Citizenship by Investment
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 in foreign currencies and create jobs.
Capital investmentYou may become a Turkish citizen if you make a US$500,000 fixed capital investment in a Turkish enterprise. The investment must be approved by the Ministry of Economy prior to making the citizenship application.
- The trade registry gazette, which will lay out the partnership structure of the legal entity which has made the fixed capital investment, constitutes the basis of the application and the investment amount.
- A special purpose report approved by a Sworn-in Certified Public Accountant, which shows the fixed capital amount (the report must 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 a maximum of 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$500,000 is 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 a shareholder of the company which is making the investment; it is required that your percentage portion of shares corresponds to the final investment amount. (For example, if you own 25% of shares of a company, then the minimum total investment amount from the company will need to be US$2,000,000, as the minimum contribution for an individual is US$500,000.)
- 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 the fixed capital expenses of the applications to be submitted in following years, the expenses made in the maximum last 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, the 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 fulfill the related criteria.
- Funds need to have been drawn from legitimate sources in order to proceed with investment.
No nationality is officially restricted
Dual citizenship is recognized in Turkey. You are not required to renounce your previous nationality to become a citizen of Turkey.
- 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 $500,000
- Investment Family 4 $500,000
- Minimum annual income -
- Time to citizenship 3
- Time to permanent residency
- Visa-free countries 114
- Financing available No
Due to its strategic position, located between Europe and Asia as well as between three seas, Turkey is 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, the Roman Empire, the 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
To be a tax resident in Turkey, an individual must have their 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 TRY110,000.
Capital gains are subject to personal income tax. This excludes 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 are 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 (CFC) rules. This means that profits retained in foreign entities owned and/or deemed to be controlled by tax residents, may be attributable if certain conditions are met.
Real property tax is levied at rates that range from 0.1% to 0.3%, depending on the type of property. Both buyers and sellers of real property are subject to a transfer tax of 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 for 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 the Turkish corporate legal framework, taxes and tax treaties, check out incorporations.io/turkey.
This should not be construed as tax advice. We have 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