Turkish citizenship by fixed capital investment. Turkish Citizenship and making fixed capital investments are the topics, that many of you are currently interested in. Today, I'd want to explain how to obtain Turkish citizenship quickly for investment purposes, as well as how to obtain a Turkish passport based on an investment in fixed capital through a government program. I suppose you will agree with me that acquiring citizenship abroad is typically a challenging process that ought to be done correctly and without flaw.

It is possible for people determined by the Ministry of Industry and Technology to have a fixed capital investment of at least 500,000 USD or equivalent foreign currency, to acquire Turkish citizenship by fixed capital investment.

The Ministry of Industry and Technology has determined the details of the investment be made. Accordingly, it may be possible to make a fixed capital investment by purchasing a non-public company completely or by becoming a shareholder of the company at a certain rate. In any case, the amount corresponding to the partnership share purchased by the foreign investor must be at least USD 500,000 or equivalent in foreign currency.

Real estate and vehicles that are not directly related to the field of activity are not included in the calculation of the fixed investment amount.

People who are entitled to obtain citizenship by making a fixed capital investment cannot transfer their shares in the company to another person for at least three years following the issuance of a certificate of conformity.

Such that, a certificate of conformity is given by the institution responsible for supervising this investment to the people who make the investments, which we will discuss in detail below. Obtaining the certificate of eligibility is the first step in making a citizenship application. Seven different investment types are foreseen in the regulation, and the scope and amounts of these investments are determined by the President.

The first condition of acquiring Turkish citizenship by fixed capital investment is realizing the investments specified in the regulation and obtaining a certificate of conformity from the relevant institutions.

The principles regarding the acquisition of Turkish citizenship by fixed capital investment are regulated in Turkish Citizenship Law No. 5901. In accordance with this law, it is possible to acquire Turkish citizenship after certain conditions are met. One of the situations in which Turkish citizenship can be acquired later is the investment specified in Article 20 of the Regulation on the Implementation of the Turkish Citizenship Law. Accordingly, foreigners who make the investments determined in the regulation may acquire Turkish citizenship by the decision of the President.

However, it should be emphasized that the realization of investments does not directly mean that citizenship will be acquired. Because the administration has discretionary power in acquiring citizenship and the requests of people who are in a state to pose an obstacle in terms of national security and public order may be rejected by the administration.

The administration has discretion in obtaining citizenship, and applications from people located in states that pose a threat to national security or public order may be refused by the administration.

Turkish Citizenship by Fixed Capital Investment Program

Fixed capital investment must include investment aspects such as buildings, land, equipment, and machinery used in the production of services and commodities. The cost of buying real estate does not give you the right to apply for citizenship in this context, but the cost of buying real estate is counted as part of your investment.

If a foreign investor seeking Turkish citizenship by fixed capital investment owns a non-public business in its whole or becomes a partner in the firm, the sum equal to the share acquired must be at least USD 500,000 or its equivalent in another foreign currency or Turkish lira. In this situation, the applicant may additionally be required to provide a company valuation study received from approved institutions linked to the partner's or acquired firm's market worth assessment.

Applications for Turkish citizenship submitted on or after January 12, 2017, will be evaluated for fixed capital investment, taking into account expenditures going back three years.

The idea of additional investment takes into consideration the increase in the amount of investment and the participation of foreigners in the company at the time of additional investment. In other words, if the foreign investor is a partner of a company holding a certain number of shares, the share ratio corresponding to the partnership shares is multiplied by the additional investment amount. The final amount must be at least US$500,000 or its equivalent in another foreign currency or Turkish Lira. For at least three years, a foreigner or citizen cannot transfer shares in the company to another legal or natural person through capital investment.

About the Turkish Citizenship Program

The Turkish citizenship-by-investment scheme is one of the most adaptable in the world. The path to obtaining citizenship includes low-cost investment alternatives for the entire family, as well as a streamlined and simple application procedure. Key benefits include;

Visa-free travel to 110 countries worldwide.
Eligibility for a five-year renewable E-2 Investor Visa in the United States.

Citizenship can be obtained within six months of applying. The investment holding period is three years. You can withdraw from your investment after three years. Turkish citizenship facilitates migration to the United Kingdom and the United States through the different visa categories accessible to Turkish people.

There is no need to declare foreign assets or income, nor is there an annual residence requirement.

