may be the subject of private property ownership.
However, foreigners are forbidden to purchase and hold promises of sale of immovable property in military restricted and security zones. Another limitation that the law sets forth is that citizens of Syria, Armenia, Cuba, Israel, and Cyprus may not benefit from this provision.
In order to fulfil the 250.000 USD- requirement the law stipulates several valuation procedures. In other words, the valuation of the sales is not only determined by means of the title deed prepared by the Registry but also by means of real estate valuation (expert) report to be obtained from the valuation institutions approved by the Capital Markets Board.
One of the frequent questions asked by our clients is whether it is possible to apply for a Turkish residency for property purchases before this provision has entered into force. If the property purchase has been concluded between the dates 12.01.2017-18.09.2018, the value of the property purchased shall be at least 1,000,000 USD.
Another question we encounter is whether the law allows a property purchase by means of a credit loan. In case the property is acquired by means of a credit loan, the property will be bought with a mortgage by the Bank. Therefore in determining the value sought, the amount remaining after deducting the loan amount from the sales price should be at least the amount sought in the regulation.
A residence permit must also be obtained through the property purchase, covering the process of completing citizenship application procedures. In other words, after the property is bought, a residence permit must be obtained over the property. As explained within this mini-article citizenship by property purchase engages various governmental bodies and applications. It is at utmost importance to seek the assistance of an experienced lawyer in this field. For legal assistance with the acquirement of Turkish citizenship by property purchase please contact us by phone or using the form below.
[ This post "Buying Property in Turkey and Residency" (2/2) is an extension for "Turkish Citizenship by Investment" (1/2) ]