The stage of obtaining Turkish citizenship through government bonds is one of the most popular topics of interest today. Foreign investors can apply for Turkish citizenship by purchasing government bonds. Let’s always together clarify Turkish citizenship by government bonds.
It is possible to invest in government debt instruments in nine different ways. Government bonds are one of these debt instruments for Turkish citizenship.
The debt securities issued by the government to provide periodical financing, with a maturity of 1 year or longer from the date of issue, are called government bonds. The government bonds are issued by the Treasury through the Central Bank and can be invested through banks. Government bonds are created on the date of issuance, which marks the beginning of their timeline. These bonds are typically sold to investors through an auction process, where participants can bid for the securities. If the sum of government bonds and other debt instruments and investments made through one or more banks established in Turkey and/or in different time periods provide 500,000 USD or an equivalent foreign currency exchange rate, they can be subject to Turkish citizenship applications by placing a three-year blockage commitment.
In addition, the fact that government bonds or other debt instruments were purchased before the relevant Legislation is issued will not be an obstacle to Turkish citizenship transactions. However, the period from the investment date is not contained in the commitment period. In the calculation procedure, the effective selling rate of the CBRT on the date of the transaction is taken into account for each of the government bonds purchased on different dates. If 500,000 USD or an equivalent exchange rate is ensured as a result of the calculation, then Turkish citizenship procedures can be applied with a 3-year commitment to each transaction. Changes in exchange rates after the purchase date will not influence the investment amount. Moreover, the blockage put on the last investment in gradual investments is considered as the beginning of the commitment period.
Files of investors who purchased 500,000 USD worth of government bonds and applied for a 3-year block are transferred through banks and sent to the Ministry of Treasury. In this point, the aim is to obtain a certificate of conformity. Investors who have been given a certificate of conformity can make official applications to obtain Turkish citizenship. There is no need to wait for a 3-year blockage period in order to apply for Turkish citizenship. After achieving the certificate of conformity, the application is made and even finalized.
If the foreign person who is entitled to Turkish citizenship removes the blockage before the expiry of the commitment period, the situation is reported to the relevant ministry by the banks. The Turkish citizenship of the person is canceled.
The 3-year commitment period does not restrict the investor from the gains of his investment. During this period, the investors are entitled and can use their rental interest etc. The blocking only prevents the use of the capital. In addition, it is possible to change between investment types during the 3-year period. This transition is admitted both in terms of government debt instruments and other investment methods.
Treasury Bills are also available as government debt securities. Treasury Bills are short-term government debt securities with a maturity of less than one year, often measured in days, making them suitable for investors seeking short-term options.
Instruments of Government Bond for Turkish Citizenship
The market of debt instruments contains the target of converting the prices at which investors will invest in fixed-income securities into cash at any time by determining the prices in the competitive environment of the market. There are nine different public debt instruments for Turkish citizenship. These are:
- Asset and Mortgage Covered Securities
- Central Bank of the Republic of Turkey Liquidity Bills
- Commercial Papers
- Government Debt Securities
- Income-Indexed Bonds
- Revenue Partnership Bonds
- Bank Bills
- Private Sector Bonds
- Asset and Mortgage Backed Securities
Some of these instruments, such as government bonds, may offer fixed or variable coupon rates, which determine the periodic interest payments to investors.
Moreover, pursuant to subparagraph (d) of Article 20 of the relevant regulation, foreign investors holding at least USD 500,000 worth of government bonds listed above under their responsibility will be entitled to Turkish citizenship application. In order for the investor to be entitled to Turkish citizenship within the framework of the regulation, they must have the relevant participation shares uninterrupted for three years from the date the minimum investment condition is determined.
Conditions of Obtaining Turkish citizenship by Government Bonds
The situations in which Turkish citizenship is granted to foreign investors include general conditions as explained in Turkish law. These general conditions are:
- The foreign person should be one of the nationalities covered by the law (especially with regard to the purchase of real estate).
- The bonds must meet the declared financial value in each case
- The integrity of the personal data of the investors and their families (wife and children under the age of 18) when submitted.
- A pledge to fulfill the investment period three years before reselling or withdrawing
- The money used in the investment must be transferred from abroad
- The foreign person does not pose a threat to Turkish national security
Financial Considerations for Government Bond Investment
When you're exploring the wonderful opportunity of Turkish citizenship through government bonds, we want you to feel completely confident about understanding the financial landscape that surrounds these government debt securities. We know this journey can feel overwhelming, but let us guide you through every detail with care and expertise. Government bonds, including treasury bills and other debt instruments, are lovingly issued by the Republic of Turkey to raise funds, and we're thrilled to tell you they're available in both local currency (Turkish lira) and foreign currencies. These bonds come with varying maturity dates, gracefully ranging from short-term treasury bills (less than 1 year) to longer-term government bonds (1 year or more), allowing you to select the term that perfectly matches your personal investment dreams and goals.