The Procedures and Principles for Turkish Citizenship by Fixed Capital Investment

The Ministry of Industry and Technology established the following processes and rules for making a fixed capital investment in a Turkish corporate entity of at least USD 500,000 or similar foreign currency or an equivalent amount of Turkish Lira:

Assets used to generate products and services, such as land, buildings, machinery, and equipment, must be included in a fixed capital investment. Although just owning real estate does not offer the opportunity to apply for Turkish citizenship by making a fixed capital commitment, real estate acquisition expenses are considered part of the investment.

If a foreign investor purchases all of the shares in a non-public business or becomes a shareholder at a specified ratio, the sum corresponding to the acquired share must be at least USD 500,000 or comparable foreign money or equivalent Turkish Lira. In such instances, the applicant may be asked to provide a valuation study prepared by the competent authorities to assess the market worth of the company's acquired shares.

If new fixed capital investment is made in an existing investment, the increase in fixed capital investment as of the date of extra investment, as well as the proportion of foreign investors in the firm, must be considered. In other words, if a foreign investor becomes a shareholder in an investor company at a certain ratio, the amount resulting from multiplying the foreign investor's share ratio by the total additional investment amount must be at least USD 500,000 or equivalent foreign currency or equivalent Turkish Lira.

Fixed capital investments made before January 12, 2017, are ineligible for foreign investors to petition for Turkish citizenship.

Maximum three (3)-year expenditures will be incorporated retrospectively in the computation of fixed capital expenditures for future applications submitted after January 12, 2017.

Foreign investors who qualify for citizenship through a fixed capital investment must not sell their shares to another legal entity or legal organisation for at least three (3) years.

Required Documents for Turkish Citizenship by Fixed Capital Investment

The Investment Information Form is the most significant document for Turkish citizenship via fixed capital investment. This form includes details on the firm that received the investment, the investment's topic that was converted to company stock, and the investor's portion of the capital investment.

A valid passport and a certified translation into Turkish
Four (4) biometric photos the size of a passport
Copy of the residency permit on both sides
Special purpose report with YMM's (Certified Public Accountant) clearance demonstrating that at least 500,000 USD, or its equivalent in another foreign currency or Turkish lira, has been invested as capital investment
If the application's fixed capital investment was made through a legal company, the Turkish Trade Registry Gazette entry will reveal the shareholding structure and capital amount of that legal organization.

Form and Content of Fixed Capital Investment to be Made

The foreign investor's planned fixed capital investments should include things like land, buildings, machinery, and equipment used in the manufacturing of goods and services. This investment may take the shape of a new, greenfield investment or it may be made by purchasing shares of an existing business (Mergers and Acquisitions - M&A).

The amount corresponding to the share of the partnership purchased by the foreign investor must be at least 500.000 USD or equivalent in foreign currency or equivalent in Turkish Lira in the event that the foreign investor purchases a company that is completely closed to the public or becomes a shareholder. In these situations, the approved institutions may be contacted for a company valuation report addressing the assessment of the market worth of the business acquired from the applicant.

If an existing investment receives additional fixed capital investment, both the increased amount of fixed capital investment and the foreign investor's partnership portion in the firm will be taken into account.

In other words, the amount that results from multiplying the partnership share of the person investing in the company by the total additional investment amount must be at least $500,000 USD, equivalent foreign currency, or equivalent Turkish Lira, in the event that the foreign investor holds a specific shareholding in the company that makes the investment.

Other Ways To Get Turkish Citizenship By Investment

Turkish citizenship can be attained in three to six months. Turkish citizenship by investing is popular among foreigners. Up to 50% of all applicants get a Turkish passport in this manner. The applicant is free to select any investment strategy.

More than 35,000 people have acquired Turkish citizenship by fixed capital investment during the previous two years.

Investing in real estate purchase: If a foreign investor invests $250,000 in real estate in Turkey and doesn't sell it within three years, he can apply for Turkish citizenship.

Investing in a bank deposit: According to Turkish legislation, a foreign investor who deposits $500,000 in a Turkish bank for three years in a row may be granted Turkish citizenship.

Investing in buying shares: When purchasing Turkish shares from Turkish Real Estate Investment Trusts (REITs) or venture capital firms, a foreign investor can get Turkish citizenship (VCTs).

Investing in providing job opportunities for Turkish citizens: According to Turkish legislation, a foreign investor who offers 50 Turkish nationals jobs inside his firm is eligible to apply for Turkish citizenship.

Who Can Have Turkish Citizenship by Investment?

Based on actual experience, the time is related to the availability of all essential documents for Turkish citizenship in exchange for investment, to the investor, spouse, and children under the age of 18. Due to the completion of all essential papers, as well as the experience of the appointed team, the period of obtaining Turkish citizenship has become a norm of no more than two months.