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Turkey

Citizenship by investment

On January 2017, the Government of Turkey published in the TC Resmi Gazzete (Official Gazzete of Turkey) an amendment of the Regulation on the Implementation of Turkish Citizenship Law. The amendment established a citizenship scheme, under which, foreign-nationals, and their dependents, who contribute economically to the country, may become Turkish citizens. Economic contributions must be oriented to stimulate the real estate market, bring foreign currencies and create jobs.

investment


Capital investment

You may become a Turkish citizen if you make a US$2,000,000 fixed capital investment in a Turkish enterprise. Investment shall be approved by the Ministry of Economy, prior citizenship application.

Requirements


- Trade registry gazette which shows the partnership structure of the legal entity which has made the fixed capital investment which constitutes the basis of application and the investment amount
- Special purpose report approved by a Sworn-in Certified Public Accountant which shows the fixed capital amount (The report shall contain information regarding fixed capital investments made after the publication date of the regulations. In applications to be submitted in following years, fixed capital investments made within maximum 3 years before the application date shall be taken into consideration within the scope of the report)
- Proof that the direct foreign investment in the amount of US$ 2,000,000 are transferred to the equity capital of the company and submission of the related foreign deposit account receipt in the same Sworn-in Certified Public Accountant report
- If you are the shareholder of the company, which makes the investment, at a certain rate; it is required that the amount to be obtained by multiplying the rate which corresponds to the your share in the company that makes the investment with the total investment amount is minimum US$ 2,000,000.
- In determining the fixed capital amounts, the publication date of the regulations, 12 January 2017 shall be taken into consideration. Fixed capital investments made before that date shall not bestow a right to apply for citizenship.
- When calculating for the fixed capital expenses for the applications to be submitted in following years, the expenses made in the last maximum 3 years shall be taken into consideration.
- If the additional fixed capital investment is made to a currently present investment, the increase in the amount of fixed capital investment as of the beginning of the additional investment shall be taken into consideration.
- If you are determined by the Administration to have applied with false or misleading documents, citizenship procedure shall be suspended and a notice shall be sent to the Ministry of Interior for your denaturalization. Further applications to be submitted by persons who have applied with false or misleading documents shall not be taken into consideration even if they fulfil the related criteria.
- Funds shall be legitimate to proceed with investment.

Restricted Nationalities


No nationality is officially restricted

dual citizenship


Dual citizenship is recognized in Turkey. You are not required to renounce your previous nationality to become a citizen of Turkey.


Documents Required


  • Documents certifying Business Investment
  • Original and photocopy of passport
  • Four passport-size photos
  • Medical Certificate
  • Original Police Clearance Certificate
  • Original or Certified copy of Birth Certificate (if applicable)
  • Original or Certified copy of Marriage Certificate (if applicable)
  • Certificate of shareholders by the Registrar of Companies (if applicable)
  • dual citizenship Yes
  • Family members included Yes
  • land ownership Yes
  • Physical residence required No
  • Personal visit required No
  • Language skills required No
  • Interview required No
  • Investment Single $2,000,000
  • Investment Family 4 $2,000,000
  • Minimum annual income -
  • Time to citizenship
  • Time to permanent residency
  • Visa-free countries 105
  • Financing available No

Country details

Turkey
TRY
90
Ankara
Asia
Turkish
77804122
The Republic of Turkey is a transcontinental country located in the crossroads between Europe and Asia, that extends across the Anatolian and Thracian peninsula in the Balkans area. It borders to the northeast with Georgia, to the east with Armenia, Iran and Azerbaijan, to the north with the Russian territorial waters in the Black Sea, to the northwest with Bulgaria and Greece, to the west with the Greek islands of the Aegean sea, to the south with the Cypriot waters, the Mediterranean Sea and Syria, and to the southeast with Iraq.

Due to its strategic position, located between Europe and Asia as well as between three seas, Turkey has been a historical crossroads between Eastern and Western cultures and civilizations. Its territory has been home to several great civilizations such as the Persian Empire, Ancient Greece, Roman Empire, Byzantine Empire and the Ottoman Empire, among others.

The country is inhabited by 80 million people. Its capital is Ankara, although its most populated city, as well as financial, cultural and commercial center, is Istanbul. Its official language is Turkish and its official currency is the Turkish Lira (TRY).

Visa Free Travel

With your new passport from Turkey you'll be able to access 105 countries visa free
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Taxes

To be a tax resident in Turkey, an individual must have its legal residency in Turkey or stay at least 6 months per year in the country. Persons who stay more than 6 months due to a temporary assignment, may be considered as non-residents.

Residents are subject to tax on their worldwide income, while non-residents pay taxes on their Turkish-source income.
Personal income is taxed at progressive rates up to 35% on income exceeding TRY 110,000.

Capital gains are subject to personal income tax, except gains from the sale of real property held for more than 5 years. Certain gains derived from the sale of shares and capital market instruments may be tax exempt.

Dividends received from local entities is usually 50% tax-exempt, those from non-resident entities are fully taxable. A minimum tax-exempt threshold may apply.

Interest income is taxed between 0% and 18% depending on its nature. Rental income is considered taxable income, but an exemption may apply subject to certain conditions.
Turkey has enacted controlled foreign companies rules. This means that profits retained in foreign entities owned deemed to be controlled by tax residents, may be attributable if certain conditions are met.

Real property tax is levied at rates that ranges from 0.1% to 0.3%, depending on the type of property. Both buyer and seller of real property are subject to a transfer tax at 4% (2% for each party).
Gifts are taxed at progressive rates from 10% to 30% and inheritances between 1% and 10%.

There is no wealth tax in Turkey.

V.A.T. is levied at a 18% rate. Reduced rates of 8% and 1% may apply to certain goods and services.

With regard to corporate taxation, resident entities are subject to a 20% income tax on their worldwide income. To learn more about Turkish corporate legal framework, taxes and tax treaties, check out incorporations.io/turkey.

This should not be construed as tax advice. Flag Theory | Passports.IO 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.

  • Property tax Yes
  • Transfer tax Yes
  • Inheritance tax Yes
  • Net worth tax No
  • CFC law Yes
  • Tax residency days 183
  • Personal income tax rate 35%
  • Capital Gains tax rate 35%
  • Investment income tax rate 17.5%
  • Territorial taxation No

Procedures

Flag Theory | Passports.IO and our attorneys in Turkey, will guide you through each step of the process to ensure that it is as fast, efficient, pain free as possible.

First, we will do a due diligence check on you to ensure that you are eligible.

If required, we will provide you access to our network of advisors in Turkey, in order to find the investment opportunity that best suits your needs. We may introduce you to banks in order to open a bank account and transfer your funds.

Once you have made the capital investment we will prepare all the documentation required to apply for the citizenship and handle all paperwork with the Ministry of Economy. We will send you the application forms, and provide assistance to complete the questionnaires.

Once we have the confirmation from the Ministry of Economy, we will submit your citizenship application to the Ministry of Interior.
The application should be processed in a maximum period of 3 month. After your application is approved, you will receive your certificate of naturalization. Then, you may apply for the Turkish passport.

For further information on Turkish Citizenship by investment, contact us for a free private consultation.

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