We understand that one of your biggest concerns will be the interest rate environment and how it influences the value and return of your government bonds. You're absolutely right to focus on this! Interest rates, thoughtfully set by the central bank and shaped by market expectations, directly affect bond prices in ways that matter deeply to your financial future. When interest rates rise, the market value of existing bonds typically falls, and vice versa - but don't worry, we're here to help you navigate this dynamic successfully. This reality means that you, as our valued investor, must pay close attention to current market conditions, central bank policy decisions, and anticipated changes in interest rates when considering your investment. We're with you every step of the way to ensure you make the most informed decision possible.
Another aspect we want to share with you - one that's absolutely crucial to your success - is the coupon rate, which represents the fixed or variable interest paid by the bond issuer. Think of this as your steady income stream! The coupon rate, combined with the bond's maturity date, determines exactly what cash flow you'll receive, and we believe you deserve to know every detail about what to expect. You can find comprehensive information about each bond, including its coupon rate, maturity, and issuer, on the official website of the Turkish Treasury or through reputable financial data providers that we trust and recommend. These precious resources also offer insights into upcoming auctions, bond prices, and historical yield data, helping you track market performance and make decisions that truly serve your best interests.
We want you to understand that yield is perhaps the most critical measure for you as an investor, beautifully reflecting the expected return from holding a bond until its maturity date. The yield curve, which elegantly plots yields across different maturities, provides invaluable insights into market expectations for future interest rates and economic growth - information that we believe you absolutely deserve to have. For example, in Turkey, the 10-Year Government Bond Yield is projected to be around 32.21 percent by the end of the current quarter, with expectations of 30.45 percent in the next 12 months, according to market analysts and historical data that we monitor closely for your benefit. We encourage you to monitor these trends alongside us, as together we can help you gauge the perfect time to buy or sell bonds.
We also want to protect you by discussing inflation - another factor that can impact the real return on your government bonds, and we care deeply about your long-term financial wellbeing. Rising inflation can erode the purchasing power of your future interest and principal payments, but please don't let this worry you unnecessarily. Some government bonds, such as index-linked securities, offer beautiful protection against inflation by adjusting payments according to an inflation index, providing a valuable safeguard for investors like you who are concerned about rising prices. We want to ensure you have every tool available to protect your investment.
You'll be delighted to know that you can participate in the Turkish government bond market through several wonderful pathways that we're happy to explain. You can purchase bonds directly from the issuer during auctions or through trusted brokerage firms that we can recommend. There are also fantastic options to invest in bond funds or exchange-traded funds (ETFs) that track government debt securities, offering you diversification and professional management that takes the burden off your shoulders. The performance of these investments can be easily tracked using market indices and yield charts, which are regularly updated on the Treasury's website - resources we encourage you to use and we're always here to help you interpret.
We want to give you tremendous peace of mind by explaining that holding government bonds until maturity generally ensures the return of the face value plus accrued interest, making them a beautifully stable, relatively low-risk investment for those of you with a longer-term horizon. However, we want you to understand completely that selling bonds before the maturity date can result in capital gains or losses, depending on prevailing market conditions at the time of sale. We're here to help you navigate these decisions with confidence and clarity.
We also want to share with you how global trends - such as those in China or other major economies - can influence local bond yields and investor sentiment, because your success matters to us and we want you to see the full picture. For instance, increased demand for government bonds in October or at the end of the year often reflects broader market expectations and economic developments that we monitor carefully to keep you informed and prepared.
When you're evaluating government bond investments, we deeply understand that you need to consider your own unique risk tolerance, investment horizon, and return expectations - and we're here to support you in that personal reflection. The issuer's credit rating and financial performance are also crucial considerations, as they indicate the likelihood of timely interest and principal repayment, and we want you to feel completely secure in your investment choice. As a bondholder, you have the absolute right to receive regular interest payments and the principal at maturity, but you must also be prepared to hold the bond for the defined term or manage the risks associated with early sale - decisions we're always ready to help you make.
In summary, we believe that government bond investment offers you a magnificent gateway to stable returns and portfolio diversification, especially for those of you seeking Turkish citizenship by investment. By staying informed about market conditions, interest rates, inflation, and the specific criteria of each bond - with our caring support and guidance - you can make wonderfully well-founded decisions that align perfectly with your financial objectives and dreams. For the most up-to-date information, we always encourage you to consult the official website of the Turkish Treasury, and please know that we're here to help you seek advice from financial professionals who truly understand your needs before making any investment decisions.
Stages of Obtaining Turkish Citizenship by Government Bonds
Obtaining Turkish citizenship by government bonds goes in several stages.
- Meeting the requirements for the program: Investor who buy at least USD 500,000 or equivalent foreign currency or Turkish lira worth of government bonds with the condition that they cannot be sold for at least three years, as attested by the Ministry of Treasury and Finance, obtain the right to apply for Turkish citizenship in an exceptional way.
- Necessary documents: In addition to standard documents, e.g. a questionnaire, a copy of a passport, confirmation of payment of state fees and photos, you will added:
- A police clearance document
- A notarized permit for the processing of the investor's data by local officials. Thanks to it, government departments will have access to information about investor’s bank accounts, assets, and real estate.
- Documents confirming the investments: These documents can contain a certificate of conformity from the cadastral service, a market assessment report, an extract from a bank or investment fund. All foreign documents must be translated into Turkish. They should be notarized and apostilled.
- Achieving a short-term residence permit: This document is issued without any problems. It is enough to indicate the purpose: to obtain Turkish citizenship by government bonds.
- Applying for Turkish citizenship at the Turkish registry office or at the embassy abroad. To the package of necessary documents, you must add a copy of the residence permit and submit biometric data. The citizenship application is considered within three months. During this time, the documents are examined by the Turkish Ministry of Internal Affairs, and the decision on granting citizenship will be signed by the president.
- Take a Turkish passport: The applicant of citizenship comes to Turkey and receives a passport. If this condition is not possible, the documents can be obtained by a lawyer.
After applicants of Turkish citizenship have chosen the government bonds option, a residence permit application shall be made on the family’s behalf. The key applicant is then required to open a bank account in Turkey. Once all necessary documents have been prepared (including applicable certifications and translations), the investment can be completed and the documents submitted to the government. Once the application has been received by the government, the review process will begin and an interview might be requested. Applications are usually approved within 120 days, following which the citizenship documents are issued. The passport application might then be submitted.
The Procedures and the Documents Required Obtaining Turkish Citizenship by Government Bonds
A foreign person who has purchased Turkish Government bonds that are worth at least US$ 500,000 (or the equivalent in another currency) is entitled to apply for citizenship of the country on the condition that the bonds will remain in his/ her possession for three years. Foreign investor has to perform the following actions in order to become a full citizen of Turkey:
- First, you apply to the Ministry of Finance for a conformity certificate. The Ministry officers will inform you about the documents that the investor has to bring in order to obtain the certificate. Then, you apply to one of the authorized state bodies (a Civil Status Registration Department or an embassy) for citizenship of Turkey while bringing all the documents specified including the conformity certificate.
- The state body that the candidate for Turkish citizenship has applied to will consider the application. The application for Turkish citizenship can be signed and submitted by personally or via an authorized agent acting on a power of attorney.
- Documents required for obtaining Turkish citizenship by purchasing government bonds:
- Conformity document: It can be received from the Ministry of Finance upon submission of the documents that the Ministry will request.
- A document that certifies the buying of government bonds of the required worth: This can be obtained from the bank through which the payment has been made or from an intermediary company.
- A document certifying the registration of the account when the government bonds are deposited: It can be achieved from the bank or from an intermediary company.
About Turkish Citizenship by Investment Program
Established in 2017, the Turkey Citizenship by Investment Scheme ensures one of the fastest and simplest ways to secure a second passport. After initially setting the investment threshold at US $1,000,000 the Turkish government reduced it to US $250,000 in 2019 to make the CBI more attractive. Then the Turkish government issued a decision in April 2022 to raise the minimum real estate investment value to US $400,000.
Application of Turkish citizenship process is straightforward and you can become the proud holder of a Turkish passport within as little as six months. A wide several of investment options are available including US $400,000 investment in real estate, US $500,000 cash deposit at a Turkish bank, US $500,000 cash purchase of government bonds, or the creation of 50 jobs in Turkey. For example, you can become a Turkish citizen by purchasing government bonds.
Where to Achieve Certificate of Eligibility for Turkey Investor Visa?
To receive a certificate of eligibility in Turkey, investors must apply to the following institutions (based on the nature of their investment):
- Investment in real estate: It depends on the Turkish Land Registry and Cadaster of the Ministry of Environment and Urbanization.
- A capital investment: This depends on Incentive Application and Foreign Capital of the Turkish Ministry of Industry and Technology.
- A deposit in a Turkish bank account: This type of investment depends on the Department of Financial Consumer Relations of the Banking Regulation and Supervision Agency.
- Investment of government bonds: It is related to the Turkish Ministry of Treasury and Finance.
- Purchasing real estate investment fund share or venture capital investment fund share: This connected to the Department of the Brokerage Activities of the Capital Markets Board of Turkey.
- Establishing a company that will employ at least 50 people: It is related to the General Directorate of International Labor of the Ministry of Family, Labor and Social Services.
Conclusion
Turkey is an excellent country located in Western Asia and is a country. This country shares a border with Greece, Bulgaria, Georgia, Armenia, Iraq and Syria. Turkey is located in both Europe and Asia where 97% of the country is placed in Asia. Turkey is a country famous and delicious for its cuisine. Moreover, it has a rich history. Citizenship in Turkey can be obtained by investing in real estate, government bonds or making a bank deposit.
